In no surprise to Turdville, the SGI went down in flames today by a margin of 77-23.
We did what we could, but in an age where economic education is lacking, fear sells and greed trumps all, the only surprise is the margin of defeat. The latest polls had indicated a minimum backing of 37% for the initiative. If the results are to be believed and trusted, then we must accept that fully 1/3 of those who had been backers changed their minds in the last hours. Clearly, the Swiss are no smarter and no more "independent" than anyone else in Europe or the United States. Instead, we all remain slaves to the debt currency, central banking system.
What effect this may have on paper price in the days ahead is hard to predict. Those expecting a continued selloff may get one, at least in the short term as all "commodities" are dragged lower with crude oil. I take issue, though, with those expecting some new wave of selling based upon this result. If you were truly wired in and trading paper metal derivatives, the "NO" vote on SGI is absolutely no surprise.
Additionally, some now expect GOFO rates to "normalize". I doubt it. Again, the powers that determine these rates will not be surprised at all by the result AND GOFO rates are (allegedly) a real time indicator of physical tightness. They are NOT a projection of future tightness based upon some kind of renewed Swiss demand.
Anyway, I'm sure we'll discuss this more again tomorrow and in the week ahead. For now, Turd has greater concerns. The University of Nebraska has FINALLY fired it's meathead embarrassment of a football coach so, regardless of the SGI outcome, today is a great and happy day at TurdFork.
Enjoy what's left of your Sunday. Trading resumes at 6:00 pm New York time.