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 ()


Urban Roman Jan Roos
Jul 13, 2012 - 5:03pm

@Jan Roos

My take on it, for what it's worth, is that facts are not whatever Porter Stansberry finds floating around in his toilet bowl every morning.

Google "Marion King Hubbert". Then go to The Oil Drum and, if you're mathematically inclined, search for "Hubbert Linearization". It does a really good job of estimating reservoir capacity from noisy production statistics.

It's also worth noting that the Hubbert curve predicts that our oil supplies will last 100 years, but we won't be burning 20 million barrels a day by then.

Jul 13, 2012 - 5:05pm


Not one in 1000 will get this, and that is fine, but for the other 3 people on this board, I give you J. Pickerings "Badger-Mushroom-snake". Link is here: Enjoy!

Jul 13, 2012 - 5:06pm


Not one in 1000 will get this, and that is fine, but for the other 3 people on this board, I give you J. Pickerings "Badger-Mushroom-snake". Link is here: Enjoy!

Jul 13, 2012 - 5:20pm

Anyone else getting that feeling...

Anyone else getting that feeling like something big is about to happen? Like another milestone in the Keynesian collapse? There's not a whole lot of places one can look to see great things going on. Except of course, vegas baby. Man I wish I was there with Turd and the bunch. We need to plan Turd Parties, maybe regionally. Everyone has to wear a big yellow floppy hat. Rent out convention centers, guest speakers, after party, etc...

Jul 13, 2012 - 5:37pm



Jul 13, 2012 - 5:45pm



People are emailing asking what firm I recommend.



The ENTIRE SYSTEM is totally, completely corrupt and therefore NO FIRM IS SAFE.

Don’t be stupid. Don’t be obtuse. Snap yourself out of the Stockholm Syndrome that you are clearly stuck in.

Get ALL MONEY out of the ENTIRE FINANCIAL SYSTEM, including stocks, bonds, retirement accounts, futures, EVERYTHING.

But what about . . .

What part of EVERYTHING are you not comprehending?

One. More. Time.

If you can’t touch it, if it isn’t physically on your property such that you can stand in front of it with an assault rifle and PHYSICALLY defend it, you don’t own it, and it could be confiscated/stolen from you at any time, if it ever actually existed at all.

Jul 13, 2012 - 5:50pm

It's Like I'm Psychotic or

It's Like I'm Psychotic or Psychic or Somethin' Posted by Ann Barnhardt - July 9, AD 2012 11:22 PM MST Uh, so do you believe me now?

When I said, "Get the hell out," do you understand that I meant to GET. THE. HELL. OUT.?

When I wrote in my Going Galt Letter that the problem was SYSTEMIC, do you now understand that I wasn't just typing big, fancy words so that I could hear the soft pitter-pat of my keyboard?

When I said over and over again in interview after interview that the so-called regulatory system overseeing the futures industry was no such thing, but rather an evil, despicable mafia, administered by politicking psychopaths on the take, and staffed by affirmative action hires to provide plausible deniability and scapegoats, WERE YOU NOT LISTENING?

How did I see this coming? How could I NOT see this coming?

PFGBest, which used to be the old Alaron Trading, has stolen at least $220 million of customer funds, which is fully HALF the entire customer asset base. The firm's owner attempted suicide this morning in the parking lot outside of the corporate HQ in Iowa.

While claiming to have over $200 million in bank accounts, it turned out that PFGBest only had $10 million at most. And they had been short NINETY-FIVE PERCENT of their seg funds for at least five months, and it may be closer to two years. The reportage on the timelines is very fuzzy.

Alright. Here's where we call bullshit. Action item number one for any auditor is the independent confirmation of bank account balances. When little tiny me was audited both by the regulators AND for my annual Sarbanes-Oxley audit done by a local accounting firm, the first thing I had to do was sign the balance confirmation requests that the auditors then sent to Wells Fargo. This is the fundamental purpose of an audit. Make absolutely sure the flipping money is where they say it is.

What this PFGBest situation tells us is that the auditors were NOT independently verifying the bank account balances and were instead using internal, falsified, forged documentation provided not by the bank, but by the firm itself.

Oversight by the auditors? Mistake by the regulators? Oopsie? No flipping way, Jack.

Try: Premeditated fraud. Try: Conspiracy. Try: Full knowledge, complicity and cooperation by the regulators in covering the stolen customer funds, and all within mere WEEKS of MFGlobal.

Try: Capital Economic Treason.

Try: Life in prison or execution.

Some of the MF Global rape victims were actually bulk transferred to this firm back in November. The owner (who attempted suicide this morning) pitched a fit back in November and got about 700 of the MFG accounts bulk transferred over to PFGBest.

So, yes, there are now people, many of whom are agricultural hedgers, who have now been raped by having their equity stolen TWICE in nine months.

And yet, how much do you want to bet that a significant percentage of these people go back for more? How many of them are so whipped, and so stupid, and so convinced that they just have to be trading futures and options because that's what all of the cool kids do, that they will go right back to the Penn State gang showers with Mr. Sandusky?

How many other traders and hedgers are out there telling themselves that this STILL isn't any big deal, because it didn't happen to them?

"First they came for the MF Global customers, but I didn't say anything because I didn't clear MF Global. Then they came for the PFGBest customers, and I still didn't say anything because I didn't clear through PFGBest . . . . "

It seems so familiar.

Finally, for all of you brokers who cleared PFGBest, not only do I not have any sympathy for you, I actually hold you in contempt, and hope that your clients all sue you personally. You knew that the entire system was suicidally risk-laden and yet instead of being honest with your customers and yourselves and walking away from a known death-trap, you decided to live a damnable lie and pretend like your customers' funds were safe, because you were too chickenshit to do the right thing.

And that goes for every other broker out there right now. You know that it is just a matter of time. You know that your FCM could blow sky-high next week. You know that every assurance of integrity and solvency and "compliance" is bullshit, and has been bullshit for quite some time. You know that every bank wire and check that comes in from your clients is being deposited into the gaping maw of a living lie. You know the NFA, CFTC, SEC and the CME are lying, thieving psychopathic criminals, and that your clients are viewed as nothing but zeroes and ones on servers that can be "harvested" whenever JPMorgan or Goldman Sachs sees fit to do it, and then Tyqueesha in the back office and LaNeequa the junior auditor and Jamahl the assistant compliance manager/robosigner will be blamed. If you continue to expose your clients to that, then you are no better than the criminals, and will deserve to be sued into the ground for lying to your customers about the safety of the markets.

The ultimate catch-22: by the very act of being in the futures business, you are by definition breaching your fiduciary duty to your clients, and are thus in violation of the law.

Welcome to Communism. Welcome to hell.

Jul 13, 2012 - 5:54pm

@Col. Angus

Was milling around some local pawn shops today.........I was amazed at the amount of new stuff they had taken favorite shop that I have bought several hundred of OZ's of 90% from only had a tube of half dollas and nothing else but 3 way overpriced eagles (11 bucks) overspot.........yet I got 20 nice half's for 20X.

I had another shop that had a few morgans and peace dollas........32 bones a piece, not happening as they were in cruddy shape.

I am having less and less luck on getting the 90%, My LCS is also having some trouble. He told me that the average joe are running out and those that have it are not selling.

The pawn shops are filling up, your neighbor is selling at a massive discount to pay the much longer can they last?

Jul 13, 2012 - 6:20pm

From Ranting Andy's daily, writing from Freedom Feast

Western paper markets manipulate gold prices lower as China takes the real stuff off the market.

Manipulating LIBOR Allows Banks to Lease & Dump Gold at Artificially Low Costs

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