The Latest From Mike Maloney

Tue, Nov 26, 2013 - 2:25pm

Once again, Mike Maloney and his crew at have done a great service for the community. Here's the latest video in the Hidden Secrets of Money series.

This latest episode deals with the history of money. In it, Mike discusses how and why money and currency came into existence and he expertly explains why all fiat currency regimes eventually fail. Just for fun (?), Mike also shares his two biggest concerns for the future of freedom and free markets.

Please take the time to watch this video and then forward it on to your entire contact list. We must educate and enlighten as many as possible before it's too late.


About the Author

turd [at] tfmetalsreport [dot] com ()


Nov 26, 2013 - 2:29pm

Can it be? 1st.

Can it be? 1st.

Nov 26, 2013 - 2:30pm
Nov 26, 2013 - 2:33pm



Nov 26, 2013 - 2:35pm


Once again? No, but #4 is ok.

Nov 26, 2013 - 2:42pm


Mike Maloney and the folks at do an excellent job putting together those videos to simplify these complex monetary issues. The one thing that I keep reminding myself to do is to call or label our Federal Reserve Notes as "Currency" rather than money. It sounds silly, but when you go to the bank and ask for $100 in currency... the bank teller looks at you strange, but at least you got them thinking.

Anyhow, the Chinese are burning through their gold mineable reserves to get as much gold in their central bank vaults before the grand revaluation.

CHINA: Running Out of Gold Mine Supply?

Nov 26, 2013 - 2:52pm

Here are a couple freebies

I'm watching the bond market very closely.

Everybody and their brother says rates are going higher. Everybody and their brother has their head in their ass. Rates are still falling and bonds are still rallying. They have been since the lows of Sept 5 when rates hit 3%.

Rates are NOT heading higher and QE will NEVER end.

Nov 26, 2013 - 2:54pm
Nov 26, 2013 - 3:03pm

Bill must be a another closet Turdite

His two main points are both items we discussed at length earlier this week. surprise

Nov 26, 2013 - 3:10pm


Turd... I agree that QE will not stop. However, at some point in time the darn rates have to go back up don't they? I mean, how long can they hold back the fundamental forces of nature?

Anyhow, I believe Jim Willie has stated several times that he sees Treasury rates going up higher by next year. But again... they could hold them down for longer than most realize.


Nov 26, 2013 - 3:11pm

Your answer, Steve

"But again... they could hold them down for longer than most realize."

Nov 26, 2013 - 3:12pm

This is fun

Though I sure wish I'd thought of it myself...

Nov 26, 2013 - 3:15pm


I asked and answered my own question ..LOL. I do realize if the long rates went up towards 5-6%, it would detonate that huge Interest Rate Swap time bomb on the banks balance sheets. 

So... there is really only one way rates are going to head, unless we want the whole system to collapse.

Nov 26, 2013 - 3:28pm

Scary Snowman

Thanks Turd, I think I will add that to my return to sheeple exercise. 

Oh no, I have to look again, SRS used the word detonate. 

Have fun.

Nov 26, 2013 - 3:29pm

Long Rates and Interest Cost

 Interest Rate Interest ($B) % of Reciepts
1.5% 259 9%
2.5% 425 15%
3.5% 595 21%
4.5% 765 28%
5.5% 935 34%
6.5% 1105 40%

Assumes a $17T base for FY 2014 (prolly closer to $17.5T, but it's close enough).

Boom goes the dynamite. Yet another reason why they can't allow rates to rise, ergo the Fed will never stop, and likely need to INCREASE the amount being printed. There may not be enough "supply" according to ZH and others, but don't forget that we have to roll 3-4T a year IN ADDITION to new supply in the form of deficit spending. 

Nov 26, 2013 - 3:29pm

Bill Holter on COMEX OI . . .

Something's gotta give. Tomorrow is 1st day notice--D-Day for gold and silver.

Nov 26, 2013 - 3:31pm

Since "events" are driving

Since "events" are driving the Fed (and other CB) policy, a rise in short term interest rates is possibly one of our best early warning systems to detect an imminent and covert increase of QE.

Nov 26, 2013 - 3:37pm

Manipulating Markets

Manipulating Markets Posted on November 26, 2013 by Martin Armstrong


I get a lot of questions regarding to what extent can the Club manipulate markets? Ironically, the more open a market including futures, the less ability their ability to manipulate even for brief periods. Preventing or limiting markets from trading devolves a market into a corner where it can be controlled. There will always be some subtle influences that defeat 100% manipulations such as in diamonds. The smaller the market the more likely it can be controlled.

Paulson-1Just look at the 2008-2009 Crisis. Shorting financial stocks of Bear Stearns and Lehman was ok. However, as soon as the selling turned on Goldman Sachs, their stooge Hank Paulson acting as Treasury Secretary outlawed short-selling financials. He cut off the free market to save Goldman Sachs.

TankMan-060589When we look at the global economy, the Economic Confidence Model (ECM)proves that the global economy cannot be manipulated on a systemic basis indefinitely. Sure you can have a revolution and shut down the free markets as was the case with Communism. But even that failed no matter how many tanks they had.


The ECM is all incorporating. It includes nature from weather to volcanoes and earthquakes. It was the San Francisco Earthquake of 1906 that set in motion changes to capital flows internally within the USA that sent cash from the East to the West and resulted in a cash shortage that led to the Panic of 1907. Other financial panics have been global like the Great Depression. Earthquakes have impacted Japan in the past and even up to the nuclear disaster of late.

The Club engages in market manipulations that are numerous touching many markets globally from Asia to Europe. But these are in-and-out deals. They are not some systemic plot to keep any individual market suppressed. This is all about – show me the money for their quarterly earnings and bonuses. Do you really think this people will work waiting for some profit 25 years from now?


Volcker watched gold in the ’70s and raised interest rates looking at that market as a lead to the misconception that it was related to inflation. It was not. The rally in gold was due toCurrency Inflation, which is the decline in a currency value that causes the entire sector to rise.This was pictured in the cartoon of that era. Demand Inflation is isolated. For example, the orange crop in Florida could be wiped out by a storm and this creates a shortage in oranges but apples are not effected. When the entire spectrum rises, this is typically Currency Inflation and not Demand Inflation.

Long-Term Capital Managment

The market manipulators are out for profits and what they think is the guaranteed trade because they are cheap bastards who worship money more than their reputation. They have no stomach for risk. They have ALWAYS, and without exception, BLOWN THEMSELVES up and run to government for bailouts. They have no pride. The Long-Term Capital Management (LTCM) crisis of 1998 took place because all the bribes in Christendom paid by the bankers could not prevent Russia from collapsing. The biggest banks were all involved in that trade. The Fed bailed out LTCM that was a hedge fund with no authority whatsoever. Why? Because it was really the banks who they owed so they did not want to expose the banks in the plot.

Bankers Testify

The Club desperately tried to get me to join their Russia manipulation under the theory if I said it would go up, then they would have me in their camp as a shill. When it collapsed, they blamed me as always for their sloppy trading if you can even call it trading. Paying bribes is not trading. That is rigging the game. When they rig the game, they pay no attention to trend and thus lose EVERY single time the same as the Gold Promoters who only say buy. If the banks were such great traders, they would not need bailouts. The fact that they blow up every time, demonstrates the markets CANNOT be systemically manipulated – they can only manipulate with the trend. There are no WHALE trades that management does not know about. Rogue Traders are scapegoats – management is keenly aware. Bear Stearns refused to participate in the LTCM bailout, and they were on the hit list also for not playing ball in the 2007 debacle.


When we stop the borrowing, end federal taxation, revise the world monetary system, and end banks trading with other people’s money, then and only then will we reduce the volatility and perhaps save our future, Thank God for mortality. For I surely do not want to live in the aftermath of a world these people blow up for good. They are playing with real economic weapons of mass destruction.

Nov 26, 2013 - 3:39pm

dgstage re: Kaye on KWN

"And the answer is somebody thinks we are going to get there. That’s the only reason. You’ve got enormous leverage at a fairly cheap price if you are right. I personally would not have any interest from a buy-and-hold strategy in that series, Eric, because I think the Comex shuts down long before you see $3,000. " is someone who knows gold is going to be there in two years because they own the algorithm that sets the paper gold price. Surely it can't have anything to do with fundamentals, because if it did, gold would already be over 3000/oz. Anyone that would make an honest bet like that has already guessed wrong too many times based on logic and reason. No, it is not someone who "thinks" we will get there, it is someone who is sure of it.

Nov 26, 2013 - 3:45pm


Great point you made.

Nov 26, 2013 - 4:06pm

The SLV bleed continues...

With the loss of another 963,000 silver oz yesterday(which went under the radar)....This makes an average of about 2 million oz per week that the SLV has lost in the last 7 weeks. At this rate, it would lose 100 million oz within the next calendar year.

GLD has now shed over 501 metric tonnes this year...and at this pace, will be down 40% in inventory by year's end. Worst case at this burn rate, the powers could keep using it for.....another year perhaps? Will they, or will they just pull the plug and cut their losses? Heck if I know!

Also the Swiss silver ETF continues to bleed silver.  This matches the Shanghai exchange, which has bled roughly 70% of their silver stockpile since April(which SRS has astutely shown us, thanks Steve!)....

All this to say......with the SLV, Swiss Zurich Cantonal ETF bleeding steadily, the SLV, and Shanghai all losing silver.....are we to believe that the Comex is defying the universal trend, and is pulling silver off the meteorite mines already?

In Turd'speak:

Nov 26, 2013 - 4:16pm


Does anybody know whether or not the COMEX can default in part under its "rules." Like default on gold side and keep "the game" going on the silver side? Or, does a default on one item take the whole thing down. Thanks.

Nov 26, 2013 - 4:27pm


Here's what it looks like when HSBC books in one metric ton of eligible gold. Actually weighed and accounted for:

And here's what it looks like when JPM books in one metric ton of gold. Meh...whatever. If you say so:

Nov 26, 2013 - 4:28pm

I suppose they could but...

Once it's clear that gold has defaulted, the game would be up and silver likely wouldn't be far behind.

ancientmoney bookers126
Nov 26, 2013 - 4:31pm

@bookers126 re: default in gold, not silver . . .

Yes, they could demand cash settlement in gold, but not silver. However, that would be a tipoff, and everyone would demand delivery in silver in the real world. 

So, if they do it in one, they'll do it in both--my opinion.

Edit: Oops--Turd beat me, but we agree . . .

The Doc
Nov 26, 2013 - 4:37pm

China Has Quietly Accumulated 20,000 Metric Tons of Gold!

It appears that the Chinese haven't forgotten the history of money.

AGXIIK makes the case that the Chinese have quietly accumulated 20k MT of gold!

China Has Quietly Accumulated 20,000 Metric Tons of Gold!

There has not been a peek in Ft Knox for nearly 60 years. Empty of gold? Probably. Or spoken for (rehypothecated) 5 times over and that situation, if it’s a fact, would be a real crap storm since the claimants are probably central banks. Germany’s 300 tons of gold? Pfah. Get lost Merkel. The emperor’s golden threads are just dross. No one will get to see what’s there, move along.
Meanwhile, the Chinese are quietly backing their currency with at least 20,000 tons of gold. Not 10,ooo or 5,000. At least 20,000 metric tons.

P.S. Thanks to TF for the gold pallet graphic :) and Happy Thanksgiving to all the Turdites!


Nov 26, 2013 - 4:39pm

Turd and Ancientmoney

Thanks for the speedy responses! They made me feel a lot better on this Terrible Tuesday.

Dagney Taggart
Nov 26, 2013 - 4:56pm

Free Debt! The World is Saved!

Sorry. I just wanted to hear and feel how hollow and worthless this sounds. So goes the life of a modern banker.

Off to American Thanksgiving and special deliveries now. Hope they don't check the mini's magic compartment.blush

PS. Nevermind. Maybe I should read the thread first.

Dagney Taggart
Nov 26, 2013 - 5:02pm

Regarding the 15,000 Dec15 3000 gold calls....

Why now? This is 2 years away. Does someone think the price will get there rapidly and the Comex will still be alive? Someone thinks the bottom is in otherwise they could have bought cheaper, no? Could this be the first buy at this level with others to come if price goes lower?

Turd, please explain the strategy.

Dagney Taggart
Nov 26, 2013 - 5:10pm

Someone thinks price is going

Actually it was 18,000 calls at a price ranging from 3.70-4.00. Someone thinks price is going higher.

Remember, price doesn't have to go all the way to $3000 for this to be very, very profitable. If price just turns and heads back toward $1800 in the next 6 months, these calls will likely go up by at least 50%.

Jim Comiskey covered this extensively last Thursday in the A2A. It's Thanksgiving. A time of sharing and thanks. To that end, here's the now-public link:

Mr. Fix Dagney Taggart
Nov 26, 2013 - 5:52pm

Is the pope really a socialist? Am I really a heretic?

Jesuit Trained Pope Trashes Capitalism in Call for Worldwide Socialism
  • The Alex Jones Channel Alex Jones Show podcast Prison Planet TV Twitter Alex Jones' Facebook Infowars store

Natural law and a natural system of liberty now under concerted attack.

Kurt Nimmo
November 26, 2013

Pope Francis. Photo: Semilla Luz

Pope Francis. Photo: Semilla Luz

Pope Francis released his first encyclical on Tuesday. In addition to restating opposition by the Catholic Church to abortion, the new Pope criticized free market capitalism and advocated wealth redistribution.

He said “some people continue to defend trickle-down theories which assume that economic growth, encouraged by a free market, will inevitably succeed in bringing about greater justice and inclusiveness in the world. This opinion, which has never been confirmed by the facts, expresses a crude and naïve trust in the goodness of those wielding economic power and in the sacralized workings of the prevailing economic system. Meanwhile, the excluded are still waiting.”

The rest of the story:

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