The Week That Was

Sat, Sep 15, 2012 - 12:03pm

I tried to warn you that this week was going to be wild. I expected the pressure and intensity to ramp up with each successive day and it most certainly did. By Friday, everyone was ready for the weekend. That's fine but, come Monday, you'd better be ready.

What a fantastic week we had. Made even more special by the fact that we were set up for a disaster. Recall that I had been warning you for about 10 days that a Cartel Raid seemed on the horizon. They looked like they were once again setting everyone up for a massive beatdown. By the looks of the CoT yesterday, I was exactly right.

The situation, as it turned out, was eerily similar. Let's take a look:

December 2011: The price of gold bottomed late in December 2011 at $1525. The CoT also "bottomed" at a total gross Cartel short position of 325,960 and a net short ratio (gross shorts divided by gross longs) of 1.98:1. The price of silver bottomed at $26.40. The silver CoT bottomed with 55,356 gross shorts and a net short ratio of 1.34:1.

Jan-Feb 2012: The metals then took off on a two month rally, peaking on Tuesday, February 28. Gold reached $1790 (+17%) and silver made it to $37.50 (+34%). The CoT taken that afternoon showed a complete reversal from December. Now the total gross short position in gold was 390,412 with a net short ratio of 2.69:1. The total gross short position in silver had reached 78,395 and a net short ratio of 2.32:1.

And what happened the next day, 2/29/12? Using The Bernank's Capitol Hill testimony as cover, the bid side of the metals was overwhelmed by Cartel manipulation and a 3-month, short-covering beatdown ensued.

Gold bottomed again almost exactly three months later on Wednesday, May 30, 2012 at $1537. Two days later, the employment report for May was released and QE has been on everyone's lips since. On Tuesday, May 29, the CoT once again looked like this:

May 2012: On 5/29/12, the total gross short position of The Gold Cartel stood at 300,917 and the net short ratio had fallen all the way to 1.77:1. In silver, the gross short position was back to 60,151 and the net short ratio had fallen back to 1.31:1.

It had all been a set-up. From the lows in December, spec money flowed into the metals and The Cartels welcomed every dollar. At the peak, The Bernank was rolled out in front of the cameras to put off QE and The Cartels attacked. Over the next 90 days, they covered all of their fresh shorts and then waited all summer to play the game again.

August-September 2011: The final bottom for gold occurred on June 28 at $1552 and silver reached $26.21. The CoT on June 26 was once again at a "bottom", too. On Tuesday, July 10, the total gross short position of The Gold Cartel was 316,165 and the net short ratio was 1.93:1. The total gross silver short position was 62,478 and the ratio was 1.29:1.

As of this past Tuesday, September 11, look how things had changed again. Prices had risen considerably. Gold closed on Tuesday at $1735 (+12%) and silver closed at $33.56 (+28%). The total Gold Cartel gross short position was once again 380,239 and the net short ratio was 2.66:1. The total Cartel gross silver short position was 79,478 and the net short ratio was 2.47:1.

The Cartels had set us up again. The point is this: If the Fed had "disappointed, if The Bernank had put off all new QE until after the election, there can be zero doubt that we would have, once again, seen a massive, manipulative raid on gold and silver.

In hindsight, do you recall the very sharp and brief spike down that occurred about 10 minutes before the Fedlines were released on Thursday? This was almost certainly someone or something with foreknowledge of the raid, attempting to front-run The Cartels. By now, we all know what happened, instead. Rather than being "saved" by The Bernank and using "no QE" as cover to screw everyone once more, QE~ was announced and now The Cartels are trapped!

We'll use the days ahead to go into greater detail on the implications of this but rest assured for today that sharply higher prices are coming. QE~ only serves to increase the global demand for physical metal. This demand will underpin any attempts by The Cartels to start a selloff. Over time, they will be forced to cover at an accelerating pace, similar to April 2011 in silver and August 2011 in gold. There will be panics and you can count on every dirty trick imaginable being thrown at the "markets". This time, however, it's not going to work. With QE~ as a backdrop, every dip will be bought, each successive low will be higher. The overconfident and greedy fools could/should have used this time to draw flat and perhaps even go net long. Instead they arrogantly chose to play their games one more time. This time, however, they will lose. The game is over and the fireworks have begun, even if the players seemingly haven't yet heard the final whistle.

Only one reading assignment this weekend and it's this piece from Brandon Smith at Alt-Market. This is one that you need to read carefully and then print it off and keep for posterity.

Lastly, once again I beg everyone to recognize that this main thread is for the discussion of precious metals and issues affecting such. It is OK to reference events in the MENA as the current situation there clearly has an impact on the global economy, the price of oil and the equity markets. It is not OK to get into pissing matches regarding "radical Islam", "Zionism", "American Imperialism" and the like. There are forums for that and I've even gone to the trouble of setting one up for you: Going forward, I am simply going to delete and remove comments from this main thread that I feel are set to hijack the discussion and turn people away from the education that this site provides. No exceptions. Got it?

OK, with that, I wish everyone a fantastic and restful weekend. Come back on Monday prepared for another wild and crazy week.


About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 16, 2012 - 11:16pm

Paulsen writes

Paulsen writes and misses what I took from the interview with Ob's half brother George, George says that the reason that he lives in a 12x12 hut with no signs of assistance from his half bro Barak, the Pres of the US, is because George has a completely different opinion of their shared fathers political ideologies than his 1/2 bro Barak. George points to examples of why his fathers political ideas of marxism and socialism were a complete failure for Kenya, George even admits that he would prefer British colonialism over the current political climate of his country, which is what his father had all wrong attempting to defeat the colonialists and what Barak is attempting to steam roll on to American people in his mind the ultimate colonialists empire. Do you think maybe more than a few people are maybe getting just a little uncomfortable supporting this guy?, maybe coming out of their trances? the Obama narcotic must be for some their ultimate high, I cannot even imagine it.

If you have not seen this flick, you are missing the most thought provoking program ever produced on the programing of Obama

Sep 16, 2012 - 11:09pm
Sep 16, 2012 - 11:09pm

Good points DPH.  In

Good points DPH. In particular the need to distract China from ME, since that is what ME is really about. I can't believe they're still pulling this weapons of mass destruction sh*t.

Sep 16, 2012 - 11:06pm

Oh, crap^2

I followed this link from a comment on that ZH article. Why, oh, why didn't I take the blue pill?

Sep 16, 2012 - 10:56pm

Unfolding events

There is no shortage of events that are unfolding almost anywhere you look on a daily basis and the rhetoric is definitely beyond a diplomatic tone at this point in many of the confrontational issue's involved.

All of them are contributing to each other although they separate issue's and far removed from each other geographically and some seemingly unconnected yet still intertwined.

In todays 24/7 global MSM network, events half-way around the world are almost instantaneously relayed to everyone who cares to keep informed of such things and I think the speed of all the news combined makes everyone (Govt.'s especially included) hyper-aware and thus the possibility of them becoming hyper-responsive increases in a a quickening and tightening circle of a completely threatening and negative feedback loop.

At this point imho, the war machine has been 'ON' for quite a while and idling on high in-between the Iraq withdrawal and Afghanistan draw down. At this point, there is no shortage of 'players' who are painted into a corner one way or another that can't and won't back down. The hammer is pulled back.

GL had a very good post above about dead and missing people diplomatically and politically. That is exactly what one might expect in a pre-war build up of spy on spy and just plain old political / military assassinantion that always happens in a pre-war setting. Consider the Archduke Ferdinand example as to what could happen with one of these small brushfires that are cropping up.

We're headed towards war right now and at this point it's only a matter of how widespread. My opinion is that many things happen right around the same time in a spread out manner that gives the impression that the region (MENA/Asia) is at war and by perception in a 24/7 newscycle the world itself.

A negative feedback loop that feeds itself and is irresistibly reinforcing itself out of nationalistic pride and tendencies all over the place.

Once those gears start turning it's hard for them to stop logistically and in a primitive warrior way. You don't mass yourself on someone's borders and blow your bugles and raise your flags and have possibly the biggest naval armada ever assembled in one region and then say "Never mind, I'm calling it all off"

To be sure, this 'Iran situation that the U.S. is determined to play out someday has been in the making for decades and not just because of this nuclear concern although that is the rallying cry of concern right now. Also, this China/Japan thing right now is seemingly out of the blue but in reality it's been an issue for quite some time and it's come to a head. The proximity to Taiwan and our security pledge and treaty to defend them to the fullest extent hopefully doesn't come into play.

If I start hearing Taiwan mentioned I'll start to really worry. I can't help but feel the US is behind the Japanese insistence about these islands at this time in the manner it has taken place. It would suit the US interests if China were tied up in something important to them closer to home then for China to care as much about Syria/Iran right now.

Sep 16, 2012 - 10:32pm

And, by the way

The POSX sure looks like it's headed to 78.

Off to get some rest. This week promises to be crazy.

Sep 16, 2012 - 10:25pm

Oh, crap

So I've been following this Japan v China thing, too. Kinda figured that, like most everything else, it was all bluster and that it would likely simmer down soon.

Then I saw this. WTF and HS!! How is this not big "news"?

Sep 16, 2012 - 10:15pm

Black Magic Woman ~ Belly Dancer

Belly dancers are definitely mesmerizing on some level...

Santana ~ Black Magic Woman with sensational belly dancer
Sep 16, 2012 - 9:48pm
Green Lantern
Sep 16, 2012 - 9:39pm

Another Japanese

Another Japanese Official snuffed out? Do all these deaths have anything to do with the hidden finance system and all these counterfeit bond stories you hear in the news?

Japan's ambassador to China dies amid rising anti-Japanese protests (PHOTOS)

Link copied to clipboard Get short URLemail story to a friend print version

Published: 16 September, 2012, 14:23

Chinese demonstrators carry anti-Japan banners and shout slogans during a protest over the Diaoyu islands issue, known as the Senkaku islands in Japan, in Wuhan.(AFP Photo / China Out)

The Japanese ambassador to China died in a Tokyo hospital after being admitted three days earlier. His death coincides with an escalation in anti-Japanese protests across China over a territorial dispute.

The cause of ambassador Shinichi Nishimiya’s death is currently under investigation, Japan's Ministry of Internal Affairs said. Three days ago, Nishimiya was found unconscious near his Tokyo home after leaving for work.

A second day of demonstrations took place across China against Japan's territorial claim to a group of disputed islands in the East China Sea. China does not recognize Japan's claim to the isles, which are known to the Japanese as 'Senkaku' and as 'Diaoyu' by the Chinese.

Was it James Bond Or Fake Bearer Bonds?


The day before the 11h anniversary of the September 11 attacks, 73-year old Japanese Finance Minister Tadahiro Matsushita was found hanging in his home:

Japan Banking Minister Matsushita Found Dead at His Home

Now, if you’re like me, your antennae are immediately pulsing with suspicion over this one. My intuition is telling me this is another case of “murder by suicide,” because Matsushita was part of the new Japanese government’s attempts to get to the bottom of the plundering and corruption of that country by the decades’ long oligarchical rule of the Liberal Democrats. As I have blogged elsewhere on this site, the circumstances of the political changes sweeping Japan have jeopardized the decades’ long relationship between the Liberal Democrat oligarchy of that country and its American counterparts. Shortly after that party lost power, the new Japanese government made moves on the international political stage that indicated Japan was attempting to patch up the rift with China caused by the war, and, you’ll recall, there was even talk of a visit by Emperor Akahito to Beijing, an unprecedented step. The Japanese Government also around the same time quietly began suggesting that it was time for the US to remove its base from Okinawa, a request, you’ll recall, that received nothing less than a veiled threat from US Secretary of Defense Robert Gates. A little later we had Fukushima.

The corruption of the Liberal Democrat Party of Japan could only conceivably be matched by the Dummycrooks and Republithugs in this country. It was, for example, an LDP Prime Minister, Tanaka, who came up with the now infamous case of the notorious “57 bonds”, bonds that – to put the story very succinctly without getting into the details (the details would take all month to blog on a daily basis!) – were deliberately issued and designed to be peculiar,different than normal Japanese Government securities, and this design included “errors” of grammar, and so on.

The reason for this strange circumstance? Very simple: so Tanaka and his cronies could later claim the bonds were fake or counterfeit if their holders should prove to be “uncooperative”, or, alternatively, redeemed only at a sharp discount. Now, if this is sounding vaguely familiar, that’s because it is, for the same pattern, you’ll recall, was suggested in all those Bearer Bonds Scandals that I’ve been blogging about here for over a year. Dig a little further into Tanaka and you’ll discover that he and his LDP cronies created these “57 bonds’(so-called because they were issued in the then-Emperor Hirohito’s 57th year of his reign) as a means to swindle bond holders twice, when a previous scheme of bonds that had come due, and which Tanaka’s ministry of finance could not pay. The bond-holders were persuaded to swap their legitimate government bonds for the “57s”, which could, because of their design peculiarities, be subsequently denounced as fake.

Dig even further into Tanaka, and you’ll discover some interesting connections to Richard Nixon, and a hidden system of finance… but that, of course is another story.

For now, the official story is Minister Matsushita committed suicide. You can bet he didn’t, and that this story bears watching

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