Friday Wrap-Up

317
Fri, Aug 23, 2013 - 7:44am

It's once again the end of the great American work week at least for those of you doing the 9-5 thing in a cubicle or hopefully an office where you can close your door and enjoy the unique repartee Turdville has to offer. Some of the guest writers are on a well deserved vacation so you get me one more time providing the Friday morning quarterbacking. It's kind of like being a kid and peaking in the class room to see who the substitute will be. Lantern again? Spitball throwing contest day!

ALL SYSTEMS DOWN

You are spending a quiet evening at home scrolling through the latest comments on Turdville when all of a sudden your computer screen turns blue, and lines of white text start scrolling past including the words beginning dump of physical memory, fatal error. You scratch your head and say to yourself, "now that can't be good!" Yesterday, the NASDAQ experienced a collective Blue Screen of Death when trading of stocks and options came to a complete stop for over three hours because of a technical malfunction.

It was serious enough that both the President and Treasury Secretary were briefed on the situation shortly after the lights went out. Earlier this week, Goldman Sachs experienced a serious problem with their computer trading system that resulted in a flood of erroneous orders being sent to U.S. equity options markets. Bloomberg is reporting the glitch may have affected about 400,000 contracts for companies including JPMorgan. They are still investigating but I heard Rick Ackerman say yesterday that there could be losses up to 9 digits.

https://www.bloomberg.com/news/2013-08-20/goldman-says-exchanges-working-to-resolve-options-order-mishap.html

Folks this is serious stuff. I suppose computers do malfunction but when it happens twice in a week to the most sophisticated financial computers in the world, red flags should be popping up all over the place. As you might remember, in 2010 the DOW experienced a Flash Crash where the market lost 1000 points in 9 seconds and the technical glitch which occurred during the IPO of Facebook. These are only the more notable ones but the US exchanges have been experiencing other technical failures that it's time to ask, what is REALLY going on here?

Now consider this article printed by the WSJ back in 2009 regarding the computer system that run the US electrical grids being the target of foreign sabatoge.

"The spies came from China, Russia and other countries, these officials said, and were believed to be on a mission to navigate the U.S. electrical system and its controls"

https://online.wsj.com/article/SB123914805204099085.html

So you see where I'm with going with this? With all the revelation of the sophistication of the world network of the NSA, and all the stories of hacking over the last couple of years, it's not too much of a leap of faith to suggest that something stinks here. I guess I'm not the only one to think so as yesterday Jim Rickards tweeted on the situation including the following,

Jim Rickards. Am I the only one who believes #Goldman & #NASDAQ trading glitches back-to-back may be #Iran cyber warfare, hitting us where it hurts: $$ ?

to which one "Victor the Cleaner" replied yes. Boy that guy gets around.

Sorry Victor but there is at least two of us now that think that this rash of technical glitches is something more than the result of an incompetent PC support staff. Earlier in the month, Catherine Austin Fitts was talking on a similar subject on how the US spying network is quite suitable for tapping into our financial system for purposes of manipulating the trade. One doesn't have to be Tom Clancy to imagine the possibilities of sabotaging either our transportation system, electrical grid or financial markets. Of course, if there was some foul play involved, you better believe that you would be the last to know.

Let's move on to some very brief market news.

In case you missed it, here is a full synopsis of the fed minutes. The bottom line was that there was no change in the Fed's stance on bond buying.

https://blogs.wsj.com/economics/2013/08/21/key-passages-from-fed-minutes-2/

Yesterday as I was reading the analysis in both the alternative and MSM, it was clear that EVERYONE is certain on what the outcome will be. Zerohedge represented the alternative media by suggesting that anybody who believes that they will taper QE is delusional. And the MSM media suggested that something like 60% of economists were certain that the QE would be tapered in some form.

I thought to myself with all this certainty in what the Fed will do in September, it must be that all the people writing aren't the same people who invest in the markets. Clearly, the markets don't seem to know up from down and gold had a momentary lift and then sputtered again. Maybe those who are invested in the market don't really believe anything they read?

As you know, I am in the camp of entertaining all the various scenarios and then sitting back and watching the game unfold. Not to belabor the subject, but I did mention a 4th storyline which the Fed could opt for that would save face for the Fed while continuing to print piles of fiat. Nobody ventured a guess so let me spill the beans.

The Fed could begin shaving off some of the sterilized QE, keep the banks well buffered, bond buying at a healthy level while starting to put some of that gelt into the real economy vs a sterilized QE. There are many ways the Fed could do this save a true Bernanke style helicopter drop. If you have been paying close attention, Elizabeth Warrens' proposal of buying up $1 trillion dollars worth of student loans instead of $85 billion a month of government bonds. However, that would likely produce the kind of real inflation that gold bugs would really like and would be the impetus for the next strong leg up in the gold market. There are the obvious dangers of trying such a thing.

One last point, I wanted to make was the one that our friend Argentus wrote two weeks ago " A pulse of inflation now, is probably not THE gold bull market that the gold bugs hope for, seeing as government structural reforms are not yet in place." There is that BIS buzz word again, "structural reforms" If you feel so inclined you might want to go back and reread AM's post. https://www.tfmetalsreport.com/blog/4934/coping-stagflation-gold-traders....

Finally, this was posted over at Jesse's Cafe last night around the Witching' Hour on the steeply falling Comex inventories. .

https://jessescrossroadscafe.blogspot.com/

By now, you have all considered Turd's short list of unusual things that are happening. And all I have to say on the subject is There is More!

In the spirit of Turd Friday's, the thread is an open one. Feel free to comment on any thing dear to your heart.

Enjoy your weekend!

About the Author

Green Lantern

  317 Comments

silver foil hat
Aug 23, 2013 - 7:56am

Hi there

In a totally coincidental happenstance I lost all my phyzz in a freak cruise ship accident in the middle of Death Valley yesterday.

Some of you will immediately see the <sarc> as it relates to the 'technical glitch' in the market yesterday.

The next one will conveniently eliminate trillions in wealth in retirement funds.

murphy
Aug 23, 2013 - 8:01am

woo hoo

TGIF. Thanks GL.

As an aside, for all those who have considered joining TF's Vault membership and have not taken the plunge. I would suggest you give it a try for at least a month. There have been numerous new names that I had never seen before. The common thread from them and others saying that they have all ready got their moneys worth.

AndrewRyan
Aug 23, 2013 - 8:10am

Whats a central banker gotta do to get some inflation round here

Just read this article from Reuters. That's 5 years at an anemic 1% inflation. I just don't see how they taper with inflation that low and unemployment this high. Market seems to be thinking QE ends June 2014, but I'm not seeing it.

For once I bet the BLS wishes shadowstat's data was right. SS claims >4% inflation since 2008. Yeah, right, we should be so lucky. We'd be seeing a much healthier job market and GDP if that were the case, not to mention some more robust PM prices.

sengfarmer
Aug 23, 2013 - 8:22am

One more

Why not have an income tax holiday for a couple years? That would only cost less than 3 trillion a year. Why shovel over 23 trillion into the financial system over the last 5 years? Give us peons a break.

Mantis
Aug 23, 2013 - 8:24am

I'll take 5th

Think 1st might be achievable under the non paid section..

now for the article..

dannyhaha
Aug 23, 2013 - 8:25am

Cyber attacks?

I don't think it is very farfetched to consider any cyber mishaps to be other than any "attacks' by Iran or any of the other designated targets.

I don't say impossible, but it is at least as likely, and probably more so a dishonest laying of blame in order to justify response, maybe militarily.

This has been the desire of this government and the other government that has so much sway with it.

It's a shame that such a thing can be considered, but the last dozen years have shown that it can be a likely thing.

Monedas
Aug 23, 2013 - 8:34am

Very Suspicious !

Why doesn't the IRS .... ever suffer a systemic collapse .... or the SNAP card system .... or HUD Section 8 .... duh .... because it's "them" .... that's doin' it to US ? Monedas 1929 Comedy Jihad Follow The Trail Of Gingerbread Crumbs To The Free Shit Army World Tour PS: The Goobermint protects it's WIC (Welfare Indolent Complex) secrets more closely from the taxpayer/worker bee boobs .... than the MIC secrets from our admirable avant garde ever so chic socialist adversaries !

lamare
Aug 23, 2013 - 8:35am

CONFIRMED: US Military Alliance Defeating Federal Reserve

I just finished reading David Wilcock's latest article:

https://divinecosmos.com/start-here/davids-blog/1145-us-military-fed

A very interesting read, I would say, with lots of details suggesting patriots with the US Military have been up to something for a long time. To me, this appears to connect very nicely to the computer problems in Green Lantern's post. Some quotes and notes:

https://www.zdnet.com/anger-rises-as-fed-confirms-anonymous-hack-downplays-us-bank-emergency-system-breach-7000010902/

After Anonymous posted sensitive credentials of over 4,600 banking executives to a government Web site on Super Bowl Sunday, the Federal Reserve acknowledged the attack in a Tuesday morning statement to affected individuals and press.

So, anonymous clearly does not like the FED and makes clear it has access to (some of) their computers.

Anonymous’ Secret Presence in the US Army https://www.buzzfeed.com/justinesharrock/anonymous-secret-presence-in-the-us-army

An active-duty Army captain and member of Anonymous describes how the organization operates, his own involvement in the Arab Spring, how the crackdown on Bradley Manning and Edward Snowden has affected soldiers, and how more leaks are on the way.

He has agreed to speak with BuzzFeed on the condition of anonymity.

Are there a lot of members of Anonymous in the Army?

There are more than you would think, more heavily in the techie world [of the military] — especially at Fort Huachuca, where all the intel people are.

A lot of them wanted to get the job [there] because they want to learn secret stuff and have a better personal understanding of how the world actually works.

Many US Army personnel are working for anonymous...

Snowden Downloaded NSA Secrets While Working for Dell, Beginning in April 2012 https://www.reuters.com/article/2013/08/15/usa-security-snowden-dell-idUSL2N0GF11220130815

WASHINGTON, Aug 15 (Reuters) - Former intelligence contractor Edward Snowden began downloading documents describing the U.S. government's electronic spying programs while he was working for Dell Inc in April 2012, almost a year earlier than previously reported, according to U.S. officials and other sources familiar with the matter.

At least, this was not a "last minute" action, but a well thought-trough and coordinated plan.

Now, consider this:

https://zeenews.india.com/news/world/wikileaks-releases-400gb-of-encrypted-insurance-data_870053.html

WikiLeaks releases 400GB of encrypted 'insurance' data

That's a LOT of data, which suggests Snowden may not have worked alone, but may be associated with "anonymous" or at least some of their US Army members.

To contintue with Wilcock:

Very soon after Snowden became a public figure, he ended up in Russia. This was no accident. I highly doubt he ever intended to go anywhere else.

As I wrote on June 8th, before Snowden was even identified, "Vladimir Putin is the most visible coordinating member of this alliance today."

What I found very interesting to read, is this part:

SHERMAN SKOLNICK FIRST BROKE THE NEWS OF THE ALLIANCE

More than one insider has revealed to me that a significant majority of the US military -- at least 60 and possibly now over 75 percent -- is directly opposed to the occult "New World Order" Cabal running the Federal Reserve.

The commanding officers of some divisions are now 100 percent in agreement of the need to bring down the Federal Reserve and restore the Constitution.

Before the BuzzFeed article, there was no major, public indication that the military was working against the Federal Reserve -- other than the groundbreaking Veterans Today website.

Still to this day, Manning and Snowden are generally being seen as loners, operating in isolation -- and not members of any greater alliance.

However, the US military alliance against the Cabal was first publicly revealed by Sherman Skolnick -- all the way back in the late 1990s and early 2000s.

[...]

THIS PLAN IS NOT FAKE, AND HAS BEEN IN THE WORKS FOR MANY YEARS

By 2001, Sherman Skolnick had openly revealed that there was an alliance of patriots working to save our planet from financial tyranny.

However, a coup d'etat in America would not be sufficient to solve this problem -- it is much bigger and far more international than just the United States.

The patriotic US military "flag officers" who fled to a Paris suburb after the 1995 airplane sabotage have apparently helped consolidate a vast international alliance.

Russia is playing a key part in this alliance, as I said earlier. Snowden's amnesty in Russia is a major clue that supports what our insiders have been saying.

COMPUTER HACKERS ARE A KEY PART OF THE PLAN

Computer hackers have always been a key part of the US military alliance.

I have been told that a significant number of ordinary hackers who get caught and arrested end up enlisting, rather than going to jail.

Quietly, the patriotic US military has built up a vast army of computer hackers -- well over 40 percent of all enlisted personnel, I was told.

The hacker group "Anonymous" is apparently a visible, public manifestation of this ongoing military hacker alliance.

The propaganda, spin and disinformation machine is so effective that many people still do not believe an alliance even exists -- or has positive intentions.

Nonetheless, I have had personal contact with insiders who are involved in this alliance, to varying degrees.

This did not come easily. I have had friends die and others get poisoned and brought to the brink of death -- but I did not stop the work.

P.S.: There's no mentioning of UFO's or aliens or anything of that kind in this article, but there are references to the idea of "synchronicity" and numerology, which you may not like.

In that case, just skip over these parts and ponder on the idea that "anonymous" may be an operation by patriots within the US army a/o aiming to end the FED, within/cooperating with an international alliance with a/o the Russians and the Chinese, those who hoarded the gold and thus bankrupted the FED...

DeaconBenjamin
Aug 23, 2013 - 8:38am

Gold down by Rs 330 to Rs 31,420 on lower sales

NEW DELHI: Gold prices today plunged by Rs 330 to Rs 31,420 per 10 grams in the national capital on lower sales by retailers and jewellers at current high levels. Silver also eased by Rs 100 to Rs 51,800 per kg on lack of buying support from industrial units and coin makers. Traders said reduced offtake by retailers and jewellery fabricators at existing higher levels mainly kept pressure on the prices of both the precious metals. They said besides falling demand due to off marriage and festive season, investors shifting funds from bullion to rising equity markets further influenced the market sentiment. In line with a general weak trend, silver ready declined by Rs 100 to Rs 51,800 per kg, while weekly-based delivery rose further by Rs 110 to Rs 51,650 per kg. The white metal had surged by Rs 1,745 in the previous session. However, silver coins continued to be asked around previous level of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces. https://economictimes.indiatimes.com/markets/commodities/gold-down-by-rs...

¤
Aug 23, 2013 - 8:40am

Good Morning

Thanks for the thread GL and a happy TGIF to everyone.

Ditto what Murphy said...there are lots of lurkers/newbs coming out of the woodwork over there and the tenor is pleasant and NOT an echo chamber. I recommend those on the fence to give it a try even if it's a brief one to just check it out.

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 10/21

10/22 10:00 ET Existing home sales
10/24 8:30 ET Durable Goods
10/24 9:45 ET Markit flash PMIs
10/24 10:00 ET New home sales
10/25 10:00 ET Consumer Sentiment

Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Recent Comments

Forum Discussion

by NW VIEW, 33 min 47 sec ago
by sierra skier, 8 hours 51 min ago
by NW VIEW, 8 hours 54 min ago
by Trail Trekker, 10 hours 14 min ago