Inspired Defense

Mon, Oct 1, 2012 - 12:07pm

After the CNBS interview of Fed Goon Evans seemingly caught The Cartels off-guard, the coordinated response was swift and decisive.

It began this morning with this:

The reaction in the metals was almost instantaneous. Prices shot higher and were once again within a whisper of taking out critical Cartel resistance and triggering an even-more-massive short covering extravaganza. At precisely 9:00 am EDT, The Monkeys sprang into action.

The first mission was to blunt the move toward the all-important $35.50 level in silver, above which lays a tremendous amount of buy-stops. Once that was achieved and momentum halted, the real attack began and silver plunged 60c in just 4 minutes. Gold, too, was repulsed in a Gold Cartel counter-attack. After successfully holding gold under $1790 at 9:00 am and 10:00 am, the gold attack began once the London PM fix was in. Between 10:00 and 10:04, gold fell $5 but when it appeared to bottom for the third time at $1785, desperate measures were called for. An overt attack by The Forces of Darkness drove price down $12 in just two minutes at 10:39 and 10:40 EDT.

Below are 2-minute charts that show the action.

None of this should surprise anyone around here as we have been watching The Cartels aggressively defend these levels since the announcement of QE∞ nearly three weeks ago.

Despite all of this nonsense, please do not get discouraged. Gold priced in euro once again made a new all-time high today as demand to convert debasing fiat for hard assets is continuing unabated. Euro gold has led dollar gold higher this summer with a lag time of about 4-6 weeks. Just be patient and you will be rewarded. The Cartels are fighting a losing game.

Next up, The Bernank! As I type, it is 11:51 EDT, which means that The Bernank will begin a speech in Indianapolis in about 40 minutes. You can feel quite comfortable that volatility is about to ramp up again.

Speaking of volatility, you'd better get used to it. Have you seen the latest open interest numbers? Volume and liquidity have finally returned to the metals pits and this will undoubtedly lead to more volatility in the days ahead. The Dec12 gold contract ended Thursday with a total open interest of 353,966. As recently as mid-August, the entire gold complex open interest was just 385,000! And in silver, the Dec12 has an OI of 86,972. For comparison's sake, total silver OI fell under 100,000 late last year and was as low as 102,000 as recently as February.

In terms of news items, chew on this one for a moment as it doesn't seem to be getting much media play. ( If the Iranian currency continues to implode, things could get very dicey, very quickly in the region. The mullahs and rulers of Iran could very easily begin to feel threatened by an upheaval of their own population and desperate leaders often take desperate actions in their attempts to cling to power. Watch this story very carefully all week!

Lastly, we're finally ready to conduct our first interactive webinar over at TurdTalksMetals. The first event will be on Wednesday and the guest will be James Turk of GoldMoney. I would imagine that you might have a few questions for James but you have to be a member of the site to participate. All of the details can be found by clicking here: I sincerely hope you consider joining the site and participating in the fun.

That's all for now. The Bernank speaks in about half an hour so get ready!


About the Author

turd [at] tfmetalsreport [dot] com ()


Oct 1, 2012 - 8:10pm

No jail time ;-(

"It alleges civil fraud violations, which means that potential penalties will be measured in dollars, not jail terms."

Oh well, maybe next time. (There WILL be a next time?)

Oct 1, 2012 - 6:50pm

JPMorgan accused of $20 bln MBS deception

October 1, 2012 11:14 pm

JPMorgan accused over $20bn deception

The New York attorney-general sued JPMorgan Chase on Monday over the alleged deception of investors who lost more than $20bn on mortgage-backed securities created by Bear Stearns.

The complaint is part of a last push from state and federal authorities to uncover evidence of wrongdoing by banks in the run-up to the financial crisis. It follows the creation of a president’s working group into mortgage fraud, widely seen as an attempt to file big cases before the presidential election in November.

The office of Eric Schneiderman, the New York attorney-general, said he would pursue similar claims against other banks.

JPMorgan acquired Bear Stearns in 2008 in a rescue acquisition backed by federal regulators. The bank said on Monday that acquisition was made “over the course of a weekend at the behest of the US government” and noted the complaint was “entirely about historic conduct” of Bear Stearns.

The attorney-general accused Bear of having “systematically failed to evaluate the loans” that were packaged into mortgage-backed securities, leading to the inclusion of mortgages on which borrowers were likely to default, and later did, causing investor losses of more than $20bn. The suit seeks the handover of profits made on the MBS.

JPMorgan said it would “contest these allegations”. In critical comments, the bank said it was “disappointed” that it had not been given the “opportunity to rebut the claims”, which it said were made “relying on recycled claims already made by private plaintiffs”.

The lawsuit comes as the Securities and Exchange Commission and Department of Justice are also investigating the big banks for their underwriting practices. In February, JPMorgan, Goldman Sachs and Wells Fargo disclosed they had received “Wells notices” from the SEC alerting them that the agency might file civil charges against the bank for failing to tell investors certain information about the quality of the loans, delinquency rates and early payment defaults. The SEC was not part of Monday’s action.

Mr Schneiderman’s office said “We intend to follow up with similar actions against other sponsors and underwriters.” People familiar with the investigations say they expect lawsuits to be filed against other banks. In recent weeks some of the banks have held settlement talks with regulators, these people said, although it was unclear whether deals would be reached.

Oct 1, 2012 - 6:48pm
Oct 1, 2012 - 6:44pm

breaking news on yahoo finance

JPM sued by NY Attorney General over MBS Fraud

Oct 1, 2012 - 6:30pm

von burpy

pay off any HIGH interest debt, but low interest debt with a VERY secure job is not necessarily a bad thing.

since we know PMs are going up.

dollar goes down and effective debt[its fixed] goes down too in inflation.

you must have locked in % rate.

this coming from someone who has no debt......ever............... but never had a secure income [boat business is the FIRST to go down the tubes]

Oct 1, 2012 - 5:46pm

Dr. J

"@ Orange, borrowing on the house give you an interest deduction going forward--at least for a while. Not a bad plan."

Unfortunately I pay so little interest it doesn't really help. The way I view it is we have 10% inflation, so I make money rather than lose it.

What makes me sleep at night is not how much fiat we have but how many ounces we have. Simple reason is ask the Mexicans, the Argentineans etc. what happened to their currencies overnight. Unfortunately history repeats, only now we are dealing with a global collapse and most people live in cities rather than being able to support themselves in a rural environment.

When TSHTF this time, it will be different.

Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Oct 1, 2012 - 5:00pm

@ vonburpenstein & Orange

What helps you sleep at night? What helps your wife feel comfortable and secure? I don't think things will collapse in the next year. QE to infinity has been a major can-kick, in my view.

If you run some numbers based on some estimates, an answer may be clear to you.

  • Estimate the amount of your future debt with interest added
  • Project the price of gold--I say about 2K per ounce in a year, + or - 150
  • Figure out how much can you buy now at $1790?
  • Multiply your # of ounces by the projected price in May
  • Compare the figures
  • If you pay off the debt now, how many ounces can you buy as the price of AU rises?

Obviously, if it will help you to sleep, you could buy the gold.

Silver might have a better return. That's what I thought in May of 11. Perhaps a mix of the two is best. but I really don't think metals are blasting off any time soon--just a controlled rise in price.

@ Orange, borrowing on the house give you an interest deduction going forward--at least for a while. Not a bad plan.

That's my .02 copper pennies

Oct 1, 2012 - 4:53pm

@ war nickels

From coinflation:

» There are 0.0563 troy ounces of silver in 1 silver war nickel(s).
» Each war nickel contains 0.0563 troy ounces of silver and is valued at $1.95
when silver is at $34.68 / ounce.

I had no idea that american nickels of those years contained silver,

will have to check my hoard.

Oct 1, 2012 - 4:53pm


Have you ever wanted to accurately weigh your coins?

This scale is extremely accurate, 50 grams (capacity) to 0.001 grams (resolution) and for the price is very reasonable. Comes in a hard case, includes a 20g calibration weight and has an ac adapter. I plan on using it to verify the weight of coins, but can also be used for reloads.

Just spent a bit of time finding a decent scale and thought I would pass it along.

Oct 1, 2012 - 4:37pm

@ vonburpenstein

A compromise? Pay off the high-interest debt, keep the low-interest debt. A smaller stack, but a lower overall cost to you on the balance of your debt.

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Key Economic Events Week of 8/10

8/10 10:00 ET Job openings
8/11 8:30 ET Producer Price Idx
8/12 8:30 ET Consumer Price Idx
8/13 8:30 ET Initial jobless claims
8/13 8:30 ET Import Price Idx
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Unit Labor Costs
8/14 8:30 ET Cap Ute and Ind Prod
8/14 10:00 ET Business Inventories

Key Economic Events Week of 8/3

8/3 9:45 ET Markit Manu PMI July
8/3 10:00 ET ISM Manu PMI July
8/3 10:00 ET Construction Spending
8/4 10:00 ET Factory Orders
8/5 8:15 ET ADP employment July
8/5 9:45 ET Markit Service PMI
8/5 10:00 ET ISM Service PMI
8/6 8:30 ET Initial jobless claims
8/7 8:30 ET BLSBS for July
8/7 10:00 ET Wholesale Inventories

Key Economic Events Week of 7/27

7/27 8:30 ET Durable Goods
7/28 9:00 ET Case-Shiller home prices
7/29 8:30 ET Advance trade in goods
7/29 2:00 ET FOMC Fedlines
7/29 2:30 ET CGP presser
7/30 8:30 ET Q2 GDP first guess
7/31 8:30 ET Personal Income and Spending
7/31 8:30 ET Core inflation
7/31 9:45 ET Chicago PMI

Key Economic Events Week of 7/20

7/21 8:30 ET Chicago Fed
7/21 2:00 ET Senate vote on Judy Shelton
7/22 10:00 ET Existing home sales
7/23 8:30 ET Jobless claims
7/23 10:00 ET Leading Economic Indicators
7/24 9:45 ET Markit flash PMIs for July

Key Economic Events Week of 7/13

7/13 11:30 ET Goon Williams speech
7/13 1:00 ET Goon Kaplan speech
7/14 8:30 ET CPI for June
7/14 2:30 ET Goon Bullard speech
7/15 8:30 ET Empire State and Import Price Idx
7/15 9:15 ET Cap Ute and Ind Prod
7/16 8:30 ET Retail Sales and Philly Fed
7/16 11:00 ET Goon Williams again
7/17 8:30 ET Housing Starts and Permits

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

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