CDG and CDS

128
Fri, Jan 6, 2017 - 11:15am

As we begin 2017, it's more important than ever to be clear about what we discuss here. To that end, today we add two new acronyms to the TFMR glossary...CDG and CDS. No longer will be discuss the paper derivative price of "gold" or "silver". Instead, we will refer to these issues as CDG (Comex Digital Gold) and CDS (Comex Digital Silver).

Let's just cut to the chase. When you regularly observe charts such as this one...

...isn't it appropriate to ask yourself just what you are following? How in the world can anyone continue to call what you see trading on the Comex "gold"? It's not gold. Instead, it is simply an electronic derivative contract that HFTs and hedge funds utilize to give themselves "gold exposure" or a "hedge". No physical metal ever changes hands. Even the bi-monthly "delivery" process is nothing but a Bullion Bank circle jerk where warehouse receipts and warrants are shuffled to and fro.

So, why should we continue to refer to what is traded there as "gold"? Well I, for one, will no longer do so. Oh sure, I may slip up from time to time and, by force of habit, still call what is discovered on Comex the "gold price". However, going forward I will make every effort to instead refer to it as CDG for Comex Digital Gold. As the same situation exists in silver, henceforth the Comex silver price will be referred to as CDS for Comex Digital Silver.

Will this catch on over time? Maybe but who cares. As long as you and I are truthful, honest and accurate about what we're discussing, everyone else in the gold community and financial media at large can piss off. The Comex price of "gold" is no more connected to physical reality than the value of my shoe is connected to the price of oranges. What I'm saying is that the Comex price and the physical reality are completely unrelated. As you've heard me repeatedly state: "Gold and silver are priced as if they are physically abundant when they are not. Instead, what is abundant is the paper derivative."

Therefore, from this day forward, we shall refer to the Comex/LBMA/Globex price as CDG and CDS.

To that end, CDG is back down a little today as the USDJPY and bond market react to another utterly worthless US jobs report (BLSBS). Not only did the US allegedly add 156,000 "jobs" in December, but now they tell us that wages are rising, too. Uh-huh. Maybe not: https://www.zerohedge.com/news/2017-01-06/not-so-fast-where-all-blisteri...

And about those 156,000 "new jobs"...It appears that 155,000 are completely imaginary as they came into being from BLS seasonal adjustments: https://www.zerohedge.com/news/2017-01-06/where-december-jobs-were-nurse...

Here's a fun idea. Go out today and stop at a Walmart or Aldi. Find some poor soul with a handful of foodstamps and tell them that all will soon be better as they were just hired for a BLS seasonal adjustment job. Full benefits, paid vacation...the works! See how that goes over.

What a freaking joke and scam this all is.

And then take a look at the new record high number of people "not in the labor force" at all. This number hit 95.1MM people today! Again, that's 95,100,000 people out of a total working age population of about 243,000,000. AND YET YOU'RE REPEATEDLY BEING FED THE LIE THAT THE US IS AT/NEAR FULL EMPLOYMENT! Again, lay this on the food stamp recipient at Dollar General and see how he/she feels about the "robust" US economy and labor market.

All the while, Kernen, LIESman and Lavorgna yuck it up on CNBS.

And here are three fun charts for you. US factory orders are plunging but US bomb drops are soaring. Maybe what we need to Make America Great Again is a huge surge in Bomb Manufacturing plants. Maybe some of those 95.1MM not in the labor force can pack TNT and set fuses?

And then there's this friggin guy. Two years ago he's the devil incarnate after he overtly and deliberately PERJURED HIMSELF AND LIED TO CONGRESS about the NSA spying on and collecting data from average, everyday Americans. But, oh no. Now that he serves the ends of The War Party, he's some kind of unimpeachable expert of high integrity. Give me a break!

So, well, whatever. Let's get down to business and get this posted as it's getting late.

The price of CDG is down today and giving back some of the gains of earlier this week. Keep in mind that the first three days of 2107 saw a combined rally so the fact that CDG is back down today isn't really too big of a deal or unexpected. Simply holding these gains and closing the week above 60 is a significant accomplishment and keeps CDG on track for a stab toward key/critical resistance near 00.

CDS is down a bit today, too. However, when you consider that it was already up about 4% on the year, giving back only a few pennies today is quite an accomplishment. Let's see what next week brings! For today, simply holding and closing above .50 should be our primary goal and we've got a decent shot, too, as I have a last of .54.

OK, that's all for today. I'll be around for most of the day, posting comments and charts to this thread. However, I have a very important meeting to attend this afternoon so I will not be able to record a podcast until Saturday morning. On the bright side, it should be one of those overly-caffeinated deals fulls of vim and vigor.

Have a great day,

TF

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