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 ()


S Roche
Sep 16, 2012 - 4:27am

New moon....Iran

USS Stennis now in area, that makes three. UK & French navy build up complete...for "exercises". (h/t TFM poster) "

Best metric for whether attacks before Nov. If up 5+ points, Israel waits. If up or too close, Israel attacks."

Intrade now have Obama at over 66% and Romney at under 34%...up/down from 60/40 last week... thanks Ben.

“Never believe anything in politics until it has been officially denied.” Otto von Bismarck

and it has now been officially denied...Sat Sept. 15:

Israeli official signals no war is imminent with Iran

and Obama and Netanyahu are having a tiff...really? Oh well, Iran can relax....

and while the West is busy China sorts out those Japanese islands.

I hope I am wrong.

Edit: Something screwy with the formatting, Rickards quote is in quotation marks...everything else is ol' unreliable.
Sep 16, 2012 - 4:54am

$250,000 per oz. Silver

This video makes a case for $250,000 an ounce silver. $4,000 seems likely to me but $250,000 I can't get my head wrapped around.

How High Will Silver Go? - Office Series 17
Sep 16, 2012 - 6:47am

Overbought for a bit?

With the clamping of the metals here by you know who, I wonder if we are in for a bit of consolidation?

Organ says the COT report for gold is very bearish with all the new added short positions of the big guys, plus the RSI is above 81%?

thoughts on next weeks action?

Green Lantern
Sep 16, 2012 - 7:00am

Re: Catherine Austin Fitts

Perhaps our dear Mayor Turd could schedule a podcast with Catherine. I'm sure she knows of us and it would he quite a coup for Turd and an honor for all of us.

I wish those of you who knew about her would have shared her insights here a long time ago.

And while we are putting out requests for guest podcasts for Turd, I'd add Jim Rickards to the list. And I don't think it would be difficult for you to get a yes from him. Like Catherine Austin Fitts, he has worked for the elite, been on the inside, and his writing a book on how the elite operate. Man would I like to get a preview. Such an interview might bring ALOT of people to Turds doorstep. Bar none, in the last year, he has been spot on about the direction Greece, Europe and the ECB would go, the directions the markets would go, the ideal % of gold holdings prior to QE3, has been saying when QE3 would happen for months (didn't seem like his prediction was bought into by most), runs funds with other non-metal assets that he believes will do spectacularly well including military and fine art, and obviously with his role in the Iran hostage crisis gives him a great vantage point on the potential of war with Iran and what it will do for our investments. He is already busy tweeting about it including today somebody asked him about sleeper cells in the United States. He has given me no reason to ignore him yet.

There aren't too many of these type of folks around and there is simply too many analysts in this field that are making predictions based on pure speculation and incomplete understanding of the inner workings of the elite and the system that get it wrong day after day.

It's not a problem for me because I don't listen to them and I suspect most of the enlightened minds here don't. I don't know how many pundits on KWN called for Greece leaving and market crash's. Being wrong is human, but I feel sorry for all the people that are trying to protect their lifes savings and put their hard earned money on the line listening to some charismatic analyst with lots of degree's and expensive newsletters who in the end, hurt the people more than help them.

I now have a very short lists of people that I read and willing to put my hard earning money on the line based upon their analysis. I think you would be giving your readership a GREAT service by trying to enlist these two individuals for your podcasts and only add to your existing partnerships with the other insiders you've enlisted. Might even add something.

As an aside, there are a good number of people here that believe Rickards is working for the man. All who I like and respect. He has denied it on his twitter but I am always open to the possibilities and watch careful for any analysis that might give indications of this other than what the people at GATA say. Their recent analysis haven't been spectacular but Rickards has. A Turd interview might get closer to the answer.

Sep 16, 2012 - 7:12am

Marikana tragedy a wake-up call for mining

Business Times

Marikana tragedy a wake-up call for mining

BY SIMON SCOTT, SEPTEMBER 16 2012, 11:39 SOLIDARITY: Family members and relatives of arrested striking miners at Lonmin mine in Marikana show their support for the workers. Picture: SOWETAN THE tragedy at Lonmin's Marikana mine is quite clearly a defining moment for South Africa.

There is an important conversation needed about mining and society and, because of the events of the middle of August, Lonmin must play a significant role.

This conversation must be grounded in a factual understanding of what happened. For Lonmin, the starting point is to acknowledge that our own company must go through a process of self-reflection. Lonmin provides 40000 jobs, which support many more. In total, our company supports 150000 people, either directly or indirectly.


n truth, as we continue to struggle with the social ramifications of the Marikana tragedy, we also have to acknowledge that we are running a platinum mine in the most difficult trading conditions our industry has faced. The people who provide the capital we need to invest in our mines have been seeing negative returns. In focusing on the need to ensure a sustainable operation that can deliver returns, we are focusing on protecting jobs.

Of course, our responsibility goes beyond that. As a society, we have recognised the need to deal with the legacy of apartheid and the socio-economic problems that persist. Companies like Lonmin have invested extensively in addressing these gaps - providing housing, improving education, and providing skills training that leads to jobs. What the events at Marikana have shown us, however, is that Lonmin and other stakeholders, including local and central government and our employees, need to be much more effective in providing solutions. We accept that we will need to significantly improve our dialogue with all our stakeholders, but in particular with the workers who keep our operations running.

After all the horrific violence at Marikana, it is essential that we move as quickly as possible into meaningful negotiations with all stakeholders in a peaceful atmosphere.

There have been a number of articles that suggest that the remuneration practices and living conditions of the mining industry underlie the Marikana tragedy. We intend to cooperate fully with the judicial commission of inquiry that has been established to find answers to such questions.

We understand the financial pressures placed upon our employees, including the Rock Drill Operators, but it is worth noting that wages are determined by a wage agreement reached with NUM. Even before the latest talks, a 9% increase is due to be paid as of October 1. Wages are already more than two-thirds of our costs, so the money for these increases will need to be found from elsewhere. And high wage inflation directly affects the ability of the industry to maintain current job levels and create new jobs.


Sep 16, 2012 - 7:20am

SA vows to halt mining violence:

JOHANNESBURG — South African police fired stun grenades to disperse striking miners Friday, acting hours after President Jacob Zuma's government vowed to halt illegal protests and disarm strikers it fears are threatening the country's biggest industry.


Despite the police action, Xstrata said it has temporarily suspended operations at Kroondal mine "to ensure the safety and security of employees and assets" amid "rising tensions and protests." The mine employs 5,300 workers who apparently were being threatened by outside strikers from Lonmin, Ngubane said.

Strikers are calling for walkouts at mines across South Africa, raising fears for the future of the crucial industry.

Katie Rose
Sep 16, 2012 - 7:49am

Mitt Romney, Monsanto Man

I became interested in Monsanto because of the hideous birthing season I had last Spring with my dairy goats.

One died in my arms. Another nearly did. I have never been so traumatized as I was by these births. I didn't know animals could cry. Mine did. I sobbed along with them.

So I went looking for answers. And that is when I found out that all the terrible happenings were listed in one article or another as being caused by the GMO laced feed I was feeding my animals.

What good does it do to BTFD's and Prepare Accordingly if the very ones we are preparing for (our children/grand children) are potentially/slowly being poisoned by GMO foods?

Farm animals reproduce quickly. One of my four year old goats is a grand mother. We can see the generational GMO side effects much sooner in animals.

Reading about Mitt Romney's ties to Monsanto makes me want to throw up.

It appears that Monsanto owns both major candidates.

We are soooooooooooo screwed.


Mitt Romney, Monsanto Man
Wayne Barrett
The Nation, September 12 2012

*This article was reported in collaboration with the Investigative Fund at the Nation Institute, where Barrett is a reporting fellow.

Though Mitt Romney has been campaigning for president since 2006, it’s alarming how little is known about critical chapters of his business biography. Nothing spells that out more clearly than his ties to Monsanto—the current target of a mid-September Occupy nationwide action—whose dark history features scandals involving PCBs, Agent Orange, bovine growth hormone, NutraSweet, IUD, genetically modified (GM) seed and herbicides, reaching back to the 1970s and '80s. That's when Monsanto was the largest consulting client of Romney's employer, Bain & Company, and when Romney helped move Monsanto from chemical colossus to genetic giant, trading one set of environmental controversies for another.

This history matters not just because of the light it sheds on Romney's self-ballyhooed business experience but because of the litany of Monsanto corporate objectives that clash with planetary concerns. If Romney is elected, this bête noire of environmentalists will have a very old friend in a very high place.

The romance between Romney and Monsanto began back in 1977, when the recently minted Harvard Law and Business School graduate joined Bain, the Boston-based consulting firm launched in 1973, the same year Monsanto became one of its first clients. One of Bain's founding partners, Ralph Willard, described to the Boston Globe in 2007 how “Romney learned the technical aspects of the chemical business so thoroughly that he sounded as if he had gone to engineering school instead of business school,” and that Monsanto executives soon began “bypassing” him to go directly to Romney.

John W. Hanley, the Monsanto CEO at the time, has said how “impressed” he was with the 30-year-old Mitt. Hanley became so close to Romney that he and Romney’s boss Bill Bain devised the idea of creating Bain Capital as a way of keeping Romney in the fold. Unless Mitt was allowed to run this spin-off venture firm, Hanley and Bain feared, he would leave. Hanley even contributed $1 million to Romney’s first investment pool at Bain Capital. Monsanto’s Hanley is in fact the only business executive outside of the Bain founding family to so shape Romney’s career—jumpstarting the two companies, Bain & Company and Bain Capital, that account for all but two years of Romney’s much-ballyhooed business experience. Bain and Romney whispered in Monsanto’s ear until 1985, when Hanley’s successor Richard Mahoney says he “fired” them and when Romney moved on to Bain Capital.

article continues here:


How Mitt Romney helped Monsanto take over the world

S Roche
Sep 16, 2012 - 7:50am

And now...

acknowledges troops in , warns of retaliation if attacked

S Roche
Sep 16, 2012 - 7:53am

It's not just me...

will the sleeper cells trigger attacks in side america if war with Iran commences

Details Following

Yes. There are more in than . They'll move north.

1:57 AM - 16 Sep 12 · Embed this Tweet Tweet text Image will appear as a link 2h

can you envision that USA then closes down boarders, martial law, etc if these types events occur in US.

Silver Alert JohnnyR
Sep 16, 2012 - 8:00am

HA said "No, only us Brits

HA said "No, only us Brits can believe that something that says £50, is actually 'worth' £400."

If you think that's bad, in America they want us to believe that something that is worth $1770 is really only $50 - and barbaric to boot.

Sep 16, 2012 - 8:02am


Just saying, purely from the perspective that if a problem is not clearly understood, it cannot be properly addressed and, therefore, solved. The American MSM this weekend seem to be in a frenzy trying to allocate blame for all the problems with Embassies being attacked.

But, perhaps, the folks in that part of the world don't like being bombed, occupied, invaded and droned? Perhaps the folks in SoCal might not take too kindly to The Mexican Government droning Mexican Drug Cartel Leaders hiding in SoCal, especially if such attacks take out innocent American civilians.

I wonder if these thoughts were ever entered into the US psyche?

The US accounts for 4% of the population of the world, 25% of the incarcerated population of the world.

Just sayin.....

Sep 16, 2012 - 8:07am

@ Katie Rose

I am probably one of many who tries on a minor scale, to grow some of my own vegetables. I do it without economic justification, because even if I am saving any money at all, I am not saving much, just pennies / cents.

However, it is all about the quality & honesty of the food, and about a measure of independence.

I know some people who grow the major portion of what they eat from their garden. For this scale, they need to manure the earth, and they have to worry about what antibiotics and hormone supplements are also in that manure. There are no easy answers; perhaps they need what you have, some goats, though this is sort of un-neighbourly in an urban area.

Back to the honesty and integrity of food; one holiday when I was cycling on Crete, we stopped off at an improvised cafe, being an extension of somebody's house. I ordered tomato salad, and was surprised that this consisted of nothing more than a sliced tomato, with a simple dressing. Nonetheless, it was a taste explosion. I promptly ordered another, and I am still dreaming about it. I had tasted real tomatoes before, but I never knew they could taste like that.

By contrast, I never tasted worse food than what was on offer in New York.

What I grow for myself, cannot match Crete, but it beats the supermarket. And I'm sure that the benefits extend far beyond just the taste.

A typical supermarket trick, is to canvas public opinion on the importance of price. No surprises, it always ranks highly, and then justifies bullying producers into more mechanised 'modern' processes. They never ask the consumer 'are you prepared to sacrifice quality for price.'

I agree with you that the food issue is a time-bomb waiting to happen. I don't think that the lifespan of this generation, will match that of their parents.

Sep 16, 2012 - 8:14am

@S Roche

Taking Green Lantern's point about the value of Jim Rickards as a source of info, there is one caveat which others have pointed out prior to me, and with which I agree.

He sometimes makes comments that give him away as being an Israeli, even zionist sympathiser, typically through (by his own standards) making comments about Iran that are emotional and off the hip, even sensational.

I very much doubt that Hezbolla or Iran have sleeper cells in the USA. I don't care if Rickards was involved in the Iran hostage negotiations in 1979; when it comes to MENA, he is pushing an agenda and I caution anybody to give the same credence to his views on that, as they do for matters of the FED and the economy.

to whit, don't worry about his tweet.

Katie Rose
Sep 16, 2012 - 8:27am

@Katie Rose

If I were a praying man you would be at the top of my prayer list, but as some wise folks one said, "we are it, we are on our own." I am in awe of your courage and gentle spirit. As long as there are people like you out there I have hope for our future.

Roger McGuinn - May The Road Rise Up To Meet You.wmv

Sep 16, 2012 - 8:43am

Now here's an exciting new bullish App:

Now, you can buy gold, silver on mobile phone

The latest addition to the mobile app space is the one by the 125-year-old non-banking financial giant Muthoot group

Press Trust of India / New Delhi Sep 16, 2012, 15:51 IST

After enabling purchase of books and clothes among items, as well as internet banking and share market dealings, new mobile applications have been developed to allow consumers buy precious metals like gold and silver. With nearly 15 million mobile subscribers being added every month in the country, the mobile application market has emerged as a major growth area for developers and there are estimated to be about 2.5 lakh app developers in India alone.

The latest addition to the mobile app space is the one by the 125-year-old non-banking financial giant Muthoot group, which has launched 'Muthoot Group Apps' for Apple and Andriod phones and tablets. The app will allow consumers to purchase gold and silver coins, besides giving investment reports among other things.

"In the present scenario 'convenience' is the most important criteria wherein the customer can book/buy from the comforts of his/her home and get over the delivery hassles/ billing counter. "We believe that in the coming years, the sale of gold and silver coins via internet will become as popular as internet banking and online travel and tour booking," Muthoot Group Managing Director George Alexander Muthoot told PTI. ...

beinki SE
Sep 16, 2012 - 8:57am

SE you are mis informed on colloidal silver

With proper use the .9999 silver I use will make thousands of gallons of ionic silver. People who use scotch brite scouring pads to clean the silver rods loose more silver in cleaning it then making it-suggestion use copper pad for cleaning, it is near same hardness and won't remove silver. as for argyria, I know of no one who "turned blue" from using a true ionic or colloidal silver, you probably are referring to large aggregate particles of silver chloride which will accumulate in the tissue if taken in large amounts for a long time and then when hit by sunlight causes the same effect as processing a photograph. However if you are worried about argyria the fist area that will turn is the white area of your fingernails. Hope this helps.

Sep 16, 2012 - 9:19am

Cartel Trapped? Yes they are!

"I am no stranger to rigged and manipulated markets, having spent my entire career in the healthcare field". rxman

Adrian Douglas
Editor of Market Force Analysis
Board Member of GATA
January 15, 2011 "Perversely the more the market becomes close to the tipping point the more we can expect the cartel of bullion banks to make bear raids as we have seen this last week because they desperately need to cover their short positions. However, in the case of silver and soon to be the case with gold a negatively correlated open interest to price relationship means that lower prices lead to higher open interest; in other words there is no way to cover at lower prices; the only way to cover is at higher prices. As this becomes increasingly obvious to the cartel the severity of the bear raids will decrease, particularly when the premiums in the physical market are showing that the bear raids are stimulating massive physical offtake making the predicament of the cartel ever more precarious."

Green Lantern
Sep 16, 2012 - 9:23am


I very much doubt that Hezbolla or Iran have sleeper cells in the USA. I don't care if Rickards was involved in the Iran hostage negotiations in 1979; when it comes to MENA, he is pushing an agenda and I caution anybody to give the same credence to his views on that, as they do for matters of the FED and the economy.

I think I can safetly say that few on this forum that act anybodies word without applying their own critical thinking skills and coming to their own conclusions about any subjecdt. If so raise your hands. And while you might doubt his comment about the existence of sleeper cells, you don't provide any rational or analysis on your belief other than Rickards said it, I am even more reluctant to take your advice when his track record is probably better than anybody elses. I haven't taken inventory but if I were keeping track I am fairly certain he'd be on top. That is not mutually exclusive from the other possibility that he is working for in some way for the elite. I still want to see more concrete evidence than generalizations. I could be wrong but I think that represents a neutral, objective stance that just says, demonstrate it to me. And their are some good arguments but still do not meet the preponderance of the evidence if I am on the jury.

As far as sleeper cells are concerned, my overriding concern with anything anybody posts here about war, terrorism, politics or actions of the fed is HOW CAN I PROTECT and GROW my wealth with the information you provide. If I can not determine how the information is useful, I put it on the shelf. Now more and more people are starting to provide analysis of what war in the middle east, terrorism or martial law would do to our investments. Obviously Rickards and most recently Eric Sprott. And I am a big fan of Eric Sprott as well.

So it is my believe that anybody who summarily dismisses any scenario and doesn't create a strategy to prep under those conditions is ill prepped. Especially how any of these events will effect our investments.

Rickards aside, there is an avalanche of evidence both in the mainstream press and alternative press about the presence of sleeper cells in the United States. You could spent days researching it but here is a good start

In addition, I live in a huge melting pot with a very very large Islamic contingent. So my guess is I see things that most people in small cities and urban settings do not. I'm positive of it. And I keep my eyes open . As a matter of fact, I eat in their restuarants, buy their products (their olive oil is kick ass), smoke their hooka's in their coffee shops, listen to their conversations and interact with them when I have a chance. I want to know what they think and what better way to know but to ask. And for the record, they aren't all haters and terrorists no matter what their holy book says.

But for days on end, there have been in the main stream media reports on how the US's largest police department, very big task force, has been infilitrating muslim insitutions, mosques etc... Not to mention the occasional flag burnings and arrests that most never see in their home towns. Arrests that have been made are regularly reported. Much of the fuss is regarding civil liberties but much discussion on sleeper cells. When it happens in your neighborhood, you pay attention and you do not dismiss it. when your security is at risk, screw what people belief, and act upon what you see! And I see alot.

There is enough evidence to suggest that what Rickards is saying is in alignment with many independent experts and to dismiss something just because it comes from Rickards is no better than assuming what he says is true without critical thinking. I dismiss nothing until I have enough evidence to make a reasonable, informed judgment on anything. And yes, that can be alot of work and independent research. But in the end, I think my life savings is worth the due diligence without coming to quick conclusions. There are alot of other things to be concerned about liberty, safety etc... But since this is an investment forum, my primary focus is how can I use this information to benefit my investments. With all due respect, I ain't dismissing it. Have given thought on what to do with my investments if this scenario comes to fruition. And now that Rickards said it, I'm keeping a more vigilante eye on it. But I will come to my own conclusions. I am nobodies boy.

EWS111 beinki
Sep 16, 2012 - 9:32am

@ Mariposa - Colloidal Silver

Thanks for your informative post. I would like to make a simple Colloidal Silver Generator. I'd heard 12 to 18 VDC is best but would like additional info on subject.

Perhaps someone should start a new forum dedicated to all aspects of colloidal silver

Sep 16, 2012 - 9:34am

@Green Lantern

Hi Lantern.

There may or may not be a threat from radical Islam, or sleeper cells on US or UK soil. It sure doesn't hurt to stay alert.

However, the topic is what Rickards said on the matter. Quote: "Yes. There are more in than . They'll move north."

Not to you you in particular, but prompted by your reply; the above statement by Rickards is absurd beyond words. I bet he'd be embarrassed if he was asked if he really believed that.

It could well be that somebody in intelligence told him that. He should know better than to quote such hyperbole in turn.

There may well be Hezbollah in Paraguay ready to move north; why lie or be sensational about their numbers?

Everybody has their sphere of expertise. You can't ignore Rickards on matters of the Fed or the economy. If Robert Fisk had made that statement on Hezbollah, I'd be worried, but not Rickards. On matters of MENA, Rickards is not objective, but very subjective. To be fair, I'd not pay attention to Robert Fisk if he started writing about the Fed; it isn't his sphere of expertise.

So to the issue of filtering out what is relevant and reliable from what is not, for the purposes of making our security and investment decisions: I hope I am being helpful if I bring attention to anybody reading this post, an observation that it is good to listen to Rickards on the topic of the Fed, and ignore him on MENA.

TomMack Pining 4 the Fjords
Sep 16, 2012 - 9:36am

pining 4

VP and VM!!! tks and STACK

Haole Guy
Sep 16, 2012 - 9:41am

@ Ivars

Ivars props! I'm seeing more and more Turdites making an impact on the PM community

Sep 16, 2012 - 9:43am

EU Banking Union: EU Finance Ministers Clash Over Plans

Europe at loggerheads over banking union

European finance ministers clashed over plans for a banking union on Saturday, with Germany leading criticism of proposals to introduce a single banking supervisor by January.

9:42PM BST 15 Sep 2012

Ministers were meeting in Cyprus to discuss the European Commission's proposals for the European Central Bank (ECB) to be given the role of supervisor, with extensive powers to regulate banks.

The appointment of a single bank supervisor is a crucial step toward a wider European banking union, which could see the European bailout fund offer direct help to troubled banks. However, ministers disagree over the detail of the proposals.

German Finance Minister Wolfgang Schäuble said it would "not be possible" for the ECB to assume its new duties by the new year as planned.

The Commission proposals say all 6,000 banks in the eurozone should be monitored by the new supervisor but Germany has warned it will take time to create the "sizeable apparatus" to do so, and that the supervisor should begin by monitoring only the largest banks that pose the greatest risks.

Michel Barnier, the European internal market commissioner who designed the proposals, admitted the timetable was "tight and ambitious" but insisted it was "realistic" and "necessary".....

DPH: If the euro was a bad idea in the first place then how is a newly created banking system going to solve anything at this critical juncture? That's like doubling down with all of the houses money and everyone else's (gold)you can literally get your hands on. Might it have been a better idea to have a unified EU banking system in place first from the beginning?

The short sightedness and muddling gridlock right now that's going on when it's probably too late is almost comedic tragedy if it weren't such a serious thing.

Sep 16, 2012 - 9:45am

Sleeper cells

I have no idea what might or might not be in play but I think it's very possible/likely that they have many agents/cells over here. I can't see why they wouldn't is where I start and end up with.

One thing for sure is if open hostilities do occur between the US or Israel and Iran is that we'll soon find out if there are cells over here because they'll activate themselves and do whatever it is they've been instructed to do. That's a bad thought on a Sunday a.m. but this is the world we live in that we might suddenly realize has been around us for a long time.

I hope Byzantium is right and there are no cells. I'm willing to bet (not really) that there are at the very least Iranian agents in Mexico just on the other side of the border where it would be easy to blend in and live and travel to the U.S.

This is a bit dated but not by that much for the subject involved.


Former CIA spy advocates overthrow of Iranian regime

Reza Kahlili, living in the shadows with a fake name and disguise, worked from inside the Revolutionary Guard. He warns of terrorist sleeper cells in the U.S. and a plot to destroy Israel.

July 06, 2012|By David Zucchino

He lives in fear, he says, because his years as a paid spy for the CIA inside Iran have made him an assassination target of Iran's government. He worries about his wife and children, who live with him in California.

At the same time, implausibly, he has become one of the most influential and outspoken voices in the U.S. advocating the overthrow of the Iranian government.

For the last two years, Kahlili has gone semipublic with a memoir, a blog, op-ed pieces and invitation-only speeches at think tanks. He warns that Iran operates terrorist sleeper cells inside the United States and is determined to build nuclear weapons to destroy Israel. The U.S. should respond, he argues, by supporting the opposition inside Iran.

He travels furtively between appearances, working as a Pentagon consultant and as a member of a domestic security task force.

"There's probably nobody better on our side in explaining the mind-set of those in power in Iran," said Peter Vincent Pry, a former CIA military analyst who directs the Task Force on National and Homeland Security. "He understands the ideological sources of Iran's nuclear program."

U.S. Rep. Peter T. King (R-N.Y.), chairman of the House Homeland Security Committee, said Kahlili has convinced him of the importance of supporting the opposition and hardening sanctions against Iran.

"I thought I knew a lot about Iran until meeting with him," King said on a New York political radio program in January. At the time, Kahlili was a guest and King was a guest-host, but the two had previously met in the congressman's office.

"If you're going to take this issue seriously, the one person you have to consult with and read his writings is Reza Kahlili," King said.

In a quiet hotel lounge in Arlington, Kahlili is not wearing his disguise or using his voice modulator for a meeting with a reporter.

"You'd be shocked by how easily agents from the Revolutionary Guard come and go inside the United States every day," Kahlili says in a near-whisper, bent over a table in a dark corner.

A soft-spoken man in his mid-50s, Kahlili is wearing jeans, a sports shirt and a black coat. He's of average height and weight, with a smattering of facial hair.

Sep 16, 2012 - 9:49am

DPH, thanks

Thanks for posting the LAT link above. Everyone should read and contemplate the implications.

Sep 16, 2012 - 10:01am

I think one should assume they are here:

U.S. seizes $150M from Hezbollah-linked Lebanese Canadian Bank

OTTAWA -- The $150 million seized by American authorities in an international Hezbollah-linked money-laundering scheme that involved the now-defunct Lebanese Canadian Bank has "no Canadian connection," the U.S. Drug Enforcement Administration says.

The U.S. treasury department and DEA said the Lebanese Canadian Bank (LCB) acted as a conduit funnelling funds through numerous countries into the hands of Hezbollah, a Shia militant group and political party in Lebanon.

The DEA said at least $329 million was wire transferred from the bank and others to the U.S. for used cars that were shipped to West Africa. Cash from the car sales was sent to Lebanon through Hezbollah-controlled channels.

"As we alleged last year, the Lebanese Canadian Bank played a key role in facilitating money laundering for Hezbollah-controlled organizations across the globe," Michele M. Leonhart, administrator of the DEA, said in a statement Monday.

The LCB has a Montreal office, but the institution is based in Beirut.

However, the bank had a "representative office" in Canada, meaning they were barred from receiving deposits and making transfers. LCB was only allowed to promote the services it provided in Lebanon.

Its license was revoked last year by Finance Canada after a complaint was filed in the U.S. about the LCB's activities.


But that doesn't mean Hezbollah isn't active in Canada.

Matthew Levitt of the Washington Institute for Near East Policy, says the group has an extensive network in Canada and it conducts primarily procurement work - purchasing dual-use technologies, for example, and redistributing them back to Hezbollah.

In December 2011, Hezbollah member Mohammad Hussein al Husseini was asked about the group's presence in Canada.

"Yes," Hussein al Husseini, who operated in Canada and was deported in 1994, responded and Levitt reported in a paper. "Hezbollah has members in Montreal, Ottawa, Toronto; in all of Canada."

In one of Levitt's reports, he says in addition to fundraising and espionage, Hezbollah has activated sleeper cells in Canada.

"But they're primarily using North America as a cash cow," Levitt said.


I certainly take it seriously - they have made specific threats before, and carried them out. Not everything is a false flag or justified by a different perspective.

Haole Guy
Sep 16, 2012 - 10:02am

Colloidal Silver Blue Man...

This is not a statement on the effectiveness of colloidal silver... But this guy cracks me up and I think of him every time I hear colloidal silver. Haha... Everything in moderation.

Blue Man

Green Lantern
Sep 16, 2012 - 10:04am

Sleeper cells

"In addition, I live in a huge melting pot with a very very large Islamic contingent. So my guess is I see things that most people in small cities and urban settings do not. I'm positive of it."

I'm kind of with you there, GL. I don't know it for a fact, but I work in DC and it is the melting pot of melting pots. If they are anywhere, they are there. I always try to pay attention to what's going on around me, both for that reason and because the DC natives can be a scary bunch as well. On any given day I'm actually more worried about them than jihadists. That could change, though, considering where it appears things are currently headed. I refuse to live in fear, though. I'm going to keep on being me and doing what I do until the time to head for the hills comes.

I also agree with your assessment that "they aren't all haters and terrorists no matter what their holy book says." Over the course of my life I have known people from all over the world. Maybe it's because I'm dealing with a skewed sample--it tends to be the best and brightest who make their way to our shores--but people I've known who come from Asia, the Middle East, Africa and just about everywhere else have shown themselves to be intelligent, friendly, polite and warm--way more so than the average American. It seems like they just want to live the dream like everyone else. Too bad it's turning into a nightmare for all of us.

Haole Guy
Sep 16, 2012 - 10:07am

Sep 16, 2012 - 10:10am

Hezbollah terrorists a capable and growing presence

Analysis: Hezbollah terrorists a capable and growing presence

Stewart Bell | Jul 20, 2012 10:14 PM ET TORONTO —

Fawzi Ayub joined Hezbollah in 1983 and became a Canadian citizen in 1992. In 2000, he was recruited into the elite Hezbollah terrorist unit known as Islamic Jihad.


Fawzi Ayub is a 45-year-old member of Hezbollah who uses the alias Frank Boschi and “should be considered armed and dangerous,” according to his entry on the FBI’s Most Wanted Terrorists list. He is also a Canadian.

After Hezbollah sent him to Romania to hijack a passenger plane, Ayub made his way to Canada. He married and worked at a supermarket until Hezbollah sent him on a mission to conduct a bombing in Israel. This week’s deadly suicide attack in Bulgaria that targeted a bus full of Israeli tourists has brought renewed attention on Iran’s shadowy terrorist operatives, Hezbollah and the Revolutionary Guards.


But while Iran may be using its proxy Hezbollah to do its dirty work internationally, the latest attack will likely trigger renewed pressure on its operatives, including in Canada, where Hezbollah has long been active.

Last week, a Quebec Muslim activist, Mouna Diab, was charged with smuggling firearms parts to Hezbollah. Acting under the direction of a Hezbollah associate in Lebanon, Ms. Diab had purchased AR-15-type rifle parts around Montreal and shipped them to Lebanon in packages carried by community members unaware of the scheme, according to the RCMP....


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