As The World Burns

275
Mon, Sep 17, 2012 - 10:45am

Another week is off and running. What will it hold? Will we all still be here come Friday?

Seriously, I'm starting to wonder. Maybe I'm beginning to get immunized somewhat to all of this craziness but don't things seem a bit out of hand? Maybe the world has always been this crazy and I've just never really noticed before? Nah, I'm going with the former. This is madness.

Think back to...let's say...1999 or so. Everything was peachy. Almost all of the countries in world were getting along just fine. Oh sure, there was the occasional battle in the Kashmir and you had No-Fly-Zones in Iraq, but I don't recall checking the news with dread every time I opened a browser. Now you never know what might flare up next and the entire world seems on the edge of conflagration. Actually, in my gut, the world doesn't just seem on the edge, I know that it is on the edge and this is sure keeping me from ever getting a good night's sleep.

The latest craziness is this whole China v. Japan issue. While I have little doubt that it was purposefully begun as a a way to "distract" the Chinese and "dissuade" them from getting too forceful in the Middle East, it seems to have really touched some raw nerves in China. Have you seen much of this in the mainstream media? Me, neither. Perhaps because it is potentially another Obama Regime blunder of such epic proportions that the MSM would prefer to ignore it in the hopes that it will all simmer down in due time. We'll see but you definitely need to take the time to scroll all of the way through this ZH article. Look at all of the pictures and read all of the captions. https://www.zerohedge.com/news/postcards-furious-china. And here's a companion piece that was posted just a few minutes ago: https://www.zerohedge.com/news/japanese-businesses-shuttering-chinese-facilities-mainland-anger-spreads. And, for the coup de grace, try this one on for size: https://www.theaustralian.com.au/news/world/china-japan-heading-towards-war-says-us-defence-secretary-leon-panetta/story-e6frg6so-1226475484583

For now, of course, this is just a sideshow. The real action is in the MENA where everything points to imminent conflict. You've got this: https://www.telegraph.co.uk/news/worldnews/middleeast/iran/9545597/Armada-of-British-naval-power-massing-in-the-Gulf-as-Israel-prepares-an-Iran-strike.html and this https://www.bloomberg.com/news/2012-09-16/iran-revolutionary-guard-has-advisers-in-syria-lebanon.html. With this https://www.usatoday.com/news/world/story/2012/09/17/syrian-jets-hit-lebanese-territory-near-border/57794026/1 and this https://www.pbs.org/newshour/rundown/2012/09/navy-exercise.html. And, of course, there's all of this: https://www.zerohedge.com/news/full-summary-latest-anti-american-sentiment. I think I'll head out today and buy some more .40 ammo, just in case. It's kind of like physical metal...If you have to ask yourself if you have enough, you probably don't.

The metals are getting whacked around a bit this morning which is perfectly fine. Both gold and silver would appear to be temporarily "overbought" again and need some time to work of some of the recent excesses. As discussed last week, all significant dips must be bought as QE~ means price is moving inexorably higher.

And, after reading through the comments of my Saturday post, I feel as if I should clarify my remarks a little. First and foremost, I was/is/am very excited that The Cartels got caught wrong-footed last week. Everything shows that their intention was to smash price, just like they did on Leap Day. They were hoping for either some "disappointment" out of the German Constitutional Court on Wednesday or The Fed on Thursday. They got neither and, consequently, took it in the shorts (no pun intended). HAHAHA you arrogant jerks!

This is/was not intended though to give you the impression that it is a straight up rocket ride from here for the metals. It, most assuredly, won't be. There will be raids and corrections just like there always have been. This difference now is that every correction will be bought and bottoms will be quickly found. Can we still see brief 5-10% drops in silver and 3-5% drops in gold? Of course! The Cartels are trapped massively short and they will manipulate as much as they can in order to cover as much as possible. But in the end, they are screwed. The game has changed regardless of whether they want to see or admit it.

Prices will continue to advance in stages and this is why I encourage you to buy all dips. Not the intraday $10 kind of dip. I'm talking about the real, raid-type dips where gold falls $30 or $50. Physical demand is so high and supply is so tight (particularly in silver) that paper price dips can only be driven so far. Massive physical orders emerge and, unless The Cartels want to further exacerbate their supply issues, price must be allowed to rebound. You end up with a "stair" type pattern as seen on the charts above or a steady sloping pattern of higher highs and higher lows. Either way, gold and silver will undoubtedly continue higher and will likely do so at an increasing pace as The Cartels get increasingly desperate against their untenable position of underwater shorts and need-to-be-repaid leases.

You could even look at today's action as a microcosm of this. The short algos and The Cartels have tried to drop price enough to shake out some longs and relieve some pressure. They've tried this even in the face of a falling POSX. So far, they've failed miserably and now they are on the cusp of getting run the other way. If forced to cover the shorts they put on just today, price will quickly move toward 1780 and 34.

I leave you today with another gem of an article from Jim Quinn. Jim has been doing excellent work chronicling the real demise and destruction of middle-income America. This new article is very well done but really quite sad to read. https://www.theburningplatform.com/?p=40366.

I'll be keeping an eye on things and will post again if conditions warrant. In the meantime, I'm off to Cabela's.

TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  275 Comments

Sep 17, 2012 - 11:04am

Reposted from another thread.

I think it is important to have some historical background since other countries seem to have a longer memory than the government schooled US.

This is the lead story at the Daily Bell today. It covers the historical background of the West's relationship to China. They remember things, even if the West does not.

The Western View of China is Wrong

If you ask most people in the West about China, they know it has the world's largest population, owns more US dollar denominated Treasury debt than any other nation and invented fireworks, paper and maybe the printing press. It was historically a poor country, partially colonized by Great Britain and other western nations who brought Christianity, modern development and the best of civilization to a backward nation filled with starving people. China suffered badly during the Japanese invasion prior to World War Two and was an ally until Mao and the communists took over. Today it is a growing world power beginning to flex its military and economic muscles and this is a threat to western dominance.

The Chinese View and Real Situation is Somewhat Different

Actually...

https://www.thedailybell.com/4302/Ron-Holland-The-Seeds-of-Conflict-Anglo-American-Chinese-History

Doctor J
Sep 17, 2012 - 11:06am

Hmmmm.....

And what is tomorrow?........

September 18!!!

Nice catch, Doc!

Istack
Sep 17, 2012 - 11:08am

I'm ready

for a more uncertain future...I think

¤
Sep 17, 2012 - 11:11am

Wicked Garden...burn, burn, burn....

Thanks for the update

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Full Summary Of The Latest In Anti-American Sentiment Submitted by Tyler Durden on 09/17/2012 09:53 -0400


  • Having trouble keeping track of how many countries have now officially rebelled against Pax Americana in the past week? Here is your handy one-stop resource to keep you abreast of all the latest in the embassy storming fad.

Since the map above is as of September 13, don't forget to add Afghanistan and now Pakistan. And further details courtesy of AP:

PAKISTAN

Hundreds of protesters demonstrating against the film torched a press club and a government building in the northwestern town of Wari, setting of clashes with police that killed one demonstrator and wounded several others.

Hundreds also clashed with police for a second day in the southern city of Karachi as they tried to reach the U.S. Consulate there. Police lobbed tear gas and fired in the air to disperse the protesters who were from the student wing of the Jamaat-e-Islami party. Police arrested 40 students, but no injuries were reported.

---

AFGHANISTAN

Demonstrations turned violent outside a U.S. military base in Kabul, where about 800 protesters burned cars and threw rocks at Camp Phoenix. Many in the crowd shouted "Death to America!" and "Death to those people who have made a film and insulted our Prophet."

Police fired into the air to hold back about crowd and to prevent it from pushing toward government buildings downtown. More than 20 police officers were slightly injured, most of them hit by rocks. Protests also broke out along the main thoroughfare into Kabul, where demonstrators burned shipping containers and tires. The crowd torched at least one police vehicle before finally dispersing.

---

INDONESIA

Hundreds clashed with police outside the U.S. Embassy in Jakarta, hurling rocks and firebombs and setting tires alight. It was the first violence seen in the world's most populous Muslim country since international outrage over the film exploded last week. Eleven policemen were rushed to the hospital after being pelted with rocks and attacked with bamboo sticks, while four protesters were arrested and one was hospitalized.

Demonstrators burned a picture of President Barack Obama and tried to ignite a fire truck parked outside the embassy after ripping a water hose off the vehicle and torching it, sending black smoke billowing into the sky. Police used water cannons and tear gas to try to disperse the crowd as the protesters shouted "Allahu Akbar," or God is great, and burned a U.S. flag. Demonstrations were also held in the cities of Medan and Bandung.

---

IRAN

Iran's top leader urged the West to show it respects Muslims by blocking the film. Ayatollah Ali Khamenei said Western leaders must prove they are not "accomplices" in a "big crime." Khamenei was quoted on state TV as noting that some nations place restrictions on expression, such as banning Nazi-related sites.

---

EGYPT

An al-Qaida-linked Egyptian jihadist, Ahmed Ashoush, issued a religious edict, or fatwa, saying it is justified to kill anyone who took part in the making of the prophet film.

Ashoush, who was believed close to Osama bin Laden and al-Qaida's current No. 1, Ayman al-Zawahri, heads the relatively obscure "Jihad Group." His edict, posted on a militant website, says the blood of the participants in the movie "should be shed, including the producer, the director and the actors" and that "their killing is a duty of every capable Muslim."

---

WEST BANK

Several hundred Palestinians held a peaceful protest in the city of Ramallah against the film. Men stood on one side, chanting, "We will sacrifice for you, oh Muhammad." Women wearing headscarves stood on the other side, holding up large posters in Arabic, including one that read: "The Prophet is more important than my family."

---

UNITED ARAB EMIRATES

The country's telecommunication regulator said it has blocked access to the video and urged users to report any existing links to the country's Internet providers. Internet users in the Emirates searching by name for the film on YouTube, for example, now get a standard page used for other censored sites in the country saying "this website is not accessible in the UAE." There are loopholes, though, since YouTube itself is not blocked and it is still possible to view the film by clicking recently posted links found within the site.

https://www.zerohedge.com/news/full-summary-latest-anti-american-sentiment

stone temple pilots wicked garden lyrics
Air Garcia
Sep 17, 2012 - 11:13am

Leave it to DPH

to bring it all together with some good ol' ass kickin' hard rock stone temple pilots.

Dyna mo hum
Sep 17, 2012 - 11:17am

Turd said...

He is off to buy more .40 cal provisions. That is what I call a balanced approach in investment grade metals. Better get yours soon.

benny_bomb_boom
Sep 17, 2012 - 11:17am

made the top 20

count down is on.

System Of A Down - B.Y.O.B. (Video)
Hammer
Sep 17, 2012 - 11:18am

Sorry to disappoint but you

Sorry to disappoint but you can cross China vs Japan off of any black swan list. Aint gonna happen. No way no how. This all kicked off because of the Mayor Of Tokyo (a bit of a twat at the best of times) suggested a fund to buy the islands from a private owner. Mr. Ishihara is a known prat and has been conspicuous by his silence since he kicked this off. The Japanese government is doing everything to scale the tizzy down but private groups are just poking each other. Both Governments now have to be seen to be interested as acting on behalf of their population due to political concerns whilst privately wishing the whole thing would just go away.

The ambassador to Japan had only just replaced the previous one (who had made a gaff) and it seems he had a stroke, poor man. The Finance guy had a long term girlfriend and it was about to be released into the public domain. Huge scandal. Anyone who tells you differently is just pissing in the wind.

The media and frenzied idiots who read their crap are just lapping it up.

I'd get back to the ME. That is the money shot.

jrobb316
Sep 17, 2012 - 11:22am

Dr Jerome summed up the fact

Dr Jerome summed up the fact that Japan was at brutal war in China before WW2 broke out and there has never been an apology. There is also the situation in the South China Sea that gets zero US media coverage. The South China Sea is the second busiest shipping lane in the world. The Asian region is just as volatile as the MENA region. Time to finish up the preps if your not already done, may be a long winter.

Air Garcia
Sep 17, 2012 - 11:23am

Love Him or Hate Him ...

But Lindsey Williams (by the grace of God mind you) when he was serving as a (ok, ok, we've all heard the story as he pads a 3 hour time slot with 5 minutes of information) did say about a year or so ago - maybe longer that we all needed to pay attention to China and Japan. All the MENA stuff was saber rattling. Now, I don't think it's mere saber rattling at this point, but I do remember distinctly him saying that China and Japan were who to look out for. At the time i thought he was looney. Here we go...

He also said these little gems that I have had on s post it note on my monitor since then:

•There will be fewer than 9 banks when Barry Sotero is done
•Something like 80% of the citizens of the USA will be working for the GOV (can you say TSA, VIPR teams, IRS new hires...)
•Death of the Petro dollah by end of 2012 ... (getting there)

BTW, Turd, excellent point on the japan/china deal - as in taking china's focus off of getting involved with Us, Russia, Syria, etc ...

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