Santa Tried To Warn Us

Thu, Jul 12, 2012 - 10:12am

As we watch the metals get savagely beaten this morning, I'm reminded of the warning that Santa posted last Friday and again yesterday. The Cartel is trying again to take down paper price. Will they succeed? Maybe...

Here are the two main components of his post. Remember, this was first posted last Friday so when he says "next week", he's talking about now:

"Next week is the war between manipulation of gold by the West, and appetite for buying gold in the East, both from friendlies and enemies. Anyone that does not see today’s gold market as a rig is blind or brain dead. There is a full blown crisis in Western world banking today, right here and now. There is a full blown crisis in sovereign debt of some weaker nations as in a very short while certain government will be out of money. The Eurosnobs hate each other which does not make for a fast reconciliation of a crisis."

"Next week will be the time the cartel tries to break the gold price again. They have failed seven times, and will fail on the 8th. Gold is going to $3500 and above. All the lying and conniving only means the price will go higher. Just as Morgan’s whale could not fight the market, the cartel cannot fight gold as we have a flight away from all fiat currencies."

So, there you go. As you know I, too, have been concerned about a short-duration, Cartel-inspired plunge that would attempt to take out the plethora of sell stops below 1525 and 26. Can they pull this off? You know they want to. Can they? That is the question. Global physical demand remains extraordinarily strong ( so driving down paper price will only increase the flow out of the LBMA member vaults. We'll justhave to see how this battle plays out.
For today's trip into the archives I offer you this: Written on 12/19/10, I still look back upon it as one of my favorites. Here's the summary paragraph:

"The end of US hegemony is near and with it, the end of the US dollar as "world reserve currency". This catastrophe and all in entails could have been avoided with responsible leadership and an educated/involved populace. However, selfishly, we in the US decided it was best to pursue a plan where we foolishly thought our recklessness was beneficial. This attitude was best summarized by republocrat and Keynesian legend, John Connally, who, as the coin was dropped in 1973, told the world that "the dollar is our currency but it is your problem". Sadly, we allowed Mr. Connally to be prescient for almost 40 years but the world is about to turn the tables. Soon...very soon...the coin will finally reach the narrow end of the funnel and the bottom will simply drop out. What happens next will not be fun and games."

​OK, that's all for now. I've got a full day of meetings ahead of me but I'll be watching this closely and I'll certainly update the blog if needed. Hang in there and be patient.


About the Author

turd [at] tfmetalsreport [dot] com ()


Dagney Taggart
Jul 13, 2012 - 11:19am

@Dr Jerome

The last 9 presidents have k*lled (don't want to piss off the Orwellian jihadists) the US with overspending. It's just been more obvious the last 10 or so years since we're talking about numbers that people don't understand how big they really are.

rl999 Eric Original
Jul 13, 2012 - 11:24am

@ Eric Original

Pray tell, am I one of this "cabal"? By your comments it seems so.

We all need to do our homework, because it is quite possible that we are all screwed (or as Liebor gate, and a myriad of other scandals has illustrated, we are all getting screwed regularly). Isn't the end of the great Keynesian experiment going to screw all of us in some way. Isn't that why your here.

One of the benefits of a blog is that we all gain access to people that know different things. TF knows a lot about the pm and TA, I do not.

I have read parts of the NNPT, while it is certainly the case that others here have not. I think it is safe to say that everyone that contributes to this blog has an area of knowledge that is unique. How we choose to interact with others based on this knowledge is a matter of individual choice.

I would note as well that the vast majority of your hat tips come from posting cartoons, so do not disparage those of us who choose to comment on the preeminent social/political matters of the day. When you have original thoughts about them, verifiable with fact, please share. Specifically the duties of the signatories to the NNPT.

With improper moderation discovery is impossible. There are many current examples of this in the headlines.

Dagney Taggart
Jul 13, 2012 - 11:30am


Seen it and heard it before. The normalcy bias is so predictable. YAWN.

Keep wishing everything you see and hear on the idiot box is real.

Video unavailable
Nick Elway
Jul 13, 2012 - 11:34am

Re: Peak Gold

I think Goldcore has been reading SRSrocco!

(thanks for the zerohedge link)

Dagney Taggart
Jul 13, 2012 - 11:35am

More Honey Badger

Video unavailable
Dagney Taggart
Jul 13, 2012 - 11:51am


How many cartooners here understand that getting the Sound Money/Economy utopia meritocracy most here want requires the destruction of the criminals behind the curtain we are calling out? JPM and Obama are NOBODYs. But it's all they get spoonfed from the idiot box so should I really blame them? Probably not.

PS. The cowards and hypocrites are in their little backroom high-fiving and talking about bacon. How noble.

Grigeo Dagney Taggart
Jul 13, 2012 - 11:52am

"I call Bull on your whole cabal. Get a life."

Eric O calls "bull....." on Guido Giacomo Preparata, author of “Conjuring Hitler: How Britain and America made the Third Reich”

L.S.: At the beginning of your book you are stating that “there is something far worse than Nazism, and that is the hubris of the Anglo-American fraternities, whose routine is to incite indigenous monsters to war.” (1) How did you come to this conclusion that has very little in common with the perception of the general population, particularly in Great Britain and the United States?

G.P.: It’s the old dilemma. What is worse: being a criminal or putting deliberately an arsenal into the hands of a known criminal? I think the latter is worse, hence that statement.

L.S.: If one does accuse you of being a “conspiracy theorist” or a “revisionist,” what do you reply to those critics?

G.P.: It is notorious and beyond dispute that the Anglo-American elite —along with the Soviets— financed and supplied the Nazis before and even during the war. This fact is obviously so disturbing and confusing for all those who have been raised with the complex of Anglo-American moral superiority that the Establishment has been at greatest pains to rationalize it. The only rationale it has been capable of advancing —whenever it cannot avoid the issue altogether, which is what it logically prefers to do— is to assert that a few rotten corporate apples did business with the Devil (i.e. the Germans) behind everybody’s (i.e., the State’s) back. This “explanation” is clearly untenable, yet anyone that dares to challenge it is ultimately bound to face what expresses itself as the wrath of devout believers. Their instinctive repartee is that anyone doubting the vulgate is self-evidently an unreasoning ‘fascist-revisionist-conspiracist’.

The tactic is so inane that it would be risible if the propagandistic stakes of this discursive set-up were not as decisive as they really are. It is their standard inquisitorial trump. Indeed, it is not directly aimed at the critic but at whatever audience might be listening to the debate: it is meant to scare away readers and potential supporters from the critic’s warnings by tarnishing him with the most unsavory label the system has devised for the purpose, that of the truculently stupid crypto-fascist. In the general arena of public opinion, any skeptical attack —carried out outside any conventional party line or schema— on the abuses of the power structure is likewise resisted by its discursive custodians (at all levels and of all political shades), who have been conditioned to brand reflexively the dissenter as an insufferable ‘conspiracy theorist’.

Grigeo Grigeo
Jul 13, 2012 - 11:56am

Guido Giacomo Preparata

Guido Giacomo Preparata .... has obtained a B.S. in Economics at the Libera Università degli Studi Sociali (LUISS, Rome, Italy), an M-Phil in criminology at the University of Cambridge (UK), a Master’s degree in Economics, and a PhD in Political Economy & Public Policy, both from the University of Southern California (USC, Los Angeles, USA).

From 2000 to 2008 Preparata was an Associate Professor of Political Economy at the University of Washington, USA. Moreover, he worked as a research associate at the Electric Power Research Institute (EPRI, Palo Alto, USA), and subsequently joined the research division of the Department of Supervision and Regulation at the Bank of Italy. In 2005, as a visiting professor of economics and Fulbright Scholar at the University of Jordan, in Amman, he has conducted research on Political Islam, terrorism and Islamic economics. At present he serves as a lecturer in criminology at Kwantlen Polythechnic University in Vancouver, Canada.

Jul 13, 2012 - 11:57am

Financial Times on QE3

Gavin Davies is a smart guy, though I'm betting he's wrong on QE3 end of this month

In the June press conference, Mr Bernanke said explicitly that further Fed action would be forthcoming if the improvement in unemployment were to stall. The June minutes show that “some” members of the FOMC would support further action if the economy were to lose momentum or if inflation seemed likely to fall persistently below target. Either of these conditions was sufficient for additional easing, but both have now been met.

Mr Bernanke should therefore be ready for more action. It does not follow that the chosen path will necessarily involve an increase in the balance sheet, but it is likely to do so if the Fed follows the thinking of several of the doves and buys mortgage securities. Another round of forward guidance about rates is also very likely.

With the presidential election certain to be in full swing by September, the chairman may well agree with Macbeth:

“if it were done, when ’tis done, then ’twere well it were done quickly”.

The next FOMC meeting starts on 31 July.

Jul 13, 2012 - 11:57am


& once again this is distracting us from the important issues of the day. I will call myself out.

I come here to learn about pm / finances and related. It is connected to many things, and connecting the dots is important.

Tolerance and fact finding is most important. Back to our regularly scheduled pm discusssion.

Jul 13, 2012 - 12:09pm


I agree that the US problems are not a political issue. All of our presidents have contributed--a statement I could not have made several years ago.

I suppose the issue with my poly sci colleague is his know-it-all smugness on every conceivable topic where his left-wing intellect provides superior view. The fact that his pic shaking hands with our current president is on his door doesn't help. I am better educated than he is and, I believe, hold onto my philosophy (and theology) with both eyes open, while he has one closed. When confronted with facts, he goes "childish" and resorts to red herrings and ad hominem attacks.

I hold that ideas are more powerful than people, the "pen is mightier than the sword." To sum it up, I'd argue that the notion that "economic evolution" has led us to the superiority of Keynesian policy is at the heart of the problem. Until Keynes is debunked once and for all, we don't have a chance. But when Keynes' disciples have control over the mass media, good luck to Austrians like me in our efforts to refute him.

Jul 13, 2012 - 12:09pm

Fox News 12 stepper

There are two "holy shit" that all should consider when mocking the whacko conspiracy theorists about the crap our media feeds us as fair and balanced truth. I am sure there are hundreds if not thousands of such examples. I'll pick on Fox since they are MSM's truth-tellers (sarc):

the first was when they took the OLD footage from the previous year at CPAC with Ron Paul and used it as the next year's. They took a scene where they were booing, completely out of context I might add, and then used it as evidence that the crowd was booing Ron Paul...this was as he won the straw was an obvious Romeny move. There was not a shred of truth to it.

Busted:Fox News CPAC Ron Paul Video Deception

The next one was where the Bully-In-Chief, aka the leprechaun, aka O'Reilly counseled Stossel that Keynes was a practitioner of human physiology not economics. If you don't watch this and realize that he is a stooge, then, I really don't know what to do, other than ask that you just remain quiet (not vote?) rather than remove all doubt on whom the stooge is....

Video unavailable

Yeah, Bill, you are so smart. Obviously, these stimulus, big govt, bailout every corporate failure policy is very effective. You should be fired.

Dagney Taggart
Jul 13, 2012 - 12:14pm


Since they are safely back in hiding with their pigs and bacon, yes.

Think I will sample the reverse HS at 26.80 at the LCS. We probably don't get there since I said it. Great! we still win.

Jul 13, 2012 - 12:24pm

Rhyming history

Look at he BKX, the dollar, the euro, spx, gold and silver....from 10/2008 to 12/2008 and compare to today....

It certainly looks/feels/ similar. Let me guess how the next 4 months play out. PMs put in a bottom, bounce around pretty hard between 30 and the end of June low....banks look like they have bottomed only to roll over in a couple of months...ditto for SPX...

dollar has had its holler....UUP topped out in 2008 at at 23. Strong? 4 years and 4 pts lower is not strength..

Jul 13, 2012 - 12:30pm
Jul 13, 2012 - 12:30pm

Sebseosensei on bs cartel call

was that the post where someone said the hft is responsible for this all?

if so, the HFT are the suckers in the game being triggered by the cartel.

Dagney Taggart
Jul 13, 2012 - 12:33pm


Or how about this one....

American media: Always good for a laugh (and a cry).

Jul 13, 2012 - 12:34pm

Preparata, cabal, coins, cartoons, charts,

as part of Turdite variety. When I post Chris Hedges and revisionist founding fathers perspective I figure I get a few ignore user.

Jul 13, 2012 - 12:36pm

Re: AGQ and similar ETFs

I know the previous poster was talking about options. However, I think it's important to note that for anyone trading in actual shares of AGQ, or any of the other "Ultra"/nX/leveraged ETFs that they are designed to reflect performance for a single-day! They are strictly for very ​short-term trading and NOT investment. Because of of daily rebalancing as well as volatility, holding them long term will erode value and any long-term earnings can easily be reduced to less than what the non-leveraged instrument would have gained, all while exposing you to more risk.

I hear people talking about these and feel like it needs to be said. It can be fairly non-intuative to any beginners.

Jul 13, 2012 - 12:36pm

silver COMEX to approach zero--the formula

This article explains how the COMEX silver market could disintegrate, and cause paper silver to tank while physical rises.

It presumes COMEX and other "derivatives of silver" trading would terminate, at least until true markets (as opposed to manipulations) could again begin.

Jul 13, 2012 - 12:37pm

@realitybiter - Even when I

@realitybiter - Even when I watched Fox News (kicked that habit), I thought O'Reilly was a "populist Bozo".

Dagney Taggart
Jul 13, 2012 - 12:41pm

I agree Dr

That narcissistic smugness makes him Nero-type dangerous. Seriously, watch your back.

Edit: When his little lollypops and unicorns world begins to crumble on him very shortly, he will try to weasel his way into your world of reason, loot it, and throw you under the pass to cover the crime. I'm sure you know and expect this.

Senseosensei Mickey
Jul 13, 2012 - 12:41pm


No, i was referring to the post where Eric O. questions the very existence of a cartel or to put it more broadly, a "force behind the scenes of everyday life".

What makes me all get fired up is the total lack of any proper discussion about these kinds of things. It's all belief system and the coolest kid on the block telling how it is.

I am still waiting for the day that we can discuss these kind of topics and share knowledge and sources, and politely telling each other where we go wrong in interpreting sources and why, without getting personal, emotional, or irrational.

Use the word jew, zionist, cabal, left/right/communist/capitalist or *poke* contrail/911 and watch the fireworks.

Dagney Taggart
Jul 13, 2012 - 12:44pm


Re: UUP watch for one more chop up to 23.25. That's a hard sell.

Bongo Jim
Jul 13, 2012 - 12:46pm

Don't forget...

Nazi. That seems to be thrown around here a lot too.

Dagney Taggart
Jul 13, 2012 - 12:48pm


It's better to short those instruments since they erode.

Dagney Taggart
Jul 13, 2012 - 12:52pm


It's appropriate since the historical similarities of the current American people and the 1930's German people are too remarkable to call coincidence, including who funded both. That's the ultimate tell.

They thought they were free too. Start there.

Bongo Jim
Jul 13, 2012 - 12:54pm


Not when it's thrown at someone personally...or did you miss the ad hominem post?

Big Buffalo
Jul 13, 2012 - 1:02pm

Smith and Wesson - SWHC

I know this is a metals forum but guns are frequently discussed. Have a look at SWHC. I made a few bucks from yesterday and (unfortunately) sold a bit early today. However, on a small pullback, this maybe a good play on gun bans, the ever increasing number of preppers, and so on. It's currently at $9.73. Personally, I have a buy at $9.00.

Just an added play to our gold and silver.

Jul 13, 2012 - 1:13pm


If after the Years and Mountains of enough evidence that would convict any criminal in front of any jury, if one wants to believe that there is no manipulation of the markets (including metals) and there are no groups, commissions, cabals or entities at the top of the food chain pulling strings. Then that is all good, they are entitled to believe what ever it is they want. That is one of the core principals of the Republic to believe what ever you choose.

I have a large number of friends and family that I do not approach the subject with because they become very combative very quickly during a normal toned conversation. It seems to be a direct threat to them. I think because the size and scope of the issues are things that they have never experienced in their lives so that can't be true. So arguing with someone that is afflicted with and suffers with the psychological disorder known as Normalcy Bias is actually like trying discuss physics with a Puppy. Sure it might be entertaining to watch their head twist back and forth but in the end it leads to zero accomplishment. So why argue.

The normalcy bias, or normality bias, refers to a mental state people enter when facing a disaster. It causes people to underestimate both the possibility of a disaster occurring and its possible effects. This often results in situations where people fail to adequately prepare for a disaster, and on a larger scale, the failure of governments to include the populace in its disaster preparations. The assumption that is made in the case of the normalcy bias is that since a disaster never has occurred then it never will occur. It also results in the inability of people to cope with a disaster once it occurs. People with a normalcy bias have difficulties reacting to something they have not experienced before. People also tend to interpret warnings in the most optimistic way possible, seizing on any ambiguities to infer a less serious situation


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