Greetings From FreedomFest

Fri, Jul 13, 2012 - 12:57pm

As part of my "vacation", I've spent the last two days at "FreedomFest" in Vegas. It has been terrific.

FreedomFest is a 3-day conference revolving around libertarianism and Austrian economics. Yep...right up my alley. And it was in Vegas! Also, right up my alley.

In the past two days, I've met with Ranting Andy and Mike Krieger. I've been interviewed by Kerry Lutz of the Financial Survival Network and I've made the acquaintance of Rick Rule of Sprott and Pat Heller of Liberty Coin Service. All of this was very cool.

However, the main thrill was yesterday. I attended a small luncheon where Steve Forbes introduced The Judge. Judge Napolitano went on to speak to the group for about 30 minutes and then field questions. I got my picture taken with him and he also gave me his business card. I hope to finally schedule that podcast that I've been dreaming about! Again, very cool. The Judge then gave a 45 minute speech to the entire convention. He's just awesome. Great stuff.

Great stuff in the metals today, too. The Big Bad Wolves huffed and puffed again yesterday but once again failed to bring the house down. Santa was right in two fronts: One, they attacked and two, they failed. By no means are we out of the woods yet but nothing too scary, either. Gold remains firmly within it's 10-week basing and bottoming range of 1535-1635. Silver, too, is still in its 27-29 range. The good part of these ranges is this: Once we break out and UP...and we will be clear to absolutely everyone with half a brain that the metals have bottomed. The shorts will either get frightened or squeezed and prices will move up rather quickly. Just be ready.

Two interesting news items I found while surfing with my phone this morning. First, this link to ZH. You should check it out.

And then, while at ZH, I saw that Swiss 2-year note is now yielding negative .43%. NEGATIVE POINT FOUR THREE PERCENT! The Germans are also getting in the act as their 2-year is now -0.05%. This is truly incredible. On a hypothetical new issue, for a 1,000,000 franc, Swiss 2-year note, you would have to pay the Swiss government about 10,000 francs for the privilege. Are you freaking kidding me? You've heard me mention ad nauseam how negative, real rates are extraordinarily bullish for gold. How about just plain, old negative rates?? Holy Toledo!

Lastly, as we continue on our trip down Memory Lane, perhaps today would be a good day to review this idea of negative real interest rates. I wrote this piece back on 2/1/12 and today is as good a time as any to go back and review it.

OK, that's all. I have to head to the airport soon so I better wrap this up. Please check back later today though as I plan to update this thread with thoughts on the CoT, once it's out. I probably won't be able to do it until this evening, however. It should be an interesting report. For the reporting week, gold was down $42 while total OI rose by 2000 or so. Silver was down $1.40 and saw its total OI climb by 1400.

Have a great weekend!


About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 13, 2012 - 1:14pm

Fiat History #3

"Even as paper money was making it's debut in the colonies, barter remained the usual way to meet basic needs. Colonists traded food, household items and manufactured goods between themselves. Early bookkeeping records at Harvard University reveal that the tuition was often paid with produce, livestock, and the occasional family heirloom. Informal trading was the backbone of business. Colonial paper money could never completely displace barter.

North Carolinians relied so much on barter that their legislature eventually published exchange rates for commodity money. Thus goods that could be traded were assigned values in relation to each other. In 1715 these included tobacco, corn, wheat, cheese, deerskins, tallow, leather, beaver, otter, wildcat skins, butter, feathers, tar, pitch, whale oil, beef and pork. The legislature added rice, hemp and turpentine in 1723.

When certain commodities became standardized in trade, they were often represented in paper commodity notes. These were redeemable for specified goods on demand. Bills were easier to exchange rather than the cartloads of nails for example. Among the more famous was the beaver note, redeemable in beaver pelts.

In much the same manner, paper gradually replace commodities as a way to pay taxes. For example, the first taxes in South Carolina were payable in rice. But this was not always practical. In 1719, South Carolina issued legal tender notes redeemable in rice. These "rice bills" were payable to the bearer at 30 schillings per hundredweight (112 pounds) of rice. The fact that barter was an inconvenient way to collect revenue and the fact that paper was received at a premium gave the notes a degree of legititimacy."

from: Fiat Paper Money - Ralph T. Foster p. 100

Larry L
Jul 13, 2012 - 1:17pm

The Silver Ladies...

...continue to buy this great opportunity of silver under $28.

Have a blessed weekend!

Jul 13, 2012 - 1:20pm

Happy and relaxed

No matter how black or vast the cavern, it takes but one candle to shatter and penetrate the immense darkness.

You and The Judge are just such candles!

May many more join in, thanks TF



Jul 13, 2012 - 1:21pm

Can anyone explain

The Central Banks want increase the velocity of money. The are trying to provide a disincentive to large depositors, with the thinking that the banks will seek higher returns by lending in to the economy. But the flaw is that the banks are all broke and really need the safety and security of .25 bp.

Good Luck to All!

Jul 13, 2012 - 1:21pm

Art Cashin,

along with Bob Pisani, just might be the only two members of the CNBS circus who have any credibility. Art has been hanging around the floor of the NYSE for about 40 years, so when he has something to say, it's often worth listening to.

About an hour ago, I heard Art say he thinks The Bernank will announce some form of QE3 next week. The Bernank will be on stage doing his annual tap-dance Tuesday and Wednesday, I believe.

Speaking of the Bernank and QE3, I follow the Yahoo message board for SLW. Don't own SLW right now, but have in the past so still interested. Earlier this week, one of the regular posters raised the question to the board, "With irates essentially at zero, what options does the FED have left for QE3?" That question opened up a lengthy thread discussing possibilities. Ultimately, the most common thought was to focus on housing and home mortgages. There was no screaming, no profanity, no bashing involved as the thread played out for several days. Yesterday, the Yahoo police removed the entire thread! WTF? I guess it's unacceptable to TPTB to discuss such matters. Clearly, TPTB have their monkeys watching every freaking thing! Just a random, but, perhaps interesting little anecdote.

WTF? (shaking head)

wax off

Dagney Taggart
Jul 13, 2012 - 1:23pm



Dagney Taggart
Jul 13, 2012 - 1:27pm



Pailin's new hobby... Is that you, Turd?

Video unavailable
Colonel Angus
Jul 13, 2012 - 1:28pm

LCS updates???

I'm having trouble sourcing junk silver at 20x face or in getting junk silver dollars at less than about $26 apiece. Anyone else having any luck? I'm wondering because of what this might tell us about the "little guy" demand vs. the COMEX paper price. About to have to go looking at the craigslist route, which is such a pain because of some of the flakes who try to sell there.

Anecdotes are appreciated.

Jul 13, 2012 - 1:29pm

Judge Napolitano is the man

I must admit, out of all the people you've met so far in Vegas, I'm by far the most jealous that you met The Judge! I would have probably been smiling like a buffoon the whole time. Really hope you can schedule a podcast with him sometime! I would definitely be one of the first to tune into that.

The Doc
Jul 13, 2012 - 1:40pm

PFG Theft May Shut Down JB Slear & Fort Wealth

I'm beyond pissed. These segregated client thefts affect REAL PEOPLE!!
Folks here know how MFG made off with Turd's cash.
PFG has done the same to JB Slear's Fort Wealth, he advised me this morning that all their funds are still frozen, and all of Fort Wealth's as well as his own personal positions were forcibly liquidated by Jefferies...get a 33% haircut to the settling price for his contracts!!! The client theft may likely completely bankrupt Fort Wealth.

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Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
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Key Economic Events Week of 7/1

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Key Economic Events Week of 6/10

6/11 8:30 ET Producer Price Index
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Key Economic Events Week of 5/20

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