Idiots Out Wandering Around

Tue, Mar 19, 2013 - 12:19pm

Why is that, lately, every time I try to get away for a few days, all hell breaks loose?

So, once again, I apologize for another abbreviated post. The Fergusons are currently in the great state of Iowa visiting MrsF's centenarious grandmother. I'll be back in my office by late tomorrow but, for today, I've got to make due.

So, let's start with this. Despite the tireless efforts of the legal teams and several, hard-working industry insiders, The Morgue finally won the permanent dismissal of the silver manipulation civil suit yesterday. Sadly, this does not come as a surprise since the rationale behind the dismissal changed little from the preliminary dismissal late last year. You can read all about it here: But for a more in-depth analysis, I would refer you back to the excellent legal commentary written for us by CALawyer back in very early January:

Moving on, the Cyprus story continues to dominate, as it should. Disregard the misinformation and disinformation. This IS a big deal. That gold and silver have barley budged while the U.S. stock market has rallied back to unchanged should surprise no one. MOPE and manipulation at its finest worst. Remember, at this critical time, gold (and silver) cannot be perceived to be a safe haven and a viable alternative to fiat currency....particularly fiat currency held within the confines of the banking system. With counterparty risk, negative interest rates and now "shared bail-ins", why would any sensible person continue to store wealth in fiat currency? At all cost, gold must be suppressed in order to promote the impression that it is equally unable to preserve wealth. Do not be fooled by this! Global demand remains extraordinarily strong. Fiat-conversion price will, very soon, begin to reflect this physical demand.

Finally, regarding Cyprus, this article from Ben Davies at Hinde Capital is terrific, written not only from a current, but also a historical sense. Please take the time to read through it.

And we must touch upon the GLD again today. Remember, the conventional thinking among mainstream analysts is that GLD is seeing a drawdown due to investor selling and asset re-allocation. You and I both know that this is complete nonsense and that GLD gold is being redeemed and withdrawn by large investors seeking immediate allocation and physical delivery.

Well, the mainstream narrative took a major hit yesterday. In the face of Cyprus, fiat and ECB distrust and a rising gold price, GLD had redemptions of 13.55 metric tonnes or more than 1% of the alleged "inventory"!! This brings the "total gold in trust" down to under 1220 mts, down from 1350 mts a/o 1/1/13. One hundred thirty metric tonnes, nearly 10% of "inventory", has been withdrawn since the first of the year.

As I go to close, I see that gold is surging to new highs for the week. This is constructive but, again, I caution you...I see no reason to get overly-excited until gold moves through and closes above $1626, which is the low of the post New Year decline back in January and the break down point from the Chinese New Year raids. Above that level and the smarty-pant, momo-chasing spec shorts will begin to get vehwy, vehwy, nuhvuss.

Silver is rallying, too, but still unable to draw away from $29 and, like gold, until it breaks back above $29.40 or so, it's still simply banging around within the range.

Finally, I just checked ZH to see if I've missed anything while typing. Not much. Only all of this. Remember, this is simply a "one-off" and "no big deal".

Have a great day and remember that the FOMC is meeting this week and Fedlines are due tomorrow. Keep your helmet and airsickness bag handy.


About the Author

turd [at] tfmetalsreport [dot] com ()


Mar 19, 2013 - 5:40pm

Finally got to site

I had no access all day. Was it just me or are there still problems with the site?

Mar 19, 2013 - 5:43pm

Cyprus, ECB Officials Working on Capital-Control Plans -Sources

The contingency plan authorities are working on includes imposing limits on daily withdrawals from bank accounts; capping the amount of money that can be electronically taken out of the country and making these transactions slower to clear; and introducing border checks to ensure no more than a certain amount of cash would be leaving in the country, the officials said. The officials didn't specify the limits to be introduced but one said these were not yet fixed and would depend on an assessment of how severe the deposit flight is once banks reopen.

(I read on another site that banks may not re-open until next Tuesday.)

Cry Me A River
Mar 19, 2013 - 5:43pm

It's Getting Ugly In Cyprus

After A Vote Of "NO" By The Parliament Of Cyprus, Two Cypriots Resort To Fisticuffs To Get Their Deposits Back:

Video unavailable
Mar 19, 2013 - 5:44pm

National planning Cyprus-style solution for New Zealand

I moved my family to New Zealand to escape the predation and corruption of the U.S. government / financial system and it looks like I jumped from the frying pan into the fire:

National planning Cyprus-style solution for New Zealand

March 19, 2013

The National Government are pushing a Cyprus-style solution to bank failure in New Zealand which will see small depositors lose some of their savings to fund big bank bailouts, the Green Party said today.

Open Bank Resolution (OBR) is Finance Minister Bill English’s favoured option dealing with a major bank failure. If a bank fails under OBR, all depositors will have their savings reduced overnight to fund the bank’s bail out.

“Bill English is proposing a Cyprus-style solution for managing bank failure here in New Zealand – a solution that will see small depositors lose some of their savings to fund big bank bailouts,” said Green Party Co-leader Dr Russel Norman.

“The Reserve Bank is in the final stages of implementing a system of managing bank failure called Open Bank Resolution. The scheme will put all bank depositors on the hook for bailing out their bank.

“Depositors will overnight have their savings shaved by the amount needed to keep the bank afloat.


Mar 19, 2013 - 5:45pm

Bernanke ButtBoy

Gives some assurance for tomorrow's Fedlines:

News Headline Summary

Fed watcher Hilsenrath says I think Fed will be waving the green flag to markets at FOMC meeting tomorrow, Fed wont try to tamp things down, havn't seen enough positive data yet


Mar 19, 2013 - 5:47pm

A bitcoin suggestion... make a forum for it, please

Bitcoins is not money nor will it ever be money. It's a scam, nothing more. When you people putting money into it get fleeced, you'll learn yet another lesson. Karl Denninger summed it up nicely : "A negative-coefficient "mining" system (designed to get exponentially harder as more is produced until it reaches effective infinite effort for each unit of return -- e.g. exhaustion) is inherently backward. Productivity improvement makes the generation of sustaining wealth easier. What this does is redistribute at the outset a grossly-larger proportion of the whole to a few people. "

Recognize the Pyramid Scheme yet??? So like the freegold garbage, please take the bitcoin nonsense to a forum as well. I won't even bother with the multitude of ways your 1's and 0's can vanish in the blink of an eye.

billhilly The Watchman
Mar 19, 2013 - 5:47pm

re: Great Sign


The best part of your "great sign" are the YOUTH that are holding it and behind it ! These are the people who will be bringing forth the great reset and opening new paths of honor and truth. Peace, strength and wisdom to them !

Mar 19, 2013 - 5:48pm

Wandering idiots

We're falling back to plan B, except I believe there is no plan B. They just make it up as they go along from one crisis to another. I'll go by what I said when this news first broke:

1. Its all part of a plan to destroy the Euro, (as part of the move to a one world currency:- conspiracy theory).

2. Or the Eurocrats are totally incompetent, can't see their noses in front of their faces and have no idea of consequences (Nigel Farange hypothesis).

I know many have theorized that its part of test marketing but they're testing a breaking of the rule of law. In bankruptcy shareholders and bondholders get hit before customers. When GM was on the skids of bankruptcy they didn't go out and repossess cars already purchased. I know bank deposits are really loans to the bank but they are secured by deposit insurance to a certain level. I can't imagine there won't be a run on the Cyprus banks when/if they reopen which will only increase their problems.

UK troops in Cyprus are now being supplied with Euros from the UK.

Can anyone explain why spot gold has moved up about 1.25% from Friday's close while silver is virtually unchanged?

Cry Me A River
Mar 19, 2013 - 5:51pm

Eric Clapton's New Zealand Account Wiped Out

All He Can Do Is Sing A Song About It Now

Eric Clapton and Vince Gill - Down and Out
Mar 19, 2013 - 5:53pm

Cyprus disease spreads to New Zealand

I'm a New Zealander and these words in our main newspaper this morning are food for thought for everyone. Seems the Cyprus disease could spread?

"Kiwis with money in the bank could see their nest eggs and savings dwindle in a government move the Greens say is a "Cyprus-style solution" to help out failing banks.

New Zealand banks are readying their IT systems for Open Bank Resolution, a Reserve Bank policy that in extreme cases like insolvency would see a bank's losses shouldered in part by its shareholders and creditors - including everyday depositors."
- NZ Herald

It appears the idea of 'theft from depositors' is rapidly being put in place around the world. If you think your wealth is safe in the bank. Think again.

Are we not being told of some very near impending doom? Maybe, but why is are these new laws happening now?

Mar 19, 2013 - 5:55pm

Phyzz Franklins

All the articles on Cyprus, NZ, etc are having its impact. Ignoring the MOPE spin on main stream.

Decided to withdraw 80%+ of my fiat currencies today. Bank teller informed me that they don't have enough at hand and it will take a day. Teller asked me to speak with branch manager. Branch manager said it will take 3 days, and that I can come by Friday afternoon.

Better this week than next.

Mar 19, 2013 - 5:56pm

Hey TF

Check your e-mail when you get a chance.


It's good to be back online and there was no shortage of comments or thoughts at today.

With Santa's assistance it wasn't hard to to look forward and see the Russian bailout angle that would eventually take shape. That angle appears to now be in motion.

Europe's Final Gambit: 20%-30% Haircut For Oligarchs To Force A Russian Bailout

Submitted by Tyler Durden on 03/19/2013 - 14:18

It now seems sure that the ongoing discussion in Cyprus' government will see a "no" vote as the WSJ is reporting a rather stunning gamble by the Cypriots (and by Cypriots we mean European leaders) to force the Russians to bear the brunt of the cost of the bailout. The non-resigned Cypriot FinMin is heading to Russia to propose a deal that includes imposing a 20% to 30% levy on Russian-held deposits in Cypriot banks, which could cost them billions of euros. In exchange, Russia will be given equity in Cyprus's future national gas company and some additional strategic benefits in the sector, while Russian investors would be given control of the board of directors at Cyprus's banks. The apparent quid pro quo in this deal does nothing to hide the fact that private property was stolen and while pointing fingers just at the Russians may play well for PR purposes, it is described as "a long shot" as the Kremlin notes, "it's practically impossible to talk without knowing details."

Mar 19, 2013 - 6:00pm

Nigel sez:

"Do not invest in the Euro-Zone."

Farage: EU wants to steal money from Cypriots bank accounts
Mar 19, 2013 - 6:04pm
Mar 19, 2013 - 6:05pm

gentle reminder

For Our CIGA Chris / Puck T. Smith

If you have any well-wishes or thoughts for Puck to cheer him up.

Hopefully the site at some point can let his relative now this exists unless Puck or themselves have seen it already. Thanks!

Mar 19, 2013 - 6:05pm

Linked site provides frequent updates about Cyprus

A plane carrying €1m has landed in Cyprus this evening as part of contingency plans for Britain's armed forces personnel and their families.

Here's a statement from the Ministry of Defence:

An RAF flight left for Cyprus this afternoon with €1M on board as a contingency measure to provide military personnel and their families with emergency loans. This is a contingency measure only.

The MoD is giving its personnel the option of having their salaries paid into UK bank accounts.

We’re determined to do everything we can to minimise the impact of the Cyprus banking crisis on our people.

The money will be used in the event of the ATMs not giving out any cash

Mar 19, 2013 - 6:12pm

Obvious question

Sinclair suggests that the deposits at risk in Cyprus are half a trillion or more, way more than is officially admitted.

So, where did all that money go?

It could have funded all Greece's sovereign debt at least twice over. Maybe a gamble was made that Eurozone debt could not be allowed to default, and was a 'safe' way to make a good return. But so far, there have been no major defaults; a 'haircut' on some Greek debt, yes, but no dominoes have fallen yet. Where did the money go?

How does one lose half a trillion dollars worth of deposits, not least when it is the money of some very dangerous people?

There is a rabbit hole here as yet unexplored. The real story may be found down there. I think at the moment, we are all fascinated with Godzilla's toe, unaware that it is just a toe, and of what.

Mar 19, 2013 - 6:14pm

Significant: PIMCO headed towards the Euro door? PIMCO reduces exposure to euro in wake of ‘botched’ Cyprus bailout: report March 19, 2013, 2:45 PM

PIMCO has reduced its euro holdings in response to the proposed deposit levy as part of Cyprus’s controversial bank bailout, calling the unprecedented move “a policy mistake,” according to Reuters.

“We’ve reduced our allocations to European currency (in the last 24 hours), because it makes sense to think about this as not only a policy mistake but also a recognition that the euro is far from being a perfect reserve currency,” Saumil Parikh, a managing director and investment-committee member, told Reuters on Tuesday.

PIMCO is reconsidering euro-zone recovery forecasts in the wake of the “botched bailout,” Parikh was quoted as saying.

It looks like those forecasts were pretty cautious to begin with. In a March economic outlook, Parikh wrote:

The eurozone, we believe, will remain mired in its driver-passenger conflict. While the U.S. will surely provide confidence to some passengers in the eurozone car, it is highly unlikely in our view that eurozone policymakers will make substantive progress in the direction of the U.S. during 2013.

“Clean triple A countries” like Australia, Canada, Switzerland and Singapore could seem more attractive as safe havens in response, he told Reuters.

Bullish investor sentiment on the dollar rose to record highs in March as European sovereign debt concerns overtook the U.S. fiscal situation, according to a Bank of America Merrill Lynch Global Research report released Tuesday.

PIMCO boss Bill Gross tweeted earlier Tuesday that:

“The entire capital system is based on the trust and the belief that once you put money in a bank as a deposit, it’s risk free. So that has significant implications for foreigners investing in Europe,” PIMCO’s Parikh told Reuters.

– Saumya Vaishampayan

"TWEETS" at link....

Mar 19, 2013 - 6:14pm

Great Farage clip from Magpie above

Love this line in particular:

"They are prepared to do anything, literally anything to keep the euro afloat and that is why they are resorting to what can only be described as theft"


Mar 19, 2013 - 6:15pm

Silver Lease Rates (Again)

Silver Lease Rates
Mar 19 2013 Change
1M -0.2963% -0.2895
2M -0.2580% -0.2895
3M -0.2179% -0.2880
6M -0.0521% -0.2775
1Y 0.2350% -0.2965

This isn't your regularly scheduled lease rate spike. Just a bonus one I guess.


El Gordo
Mar 19, 2013 - 6:19pm

9:00AM opening at the bank...

...Bank Manager: Good morning customers, and welcome back to the Bank of Cyprus. We know that it's been a little tough for the past few days, but the EU has met our demands and shipped plenty of crisp new Euro in, so we are ready to begin conducting business. Now just line up and we will get to you as quickly as we can. Louise, will you please open the vault.

Vault swings open. Louise says look, there's a big hole in the floor and a tunnel leading out toward the coast. Damn, that Russian guy who bought me drinks last night told me he came here on a submarine mission and I thought he was talking about a perverted sex act.

Sorry folks, looks like someone got here before you this morning. Maybe try again tomorrow.

UK Silverstackers
Mar 19, 2013 - 6:20pm

1 million euros from UK


3000 service personnel and families, over 3ooo euros each, seems to me they could be preparing for it to take a bit longer than a week.

Just a thought......

Cry Me A River
Mar 19, 2013 - 6:21pm
Cry Me A River
Mar 19, 2013 - 6:23pm


$20 Bill - Paper Moon (5/8) Movie CLIP (1973) HD
Mar 19, 2013 - 6:26pm

Seems like a waste of tax payers money

A military transport plane sent to Cyprus with one piddly suitcase of money! (1 million euro).

Seems more like a statement to me. Don't panic everyone, we will do what it takes....yada yada.. See that bloody big plane,,,,we mean business see!

Meanwhile; took yet another 50 1 ounce silver coins home. Not maples, these were all sorts of animals; yes it was only about $1600 but the way I figure it that is 10K+ the bank has just lost. Feels much better than looking at those numbers they ALLOW me to have in there.

Interested to see what the next weeks bring.

Still trying to figure out what they were REALLY attempting to do. Think about it - not one person voted in favour - not even supporting the leader who put it forward - I have never heard of such a thing - concrete wellies asside.

Mar 19, 2013 - 6:33pm

Speaking of sites going down...

Max "bitcoin-pumper" Keiser's site has gone down a couple of times today. From where I am, I'm seeing it down yet again.

Mar 19, 2013 - 6:38pm

California trying their own Cypriot tactics....

Truly nowhere and nothing is safe...."you can trust us this time"

"In December, the state's tax authority determined that a tax break claimed over the past few years by 2,500 entrepreneurs and stockholders of California-based small businesses is no longer valid and sent out notices of payment.

"How would you feel if you made a decision, which was made four years ago, (and) you absolutely knew was legally correct and four years later a governing body came in and said, 'no, it's not correct, now you owe us a bunch more money. And we're going to charge you interest on money you didn't even know you owed'," Brian Overstreet told Fox News from his office north of San Francisco."

Cry Me A River
Mar 19, 2013 - 6:42pm
Mar 19, 2013 - 6:48pm

Did someone use some chemicals...???

The Assad regime and Syrian rebels traded accusations Tuesday of launching a chemical attack -- in an escalation that, if confirmed, would mark the first known use of chemical weapons in the civil war and could pressure the U.S. to consider military action after two years on the sidelines.........

"If today's reports are substantiated, the President's red line has been crossed, and we would urge him to take immediate action to impose the consequences he has promised," they said in a statement. "That should include the provision of arms to vetted Syrian opposition groups, targeted strikes against Assad's aircraft and SCUD missile batteries on the ground, and the establishment of safe zones inside Syria to protect civilians and opposition groups."

Their Democratic colleague, Sen. Carl Levin of Michigan, also spoke of "ratcheting up of military effort" in response to a potential chemical attack.

"That would include going after some of Syria's air defenses," Levin told Foreign Policy's The Cable, adding that establishing a no-fly zone "would put additional pressure on Assad and also create a zone where Syrian people who are looking for protection and safety could come without crossing the border and becoming refugees."

State Department spokeswoman Victoria Nuland reiterated that the use of chemical weapons would "constitute a red line for the United States," though she made that remark in reference to the Assad regime. (ITS OKAY IF OUR SIDE DOES IT)


Mar 19, 2013 - 6:53pm

BBC Newsnight on Cyprus right now - WOW!

An MP in Cyprus is being interviewed live, and he just said that if they can't find the money for the bailout they'll get it by "nationalising the pension funds and the provident funds of the state employees - that's about 2-3 billion euros".

I'm not sure what that means. Does it mean they'll steal from the people's pension pot? Sounds like it to me.

The MP said they are expecting a run on the banks when they re-open, so they will start printing Cyprus pounds and Cyprus will be the first country to leave the eurozone.


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Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

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4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS