Reposting This Excellent Video

Wed, Dec 16, 2015 - 10:21am

We first posted this video from John Titus back on September 16, just days before the most recent FOMC when The Fed was expected to "raise interest rates". No time like the present to post it again and we implore you to take the time to watch it.

In the 90 days since, we've gotten to know John a little bit and we've even had him in for an A2A webinar. That show is public, too, and I encourage you to listen when you have the time:

Financial media seem certain that Mother Fellen is going to raise the Fed Funds rate later today, perhaps by 25 basis points. So why is Mother so hell-bent on raising rates RIGHT NOW, even though all of the economic data is still awful? After all, we've stated for years that The Fed can't and won't raise rates. Remember, though, we've also told you countless times that "the FOMC/Fed will do whatever they deem is in the best interest of their (TBTF) member banks"? In this case, it's all about the excess reserves as described in John's video.

  • Mother can't eliminate the interest on excess reserves that The Bernank started paying in 2009. Recall the hissy fit Jamie Dimon threw at the mere mention of an excess reserve interest rate cut a few months back?
  • But Mother also can't force The Banks to lend nor can she force the banks to reverse repo the cash back to The Fed.

Therefore, she's considering raising rates by 25 bps. Why?

All of this is sort of what David Stockman discusses here:

The bet is that the "economy" can withstand higher rates and the flattened yield curve that usually foreshadows recession. Again, this is all uncharted territory, thanks to the criminal Bernank. Mother has NO IDEA of whether this will work. Perhaps, she'll hesitate again later today out of fear and uncertainty. We'll know soon enough.

Regardless of whether she does or doesn't, my plans aren't changing as I continue to add and stack physical precious metal. 2016 looms as a volatile and uncertain year. The news later today will only serve to raise the stakes.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dec 16, 2015 - 4:50pm

Jim Grant

says we go right back to zero.

Listening to all that crap on CNBS is making me go bonkers.

Yellen talks like she is some kind of robot and Fisher later

explains that she is an oracle. Oh my god!!

Dec 16, 2015 - 5:02pm

Amazing. Look at how silver

Amazing. Look at how silver has held its value for 23 centuries–

December 16, 2015

Byron Bay, Australia

Thousands of years ago in ancient city of Babylon, specially trained scribes gathered each day in the Temple of Marduk to record the day’s events.

They used cuneiform writing instruments and clay tablets, over 1200 of which still survive today.

These scribes kept excellent records, detailing astronomical observances and water levels of the Euphrates River, as well as market prices for the most popular commodities like wheat, barley, and wool.

It’s incredible that we have detailed records of grain prices going back thousands of years.

The ancient Babylonians quoted grain prices in shekels, a unit of weight equivalent to 8.33 grams of silver.

Over the 3+ century period between 384 BC and 60 BC, for example, the price of barley averaged 0.02053 shekels per quart in Babylonia.

At 8.33 grams per shekel, this would be equivalent to about 0.171 grams of silver per quart, or about $3.75 based on today’s silver price.

After converting the unit of measurement from ancient quart to modern hundredweight (cwt), that means that barley in Babylonian times sold for $5.23 per cwt when priced in today’s dollars.

And according to the US Department of Agriculture, yesterday’s price for barley was… $5.25 per cwt.

Amazing. When denominated in silver, the price of barley is almost exactly the same as it was thousands of years ago.

In other words, if a farmer from 23 centuries ago had sold a quart of barley, he would have received 0.171 grams of silver.

Fast forward to today and that 0.171 grams of silver would buy almost the exact same amount of grain as it did 23 centuries ago.

This is an important reminder, especially today as the entire financial system waits with baited breath to see if the US Federal Reserve will raise interest rates for the first time in nearly a decade.

It’s ultimately a complete farce. Our entire financial system is based on awarding total control of our money to a tiny, unelected committee of bureaucrats.

They have the power to conjure trillions of dollars, euros, yen, pounds, renminbi, etc. out of thin air that are backed by absolutely nothing other than a thin veneer of confidence.

Civilizations have been experimenting with this model for thousands of years. And every single time it has failed.

Future historians will certainly wonder why we chose a financial system based on a model with such a long history of failure, and why we gave control of our savings and economic activity to unelected bureaucrats who are consistently wrong.

When you step back and look at the big picture, this system is totally mad. And full of risk.

Governments are insolvent. Central banks are nearly insolvent. Banking systems are extremely illiquid. National pension funds are insolvent.

And their solution is to keep borrowing and printing more money.

Look, holding some physical cash does make sense right now as a *short-term* hedge against risks in the financial system.

If the GFC 2.0 hits, you’ll be glad that you’re holding some physical cash (more on this soon).

But how much do you think your paper currency will be worth 23 centuries from now? Or even 23 years? Or potentially even 23 months?

Bottom line-- you're not protected unless you own some real assets. Gold. Silver. Land. Productive business. This should be part of any rational person’s Plan B.

Until tomorrow,

Simon Black


Read More

Dec 16, 2015 - 5:05pm

So interest rates at 0% for 7 years

Is bullish for stocks, and raising rates is also bullish!?

Fuck you Janet, this shit is so rigged its outrageous.

I can hear Cramer now having a manic attack/orgasm on live TV.

What a joke. Get the hell out of here right now Janet.

Sorry for the cuss words but this is just insane. I wish I had that gif to the clip where Will Ferrel says "Isn't anyone seeing this?! I feel like I'm taking crazy pills!!"

Thats me right now.

A Brave New World indeed.

Thanks for the gram of soma, may I have another?

Dec 16, 2015 - 5:06pm
Dec 16, 2015 - 5:10pm

Turd & David Stockman..........

don't have shit on me. I'm gonna start a paid advisory service too. Even though my insights are incredibly prescient & prophetic, I'll charge a mere $100/yr like Turd. Here's a freebee for you which should demonstrate my genius beyond a shadow of a doubt. As a result of a collapsing economy we will experience an American police state. My recommendation is to buy April '16 out of the money call options on Donut futures. If I get 20+ hat tips I'll move to establish a paid newsletter shortly.

SE Lemming
Dec 16, 2015 - 8:04pm

Oil fields

I see what you mean on that. I went down to my reunion (30th) over a month ago in south Texas, and there was NOBODY around. All the hotels that they had built to accommodate the workers were empty. I was the only one in the ENTIRE motel in a room for about 30 hours. Late in the evening, a couple showed up and got a room down the walk way. There was no hotel staff anywhere after I got there for the entire weekend. When I left, I simply laid the card key down on the bed. I was told by a girl working a convenient store there that the oil workers had left around June after the drilling stopped, leaving a skeleton crew to keep things running once the drilling was done and the stuff was being piped outward.

Dec 16, 2015 - 9:10pm


Makes you wonder where they are going to get the oil to sell as an export?

SE lakedweller2
Dec 16, 2015 - 9:20pm

@ lakedweller2

No, what it means is that the drillers are not needed now. They have skeleton crews maintaining the complete pipelines and making sure they continue to pump according to demand. They're producing now.

Dec 16, 2015 - 9:36pm


Sorry. Couldn't find what you were referring to.

added: have a relative that worked South Texas as a fracking well monitor that recently transferred to Louisiana. They were laying off people and shutting down wells.

Dec 17, 2015 - 10:12am

The big question today...

Will the S&P hold support at the 50 (2062) and 200 (2062.15) day moving averages?


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