Digging The Ditch

Isn't it great? In the world of leverage, rehypothecation and malfeasance, it's like Friday never happened. That lousy BLSBS, the crappy participation rate, all of it...never happened. Our blissful, fiat utopia chugs forward. For a few more days, at least.

I don't even know where to start on this fine Monday. The Yen? North Korea? 6,000,000 ounces of "silver" withdrawn from the SLV? Heck, let's just dive right in.

Here's a logical starting point. Santa's old pal, Yra Harris, has his own site and has written this insightful piece about the Japanese mega-QE. (Suddenly, I have this image in my head of an old, Japanese Godzilla movie with an horrific English overdub where Godzilla is a big, gansta-looking T-Rex with a big golden QE chain around it's neck, stomping on a senior living center filled with octogenarian Japs. Maybe Pining can cook this up for us?) Anyway, back to Yra's article. Read this now: http://yragharris.com/2013/04/07/billyjoel/

So, if Yra's right and, frankly, why wouldn't he be...Global bond yields are about to plummet and other currencies, particularly the euro, are about to rally. Thus, here are two charts of the euro. Keep in mind that, in general, rising euro = falling dollar = happy metals.

And there sure is plenty of disinformation out there, attempting to get you to sell your metal. One of my favorites is the continued "interest rates are rising" theme. Really? And which rates are those?? Here's a chart of the U.S. Long (30-year) Bond. Uhhh...rates rising? Not so much.

Speaking of disinformation...What's with all of the recent preponderance of worry and articles over confiscation? Why now? The metals bull market is over, right? We're all supposed to be selling our hard assets and safely moving back into paper, right? So, why all of the talk about confiscation? To me, it's just more disinfo, aimed at getting you to sell. Anyone spouting confiscation fear at the present time should be put on your "Disinfo Agent/Paid Troll List" and watched very closely in the future.

One guy who I know IS NOT a disinfo agent is Alasdair Macleod at GoldMoney. Here's his latest. You should read it. http://www.goldmoney.com/gold-research/alasdair-macleod/gold-price-suppression-the-game-goes-on.html

And here's some more Jackass for you, from the Greg Hunter website. It's worth a listen but I've already informed Jim that there's no way I'm going to follow suit and begin referring to him as "Dr. Willie". Maybe "Dr. Jackass" but not "Dr Willie"...unless, of course, I turn this into the TF Urology Report.

So, anyway, here are some updated metals charts for you. Look, I know it's frustrating and disconcerting to see the metals beaten right back down after the rallies of Friday. But that's how it works.

  1. The Cartels aren't ready to let them rally yet AND
  2. All of the flows are on the short side SO
  3. The Spec momos keep shorting and The Cartels keep buying

This pattern will soon end, of that you can be certain. Utilize the few remaining days of this downtrend to accumulate more physical metal...while you can...and at these deeply discounted prices. Look at it this way: In picking sides, do you want to be with paper-trading, momo-chasing Specs OR do you want to be with the BBs, the "other commercials" and Creditor Nation Central Banks? 

And I've got this stray crude chart laying around this morning. As you know, we've been following along as it rallied to $98, then fell to $89 and then rallied back to $97. Well, check this out. I've not seen this anywhere before. Maybe it's something we need to keep an eye on going forward.

Finally, you're probably wondering about the title of this thread. Does it have any deeper meaning? Why, yes it does as a matter of fact. I announced in the comments of the Saturday thread that I had a new theme song. It's off of the new CD from the great Bruno Mars. The title is "Natalie" but when I hear it, instead of the three syllables of Nat-a-lie, I think "Blythe Mas-ters". Now, of course I realize that our old nemesis, The Wicked Witch, has moved on to greener pastures within The Morgue. Regardless, she's the one who put her face on CNBS a year ago and proudly proclaimed that JPM is "simply helping their clients" and that their positions are "fully hedged". Oh, really? Hmmm. Well, as President O'Bottom likes to say, the project is "shovel-ready". I hope to break ground by late next week. 

(And please, this is all metaphorical and figurative. I'm not threatening anyone with physical harm. Just like how Bruno isn't out there hunting down some ex-girlfriend named Natalie. It's just a song...and a darn good one, at that!)

OK, that's all for today. Remain calm and keep stacking.



Mr. Fix's picture

First, and more doom!


Guest Post: The Real Cyprus Template (The One You're Not Supposed To Notice)

Much has been said about "the Cyprus Template" (the so-called bail-in, where deposits are expropriated to recapitalize the insolvent banks), butvirtually nothing has been written about the Real Cyprus Template. It appears the key preliminary step of the Real Cyprus Template is that money-center banks in Germany and other "core" Eurozone nations pull their money out of the soon-to-implode "periphery" nation's banks before the banking crisis is announced, "...this explains a lot about something that has always puzzled us: why the delay in resolving Cyprus after the Greek haircut?" We can now see there are two Cyprus Templates1. The public-relations/propaganda model; 2. The real one, that enables "core" eurozone banks to pull their deposits out of periphery banks before the deposit expropriation and capital controls kick in. Why are we not surprised the entire charade and expropriation is rigged to benefit the core banks?



PS, Turd, Thanks for more Dr. Willie.winkwinkyes

ABQBear's picture



Buying Morgans from a dishoarding friend today...

A.B.'s picture

3 thurd

No selling here. 

Remember when you sell, somebody is buying. At these levels where would u stand?

Igiveup2's picture

Top 5

Just lucky this time.

Igiveup2's picture

Top 5


AgNovice's picture


In all criminal prosecutions, the accused shall enjoy the right to a speedy and public trial, by an impartial jury of the State and district wherein the crime shall have been committed, which district shall have been previously ascertained by law, and to be informed of the nature and cause of the accusation; to be confronted with the witnesses against him; to have compulsory process for obtaining witnesses in his favor, and to have the Assistance of Counsel for his defence.

indosil's picture

top `10

top `10

Kevin C's picture

I like that song.

Thanks for the Jackass video.  (Top 10.)

Road_Scholar's picture

Daily Beating

Ok, I'm ready for the powers that be to beat the fiat out of me again today...


FISD's picture

Never been in the top 10

That was fun!

And I even read the whole post and some charts!

Magpie's picture

And they still want MORE


What is Tax Freedom Day?

Tax Freedom Day is the day when the nation as a whole has earned enough money to pay its total tax bill for the year. A vivid, calendar based illustration of the cost of government, Tax Freedom Day divides all federal, state, and local taxes by the nation’s income. In 2013, Americans will pay $2.76 trillion in federal taxes and $1.45 trillion in state taxes, for a total tax bill of $4.22 trillion, or 29.4 percent of income. April 18 is 29.4 percent, or 108 days, into the year.

Pining 4 the Fjords's picture

Godzilla !

"Suddenly, I have this image in my head of an old, Japanese Godzilla movie with an horrific English overdub where Godzilla is a big, gansta-looking T-Rex with a big golden QE chain around it's neck, stomping on a senior living center filled with octogenarian Japanese. Maybe Pining can cook this up for us?"

Closest I can come up with on short notice:

SRSrocco's picture


New Dubai gold and PM refinery to be one of world’s largest

Dubai’s Kaloti Group has announced it is to build a new $60 million gold and precious metals refinery in its home country which will be one of the biggest in the world.

Hard on the heels of an announcement that it is to build a gold smelter and refinery in Suriname in South America in conjunction with that country’s government, Dubai’s Kaloti group has announced it is to build a US$60 million state-of-the-art gold and precious metals refinery in its own country – and this is expected to be one of the world’s largest such facilities.

...The new 15,000 m2 refinery will have a capacity to produce up to 1,400 tonnes of gold and 600 tonnes of silver and other precious metals and a mint department to produce gold ingots and coins. This will triple the size of Kaloti’s current refinery production and will help meet the rising demand from its worldwide client base. Kaloti’s new refinery will employ the latest gold electrolysis technology from Italy and Switzerland as well as the world-wide accepted aqua regia process for gold refining. It will have two assaying laboratories which will be equipped with the most advanced fire assaying as well as employing an Induction Coupled Plasma (ICP) system for assaying gold of 999.9 fineness.


Looks like this goes right INLINE what JIM WILLIE is saying about the Middle East getting ready to join the Eastern Bloc Trade Settlement System.

Can you imagine that?  One of the biggest Gold & Silver Refiners in the world in UAE?

Jason Foster's picture

Jim Sinclair redeems himself

Via SilverDoctors: Jim Sinclair does a 180 on the safety of IRA's and tells readers that it is crucial to get out of the system as a whole, immediately. This is in stark contrast to an article from 2 weeks ago in which he stated that we still had 2-3 years.  Bad boys, bad boys..

billhilly's picture

Central Banks buying

In a complicated world I like to think simply; this is as simple as I can think;

- Gold is money.
- Gold is competition to Fiat.
- Gold is in demand.
- Gold will become a monetary base once again (partial or whole).
- Gold is being bought (replaced) by Central Banks.
- CB's want it as cheap as they can get it, hence the suppresion.
- Fundamentals play only a small role anymore. The CB's have the power.
- Watch, and DO, what they DO, not what they say.
- STFD (stack the f'in dips).

Silver_investor's picture

It will be a while

"In the world of leverage, rehypothecation and malfeasance, it's like Friday never happened. That lousy BLSBS, the crappy participation rate, all of it...never happened. Our blissful, fiat utopia chugs forward. For a few more days, at least."

Yup. Nothing makes sense anymore. We live in a illusionary world where up is down, black is white, etc. That's why I no longer listen to even the most experienced and successful guys out there, e.g. Sinclair, et. al. They don't know what's going to happen next as the rules of the game have changed. When the next big event happens, everyone will be saying that it's THE catalyst that will propel the metals higher. Right.

But I'm going to hold on to my stack. I reason that if the dollar does become worthless, at least my stack will be worth something. (Interestingly, the guy I buy physical from doesn't believe the dollar will become worthless. And he's been selling bullion for a long time.) In the meantime, I'm ignoring the hype. TPTB will likely keep this charade going for several more years.   

The Watchman's picture



Mickey's picture

I thoiught maybe a little weakness in PM today

not 12 bucks of weakness. One you deal with the fact that not only are  the entire equity and fixed income markets gamed , the small sectors like PM , Oil, currencies are gamed as much or more.

we should pool our monies into a private fund and see if we can move the markets. Best time wouldd be about 3 in the morning.

ReachWest's picture

Excellent update thank-you

Excellent update thank-you Master Turd.

I have to say - when I first heard Greg Hunter refer to Jim Willie as Doctor Willie, I found it a bit unsettling - so I'm pleased to hear that you're not following suit... I prefer the less formal "Jackass and the Turd" in pleasant yet deeply enlightening banter.

lostinspace's picture

We're waking up!

SilverSurfers's picture

Santa is a singer

Where the heck is the <sarc> button. I must be getting old ....

Its a conspirancy, FOR SURES, they use 9/11 truthers to distract away from the bond bubble, those guys, ..., as clear as day, on your nose. THIS JUST STINKS!!!!!!

hai's picture

Gold Surges To 33-Year High In Yen; Does It Mean Anything?

punchbowl's picture

Dr. Willie

To be clear Jim Willie is a doctor.  He has earned a PhD in Statistics.  Ergo Dr. Willie. 

Xty's picture

Why the price of gold in Yen does matter

The major currencies have been tracking each other, in decline against gold, very closely.  The Japanese intend to double their monetary base - it won't happen in isolation.

Bugzy's picture


What XTY said yes

treefrog's picture


if you lay ten thousand statisticians end to end, you can reach   ...any conclusion you want.

SilverSurfers's picture


There is an OBVIOUS correlation between taxes and blue states, How fitting!!. That is so bogus, as cal sell rates not includes, so this is just the INCOME side, not the SPEND side, were slaved 70% actually, but nonethelss, it shows where the folk pandered heads are at, as BY CORRELATION, where enslavement, the degree of pandereressness, and where pandered folks actually live. Makes complete sense.

Exactly .... They keep diggin the ditch, until they fall in. ... Exactly.

They get you comin and goin, you cant hide, you are trapped. Give it up.

Im rootin for BB to trash the whole freakin cesspool. Come on BEN!!!


knavechild's picture


"Trust in Gold Not Bernanke as U.S. States Promote Bullion"

"Distrust of the Federal Reserve and concern that U.S. dollars may become worthless are fueling a push in more than a dozen states to recognize gold and silver coins as legal tender."

Oh yea baby, bring it.



ancientmoney's picture

Silver COTs . . .

Commercials are net short 92,500,000 oz.  Of those in the Commercial category, the Producers/Merchants class (JPM is biggest) is net short 145,215,000 ounces.

The other class of Commercials, the Swap Dealers are net long by  52,700,000 oz.

JPM, et al, are the driving force behind the enforcement of the $26-$32 range silver has been in for two years now.  It seems JPM is the only entity that is bearish on silver.  The fact that they also have unlimited funds at their disposal helps them maintain that bearish position against all odds.

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