Greetings From FreedomFest

Fri, Jul 13, 2012 - 12:57pm

As part of my "vacation", I've spent the last two days at "FreedomFest" in Vegas. It has been terrific.

FreedomFest is a 3-day conference revolving around libertarianism and Austrian economics. Yep...right up my alley. And it was in Vegas! Also, right up my alley.

In the past two days, I've met with Ranting Andy and Mike Krieger. I've been interviewed by Kerry Lutz of the Financial Survival Network and I've made the acquaintance of Rick Rule of Sprott and Pat Heller of Liberty Coin Service. All of this was very cool.

However, the main thrill was yesterday. I attended a small luncheon where Steve Forbes introduced The Judge. Judge Napolitano went on to speak to the group for about 30 minutes and then field questions. I got my picture taken with him and he also gave me his business card. I hope to finally schedule that podcast that I've been dreaming about! Again, very cool. The Judge then gave a 45 minute speech to the entire convention. He's just awesome. Great stuff.

Great stuff in the metals today, too. The Big Bad Wolves huffed and puffed again yesterday but once again failed to bring the house down. Santa was right in two fronts: One, they attacked and two, they failed. By no means are we out of the woods yet but nothing too scary, either. Gold remains firmly within it's 10-week basing and bottoming range of 1535-1635. Silver, too, is still in its 27-29 range. The good part of these ranges is this: Once we break out and UP...and we will be clear to absolutely everyone with half a brain that the metals have bottomed. The shorts will either get frightened or squeezed and prices will move up rather quickly. Just be ready.

Two interesting news items I found while surfing with my phone this morning. First, this link to ZH. You should check it out.

And then, while at ZH, I saw that Swiss 2-year note is now yielding negative .43%. NEGATIVE POINT FOUR THREE PERCENT! The Germans are also getting in the act as their 2-year is now -0.05%. This is truly incredible. On a hypothetical new issue, for a 1,000,000 franc, Swiss 2-year note, you would have to pay the Swiss government about 10,000 francs for the privilege. Are you freaking kidding me? You've heard me mention ad nauseam how negative, real rates are extraordinarily bullish for gold. How about just plain, old negative rates?? Holy Toledo!

Lastly, as we continue on our trip down Memory Lane, perhaps today would be a good day to review this idea of negative real interest rates. I wrote this piece back on 2/1/12 and today is as good a time as any to go back and review it.

OK, that's all. I have to head to the airport soon so I better wrap this up. Please check back later today though as I plan to update this thread with thoughts on the CoT, once it's out. I probably won't be able to do it until this evening, however. It should be an interesting report. For the reporting week, gold was down $42 while total OI rose by 2000 or so. Silver was down $1.40 and saw its total OI climb by 1400.

Have a great weekend!


About the Author

turd [at] tfmetalsreport [dot] com ()


Jul 16, 2012 - 7:45am

@ White beard and Xty

First, welcome glad you joined the rest of the outed crazies. Second, nice coin.

Any easy way to post is to use

@ Xty- good morning. What is the trick to be always able to attain the coveted last post?

Jul 16, 2012 - 7:59am

Boy am I out of it...

I can't for the life of me, get my head around all this self centered rubbish about post count and content.

Just when I was beginning to understand the importance of swap dealers and their holdings I find out it doesn't't matter because someone else informed me the post was devoid of any real content, just meaningless drivel. Damn the bad luck!

And here I am all warm and snugly in my free market PJ's, when someone else comes along and tells me that managed markets and economies are for my own good, that I need to be protected from the big, bad market wolf. Totally confused now...

What a disaster, 50+ years of making my own way in the world and now I learn how wrong headed I've been, what a moron I am.

I'm also learning that all these great charts, thoughtful letters, cute anecdotes about chinese drama queens and lucid discussions of market manipulations has no real bearing on my future well being, again damn the bad luck.

What am I to do?

I guess I'll have to change into something more acceptable than these PJ's and continue searching...


Jul 16, 2012 - 8:12am

woo hoo!


whitebeard murphy
Jul 16, 2012 - 10:12am

Thanks Murphy

I'm glad to finally be here and hope I can add to this community in a positive way.

Jul 16, 2012 - 2:41pm


Molyneux characterised 2000 years as a 'period'? Anyhow, what about the three person problem above, where you claim price discovery breaks down and an external agent is therefore somehow going to make things better? I would like to see your response to that before we start adding in more philosophers and names.

2000 years was an arbitrary period selected by you. What I was implying was that as soon as more than two people accumulate capital, they are responsible for the culture of their little corner of the earth whether they like it or not. In a theoretical society without government, they and only they determine how their saved labor will be re-invested. If the capital accumulators are noble and have integrity, this process will unfold in a manner beneficial to prosperity as a society. THIS IS NOT THE REAL WORLD. In our world the capital accumulators have no integrity and form monopolistic cartels, which nullifies price discovery and leads to ineffecient subsidies and allocation of capital. And the minority of those, some of which reside on this site, who manage to acquire capital with integrity and do not sell out, well, we get our labor stolen from us by the government. THE FREE MARKET HAS NEVER EXISTED, but-for millisecond blips on the cosmic radar screen. The only reason I added Moleneux is to emphasize this point. His solution, which I'm not even saying I agree with, has nothing to do with the free market, it has to do with the application of force, of which government is a frequent initiator. Debt-free currency prevents the government from initiating the force of taxation in a manner that is against the best interests of the people. The anarcho-capitalist market requires everyone in it to have morality, integrity, and respect for contracts. This does not exist currently. Austrians would have the civilization collapse, and then rebuild the market in the anarcho-capitalist image. I would circulate a debt-free currency and short-circuit the collapse.

Video unavailable

And here I am all warm and snugly in my free market PJ's, when someone else comes along and tells me that managed markets and economies are for my own good, that I need to be protected from the big, bad market wolf. Totally confused now...

What a disaster, 50+ years of making my own way in the world and now I learn how wrong headed I've been, what a moron I am.

I assume this is directed at me. That is total BS and not even close to what I've been saying in this thread. At no point did I advocate anything remotely close to managed markets. Why do you imply that because I have a different philosophy than you about government that I have not made my own way in the world? We made our own way IN SPITE of the "free market" because it has never existed.

DaddyO I_ate_the_crow
Jul 16, 2012 - 4:13pm


my comments were in general and were not directed at you...

Please don't take any offense personally, truth be said I didn't read your post. I was making some general statements regarding my displeasure with Keynesians and their premise that the markets and interest rates need to be managed for the markets to be successful. I have issue with some Austrian positions as well.

My personal bias and experience is that the markets are local and should have as little intervention from the gov't as possible. I got out of managed accounts, retirement accounts and such a long time ago. I have tried to become my own central bank to the absolute extent that I can in our current financial fiasco.

Please don't assume that I am directing my comment at anyone unless I put your name in the subject field and all will be well with us.

We will most likely have to agree to disagree on the subject of free markets never existing. I can show you otherwise if you want to come follow me around for a time and watch how I do things and those who I do business with on a personal level. My company functions within the current system because we have to and until there are significant structural changes we will continue to do so. I am not concerned with all the intellectual exercises that get thrashed about on this board and others. It is just another avenue to beat an issue that doesn't make an iota of difference in my everyday world. The PTB will have their way regardless of what I think and the central planners and bankers will continue to whirl until they don't. I'm not going to change their mind or actions.

So go forth and prosper and please take my comments with a grain of salt and we will get along famously!


Jul 16, 2012 - 4:38pm


Sorry, my bad.

Shouldn't assume that we all read every post. If you read it you would see that I even asked other people not to take my own posts personally, and then I went and did the same thing. Just goes to show how stupid I am capable of being from time to time. I've got a fire burning inside me that's hard to control sometimes. I'm working on it every day though.


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