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 North Korea? 6,000,000 ounces of "silver" withdrawn from the SLV?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 ()


Apr 8, 2013 - 2:33pm

WHOA! Check this out...

On Friday, as silver jumped 45¢, total silver OI surged by 2,174 contracts to a new multi-year high of 159,386.

Again, I cannot stress enough how totally F'd up this is, especially in the post-MFG era. For perspective, MFG declared bankruptcy on 10/31/11. A CoT survey was taken the next day, 11/1/11. That survey showed:

  • Total gold OI of 442,435. As of Friday, total gold OI was 412,744. Down 6.71%.
  • Total silver OI of 108,675. As of Friday, total silver OI was 159,386. Up 46.7%.

The price of gold closed on Friday 10/28/11 at $1746.20. That same day, the price of silver closed at $35.27.

Apr 8, 2013 - 2:33pm


now that was funny! Gotta love the old classic Godzilla.

Apr 8, 2013 - 2:36pm

Turd, your Weekly WTI Chart

Turd, your Weekly WTI Chart is very similar to mine.

I've been playing that bottom trend-line from the long side with very good results. Almost 30% from Nov/Dec in to Jan and then just recently another 10% from early March. All longs via UCO. (too scared to short oil these days)

I'm hoping we re-test that lower trend-line again so I can have a go at 3 for 3.

Apr 8, 2013 - 2:37pm

Thank god.

Thank god it is only JPM manipulating the market. If there were another, I don't know what would be the outcome...

The latest rumor is that JPM is shorting the PMs and long the bitcoin. :))

it is almost 200 now. Around 3 times the value since Cyprus.

Go figure...

Apr 8, 2013 - 2:39pm


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!!!


Apr 8, 2013 - 2:39pm


Great stuff Pining! Tried to hat-tip it - but the hat will not tip on that post - oddly I can tip all the others on the page - but - not that one. Regardless - excellent work!

Apr 8, 2013 - 2:49pm

@A.B. re : Thank god . . .

"Thank god it is only JPM manipulating the market."


Well, CFTC helps them out quite a bit . . . Their necks are quite distorted from looking the other way so much.

Apr 8, 2013 - 2:50pm

Now chew on this...

On Friday, gold closed at $1576. As of Friday, the GLD held in "inventory" 1,205.31 metric tonnes.

On Friday, 10/28/11, gold closed at $1746. On that day, the GLD showed an "inventory" of 1,243.55 mts.

In the grand scheme of things, that's at least logical and plausible. Now get ahold of this...

On Friday, silver closed at $27.22 and even though the SLV showed a drop of nearly 6MM ounces of silver on Friday alone, it still showed an "inventory" of 10,498 metric tonnes.

On Friday, 10/28/11, silver closed at $35.27 and the SLV allegedly held 9,764 mts.


Let me see if I've got this straight. Over the past 18 months or so, gold has declined in price by almost 10%. Over that same time period, the GLD has seen its "inventory" drop by about 3%. (Keeping in mind, of course, that the GLD "inventory" is down more than 10% YTD 2013.)

In contrast, silver has fallen in price by roughly 23% but the SLV "inventory" has grown by 7.5%.

So what does all this mean? Perhaps you should consult Sir William of Ockham for your answer...

Apr 8, 2013 - 2:53pm

China and the UAE

Busy little bees, via Reuters:

One step was taken in January last year when the central banks of China and the United Arab Emirates signed an agreement allowing them to swap 35 billion yuan ($5.6 billion). The swap facility does not appear to have been used so far, bankers said, but will ensure liquidity if demand for the yuan rises.

A key step would be any decision by China to appoint banks to clear yuan trades in Dubai, as it has done for Taiwan and Singapore in the last few months.

"Certainly the Middle East is a big enough region for it to operate its own clearing center," Wong said. But she added this would depend on factors such as the stance of UAE authorities and competition from London, a top global foreign exchange center, and there was no sign of this status being accorded now.

Even without clearing status, however, other innovations may spur yuan trade in Dubai. The Chinese central bank has said it will launch this year or next the China International Payment System, a facility to make yuan clearance more efficient for centers which lack their own clearing banks.

The new system would link Chinese and overseas banks, remaining open for most of the global day.

"We see great potential for further growth" in use of the yuan in the UAE, Zheng Yang, a senior official in the Chinese central bank's Shanghai branch, told HSBC clients in a presentation on Monday. He was visiting the UAE for talks with officials and bankers.

The article says it is for non-oil transactions, but how long will it take to become all transactions?

Rook takes King's pawn.


Apr 8, 2013 - 2:53pm

So let's all hat tip RW as Pining's proxy until it's fixed

Gotta show ya some love somehow (Dr.)Pining.

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