Idiots Out Wandering Around

106
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: https://www.reuters.com/article/2013/03/18/us-jpmorgan-silver-lawsuit-idUSBRE92H10520130318. 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: https://www.tfmetalsreport.com/blog/4408/guest-post-summary-silver-civil...

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. https://www.hindecapital.com/blog/cyprus-oh-the-irony/

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. https://www.spdrgoldshares.com/

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".

https://www.zerohedge.com/news/2013-03-19/cyprus-contagion-spreading-greek-bonds-plunge-most-bailout

https://www.zerohedge.com/news/2013-03-19/germany-enters-grace-bull-liquidating-cyprus-china-shop

https://www.zerohedge.com/news/2013-03-19/former-cyprus-central-bank-head-slams-blackmailing-european-leaders

https://www.zerohedge.com/news/2013-03-19/cyprus-finance-minister-resigns

https://www.zerohedge.com/news/2013-03-19/cyprus-now-set-vote-against-bailout-ruling-party-abstain-guaranteeing-failure-ratify

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.

TF

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¤
Mar 19, 2013 - 10:41pm

Bollocks

What's up, why so excited?

Did I miss something? Do tell.

I'll start surfing around and look as I've been watching hockey for the last 2 1/2 hours. Not sure why I put myself through it as 'my team' is feeble for the most part.

Ok.....surfing.

agauinvest
Mar 19, 2013 - 10:38pm

Sinclair's post

Either there is a very important point here, or he has old-timers disease. He just posted a 5.5 year old article that I think I remember him posting at that time. Or some emailer sent it to him and he posted it without really reading it.

Jim Sinclair’s Commentary

This is definitely a "Red October" event. The West must wake up to the fact that we do not rule the globe. The attitude of invincibility sells well at home but may not be able to put into practice on a wholesale basis.

The uninvited guest: Chinese sub pops up in middle of U.S. Navy exercise, leaving military chiefs red-faced
By MATTHEW HICKLEY
Last updated at 00:13 10 November 2007

When the U.S. Navy deploys a battle fleet on exercises, it takes the security of its aircraft carriers very seriously indeed.

At least a dozen warships provide a physical guard while the technical wizardry of the world’s only military superpower offers an invisible shield to detect and deter any intruders.

That is the theory. Or, rather, was the theory.

¤
Mar 19, 2013 - 10:37pm

Well well...

Just checked in here to see if it was online as I just called it a night over at The Library.

Lots of thoughts over there.

Just A Regular Guy
Mar 19, 2013 - 10:37pm

@Bollocks

Wow, just wow! I cannot wait for tonight.

achmachat
Mar 19, 2013 - 7:08pm

Cyprus Pounds

I guess the old ones will still be valid tender in that case? (the Germans have also been hoarding Deutschmarks since the introduction of the Euro, just in case)

I might still have some Cyprus Pound bills somewhere.

thesandbox
Mar 19, 2013 - 7:05pm

@ Bugzy

exactly!

@ Bullocks....thanks for that update...the experiment might be getting out of hand you think?

I think the two are tied together....oh and where is the oh bummer right now.....

Bugzy
Mar 19, 2013 - 7:05pm

Oh no NOT CHEMICALS!

Please don't tell me the Syrians contaminated their peoples with depleted Uranium? Causing a legacy of birth defects and cancers for generations to come. No leader would be so pshycotic!

Would the dude deliberately use chem weapons knowing that that is all his opposition needs to get all the international help it needs; ermm eh no!

Edit: WOW indeed Bollocks - however why not default rather than raid pensions

Cry Me A River
Mar 19, 2013 - 7:05pm

If They Print These...HYPERINFLATION

CYPRUS POUND NOTE: (It Looks Like The Girl On The Note Is Playing Football?)

Nana
Mar 19, 2013 - 7:04pm

Help

I haven't been able to get TF Metals to come up until now and had to go around about way to do it. Every time I try, since last week it has said site down for maintenance and a couple time it said, checking your browser, and then something about cloud then goes back to the site down for maintenance?

I don't know why either?

Bollocks
Mar 19, 2013 - 7:03pm

I'm posting this on this page as it may have been missed

on the last one as I notice it ended up right at the bottom - and this seems to be pretty big news.

------------

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.

------------

PS They will start printing cyprus pounds if they can't make up the rest needed after "nationalising the pension funds" - so they need to find a couple of billion more.

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