Building Pressure

Thu, May 9, 2013 - 1:07pm

As if my head wasn't swimming enough, I spent about an hour on the phone with Jim Willie this morning.

As you might imagine, we had a free-wheeling conversation that drifted from topic to topic. Of all the things we discussed, I'd like you to consider this:

Did you even know that this meeting was taking place this week? Have you seen coverage in the mainstream press? Did CNBS send LIESman or Headiromo over for live reports? Here's the summary and source link:

"On May 7-8, 2013, Istanbul (Turkey) will host the Global Finance in Transition conference. The event is organized by the Central Bank of the Republic of Turkey jointly with the Reinventing Bretton Woods Committee and the Russian Ministry of Finance.
Representatives of G20 finance ministries and central banks, international organizations, research institutions and businesses will take part in the conference. Head of Turkey's Central Bank Erdem Basci, Deputy Minister of Finance of Russia Sergey Storchak and Executive Director for the Reinventing Bretton Woods Committee Marc Uzan will give the opening remarks at the conference.
Five panel discussions are planned as part of the event. They will cover the international financial architecture, in particular, changes in the flow of global investments, local bond markets and growth in emerging economies, incentives and determinants of investment and other issues. In addition it is expected that new instruments and incentives for making the global financial system safer will be suggested during the forum."

Did you know there was such a thing as the "Reinventing Bretton Woods Committee"? Wouldn't you like to know how the panel discussions of "international financial architecture" or "flow of global investments" went? Also, it was "expected that new instruments and incentives for making the global financial system safer will be suggested". Oh, really? That sounds interesting. But of course, CNBS doesn't care. Their main story right now is "Forget Software. Hardware Is Where It's At!" Nero fiddles while Rome burns...

Much appears to be taking place while hiding in plain sight. You see the events and wonder if they are all, somehow, interconnected. I would suggest to you that they are. The problem is, like anything else, you and I won't clearly see how they connect until after the fact, after all is said and done. But suffice it to say, there are connections to be made from just these examples:

  • Western and Japanese debt monetization and QE to
  • Chinese direct currency swaps to
  • LBMA member default to
  • German gold repatriation to
  • China gold imports to
  • Shanghai gold deliveries to
  • Cyprus to
  • Gazprom to
  • The Tamar gas field to
  • Israel bombing Syria and, by proxy, Iran to
  • Netenyahu visiting Beijing to
  • The end of the petrodollar to
  • The historic April raid on gold price and draining of the GLD to
  • The BRICs Development Fund to
  • The latest FOMC language about "raising" QE to
  • .......

I could continue but I'll stop there. I think you get the picture. As it relates to the precious metals, I think we all understand that there is currently a growing rush to get physical possession of metal. Whether it is from/out of Western central bank vaults, from LBMA vaults, from Comex vaults, from the GLD, from the U.S. Mint and other global mints...whatever/wherever...the push is on to redeem paper certificates for actual physical metal. Why now? Who cares?!? In a crisis of confidence, the initial cause is of no import. What matters is the escalating belief and fear that "If I don't act now, I'll be left holding the bag".

And so we've seen:

  1. Comex inventories plummet to the lowest levels since 2008.
  2. GLD inventory plummet to lowest level since 2009.
  3. JPM New York vault nearly emptied.
  4. German gold repatriation plan.
  5. 470 metric ton reduction of Comex Commercial net short position since 9/12.
  6. 800 metric ton Chinese import for 2012. 233 metric ton import for just March 2013.

And this is seeming to accelerate. Look at this chart of Comex inventories:

And look at the increasing rate of Chinese imports:

And then check this out. The GLD has now shed almost exactly 300 tonnes of its "inventory" since the first of the year. That's about 22% in just a little over four months! But did you know that it took:

  • Two months to drain the first 100 tonnes (1/2- 3/7)
  • Six weeks to drain the next 100 tonnes (3/8-4/15)
  • And just three weeks to siphon the next 100 tonnes (4/16- 5/8)

And this week's CoT will almost assuredly show a further drop in the Comex net short position of the bullion banks. I posted this yesterday but it's worth repeating:

  • On 9/11/12, two days before QE∞ was announced, The Gold Cartel was net short 237,091 contracts. That's 23,709,100 troy ounces or a whopping 737 metric tonnes of paper gold.
  • As of last Tuesday, April 30, The Gold Cartel is now net short 95,563 contracts, a reduction of nearly 60%! And they've reduced their potential delivery obligation by 440 metric tonnes to 297!

We'll get another CoT tomorrow and, for the reporting week, gold was down $23 while total OI was UP by nearly 17,000 contracts. I'll be stunned if almost all of the OI increase doesn't come from Spec shorting and Cartel buying.

Again, all of the things I've mentioned are spectacular in their own right. For example, the German repatriation story or the drawdown in the GLD. Taken in concert, however, it becomes quite clear that something significant is coming over the horizon. But what??? THAT is the question we must attempt to answer in the days ahead.

Anyway...time to wrap this up, I suppose. First, some charts. Note that gold and silver are marking time here. Silver is particularly interesting as it is clearly caught in a pennant that is rapidly closing. Keep a close eye on this as it portends a breakout sometime very soon.

And since I mentioned my friend, The Jackass, many of you are probably clamoring to hear from him, too. No, I don't have a podcast for you but Kerry Lutz does. A link is below. Jim and I may record something in a couple of weeks.

OK, that's all for now. Have a great day!


About the Author

tfmetalsreport [at] gmail [dot] com ()


May 13, 2013 - 1:48pm

Crazy II

Since this is crazy Monday, and trud eyes are red and half closed from the weekend bender, yours has also got stashed away a business plan for THE UTAH MINT to conform state bullion uniformly, for adoption of bullion again as US currency. About 3M$ gets its off the ground. Just being crazy. Just Saying. LMAO!!!


Submitted by SilverSurfers on May 13, 2013 - 10:08am.
May 13, 2013 - 12:33pm


law is all screwed up california, dont know about your home turf, but silly will give another clear example of legal corruption in our system, but this time it goes right at the heart of the family, as the only legitimate state interest is for parent to provide for their children, and as such, support can be determined by averages child living expenses, and thus, the only state legitimate interest is simply assigning, in most cases, a fix amounts for each child and be done with it, whatever amount that is, and therein lies the problem, first its commie pinko stuff and is determined by according to ones means, and secondly, the court actually looks at income, which has nothing whatsoever to do with that legitimate state interest and that fixed average need of the child, and hence, the fight is mostly over incomes, and the sharks feed that fight, and why should bobby be treated any different than billy, one awarded more than the other, and to the pecuniary interest of them blood thirsty sharks, under self interest ethical rules and laws written by sharks, to feed more sharks and that most despicable profession, as children are thrown head long into the shark pools, of course, the system is way screwed up, of course, and so, parents fight over incomes for child support, and sharks like a good fight, more in pocket money, and not so much over kids, but over money in the sharks pockets, and as such, those fights do terrible damage to parent child relationships, while the sharks feed, gloriously on the corpus of our children, financial ruining both parents to the extent they have anything left after the sharks get done with them, as the sharks promote self-centered commie pinko stuff here in california, under self-centered ethical rules and laws written by sharks, of course. Its one sick piece of do do, as any repeat offender would know.

Video unavailable
Andy Williams Can't get used to loving you
May 13, 2013 - 10:41am


yokel is added to the roll call, also named lollipop, and this guy is responsible for filing papers with that sexy clerk under the big top of the circus master, a form and fit and function guy, as is standard practice in the shark world, and lollipop is located proximal to the OK corral for rapid paper filings and knowing the local rules of the tent, where filing of such papers are usually under the command of the hired guns and silly putty as well, and lollipop can file and assist in getting silly putty and hire guns admitted before the circus master who will like the local guy pitching in, in the grand shoot out, so play that up nicely, but, lollipop could be also used in helping to schedule interviews between silly putty and the hired guns and the torpedoes mostly, and, between the hired guns and the destroyers in the water and traitors on board the enemy target, further helping with routine discovery filings and discovery set ups such as copying examination documents, and such like. So, without further ado, let me introduce for your raucous fan fair and thunderous applause and heart warming cheers, lollipop.

Chordettes - Lollipop

any one catch the arctic goalie popping, along side two brothers as torpedoes, with the star playing piano at the very end? Just Asking. LMAO!

May 13, 2013 - 8:58am

Aspect IX

number nine of the aspects of the attack plan is a brief summary, generally, the attack plan including nine aspects, a prolog, and miscellaneous notes, all on line and through the looking glass in public view, but couched in the double silly dutch and inadmissible as such and thus in ostensible secrecy, with silly putty in the role of acting rear admiral DD Porter commanding the mississippi river squadron and building and sending a dummy ironclad passed the vicksburg batteries, and that mock up attack boat cost less than three buckarooes and was entirely successful for the intended purpose, with guidance systems and weapon packages off line, but, the attack plan has been laid out by and large in a first rough cut, to be fleshed out only during operations after launching the real attack sub for fitting out and being fully armed by the silly team, ready for live fire action, and glorious victory, and the commanding general stands ready to be assigned for the purpose stated, as that general can only offer the service to the country.

Yellow Submarine The Beatles
The Bonnie Blue Flag - Gods and Generals

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May 13, 2013 - 7:44am

Aspect VIII

number eight aspect of the attack plan is a general over view of operations time wise to perfect the slam dunk and kill leviathan ounce and for all in the bullion space, and that slam dunk is expected to launch freedom and start the global central banker dominoes falling, while the printer presses are gone wild trying to save the enemy navy, and so, that fall out of leviathan is not fully addressed here as outside the scope, and so, the focus is always upon the immediate target, and that is, to route leviathan in detail, and, this general attack plan over operational planning is segmented into four time parts, and, the four operational parts are the preparation and the dog and pony shown and the counter punching and the dog show, all under the same tent before the same district circus master, generally, the operational time four parts of the attack plan is divided into three months time periods each, the first period is the preparation ending with the filing of the first salvo, the second part is three months for cross fire in advance of and ending with the dog and pony show, the third part is three months for counter punching and settlements, and the forth part is leading up to and ending with the dog show, of course, discovery may be had from time of the first salvo and concurrent filing of the beef paper, to the end at the dog show with the twelve bus drivers sitting, and so, the general timing is considered here likely and hoped to be at most one year, with leviathan shot to pieces by the first salvo, and then rendered dead in the water after the dog and pony show, in about six months from lift off, and then, during the third time segment, to make all nice with settlements and with circus enjoinment and billions paid up in settlements, ending the bad press for the enemy akulas and destroyers and the targeted leviathan, and this should occur well before the dog show, as it is very doubtful the dog show will ever be reached, as continuous habitual bad press upon leviathan is a mother and hurts stock performance as well, and so, all them leviathan share holders will rally to the silly standard after first blood is drawn at the dog and pony show, and so, the key to success of the operational plan is the focus between the investigator and the hindsight capitalist and silly putty, between such, they must show first prima faci manipulation to buy a ticket into the tent before the circus master, and at this first showing, to render a best guess set up as to internal business operations to perfect the heavy handed manipulation as prima facily shown, and then focus on the counter punch of the destroyers in opposition, where is really counts, to connect dots and sink leviathan at the dog and pony show, as by then, the magnificent seven is off to the races, and so, the first step is finding fancy pants for the initial pony up, and fancy pants could make a multiple bagger return, but, fancy pants should be other wise in sympathy for the cause of taking down the totalitarians with leviathan on point, as the political enemy, and so, if fancy pants really does believe in magic, for it would seem like it, and so, one year is the expected time frame, as the poor star just cant afford a multiple year shoot out anyway, and, leviathan is the commercial weak link, the point where to attack the evil empire to start the dominoes falling as well as free the bullion space in so doing, and hence the time table of one year, and silly putty is very willing to relocate for this year for the purpose stated, while living and breathing the dust and fall out and directing the hired guys and torpedoes for the greatest shoot out of all time, and silly putty is dirt cheap looking for pay dirt 24/7 as general at headquarters near the OK corral second only to the almighty in control as the celestial complainer, and the timing is right with the people sensing something is very wrong, looking for bonnie blue battle flags proudly waived for all to see, as the south rises again, and it all completely totally squares up, to end TBTJ and bullion manipulation and enslavement of our countrymen, but first, fancy pants must be found and fancy pants must believe in magic.

Do You Believe In Magic - The Lovin' Spoonful
May 13, 2013 - 5:46am


just building, what else is going on at 2:30am, eyes wide open. Note: Tea Partiers are good recipients of rally notices for dog and pony show time before the hired guns and circus master, for the outside party of a life time, with silly crying his eyes out at the dog and pony show, just for the show.

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