Gold Down 6% In Three Days

Wed, Mar 19, 2014 - 10:51pm

The Fed, through their evil, sycophant banker shills have driven gold lower by 6% in just three days. All is well, right? The Crimean Crisis is over and Woody won! Ummm...not so much.

Remember, the "truce" is only through Friday. In the meantime, please be sure to read this entire piece from RT:

A few highlights:

“They are constantly trying to drive us into a corner because we have an independent position, because we maintain it and because we tell it like it is and don’t engage in hypocrisy. But there is a limit to everything. And with Ukraine, our Western partners have crossed the line, playing the bear and acting irresponsibly and unprofessionally.”

“They act as they please: here and there, they use force against sovereign states, building coalitions based on the principle ‘If you are not with us, you are against us.’ To make this aggression look legitimate, they force the necessary resolutions from international organizations, and if for some reason this does not work, they simply ignore the UN Security Council and the UN overall.”

“Some Western politicians are already threatening us with not just sanctions, but also the prospect of increasingly serious problems on the domestic front. I would like to know what it is they have in mind exactly: action by a fifth column, this disparate bunch of ‘national traitors’, or are they hoping to put us in a worsening social and economic situation so as to provoke public discontent? We consider such statements irresponsible and clearly aggressive in tone, and we will respond to them accordingly.”

The entire speech, conveniently translated:

Emere stupri intinge.


About the Author

turd [at] tfmetalsreport [dot] com ()


arch stanton
Mar 19, 2014 - 10:58pm



arch stanton
Mar 19, 2014 - 10:59pm



sorry i've been drinking

Mar 19, 2014 - 11:02pm



Safety Dan
Mar 19, 2014 - 11:06pm

Hey Arch..


You are not allowed to drink and blog.. Those are the rules.. If you chose to break the rules, the moderators will come to your house and drink with you!!!

Mar 19, 2014 - 11:06pm
Mar 19, 2014 - 11:08pm

Watch What They Do,

Not what they say. Something like that, right? None of them can be trusted. That was our mistake.

Sincere thanks to all the guest posters on this most excellent blog, and of course, a double dose to our most impressive host. Gobs of great info around here every day...

Mar 19, 2014 - 11:10pm

As I just posted...

As I just posted over at another forum... Stay strong, we have a horrible habit of forgetting why we're in PMs in the moments we watch algos tell us the real price. I'm constantly reminded of the movie WARGAMES and the ending with all the generals watching the illusion trying to drive them to war and Faulken says, "General, what you see here is a computer enhanced simulation!"

Anyway... the OP asked if we believed ourselves to be smarter than the almighty FED...

"I agree with the Austrian Economists who have been warning about this type of madness for 100 years now. I agree with the idea that if the rate of interest is manipulated, and thus the supply of money is manipulated, then nothing is ever truly priced correctly leading to horrible distortions in debt based enterprises and value altogether.

I agree with the Austrians that a system such as this gives way to massive amount of malinvestment because banks are more likely to lend and people are more likely to borrow and invest into foolish concepts that they wouldn't have before.

I agree with the Austrians that the bigger the bubble blown the worse the eventual pop is. As von Mises said the credit basically builds prosperity on a pile of sand.

I believe that ultimately von Mises, and Hayak, and Rothbard, and Sennholz, and Hazlitt and even their modern day versions like Paul, Woods, and Schiff will eventually be right. A system such as this cannot sustain itself in the long run - even Keynes knew this - but as Japan has shown us it can go on far, far, FAAARR longer than it ought to.

It all boils down to confidence and how much the FED can fill people up with it. If they can get the people to believe in the lies then the illusion takes on a life of it's own (it's irrelevant if the money is malinvested they can just lie about why that was later on when it busts). When it busts, of course, the people cry for more because they get used to an unsustainable standard the malinvest they get more... and more...

More debt, more new money, and another boom cycle followed by a harder bust. How long it lasts no-one knows but they've worked on pretty sure fire 7 year cycles since 1973 which would put the next one at sometime in 2015.

Do I believe I'm smarter than the people at the FED? No, but I believe the Austrians, and in particular von Mises, were always smarter than Keynes and always understood that his system of booms and busts would eventually lead to what von Mises called the crack-up boom and total collapse of the monetary system.

Are we at the crack-up boom stage? Can the FED eek one more bubble out of this credit cycle? I don't know but i'm not going to stick around to find out. In 6 years we've created more money than we did in almost the entire country's existence and yet things are still bad. People are still out of work and starving. I can't even go near the west of south sides of Chicago without feeling like i'm in the 3rd world. Almost 50% of the country receives some kind of government assistance and in most homes both parents work.

What I believe is von Mises may have been the 2nd most brilliant man of the 20th century, next to Einstein, and ultimately what he went through in Austria and Germany during the 1910s and 1920s gave him an entirely unique perspective Keynes never had. We are now following the hyper-inflationary policies von Mises warned about on a world wide scale...

And, this has never been tried on a world wide scale in human history! In all the other examples throughout history it's always lead to a collapse of the currency.

But again, it all depends on confidence, if the US debt goes to 1 quintillion would it matter if people still believed the dollars had value? Probably not, as long as the people went along why would it? But eventually the crack-up boom comes, eventually the music stops, and eventually the propaganda machines come out in full force to try to give the people some answers and having been a news producer for 2 years I can tell you it's really BS too.

The 20th century is littered with reasons why the FED shouldn't be trusted and while I may not be smarter than the people who run it I'm smart enough to know I shouldn't play in their system. Not just because it's morally repugnant but because my believing in it is the strongest thing keeping it afloat. Confidence is the key.

But then finally the masses wake up. They become suddenly aware of the fact that inflation is a deliberate policy and will go on endlessly. A breakdown occurs. The crack-up boom appears. Everybody is anxious to swap his money against "real" goods, no matter whether he needs them or not, no matter how much money he has to pay for them. Within a very short time, within a few weeks or even days, the things which were used as money are no longer used as media of exchange. They become scrap paper. Nobody wants to give away anything against them. - Human Action, Ludwig von Mises

The FED is trying sooooo hard to get people to not believe the bolded!

When the crack up boom happens i'll be glad I went for "real" goods first. Because gold and silver are timeless I can wait this out my entire life. The key to changing this system is to be the change you want to see and that means deflating the system in every possible way you can imagine - don't use credit cards or debit cards, use cash, sell your paper assets convert your wealth to that which is defend-able, withdraw your spare cash from the bank and hold it yourself, and most importantly pay off every last debt you have! DEFLATE the economy as much as you personally can! All these people who make money because they understand the fraud, and think their smart doing it, are only prolonging the existence of said fraud. They are like mice on wheels!

If everyone just did their part to deflate the system we could get the change we wanted. But people won't, and that's the key! People will churn along because 95% of the public won't even consider any of these issues. Their heads are way too far up their own a**es to see how badly they are getting robbed they don't understand that, while the system may be a total success in theory, that in practice the truth is simple: Greed, no matter how good it may be in the beginning, fails. Period. People get greedy and the system breaks because of that, the masses start to wake up, and the drive out of the currency begins.

Greed fails, greed always fails, the smartest humans from the greatest universities all around the world can sit and plot out a perfect money system, and society, but greed and the lust for power will always destroy it. Humans will always go too far.

Again, keeping in mind, this is the first time we've followed this type of system on a global scale. Why will it be different this time? Because there's even more power and money at stake?! I'm sure that will subdue the greed!

So, in that sense (betting against greed, fraud, and protesting the system itself) YES, I am smarter than the FED and all the dopes ignorant enough to not hold a single OZ of silver in this environment. I look at all the people in this city, the 3rd largest in the US, and I weep. So many have no idea what's coming and that's exactly what makes the FED the smartest group in the room. It's unbelievably tragic.

arch stanton
Mar 19, 2014 - 11:18pm

safety dan

I have been around here since zero hedge days and I love all you guys, I can't imagine anything better than everyone at tf's site showing up to hang one on. I'm sure I would have to sell several yellow disks to pay for the pleasure but that is the only reason I can conjure that I would part with any part of my stack.

Mar 19, 2014 - 11:19pm

Them's fightin words

We live in interesting times. Everyday I scan the headlines at ZH and take not of the links posted here waiting for that incident that sets things in motion. Sure seems like we are getting close. the US has been pushing around smaller countries since I can remember, but this time they are trying to bully around someone who won't be intimidated.

don quixote
Mar 19, 2014 - 11:25pm

Methinks they used the

Methinks they used the Ukranian gold to smash the price down.

4 oz
Mar 19, 2014 - 11:27pm

Beef Prices Surge Most In A

Beef Prices Surge Most In A Decade As Food Inflation Soars

Submitted by Tyler Durden on 03/19/2014 23:02 -0400

Just a month ago we warned that food inflation was on its way. Today we got the first confirmation that problems are on their way. While headline data washes away the nuance of what eating, sleeping, energy-using human-beings are paying month-in and month-out, the fact, as WSJ reports, that beef prices surged by almost 5% in February - the biggest change since Nov 2003 - means pinching consumers and companies pocketbooks that are still grappling with a sluggish economic recovery. "Things are definitely more expensive," exclaimed on mother of three, "I can't believe how much milk is. Chicken is crazy right now, and beef - I paid $5 a pound for beef!" Just don't tell the Fed!


Mar 19, 2014 - 11:29pm

china needs to open the floodgate of fiat money in order to

keep the entire banking system afloat.

banking stocks are trading at 5x PE. of course the "E" is very questionable. a few of them are still trading at more than 1x PB. of course the "B" is very questionable.

the entire nation is obsessed with debt ponzi scheme, some unaware of what they are doing.

from big cities, big banks to small operations in rural towns, ppl are obsessed with begetting money from money.

many ppl quit full time mundane jobs to engage in money lending(loan sharking).

RMB is crashing. stock market is barely kept alive by PPT.

the amount of daily liquidity support is not disclosed but must be enormous.

the sudden short covering of copper last night was probably ordered by china's PPT.

RMB/USD has 6.3 in sight. that's almost 5% depreciation YTD.

china railway bureau can get loans at 2%. but most others around 10%. loans sharks 20-100%.

Safety Dan
Mar 19, 2014 - 11:39pm

More Crack up boom -SilverIsMoney-

The Fed's are going to have a hard time keeping confidence in the dollar if this keeps happening:

Vallejo Heads for Another Bankruptcy; Oakland, LA, San Diego Doomed as Well

Looks like Meredith Whitney  's municipal bond default wasn't wrong, just a little early.. 

Meredith Whitney Muni Call Was 100% Wrong: Bond Pro

Today stocks, bonds and the metals were down together. Could it be an example of things to come? Things are not making sense! That's it, I'm going over to Arch's house to drink with him. And I don't even drink!

Mar 19, 2014 - 11:55pm

LIke The Chaplain Said

"Watch China"

When the Chinese government "hints" at something, they may as well blast a trumpet (e.g., demolishing production facilities, letting investment vehicles default, letting SHIBOR and 7-day-repo spike). I think they're telling the world that they're going to let the ultimately-inevitable deflationary collapse happen. (Don't ever forget, Stoneleigh is ultimately right.)

Due to governmental structure, it's not that terribly difficult for them to take legal possession of the developed real estate, and they can add it to their assets for SDR allocation while simultaneously letting people actually live in it.

Stoneleigh is right, but the devalued copper ore is where? The devalued iron ore and scrap iron are where? They bought Hatfield. They've taken large stakes in Africa, Australia, New Zealand, and Canada. They have deals in place and are building the infrastructure to share with Russia.

Putin plays chess, the Chinese play, well, Chinese chess, of course.

I'll think long and hard before selling my yuan.

Mar 20, 2014 - 12:05am

Interesting stuff

Interesting how he gave a hat tip to China and India and then mentioned Germany and how they should support him.

Mar 20, 2014 - 12:15am

Commodity Prices

"When the cathouse gets raided, even the piano player goes to jail" is how Santa put it.

Dr. Copper is ailing (but, it's about time the good doctor gave a proper prognosis; we knew the real economies blew anyway), Chinese demand for commodities will likely wane (even more). Old Yellin may continue sending equity markets "in a southerly direction." PM prices may drop right along with them. 

No mind.

"Blue-jean, baby queen, stack on" (Or, something like that.)

Mar 20, 2014 - 12:19am

Gold was around $1320 when

Gold was around $1320 when the Crimean crisis began to heat up. Now with the crisis not quickly getting hot, these positions were unwound. IMO nothing unusual.

If we can stay above 1330 (and Silver's strenght tonight gives hope), then I think the precious metals were doing much better, than could be expected (FOMC tapering continued, lower than expected inflation, weak China, copper).

Mar 20, 2014 - 12:25am

@ El Gordo

Dear Sir,

Whilst I am interested in your gold-price direction service offering, I am not fully prepared to subscribe at this time.

Nevertheless, I find myself curious, and cannot restrain myself from inquiring. Have you concluded your plan of geographic diversification? In support of gold's function of divisibility, I'm quite confident Mr. Fix would happily lend any required hand tools, if their absence might prove to be an impediment to the execution of your plan.

Kind Regards,


El Gordo
Mar 20, 2014 - 12:38am

Let's give credit to the proper authority

You claim that gold is down due to Fed action, crooked bankers, and the like. Well sir, I will vehemently disagree with your analysis and offer proof of my own that I hold the key to determining the direction of gold prices. As I promised last week, I acquired a simple 1/2 ounce gold round over the weekend. I believe that I was able to capture this piece at its absolute high for the past 6 months, and the price has been going down ever since. Therefore, I am compelled to claim the price direction mantle from the banksters, et al. For a small fee I'll let you know when I'm getting ready to make another purchase. I realize that it's an awesome responsibility but I'm prepared to deal with it.

Mar 20, 2014 - 12:38am


To be fair to the community i must respectfully disagree that it is time to stack.

It certainly is time to protect and keep the stack you have presently.But to add at this time seems a gamble not worth the risk-at least from the cyclical charts i see.

As I have posted several times, even with gold trading at @ $1390 + the smack down would and could surprise me , what with the read on the charts saying stack in June,July, or August.

Admittedly ,this correction is far larger than i suspected. At the worst i suspected $1345 but whoa hoo,this is brutal. Will we rise again.Absolutely! Unless you are long a stack of gold at $600. and silver at $8.00, both of which are my average, I would NOT rec doing it here. Why pay $70 bucks more Friday than the current pog when next week you may see $1310. We may not ,but one thing I'm sure of, the lows are not in.

Hope I'm wrong.

Edit-To be clear the lows for the 52 week are in, of that I'm sure.

Mr. Fix
Mar 20, 2014 - 12:43am

I will happily lend my hand tools for the cause.

Occasnltrvlr & El Gordoyes 

 Heck, I've got quite a few power tools that could come in quite handy as wellwink

Price action is a prelude to war, and the master of disaster who resides in the White House intends to lose.

 Plain and simple, end game. 

Don't quit now.

El Gordo
Mar 20, 2014 - 12:49am


I've not completed my global diversification plan just yet pending resolution of claims from ex-wives, IRS, attorneys, and assorted other creditors. They can't find a lost 777 but they can all seem to find a 1/2 ounce gold round that's about the size of a quarter. Unfortunately, it slipped out of my pocket and into the bay as I was landing a fish in the boat this afternoon.

metalsbyamile El Gordo
Mar 20, 2014 - 12:55am

My thoughts re:777

Did not the authorities start informing victim families 10 minutes after the plane disappeared that their loved ones were dead? If that is correct it is a fairly safe assumption this was a set up, planned, deliberate and they know exactly what happened to this aircraft and its occupants.

The missing link.WHY? For what end. They can read the label on your cigarrette from space yet they can not find this? The passengers are dead, of that Im sure fromthe gubvermint actions, i mean they have to eat, drink, sleep, pee, ect.No,they have been disposed of and the agencies knew the when why and where's.Wonder how long until we do.

Mr. Fix
Mar 20, 2014 - 12:59am

Lawlessness on one chart:

How Gold Performs During FOMC Weeks (Spoiler Alert: Not Good)

Submitted by Tyler Durden on 03/19/2014 - 22:30

What is more confidence-inspiring in the Fed's ability to manage the world and the continued dominance of the US Dollar as global reserve currency than a falling gold price... and when better to show that than FOMC meeting weeks... welcome to the centrally-planned world where the announcement of ongoing trillions in fiat dilution constantly crushes the price of undilutable money.

Mar 20, 2014 - 1:13am

My Thoughts on the 777

I like 777's.

Anyway, it wasn't mechanical failure. I don't think it was a simple hijacking (by the crew or passengers).

So, something deeply insidious happened.

Nobody needs to "steal" a triple-7. If any entity can do that in this way, they have enough money to buy their own delivery system. This wasn't a terrorist event or setup to a future terrorist event, unless as cited below.

This was either a targeted murder (which I think unlikely, why not just fire an unarmed missile at it like the 747 off our eastern shore), or a message. Subtle demonstration of cloaking, probably by the U.S.A. Nazees.

But then again, the U.S. Nazees are stupid enough that they might intentionally-clumsily repaint it, and set some staged event, pretending that the world cannot see that it's obviously them.

Mar 20, 2014 - 1:38am

everyone loves a sale...

Yellen speaks grandmother style, kinda cute but struggling at times. Fisher and Yellen, why that is kosher supreme. They r your Boss.

Putin could write for Zero Hedge eh?

Biden (who?) the VP, wow, just a maniac and Kerry's 57 absurd statements, actually threatening a superpower....then there is Nuland (Nudelman), planning coups and getting caught. And then more 'flakes in charge' get air time to spew poo over us again.

Hillary was removed for incompetence but still we hear Hillary for Pres.

"The Chinese government see Washington as an insane asylum." PC Roberts.

But China gets a discount - today!

Mar 20, 2014 - 1:52am

What makes you think Putin...

...doesn't (co)write for ZH...? IF it's the truth, it shouldn't matter who says it. This latter part is sometimes harder to discern. And of course just because telling the truth (about SOME things) suits someone's current purposes does not automatically make them a good guy...

Mar 20, 2014 - 4:02am

n debt expansion cycle peak

In debt expansion cycle peak where we are now, shots are called by those who create debt, that is bankers. Nationality for a banker is a cost, so usually the ones who have been able to most distance themselves from ANYTHING ELSE then money and especially GOLD, are the most powerful ones . They have no attachments ,only see money. 

Now I have heard that Rothschilds have amassed about 20 000 tons of gold and have been moving it to Hong Kong. That was one of the reasons Hong Kong special status in China was set up and kept ; of course with full knowledge of Chinese leaders. 

You see , those people with only one affiliation- money- also know they need to move their capital ( and real capital) and reserve currency every 100 years. The plans for next move are made even 2-300 years before, by starting to create contact nets and infiltrating the country; The plans to move capital to London were set up at the same time when plans to make North America a banker country - in half one of 17th century; Capital was moved from Amsterdam to London only in end of 18th century, prior to Napoleon wars and after them; in reality in 1821 when pound was put back on gold with help of Rothshilds. New York was made capital of banking and reserve currency in 1918. Next plan was to make Hong Kong in China - or Shanghai - the new capital, Yuan - reserve currency. 

For that, first production is moved to next reserve currency country. That has been done in China case. Now its time for capital ( gold) ; then reserve currency and global empire here naturally one encounters USA resistance - that part which is not bankers. 

The Chinese naturally appreciate the power and free ride reserve currency brings. So they have made an alliance with bankers where bankers call the shots as long as they have control over international network of capital. 

What is unique today is that the debt expansion cycle has come to an end. That naturally will cause LOSS of power of bankers just as they are at the top. Militant STRONG leaders ( that is , ruthless at home vs. opposition) will naturally take their place and take the gold away from them. 

The ober bankers ( no attachments, only money) know that there are these cycles as they have gone through many of them in history- cycles of debt expansion and contraction; but they always hope to fool the cycle THIS TIME. They spend hell of money to study them, to geoengineer, to reduce transaction costs etc . in ( vain) hope to avoid the turning to debt deflation this time. In their peak power, they feel they can beat the natural law and God. So they are both smart and ruthless to put their targets through. 

So.. the normal way is that because bankers have chosen China BUT this time the debt cycle is ending, China will just take the gold, execute the bankers and use the proceeds and benefits in alignment with its new ruthless militant leader ( yet to come) .

Putin knows he is fighting against bankers NOW, but his values will be based on hangover values of an alcoholic fighting for shrinking amount of alcohol. In that sense he is fighting against all other alcoholics to see that he gets his - reduced- dose while others die out. I see nothing nice in such values, though they are necessary for survival in coming times. 

If we are presented with a choice between a values of a drunk alcoholic ( liberal democracy ) and alcoholic in hangover ( militancy ala Putin) then I chose NONE, and keep looking for values of sober humanity which should have sometimes presented themselves as ones that has survived the cycles. But they are very difficult to live according to as they require immense understanding and self discipline and are usually provoked by others that do not live by these values and gain short term power due to that. They lure the others away from sober values , and succeed. 

So pls place Putin where he belongs- a militant alcoholic in (economic) hangover aggressively fighting for his share of shrinking total - and do not try or hope make more out of him. In animal terms, he is the leader of a heard , a position he has earned via fight and his worst enemy is show of weakness, not economic proves, as in coming world, and Putin's model, economy follows STRENGTH, not vice versa as in debt increase cycle where STRENGTH came from WEALTH. 

To put it even more clearly, Putin will kill inside and outside Russia to show that he is strong. Nothing else matters for him. If he shows weakness, he will be eaten from below ASAP. 

El Gordo
Mar 20, 2014 - 4:41am

Tools from Mr. Fix

Mr. Fix offered to lend me one of the tools he had invented, for which I am grateful. He sent a short video describing it to me. Don't know if it will work for me or not, but it was a very nice gesture.

Turbo Encabulator
Mar 20, 2014 - 4:45am

that video!

man... that guy is either an amazing actor or an amazingly funny engineer!

I can't believe he managed to stay serious during the entire thing.

Thank you for sharing laugh

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