Digging The Ditch

Mon, Apr 8, 2013 - 12:12pm

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 North Korea? 6,000,000 ounces of "silver" withdrawn from the SLV?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: https://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. https://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.

Large Widespread Cutoff of Supply Chains Coming-Jim Willie

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.

Video unavailable

(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.


About the Author

turd [at] tfmetalsreport [dot] com ()


The Watchman
Apr 8, 2013 - 7:18pm
Apr 8, 2013 - 7:24pm


Interesting take.

What makes anyone think what the US federal govt. does is (or ever was) in the best interests of it's citizenry except maybe in the late 1700- early 1800's? That's a naive belief to believe in, but very human to hope for.

I once shared that hope a very, very long time ago until I realized that's all it was. Misguided hopium.

Time will tell and the can is always kickable I guess on many prognostications.

Just like Russians in the US streets by March...some type of end of the world or whatever on April 15th ...or is it May now?

Time will tell...but previous messengers have been saying the same thing for a very, very long time. But...I guess you know something some of us don't.

Care to share what your privy to? Any dates in mind for the great collapse this week? To many people's chagrin and astonishment, the USD will remain strong (or very viable) longer then anyone can guess or even hope for.

Apr 8, 2013 - 7:26pm

Speaking of delusional

Mr Fix:

Every single decision made in the past five years has been carefully designed to have the worst possible outcome for the United States.

Every single decision going forward will also be carefully designed to have the worst possible outcome for the United States.

Yup, every single decision has been made to injure the good ole USA in the worst possible way. Every single one. Even when we switched Mouse to a better kibble.

Cry Me A River
Apr 8, 2013 - 7:27pm

Gotta Go!

We Have Tickets To The Ramada Room At The Holiday Inn To See "Murph And The Magic Tones!

Blues Brothers - Murphy "Murph" Dunne at the Holiday Inn
القراع عصفور
Apr 8, 2013 - 7:33pm

i'll bite

Never Cry Shitwolf
jonathanmarktaylor SilverSurfers
Apr 8, 2013 - 7:38pm

Bigots like you should be barred!

Moderator alerted.... we are now in the 21st century and do not have to out up with bigots like you!

Apr 8, 2013 - 7:42pm

Yen 100

It'll break it by Wednesday would be my guess....or tonight. :-0


Green Lantern
Apr 8, 2013 - 7:48pm

I provided the wrong link to

I provided the wrong link to the article "The “Trans-Pacific Partnership”: Obama’s Secret Trade Deal" I accidentally linked to an IMF Paper.


Apr 8, 2013 - 7:49pm

In fairness to Mr Fix

It does explain why so many good restaurants across the nation have recently replaced the fine coffee they used to serve with Folger's crystals.

Lamenting Laverne
Apr 8, 2013 - 7:55pm

@ That_1_Guy - Swedish rescue model

I think it was a good model back then, but I don't think it will work this time, and the reason is relative size. Back then the rescue was approx. 65B SEK or 18.?B USD. It was local in one country, before the banks went on an international expansion route for real - and before derivatives were widely used. I made the following quick example on the back of a napkin: Swedish 2011 GDP: 538B USD or 413,6B EUR. One big Swedish bank (that will also be covered partially by input from other subsidiary countries, in case of meltdown, while at the same time being countries that will also have their own banks to think about) has the following key indicators of size, which I think is likely to apply to other banks and countries. Numbers are snippets from balance sheet in billion EUR. Total Assets: 677 Cash CBs: 8 Cash Credit Institutions: 10 Loans to the Public: 346 Interest bearing securities: 94,9 (loss when interest up) Shares: 28 Derivatives: 118,7 (Value questionable in next crisis) Assets already pledged before any crisis: 169 Liabilities: Derivatives: 114 (Sure to be called in next crisis) Deposits and debt*: 485,7 Equity: 28 *(I take this to mean from e.g. pension funds, that would not be good to shave too hard) This is only one bank. If the derivatives blows up - only that hole will eat approx 1/4 of GDP to make whole. If they ignore derivatives and renege on those - the deterioration in interest rates could easily make non-performing loans and loss on interest bearing instruments more than the country can handle with 413B GDP. Just imagine a full deposit guarantee, like they did back then, for all deposits and bondholders of 485B with an economy of 413B - and this is for one bank only. They can't resolve this without losses on deposits and bondholders when the derivatives blow up and interest rates go up. That is why we got the Cyprus message. The jig is up.

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