Late Morning Post

Tue, Dec 8, 2015 - 1:02pm

Behind the 8-ball a bit this morning in terms of time. Therefore, just this quick post.

We had a bit of miscommunication today. I thought I was scheduled to be on with John B. Wells next Tuesday. Instead, we recorded today. And now it's quite late and after noon in NY.

Craziness again today that has subsided a bit as I type. Crude saw a low earlier of $36.64 but it's now about a dollar off of those lows. Stocks opened down and then rallied. Now the Dow is back down 160 points so we'll see what the afternoon brings.

Glencore and DoucheBank are making new lows. GLEN got all the way down to 76.32 before closing at 80, which was still down 5.36 on the day. DB has made new multi-year lows at 24.45, down over 3% today.

All of this but gold is hanging in there. The same guy who got me the updated GOFO rates last week says that one-week GOFO just made a new low earlier today at -0.55%. If that's the case, that certainly helps explain why gold has rebounded and held in there today, down just $2 at $1073.

This is obviously pretty big news in the mining sector:

More on the extreme CoT positioning here:

And this is just getting more dangerous by the day:

Lastly, I'd like to draw you attention to something which was sent to me earlier. I have a long history with this particular blogger and here's what I know. He is a former DoucheBank gold trader and he's always been desperate to prop up the current paper derivative pricing structure and, by extension, his former employer (which teeters in insolvency, as noted above). To that end, he repeatedly blasts many of us in the gold blogosphere as know-nothing "charlatans" and "con men". However, it is HE who is disingenuous and HE is the one who uses half-truths and falsehoods in his assertions...and this latest is full of examples. Here's the link:

I could address this garbage piece by piece but it's not worth my time to do so. The only reason I'm posting it is so that no one here finds it and then posts it as if I'm trying to hide from his attack. Let me just point this out, though.

From his post, he states that the only reason the Comex gold stockpile is down is due to falling demand for Comex paper. This is complete BS and we addressed this last week when we discussed the imminent departure of that lady at the CME. Since 2014, the "total coverage" of physical to paper at Comex has fallen from 22% t0 16%. We noted this so we're clearly not trying to deceive anyone here through our lack of sophistication. But be sure to note the two CME Gold Stocks reports posted last week and reposted below today.

Back on June 9, 2014, total Comex open interest was 381,422. On the Gold Stocks report of that day, note that total registered gold was 8,265,659 of which 933,633 was classified as registered:

However, as of last Friday, total Comex open interest was 389,113...about the same. But, as you can see on the Gold Stocks report below, total gold had fallen to 6,448,759 (-22%) and total registered is just 121,463 (-87%).

And, as we've repeatedly stated, this whole "leverage ratio" issue could easily be fixed with a simple journal entry movement of a few hundred thousand ounces. That this hasn't happened and the registered vault has remained at these record lows for the past 90 days is another point of interest.

Never have we claimed that this CME-provided data somehow proves that The Comex is about to fail or default. We've simply added this information to the stockpile of supposedly anecdotal data points of a growing physical gold tightness around the globe. ( But that doesn't matter to shill hucksters like KD. Nope. Instead, just spew some half-truths and while denigrating the motives of others. That's been his modus operandi for years and, as you can see, he's still at it today.

But that's just my opinion. Maybe, as KD contends, this current system is completely fine, totally fair and honest. Though Comex delivers no metal, it's a perfect proxy for real, actual gold and all of the Banks that operate there are simply acting as benevolent, altruistic market makers. We continue to link stuff like this so that you can decide for yourself.

More later with a full podcast summary and review. Have a great day!


About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 8, 2015 - 1:09pm



Dec 8, 2015 - 1:10pm



Dec 8, 2015 - 1:12pm

First in NZ!

Good summary Turd

edit: Rats!

Dec 8, 2015 - 1:26pm

I ran a search...

for kid dynamite and this is all that came up...

Dec 8, 2015 - 1:38pm
Dec 8, 2015 - 1:43pm


I like the way you handle your shit in Turdville. Hat tips!

4 oz
Dec 8, 2015 - 1:51pm
Dec 8, 2015 - 1:52pm

the outside bs

first, comex had 5 million ounces in 2006, now 120,000 ounces. OI went from 25 mi ounces in 2006 to 40 mil now give or take.

I tend to focus on debt--we are going up 1 tril a year on debt, the interest bearing type. The new highway bill adds to the debt, while econ slowdown reduces tax revenues.

The President and Jack Lew said on Oct that the budget deficit for the year was only 422 bill which obviously is a lie. Then Obamacare subsidies to insurers kick in with payments in 2017. The CBO is saying our debt growth is unsustainable-we do not have to.

If its unsustainable, the number one priority should be balancing the budget. We cannot even do that.

Unless we have some grand super secret strategy where the other countries like Russia, China, Iran get clobbered while we prosper, we are done. Just do not know the date.

Dec 8, 2015 - 2:13pm


Collapse Of U.S. Shale Oil Production Has Begun

We no longer have to wait for the collapse of U.S. shale oil production, it already has begun. Unfortunately, this is bad news for the U.S. Government and domestic economy. Falling U.S. oil production will put severe stress on the highly leveraged debt based financial system over the next several years.



Dec 8, 2015 - 2:20pm

I find this very interesting

The media controls the message via intimidation. If they won't king you, like they did Obama, then they'll destroy you with something you said or didn't say by making you apologize and kowtow to the party line. I like the synopsis below of the whole Trump phenomena because it exposes the toothlessness of the ministries of truth when one can't be shouted down and won't apologize for telling the actual truth.

Turd, never apologize (not that you have) or kowtow to the kid dynamites of the world. They protest too much. I've read some of his rabid posts, and the motives reek of desperation to protect a system that makes less sense by the day while he accuses and claims to not be able to help himself from protecting all of us poor dullards that read you from our deluded selves. A simple reading of his work gives me the same poor taste in my mouth as those unfortunate episodes when I channel surf and pause more than one moment on the main stream news.


How Donald Trump Plays the Media

Rush Limbaugh - December 08, 2015

RUSH: Some days they just tee me up. Some days are just too easy. Question: Has Loretta Lynch arrested Trump yet? Well, isn't that the kind of stuff she said she's gonna start arresting people for? Why hasn't he been arrested?

Everybody, everybody -- now Paul Ryan has joined in -- everybody condemning Donald Trump. The conventional wisdom is that Donald Trump's insane, he's a lunatic, crazy. This is dangerous. This is bad. It's un-American. It's unacceptable. He's gotta go.

Except he's leading. A big problem. Even Dingy Harry -- and, by the way, for all of you Republicans getting on this gravy train condemning Trump, I want to show you what good it's doing you. Dingy Harry: "Donald Trump is standing on the platform of hate, and, I'm sorry to say, hate that the Republican Party has built for him."

You Republicans, you can denounce Trump all day, all week, all month, and the Democrat Party and the media are still gonna say you laid the table for it. You can condemn Trump all you want, but it is not going to buy you any love or respect or admiration from the Drive-By Media and the Democrats. Now, folks, the conventional wisdom is that Trump is scum, that Trump is a reprobate, that Trump is dangerous, that Trump is obscene, Trump's insane, Trump's a lunatic, Trump's dangerous, Trump's got to go. Why join that phrase? Why join that crowd? We never fall in with conventional wisdom here.

I want to look at this in a little different way, as I'm wont to do, and I want to look at the politics of this. And I want to remind you late last week, middle part of last week and end of late last week, I started what I intended to be a pretty in-depth discussion of how it is that Donald Trump owns the media. I made the point to you last week that that is the one factor that has upset everything else in this presidential campaign. Despite what you might think about the Republican Party being the opposition party to the Democrats, the Democrats being the opposition to the Republicans.

Inside the Beltway, the Washington establishment, the establishment is aligned and unified on a number of things, Republicans and Democrats alike. And one of those things on which they're aligned is that the Drive-By Media is an acceptable, coequal branch of what they do. They accept the media as, for lack of a better term, the great equalizer. The media is always the institution that makes or breaks people. If the media wants to make somebody, they can, and it's allowed. If the media wants to take somebody out, it's allowed, and they try and oftentimes get away with it.

You do not hear the Republican Party condemning the media much. And the reason for this is that inside the Beltway within the Washington establishment, the elite, the ruling class, whatever you want to call it, the media is a coequal member. And members of the media are coequal. That fact and the fact that Trump now owns the media -- and this episode is just more proof of it -- is one aspect that has everything else in this campaign turned upside down. The great equalizer, the media, the great level, the media, the institution relied on to keep things within the guardrails, as the establishment wants it, can't do it. And that's why there's panic, and that's why there's outrage, and that's why there is anger.

Evidence of what I'm saying is found here in the Washington Post: "Donald Trump Has Gotten More Nightly Network News Coverage Than the Entire Democratic Field Combined." Let me repeat that you to. "According to the Tyndall Report, which tracks the airtime that the various flagship news programs on NBC, CBS and ABC dedicate to a variety of stories, the 2016 election has received 857 minutes of combined coverage, through Nov. 30. With a month to go, that's already the second biggest total of any pre-election year in the last seven presidential cycles."

Donald Trump, Republican front-runner Donald Trump is the most covered candidate in the race. In fact, Donald Trump alone has gotten more airtime -- 234 minutes out of the 857 minutes are Trump's -- he has gotten more airtime than the entire Democrat field, the chosen field of the media. Trump has gotten more time combined than all the Democrats in the race. Hillary Clinton is the second most covered candidate at 113 minutes. Trump is twice the coverage that Hillary has gotten. Why? Why is Trump still in the race? This is not the first outrageous thing he said, by far. It's not even the most outrageous thing he said, depending on who you ask.

Why is Donald Trump still a candidate? Why hasn't anybody been able to force him out? Why hasn't anybody been able to humiliate him? Why hasn't anybody been able to destroy him? Why hasn't anybody -- and by anybody, I mean, the media, 'cause that's who both parties rely on to do this. Why can't the media touch the guy? He's given them all kinds of ammo. If anybody else says what Trump says, and they're history, they're shamed, they're humiliated, they are forever forgotten, and they have gotten so low they could never recover from it.

Trump is leading the Republican presidential primary. Why can't they touch him? Why do they keep covering him? Why don't they just ignore him? They can't. And that and therein lies something fascinating. Trump has direct access to his voters, his supporters, the American people. Trump has direct access to people around the world. I've got the Trump Stack of Outrage today. It's comical. It's predictable. It's sameness. Even I, El Rushbo, am blamed for it on the BBC, if you can believe that. Yeah. I'm responsible. You know why? Because I have been saying this kind of thing 25 years or more. Trump is just picking up where I left off, according to the BBC.

Meanwhile, I've never said anything like anything Trump says. But despite it all they can't take him out. They can't stop covering him. They can't humiliate him. They can't embarrass him. They can't diminish his support. They're powerless, and this has them in a panic. The media that can make-or-break anybody cannot touch Trump, and every time they try, all they do is make him bigger. They can't explain this. They are frustrated to no end, and so are both political parties who rely on the media to be the great equalizer in all of this.

Nothing's working. No matter what Trump says, the media is there, and every member of the media is there. Every network, every camera, every microphone is there. Last Friday night Trump was in Raleigh, North Carolina. Reuters lied. Reuters even tried lying to destroy Trump. They ran a story claiming that Trump's performance and his appearance were shut down by Black Lives Matter protesters. MSNBC ran with it.

I happened to see it, a little blurb on Apple news while I was sitting at home minding my own business, bothering nobody. I said, "Wait a minute. Why isn't this all over the place? This is what everybody been dreaming of: Trump humiliated, Trump shut down, Trump forced to leave the stage. Why haven't I heard this anywhere?" The reason: It didn't happen. Reuters made it up. People who were there have now testified to what happened. They can't even get rid of Trump by making up bad stuff about him.

But what really frustrates them, is they can't get rid of Trump by simply repeating what he says. Trump has direct access. Trump did not need the media in order to be heard, in order to have his message flavored and formed for proper receipt by the audience. He has direct access. He doesn't need them. He can go right over their heads. It may be true to say that the Drive-By Media has covered politics, for better or worse, in a predominant way for years and years and years -- and that's the horse-race aspect.

Who's leading? What do the polls say? Who's losing? Who's surprised by who's winning? Who's surprised by who's losing? But it's the horse-race angle. And that's completely backfired on 'em. Their primary technique, their primary way of reporting these campaigns and thereby shaping the outcome of them is backfiring totally on them. There is a deep panic, I believe, in the Drive-By Media. Because, in their world, in their mind, they control the horse race.

They are the ones that are the greatest factor in determining how people vote or what they say in polls. And the fact that they are having absolutely zero impact on Donald Trump is blowing their minds. Donald Trump has a more loyal audience than the media has at this point, which is also what this is showing. And it is causing a lot of people in the establishment -- the elites, the ruling class, whatever you call 'em both parties, the Washington crowd.

It's causing them to come unglued and unhinged, while they think it is Trump who is unhinged and coming unglued. Now, let's look at the politics of this. Take the events of the recent past, last week, last month, last six months. And then add the presidential to those events. Those events have been dominated by Islamic terrorism and illegal immigration and the failing US economy and the absolute disaster that is Obamacare. On the Democrat side, I don't have any recognition of any of that.

And on the Republican side, after Trump's statement here, there's only one guy. I'm just addressing the politics of this, folks. Forget substance, comments, whatever. It's the politics of this. There's only one guy in all of the presidential campaign occupying the position he occupies. Everybody else sounds the same. Everybody else... I don't care if it's Hillary or if it is Carly Fiorina. I don't care if it's Bernie Sanders or if it's John Kasich. They all sound the same. What do they all do? They are condemning Donald Trump.

Donald Trump is condemning ISIS. Donald Trump is condemning illegal immigration. Donald Trump is condemning a weak, stupid United States leadership. Over here, everybody else is not. They are condemning Donald Trump. In a political sense, Donald Trump, leading the presidential campaign, is the sole occupier of his position. He has no competition for it. Just in a political sense, that's pretty brilliant positioning to me. He owns the media. They can't stop talking about him.

And what's it costing him?


He's not spending a dime.

What did we hear yesterday? The Jeb Bush super PAC, Rise to Rise or whatever it is that Murphy is running. They're preparing $75 million. To do what? Take out all the Republicans! Except Trump. They're not gonna attack Trump. I don't know if it's gonna happen, but it was a rumored strategy. Mike Murphy, well-known Republican consultant who loses more than he wins, said (summarized), "To get Jeb Bush back in the race we gotta take out every other Republican.

"So we're gonna take $75 million in our super PAC and we are going to destroy Rubio and Christie and Kasich. We're gonna destroy Fiorina. We're gonna destroy Carson. Everybody, except Trump. And when it's all over, we will have a two-man race, Jeb and Trump, and then it'll not be a contest." The theory says that when it's just Jeb and Trump, the vast majority of intelligent, reasonable, responsible Republican primary voters will choose -- dadelut dadelut dadelut -- Jeb. Now, if they try that... Big "if."

If they try that, and if they succeed, they have just destroyed, Rubio, Carson, Fiorina, the whole field. Not just for this campaign, for the future. 'Cause it's a negative campaign they're gonna run. And they're not gonna touch Trump. None of the $75 million will touch Trump. You would think all of it would be used to take out Trump. But none of it's gonna be. Why? It's not that they want the last two standing to be Jeb and Trump. It's that they know they can't.

They have listened to this program and they've heard Trump supporters call here and say, "There's nothing Trump can say that will make me abandon him." Now, about what Trump is saying, about these "outrageous, unacceptable comments for which he should be put in jail." I guess -- and again I ask -- Why is what's her name, Loretta Lynch, not pursuing him, investigating and arresting him? I mean, she just said, this is the kind of stuff, the DOJ is gonna go after people for.


RUSH: This latest Donald Trump episode is a glittering, glaring example of how he is playing the media like a Stradivarius. And I tell you, folks, for all of you people who have complained and whined and moaned about the media over the years, and how unfair they are to Republicans and how unfair that makes the whole process and, "What are we gonna do?" You need to be studying Donald Trump. I don't care whether you think what he says is outrageous or wrong or whatever. That's the wrong way to look at this right now.

This latest quote/unquote "outrage" from Trump is a perfect example of how he plays the media, how he knows exactly what to do and how to do it to own their attention and airtime. He says things that he knows will drive them crazy. He says things over and over that he knows will drive them insane, and then when they go insane, he doubles down on it and drives them even crazier. He also knows that his audience is in on what he is doing.

He knows that a lot of Americans agree, to a certain extent, with things that he says. He also knows he's the only one reaching those people. And then he sits back and watches (no doubt with a huge smile) the media cover what he says over and over and over and over again. Then they analyze it over and over and over, and they talk about it over and over and over again. He's confident that a lot of his voters are gonna be able to strip away the bombast and be able to get to the nuts and bolts of what he's saying, the kernel of truth of what he's saying.

In the meantime, he ends up occupying political positions exclusively that many support.

Dec 8, 2015 - 2:32pm

Steve S:

Just look at JNK and HYG-junk bonds continue to sell off. That has to include the shale effect--just wait till the banks have to write down shale junk debt-which will not happen as the Fed, on behalf of the taxpayer, will buy that crap for par first.

Dec 8, 2015 - 2:36pm

KD = skillful covert promoter of the legitimacy of the system

KD overtly espouses that the markets ARE NOT manipulated which implies that there exists a legitimate trading market in the first place.

The system media also pushes the narrative that the markets ARE manipulated, which also requires followers of this narrative to accept without question that a legitimate trading market must exist for it to be manipulated.

KD espouses "NOT MANIPULATED" and like a skillful matador angers the members of the "MANIPULATED" crowd into blindly digging themselves even deeper into their opposite yet still false position.

For over 2 years now the silver chart has moved within the parameters dictated by the physical purchasing habits of the public. This could not and does not have anything to do with Manipulated OR Not Manipulated Trading.

The private owners of the silver and gold charts have deceived the world and perpetuated the existence of their system via the fake (programmed) silver and gold charts. They keep this little secret hidden right in plain sight by promoting the heated argument of whether or not the "trading" behind the charts is MANIPULATED or NOT MANIPULATED


It's the old Red Team vs Blue Team tactic that TPTB have been using for centuries.

Republican vs Democrat

Pharisees vs Sadduccees

Is Lite Beer the best because it's less filling or because it tastes great??

- - -

arch stanton
Dec 8, 2015 - 2:40pm

it seems

that, as evidenced by the Zero hedge article on sentiment, that the gold bug gang is getting down to the hard core. The wishers and hopers with the get rich quick schemes have left with their asses in their hands and what is left are the people who truly understand why they own PMs. I think that further evidence of this is that the bomb throwers on either side have been, to a great degree, ignored. The douchebag from douchebank (KD) use to cut a wide swath as did his asshole buddies at screwtape, and now they have all but vanished. Traitor Dan, Bron Susuckie, with the exception of their unread sites--gone. On the other side, Eric King with his constant Rah Rah seems to be on life support. Logical thoughtful analysis, however, seems to be gaining a wider audience. Our guy Turd gets a greater voice with every passing week, which I personally view as a small victory for sanity and reason.

gold slut
Dec 8, 2015 - 2:44pm

Kid Dynamite


Don't think that you have to justify yourself or TFMR against anything on that 'site'!

'First they ignore you,

then they mock you,

then they fight you,

then you win.'

Dec 8, 2015 - 2:46pm

Danny B

Avoiding downsizing

Peter Schiff, "Right now interest rates are being kept at zero which makes it possible to service the debt even though it’s impossible to repay it… at least we can service it. But once interest rates go up then we can’t even service it let alone repay it. "
"U.S. national debt will soon surpass $20 Trillion."
Peter Schiff Warns: "The Whole Economy Has Imploded... Collapse Is Coming" | Zero Hedge
Now isn't the best time for a rate increase.
As the CBs printed more and more currency to support a financial sector that was too big to be supported by a shrinking productive sector, they caused price inflation in the upper loop of the economy. Some of the price inflation in the upper loop of the economy bled over into the lower loop of the economy.
Shrinking wages and rising prices meant that we had/have less consumptive power. The lower loop of the economy was shrinking.
The financial sector pumped in more money to keep THEIR sector from shrinking. Every increase in the money supply caused a shrinkage in the lower loop. This feedback loop just gets worse but, the bankers only know how to print, NOT produce.
Money creation does not have a limit. OUR consumption DOES have a limit. As the currency creation causes more and more price inflation, our limited, and shrinking, consumptive power causes us to cut back on big-ticket items.
New house sales per-capita are the lowest on record.
The other BIG-ticket item is children.
"As a direct result of central bank actions, we see self-reinforcing population deflation coupled with asset price inflation. It's especially pronounced in Europe and Japan.

For additional discussion, please see Population Deflation: Spain Joins Germany with Negative Net Birth Rate; Italy on Threshold; Who's to Blame?

Read more at Mish's Global Economic Trend Analysis: Energy Price Deflation: Crude Dips 6% to 7-Year Low; Gasoline Below $1.50; Central Banks to Blame for What's About to Happen
The financial sector is too big. The more currency and debt that is created to save it,,, the lower the birth rate and consumption fall. A Keynesian system demands a growing money and credit bubble. Our money and credit creation system demands non-stop growth.
As we cut back on population growth, the demographic crash grows that much worse. When Social Security was first created, it kicked in at age 65. At THAT time, average life expectancy was 57. Medical care was relatively cheap.
GOV has painted itself into a corner due to changing demographics.
With TARP, the banks were rescued temporarily. Japan has thoroughly proved that a shrinking population can not create any economic growth.
When the Western financial system finally becomes commensurate to the productive loop, it is going to be much smaller. Unfortunately, there is going to be a lot of "overshoot" on the road to this shrinkage.
TARP and QE were a means to temporarily avoid this shrinkage that should have been allowed to happen with a minimum of chaos. The world is in FAR worse shape now than it was in 2008. There will be a maximum of chaos.

Dec 8, 2015 - 3:00pm

Dickhead Dyno-mite

Typical know-it-all knob...

Dec 8, 2015 - 3:03pm

Trump coverage

Wall Street must want him.

Dec 8, 2015 - 3:07pm

Sellers running out of steam

Very low volume day in the ETFs and JNUG and NUGT. Looks like the sellers are running out of steam. All gaps are filled and we have retested trend lines. I think tomorrow is back up if not at the end of the day today when we get the 3:59:59 usual ramp as all the HFT's cover back up their intraday shorts.

The rest of the week should be interesting.

Dec 8, 2015 - 3:10pm

KidPuck reminds me of

KidPuck reminds me of that fat little boy-bitch that is having a tantrum in front of the ice cream parlor because someone told him it will make him fat...

Craig said ice cream is fattening and Kidpuck is inflamed with that idea!!! Kidpuck is going to saddle up to the counter and order a double helping and flip off the doctor when he is told he is obese with type 2 diabetes.

Sensitivity notice: In no way did I mean to insult, disturb, harass, or demean people with weight control problems, diabetics, vomiting problems, children of either sex, muslims, lactic intolerance, people with a dairy allergy, and/or Hindus...

Dec 8, 2015 - 3:20pm

Well now, THIS is certainly interesting

We've been noting all month how the total Dec15 gold OI has been dropping quickly while only 211 "deliveries" have been made. Well, check this out:

Yesterday, the total open interest of the Dec15 gold contract suddenly shot back UP, by 834 contracts to 3,603.

Now, on one side, some might claim that this is from someone/something that wished to unload some gold fast and that entity just dumped 83,400 ounces of their stockpile by shorting the Dec15 and immediately delivering the metal to the long on the other side of the trade.

It could also be said, however, that someone/something suddenly decided to "jump the queue", pony up 100% margin of $90,000,000 and seek immediate delivery.

Again, keeping in mind all of the other "anecdotal datapoints", you decide for yourself which it might be.

Dec 8, 2015 - 3:21pm

kid dynamite

A great contrarian indicator, that kid dynamite.

Dec 8, 2015 - 3:28pm

Jesse's Cafe Americain

Is worth reading.

Great quote today (my bold).

"When he says peace, he means war, and when he blasphemously uses the name of the Almighty, he means the power of evil, the fallen angel, Satan. His mouth is the foul maw of Hell, and his power is at bottom accursed. True, we must conduct a struggle against the Nazi terrorist state with rational means; but whoever today still doubts the reality, the existence of demonic powers, has failed by a wide margin to understand the metaphysical background of this struggle."

The White Rose, Fourth Leaflet, Munich 1942


Cheers G-Rod

Ruislip Ranger
Dec 8, 2015 - 3:29pm


Has Trump just prevented a false flag atrocity on US soil, because if something happens between now and the election it could be a landslide and elites don't want this guy winning? Love the guy personally he's not daft but he is prepared to play the mainstream narrative and beat the MSM at their own game. IMO he has the potential to rebuild your nation, because on the surface he seems like the real deal and the most likely candidate to deliver on promises.

Dec 8, 2015 - 3:36pm

And one more thing...

I'm sure that the timing of KD's latest attack on me, Dave, Jesse, Andy and Tylers has nothing to do with the Dec15 OI surge. I'm sure it also has nothing to do with this:

Yesterday, The Scoshe saw a huge drop in their eligible gold vault, losing over four metric tonnes! We've been writing about the slow, steady and methodical "run" on The Scoshe's gold and silver Comex vaults. Well, as of yesterday, The Scoshe now holds less than 1,000,000 total ounces for the first time that I can recall.

To gauge the scale and speed of this possible "bank run", here's the same report from just nine months ago. Note that, as of 3/4/15, The Scoche total gold vault exceeded 3MM ounces.

James Crighton
Dec 8, 2015 - 3:39pm

Something to warm the cockles of your tired hearts:

Russian submarine off the coast of Syria launched Kalibr missiles at ISIS targets in Syria earlier today:

Групповой пуск крылатых ракет «Калибр» подлодкой «Ростов-на-Дону» по объектам террористов в Сирии

​This is the same type of sub cruising slowly around "other parts" of the World.



Dec 8, 2015 - 3:39pm


Note that with HSBC journaling about 10,000 oz from eligible to registered, there are now 131,462 oz of registered gold in the Comex vaults.

Yesterday's total OI was 394,401 so this drops the "leverage" or "coverage" ratio to almost precisely 300:1

Dec 8, 2015 - 3:39pm

Kid never explained this chart

There must be some reason that the data look so different in the past 2 years compared to the 13 years prior to that. Kid's only explanation is that registered gold isn't all the gold at the COMEX. That doesn't explain why the OI/registered ratio has changed so much in the past 2 years. That charts is telling us something. Maybe it is because customers who want delivery have moved to the SGE? I don't know.

However, I will play devil's advocate about the COMEX being a paper price not connected to the physical market. There is a market price, and it is not that different than the COMEX price. There is a long list of bullion dealers willing to sell physical metal to you today. JM Bullion, for example, will sell you 10 oz gold bars for $10,988 each for cash today. That is a market price, and it is a relatively small premium over spot. If prices were artificially low, JM Bullion would have to raise their price or they would quickly run out of stock.

I just can't believe anyone who tells me the true market price of gold is $5000, $10,000, or $30,000 an ounce. No it isn't. All I have to do is visit the web sites of any of the major bullion dealers and see what the market price is.

Angry Chef
Dec 8, 2015 - 3:44pm

Canada Just Warned That Negative Interest Rates Are Coming

Canada Just Warned That Negative Interest Rates Are Coming | Zero Hedge

So the Bank of Canada is essentially telling Canadians that money is worth nothing. Is that the message I'm to take from this ? I'm waiting for the day when I can go and adopt a puppy and I get asked " Would you like a Ford F-150 with that puppy sir " ?

Dec 8, 2015 - 3:44pm

Trump :::think:::

(set aside all political Red Team vs Blue Team stuff for a moment)

who did the media blame for 9/11 ?

who was really behind 9/11?

who is Trump railing against?

Who is in the shadows behind him?

Dec 8, 2015 - 3:49pm


Thanks for posting Rush's thoughts on Trump and the media. I heard it this morning and thought, wow, that is a good read on the situation. If you look at it as a bargaining device, ask for more or, in Trump's case claim more than you really want then you can compromise later to strike a deal. This could be a brilliant strategy that has the news media and possibly a majority of the American people confused. The reality, now, is that Trump has more airtime than all the Democratic candidates combined and the mainstream Republicans have no idea how to get rid of him. You may not like Rush, but in this case his insights are excellent


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