Let's Play "Who Said It?"

Wed, May 23, 2012 - 10:21am

As you've probably figured out, I recently received another shipment of hats, so we might as well give away another one.

So we begin today with a game of "Who Said It?" The first person to correctly identify the author of these thoughts will win a genuine, authentic and autographed Turd Ferguson hat. Of course, with google and the like, this contest may end fairly quickly but so be it. All I ask is that you read the entire passage before entering your guess.

"Under a gold standard, the amount of credit that an economy can support is determined by the economy's tangible assets, since every credit instrument is ultimately a claim on some tangible asset. But government bonds are not backed by tangible wealth, only by the government's promise to pay out of future tax revenues, and cannot easily be absorbed by the financial markets. A large volume of new government bonds can be sold to the public only at progressively higher interest rates. Thus, government deficit spending under a gold standard is severely limited. The abandonment of the gold standard made it possible for the welfare statists to use the banking system as a means to an unlimited expansion of credit. They have created paper reserves in the form of government bonds which - through a complex series of steps - the banks accept in place of tangible assets and treat as if they were an actual deposit, i.e., as the equivalent of what was formerly a deposit of gold. The holder of a government bond or of a bank deposit created by paper reserves believes that he has a valid claim on a real asset. But the fact is that there are now more claims outstanding than real assets. The law of supply and demand is not to be conned. As the supply of money (of claims) increases relative to the supply of tangible assets in the economy, prices must eventually rise. Thus the earnings saved by the productive members of the society lose value in terms of goods. When the economy's books are finally balanced, one finds that this loss of value represents the goods purchased by the government for welfare or other purposes with the money proceeds of the government bonds financed by bank credit expansion.

​In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its illegal, as was done in the case of gold (in the 1930s). If everyone decided, for example, to convert all of his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payments for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. Therefore, the financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.

​This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard."

​OK, have at it. TF

About the Author

turd [at] tfmetalsreport [dot] com ()


s1lverbullet TF
May 23, 2012 - 1:42pm

Totally agree Turd.  Don't

Totally agree Turd. Don't you think this new exchange opening in the east will really start to put pressure on these shorts? This is still going to open right? I mean TPTB aren't able to prevent its open like PAGE are they? If it does open it could force feed the Cartel a steaming pile of shit.

May 23, 2012 - 1:45pm


care to hazard a ballpark guess of what is "sooner than you think"?

if the trolls throw it back at us someday i will personally 'cane' them.

LaMachinna TF
May 23, 2012 - 1:46pm


Can you expand on that a little? Can you share?

And trust me, The End Game is coming a lot sooner than you think.

May 23, 2012 - 1:51pm

Needing help...

This guy I'm talking to on another forum says Ron Paul is a liar. Blah blah blah. Anyways, he says that Ron Paul talks about physical metals yet claims that he owns none. I'm saying you wouldn't know if he does or not.

Can I get some clarification on this? Does Ron Paul have to list his silver and gold assets being a Congressman? I know they must list a bunch of items about their wealth but how would they actually report physical? Any info would be great.

thesandbox beardeus
May 23, 2012 - 1:58pm
RTMoney beardeus
May 23, 2012 - 2:00pm

@ beardeus

Well we know he has at least one silver eagle... He pulled it out of his pocket a couple months ago in a committee meeting and silver went on sale.

beardeus thesandbox
May 23, 2012 - 2:00pm

From the article: "Paul's

From the article: "Paul's financial disclosures reveal no holdings of physical gold, gold coins, or gold equivalents".

May 23, 2012 - 2:06pm

I personally love Ron Paul

I personally love Ron Paul and I don't see how anyone could not see how he defends our Constitution but this man claims that Paul who has introduced bills to stop gold manipulation doesn't hold physical. Rather, as far as we know, he just owns paper and we all know how dangerous paper is.

May 23, 2012 - 2:06pm

An ideological question

Do you think that exchanging all your physical silver stack for $ fiat at $49, with the benefit of hindsight, would have been a good idea or a bad idea?


May 23, 2012 - 2:09pm

more dips please

Made a decent purchase today at $27.20. I ain't complaining.

May 23, 2012 - 2:09pm
May 23, 2012 - 2:10pm

the last time he had any

the last time he had any mention of coins in a disclosure was in 2002....don't think it is required to be on there as he has mentioned numerous times he buys and holds both. Don't see why he would list one that is required on forms and then just lie about holding the other... " in 2002, he continued to say he owned them in interviews. In an interview with Fox Business Network in 2010, for example, he had this exchange at about the 1:35 mark: Host: Congressman, do you buy the coins or do you invest in gold-mining shares or do you put your money into a gold mutual fund? How do you do it? Paul: I over the years have bought coins because I like to, you know, have possession, but no, I’ll buy some gold shares too. Now that’s closer to an investment, because you’re dealing with management and, you know, dealing with…maybe they hit a strike. So that’s an investment and you have to evaluate it. But coins and buying gold … I see it as not so much buying gold and betting on the price of gold going up but betting on our government ruining the value of our money. That interview would seem to suggest that he still owned and bought coins in 2010." He sees his actual coins and bullion as money and not an investment which is why he does not list them anymore and I am sure he has had legal advise on this as well.

May 23, 2012 - 2:10pm

Tpbeta, it would be nice to

Tpbeta, it would be nice to go back in time .. Hindsight is 20/20

May 23, 2012 - 2:13pm

It's still friggin printing!

World Gives Uncle Sam A Five Year Loan At Record Low Yield https://www.zerohedge.com/news/world-gives-uncle-sam-five-year-loan-reco... Broke and broker and brokest countries lending to another broke country...Bizarro world it is

Marc Grail
May 23, 2012 - 2:20pm

Re: An Ideological Question

Sure, if I'd have KNOWN that silver would retrace by 50%, then I would have converted to fiat and then doubled my stack at $27. However, there is no way to KNOW those sorts of things and I don't gamble with my stack.

My biggest question now is, what sort of real goods to turn my stack into when the price does take off and the world economic structure collapses: real estate, food, weapons, alternative energy?

May 23, 2012 - 2:20pm

@ Stock_Canines

Yes 1200 seems highly unlikely. Maybe 5 % chance of that happening. Anything is possible though. You really shouldnt care about the price unless you trading or buying on margin. When im not trading the metals i dont even look at the price. Its really irrelevant. Right now im long two contracts with a stop at 1500. I would prob go once a week glancing at the price if i didnt have open positions on the futures market. BTW all this Bullshit about QE3. Let me just say the NSA and SA M2 money supply are increasing. Its important to note whats going on the excess reserves how they have been draining. Recently the money supply has tamperted off a but its still increasing and growing at decent rate. The excess reserves is what can make the US look like Zimbabwe in a short time frame.

May 23, 2012 - 2:24pm

FUBAR and Scary beyond all

FUBAR and Scary beyond all reason.. ‘Barcode everyone at birth’ https://www.bbc.com/future/story/20120522-barcode-everyone-at-birth

May 23, 2012 - 2:24pm


If I knew the train was going to go into reverse and head back down to Argentina in the middle of the summer and then stay there until an unknown date in the future, I certainly would have sold my winter gear during a stop at the New York station and used that money to purchase new stuff for half price in the sweltering heat of South America. However, I thought for sure that we were headed for the North Pole and didn't want to risk having to buy new cloths for twice the price or leave myself naked to the freezing weather of the north. In hindsight I think I would probably have done the same thing. The only thing I would have done differently is maybe traded some of my silver for gold at the low ratio. Hindsight is truly 20/20. Live and learn. Education is never free. However, I still buy regularly and never viewed this as a short term investment, but as a long term insurance policy. Starting near a bottom will insure that in a few years you never worry about going negative. At least that is how it has worked for me. Preserving that money is more important to me than a risk for return.

May 23, 2012 - 2:26pm

I say

bad. Hindsight being 20/20, I absolutely believe it. There is no way to know what would have happened between then and now if you had sold all your silver then (which would have been difficult, what with the sailing expedition and scuba gear). But now (if you didn't sell it) you do still have it. It would be difficult to replace, even with a fist full of green paper. Much happier as is. Only thing that lets me sleep.

May 23, 2012 - 2:26pm

From infowars

Mark of the Beast: Bilderberg Pushes Mandatory Internet ID for Europe https://www.infowars.com/mark-of-the-beast-bilderberg-pushing-internet-i...

May 23, 2012 - 2:29pm


tell me why the CEO of Bear Stearns who said on a friday with bear stearns stock at 53--people should buy the stock, its fine--then monday we see $4 (or something like that) and why he is not in prison (like madoff and Enron guys--who must have not kissed butt over the years).

Tell me why Corzine is still on the loose and Sheriff Joe is being attacked by Justice Dept.

Tell me why if I get caught doing 42 in a 35 I get treated like crap, but if corzine does what he does nothing happens, Tell me why the FB and MS guys and gals are not being indicted in the media RIGHT NOW for all the bullsh*t they handed down over the last week.

This is why I have PM--to protect myself and family and I wished I knew where a safe place to move to would be without ticking off the Honorable Senator Schumer. (who by the way is being joined by other legislators. Maybe they would prefer to be paid based on the amount of legislation they pass.

Heaven forbid they get paid based on performance and deliverables like most of us have to do (this includes our President who has kind of missed the key objectives--the critical success factors.)

Back to locking in some of the rebound profits.

May 23, 2012 - 2:30pm
May 23, 2012 - 2:32pm
May 23, 2012 - 2:32pm

Re: An Ideological Question

I ask the question because only an idiot would hang onto their stack knowing it will halve in value. The next question is - under what other circumstances would you sell your stack? For example, would you sell it if you think it more likely than not it will drop in value in the next 12 months?

May 23, 2012 - 2:34pm

Dr G: the end is near

I respectfully (and unfortunately) disagree with your conclusion.

I believe we see a sudden run up due to some sort of political or financial event. When the train leaves the station, many of those missing it will be afraid to buy into PM. Its human nature. I probably have some years on you but more relevant I have a bunch of acquaintances who at gold 600 said no--wait till it pulls back--same at 740, 850, 1000, 1200, and so on. Now that we have a pullback to 1530 from 1900, these experts say they will buy at 1000.

Some of us will have sold and not buy in afraid to get whipsawed.

As for the mess we are about to enter: Tell me whats going right? Tell me how are the problems going to be fixed without some sort of overhaul. Tell me about the middle class--already pissed off by having to support the lower and upper classes AND find a way to support the family without huge tax breaks or entitlements, how the middle class is not eventually say the hell with it and rebel in some manner.

Tell me how many public employees will react when told their retirement benefits are being reduced. Tell me how that middle class will react when told their social security--which they really paid for, is being reduced and medicare also. Tell me how medicaid recipients react when told they are SOL and they wil not get food stamps any more.

Of course, that only happens if and when the US of A runs out of money and nobody to fund us anymore.

Of course, hyperinflation will not help either.

Someone, anybody (Buehler) tell me where I am wrong in the big picture and everything is going to be alright.

I just cannot see a happy ending.

May 23, 2012 - 2:34pm
Prize Fighter
May 23, 2012 - 2:36pm

If I had sold my silver a

If I had sold my silver a year ago at $48........I probably would have bought it back in the 30s. So what.

What you should be asking is, "TODAY silver is $27.50. What will you say you did on this day a year from now?"

Irksome RTMoney
May 23, 2012 - 2:36pm

@RTMoney - RP silver coin

you say:

"Well we know he has at least one silver eagle... He pulled it out of his pocket a couple months ago in a committee meeting and silver went on sale"

Not true, actually. He held up a 1 oz silver coin, but it was not a silver eagle. It was a 'round', a movie prop for an upcoming movie about 'real money'. See details here:


QE to infinity Marc Grail
May 23, 2012 - 2:37pm


My biggest question now is, what sort of real goods to turn my stack into when the price does take off and the world economic structure collapses: real estate, food, weapons, alternative energy?

I am thinking real estate and shares, and maybe some gold, as less volatile than silver but it's really impossible to know until we get there. As to food, weapons and alternative energy, I suggest you do that BEFORE SHTF, as in a collapse scenario those things, especially food, will be more valuable than silver, until some kind of normality returns.

May 23, 2012 - 2:37pm

AAPL Hedge funds Market Dips Liquidity

Interesting point of view?

Rosenthal Investing Axiom: When vitriol against sound investment analysis reaches a fever pitch, a top (or bottom) is close at hand

Based on the responses to the earlier "Stalking the Bear" articles, one would think I had questioned the very existence of the Judeo-Christian belief of a higher deity. Or perhaps I had s


Author's Note: I have not been long or short AAPL during this entire period, nor am I advocating an AAPL short position. I am merely using AAPL's dominance as a market leader to help gauge market direction. I do not have a vendetta out for AAPL. In fact, I have no emotion towards AAPL one way or the other. Word to the wise: emotion clouds judgment, be advised.

As long as we are on the topic of emotions, I suggest we all bow our heads and offer a moment of silence for those who have fallen to this nemesis of sound investing principles. Who can forget those who charged into the Yahoo breach in the year 2000 when the shares were trading at $500-per and analysts were calling for a sure $600+. How did that call turn out? Recently, we saw AAPL trading above $600 and the same analyst crowd was crowing for $1,000. The similarities raise the hair on the back of the neck.

Don't like the Yahoo example? How about the owners of Dell in 1999. Anyone else remember the monthly Dell 'millionaire' shareholder barbeques CNBC was only too happy to cover? These shareholders would look into the camera with an adorable almost infant like honesty and explain their entire portfolio was invested in Dell because it "only goes up". Haven't see a barbeque in a while. Where do they meet up now? At a local 711 for a big gulp and some Yodels. Maybe a little beef jerky if they are missing that smoky taste of barbequed steak.

and from ZH click heading...

The World's Biggest Hedge Fund Hotel Just Got Bigger - 226 Hedge Funds Owned Apple As Of March


Submitted by Tyler Durden on 05/22/2012 - 19:40Apple Goldman Sachs goldman sachs NASDAQ Reality

According to some estimates, there are currently about 500 hedge funds in the world with AUM over $100 million. This means that roughly half of these asset managers collected performance and management fees for one simple task: to hold AAPL stock. According to the latest just released Hedge Fund Tracker from Goldman Sachs, a record high number of hedge funds, or 226, were long AAPL stock as of March 31, just days ahead of its all time highs, in what can only be described as the world's biggest hedge fund hotel (California). Because the only thing that is roughly comparable to the chart of the recently parabolic move higher in the AAPL stock is the number of hedge funds holders: 216 at the end of 2011, 209 at the end of Q3, 181 at the end of Q2, 173 at the end of Q1 2011, and so on. And while they may all be long the stock for their own "fundamental" reasons, the reality is that whenever there is a scramble for safety, on margin calls or simply due to general Risk Off behavior, it is the winners that would get sold, as selling beget selling, and eventually liquidations. Only in this case, 226 hedge funds all have the same winner. So far the AAPL drop has been relatively benign, not least of all because the stockis the NASDAQ, which just happens to be the growth frontrunning of the 2012 stock market. But what happens if the Fed continues to push off the NEW QE announcement:


Credit to Seeking Alpha- Bret Rosenthal, and ZeroHedge

Given the FP fiasco where is all the pent up liquidity, Charles Biderman spoke of last week going to go?

ps. I couldn't locate Trim tabs daily vid yet , the gist was ES and Gold won"t move much due to cash raising by Managed money for Facebook IPO.

Post facebook, where is that money going to go?

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