All The Fuss

269
Tue, Aug 30, 2011 - 9:36am

The PMs shot higher this morning after the Chicago Fed Goon was interviewed by LIESman on CNBS. The metals catapulted higher when The Goon admitted that more QE is likely because the economy is in such terrible shape. Really? NO! Whodathunkit?

Because this is a full-service PM site, here is a link to the full "interview":

https://video.cnbc.com/gallery/?video=3000042403

Could LIESman's head get any shinier? In a sort of Pinocchio fashion, LIESman's head gets more more shiny the more he shills and pimps for The Fed. Maybe we need to develop some sort of "Shiny Head Index" to help us all calibrate the degree to which LIESman is propagandizing? I can see it now. "Today's LIESman SHI is a 9. Be very cautious and take everything with skepticism". Hmmm. Have to give that one some thought.

Anyway, back to business. Gold is attempting to hold its gains but is already about $10 off its highs. I'm inclined to do some buying today as I expect the metals to be firm the remainder of the week, ahead of the BLSBS on Friday. Signals that the NFP (non-farm payroll) number will be lousy are already appearing. Namely, this "interview" today and the fact that President O'bottom pushed back his historic "jobs speech" to next week. Again, the logic is: Lousy job report = lousy economy. Lousy economy = more QE. More QE = much higher PMs.

As you know, I'm very excited about silver but I'm trying to pick my spot to enter. Open interest tumbled all of the way back toward 115,000 yesterday which is extremely bullish and pushing me to act in haste. The area around 41.25-41.50 would seem to be the right price as silver looks primed to mount an assault on 42.30 again. Once through there, it will spring toward 44 and, beyond there, 46.

Here are a couple of other interesting items to ingest. First, this guy does an excellent job of summarizing my thoughts toward Venezuela and its gold repatriation. Though El Commandante would certainly and understandably prefer to have his gold in his hands, at its heart this is an act of "financial war", a move to further destabilize the financial system of "the West".

https://www.resourceinvestor.com/News/2011/8/Pages/Gold-Politics-and-Venezuela.aspx

Here's more on "The End of The Great Keynesian Experiment":

https://news.goldseek.com/LewRockwell/1314546712.php

And here are two, interesting reads from KWN. First, here is John Embry of Sprott Asset Mgmt:

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/29_Embry_-_Incredible_Physical_Gold_Demand,_Premiums_Exploding.html

Eric also interviewed Louise Yamada. There are lots of amateur chart-readers in the world, myself included. Louise Yamada is a professional. As a general technician, she has no peer.

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/8/24_Louise_Yamada_-_Gold_%26_Silver_Still_Solid_But_Avoid_Stocks.html

OK, that's all for now. Gold is 1828 and silver is 41.38. Let's see where we go from here. TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  269 Comments

margaritatime
Aug 30, 2011 - 10:52am

@TomL re: Liberty coins

What I find most disturbing is the wording from US Attorney Tompkins as posted on the press release on the FBI website;

“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” U.S. Attorney Tompkins said in announcing the verdict. “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.”

***

"Domestic terrorism"? Really?

TruBlu11
Aug 30, 2011 - 10:52am

Nightmare for the EE

CNBC turns from EE friend to foe (for today anyhow) with their gold coverage/pumping. And another thing, EEs definitely have lost control in the short term. The current PM charts are not the ones they wanted. Fought it at every turn for past 2 days and have lost so far.

Tom L
Aug 30, 2011 - 10:54am

@Ferd: SVM

I wouldn't chase at $8.60 on a short-term trade. 50 DMA is $8.67 so how much can it run before testing $8.30. I wouldn't even be surprised to see a stop-loss raid down to fill this morning's gap at some point, but I wouldn't count on it happening. Put in some low bids, like $8.30 or so and if you get filled be happy. If you are buying for a 3 month hold, does $0.20 matter when you're looking at $3-4 profit?

Your call on what you want to do, of course. Time and perspective as always.

Ta,

¤
Aug 30, 2011 - 10:56am

StrongSide

I share the frustration and the "wrong" aspect of the EE being in the markets and totally steering them or at least trying really hard to. It's criminal and it's so obvious yet no one in power in the Fed. Govt. or an agency charged with monitoring the markets seems willing or able to do anything about it.

Maybe they are frightened or just want to keep their job. I think we have descended to that level and probably have been there for quite some time. I'm definitely not comfortable with the manipulation going on and I think we tolerate it because we can take advantage of it and make some money hopefully.

I'm definitely not comfortable with it. I don't think any of us are. Sometimes you have to just put up with a bad situation even if you know it sucks and it isn't right. I don't see it changing anytime soon unfortunately but I do feel it's starting to unravel on them

I wish any one of us or a our elected officials would stick their neck out and just expose the whole thing. I don't see it happening if it hasn't happened by now. That Andrew Maguire came out in Feb. or so and made all of these allegations that are probably true about JPM/Bear Stearns/silver etc. and it was met with a yawn essentially.

No one wants to touch the subject and cause the collapse of the U.S. economy because they know it would.

Fear for their job and lifestyle.

Just what the EE wants, needs and has achieved. Fear and silence.

Shill
Aug 30, 2011 - 10:56am

HUI

Like to see that HUI bust through Tom, looking good and close.

Aggravating sons a bitches lol

BagOfGold
Aug 30, 2011 - 10:57am

Say no to GMO!...Give Monsanto a death blow!!!...

Our freedoom...our right to grow nourishing food for our families...is in jeopardy!!!...

https://breakthematrix.com/health/organic-farmers-sue-monsanto/

Buy only open pollinated organic seeds...& grow your own food...harvest the seeds...& start your own seed bank...before it's too late!!!...

Bag Of Gold

Tom L
Aug 30, 2011 - 10:58am

@Margarita: NORFED

That was distressing. It was also roundly ridiculed and made the Liberty Dollar more famous than it ever would have been on its own merits. This kind of thing needs to be publicized heavily to dissuade them from actively trying to confiscate the more than 2 million coins they produced and distributed.

Ta,

Tesla
Aug 30, 2011 - 11:00am

@Margaritatime

Whoa!

That is scary (read possible future confiscation and prison for stackers ...and PM bloggers??)

Silverman madgstrader
Aug 30, 2011 - 11:01am

@madgstrader What indicator

@madgstrader

What indicator is it?

Shill
Aug 30, 2011 - 11:02am

Folks the Liberty coin thing

Folks the Liberty coin thing is old news, don't read into it too much. The guy was minting his own coins and that is illegal according to the law. So these coins are contraband similar to the double eagle case.

Nothing shocking here.

margaritatime
Aug 30, 2011 - 11:02am

Tesla

It's the wording of the court docket that bothers me... Counterfeit? Okay... maybe.

​But the wording that it undermines the Federal Reserve is a catch 22. What does the Federal Reserve have to do with the United States Government? This is a clear and concise Red Herring flawed logic where the prosecution construed that the Federal Reserve is somehow part of the US Government.

wow... Meanwhile, the CME can be allowed to undermine the entire commodity markets, and create derivatives to undermine the entire global economy... But hey, let's look the other way.

SilverWealth
Aug 30, 2011 - 11:03am

now you got it Turd

Now your gettin down with it Turd. Calling a FED member a Goon is a perfect description. Think 27' Chicago. Long coats, machine guns,cigars, working the docks, baseball bats and foul language. In essence thats what these guys are only much,much worse. They have created so much havoc and mayhem with their arrogance and unbridled criminality that Goon is the only word to describe them.

If only we could steal the language back from these thugs and hoodlums so that the general public started referring to them as the same whenever and wherever they surface to spout their utter bull crap. Then 1/2 the War would already be won. Greenspan should be referred constantly as a moron, a foolish old Magoo, a Greenspasm. If we take back the language from the crooked suits the tide turns and we win fast and big and they scurry to other lands and islands like the disgusting cockroaches that they are.

A friend who works summers at Goldman told me Saturday night that the in house boys there have taken to calling Blankfein 'Wallace Shawn'. This is a definite step in the right direction when the in-house goons start seeing chinks in the armor and start making fun of their own boss. Its progress folks, its progress.

bullwhip29
Aug 30, 2011 - 11:04am

Another typical day...

Futures indicate a big sell off at the open

Markets open higher than expected

Crappy economic data du jour released

Knee jerk sell off

10am "stick save" by PPT and/or POMO desk

Market put on autopilot from 11am until 3pm (and depending on day EE also raids PM's)

Squeeze shorts (nitro boost optional) from 3pm til close

Flip calendar to next day

Wash, rinse, repeat

redwood
Aug 30, 2011 - 11:05am

Just a reminder

There Is No Bubble in Gold

August 29, 2011, at 8:26 pm by Jim Sinclair in the category General Editorial | Print This Post | Email This Post

Dear Extended Family,

As the volatility of gold rises, a two day $200 reaction should not be considered anything out of the ordinary.

A hard sideways chop is the present scenario.

There is no top in gold. There is no bubble in gold.

Truth be known, what will vault the price of gold is good for equities as well.

Regards,
Jim

Denver
Aug 30, 2011 - 11:06am

MSM Pumping Gold

Makes me very nervous. Smells like a setup to me. Don't forget NFP coming up.

Ferd Torgerson
Aug 30, 2011 - 11:06am

@Tom L No apology necessary

Didn't see your comment as a personal attack - just one of concern. We are good.

Not an attorney so don't take this as gospel. In trying to think of what I'd do if I held the coins and was concerned over confiscation or prosecution, I think I'd explore selling the coins for melt value to a foundry. Their receipt or 1099 form would help create the required paper trail that you had legally disposed of the coins and not used them for barter. If you wanted to further protect yourself and the amount was not too high, you could donate the proceeds to a recognized charity and provide a receipt to that effect. Or, alternatively, create a paper trail showing you've used the proceeds to make your quarterly tax payments to the IRS. Usually, the IRS will back off if they see they are dealing with a law abiding taxpayer.

Maybe a righteous attorney on the board might offer an opinion.

With regard to SVM, I'm looking at it as a long term hold. I don't trade stocks per se. However, I was thinking about selling my GPL (which I had considered a long-term hold) and using the proceeds to buy SVM.

Tesla
Aug 30, 2011 - 11:08am

Debasing currency is treason

F the non-federal, un-American FED.

The people have a constitutional right to oppose and abolish corrupt government:

What happened to: We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness?
argent rampant
Aug 30, 2011 - 11:08am
Tom L
Aug 30, 2011 - 11:09am

@Shill

You are fundamentally wrong on that. They were designed to not interfere with the UCC and could only be found to be competing with current money when compared to a Bicentennial commemorative coin issued by the mint that never was intended for circulation. He knew the law and deisgned a coin to trade vs. the US Dollar. He complied with the Treasury Dept. and consulted with the Fed Res. But, when the system was becoming popular in localities and began to take off, their offices were raided and they were shut down and put through a kangaroo court.

It's BS. But summary opinions like yours on the subject give them the cover they need to confiscate people's property. Buying silver eagles and buying LD's is fundamentally the same thing, 'undermining the currency' by competing with it.

The difference here is that NORFED designed a system to value their currency vs. the USD to seed the market with silver coinage, as opposed to just using Silver Eagles from the Treasury, with the stated goal of ENDING THE FEDERAL RESERVE.

Sound Familiar?

Ta,

olderman BagOfGold
Aug 30, 2011 - 11:11am

excellent advice bag of gold

Excellent advice bag of gold. Have been storing and collecting organic seed for years. Monsanto is definitely in EE club.

olderman

Tom L
Aug 30, 2011 - 11:12am

@Ferd

It's good to be 'all good.'

That's an interesting idea wrt to melting them down. I'd hate to do that but I will if I have to. They are collector's items now and no one would circulate them anyways not with the premiums associated with them.

Ta,

Tom L
Aug 30, 2011 - 11:14am

HUI Breakout

is occuring as I type. Give it til 11:15 for the next candle to print then I would be starting to buy.

TRX is off the mat at $5.90. A move through $6.00 would be a 'buy with both fists' moment.

That stock is going to punish the shorts with large objects shoved up certain bodily orifices.

Ta,

margaritatime
Aug 30, 2011 - 11:17am

Shill

I realize the NOFRED is old news. But the announcement from the US Attorneys office [dated Aug 24, and made public Aug 26] states that their position is that it is contraband and subject to seizure. For collectors and the like, that should raise an eyebrow... Once you go down that road, the Max Keiser coin is not that different really.

Tom L
Aug 30, 2011 - 11:17am
Larry
Aug 30, 2011 - 11:18am

But they would build a bridge to fish from...

"If you put the federal government in charge of the Sahara Desert, in five years there'd be a shortage of sand."

Milton Friedman

CreditCrumbs
Aug 30, 2011 - 11:23am

Gold Investment vs. Gold Currency

Friends, most of you know that I am bullish on PMs as investment, or as a mean to preserve purchasing power. With that in mind, I want to address a controversial issue of gold as currency. I think adopting gold as currency is a stupid thing to do. Here is why.

In the environment where every country is devaluing their currencies, the first country which converts to gold currency will suffer from economic death very quickly. Everyone else is devaluing their currencies, so the gold currency country will be trapped with increasingly stronger currency, and becoming non-competitive economically. Exports will die, unemployment will rise, and the economy collapses. Only gold owners thrive, but even that not for too long. With no jobs, the gold will just flow out to countries who produce.

¤
Aug 30, 2011 - 11:23am

Confiscation (edit)

I don't think it would work this time around. I could see something like that being a trigger for major social unrest.

I kind of figure at that point that the economy and USD would be in such bad shape that if confiscation was being considered and talked about in the MSM that the general public would be well aware of how bad things really are. At this point, I can imagine a severe backlash happening if the Govt. tried to ban/confiscate the only thing that represents safe money to them.

I think it's entirely possible for China or some other country to set a PM standard for their currency at some point soon. Even if they don't back their currency with a 100% PM backing it would be a dramatic indication of how valuable the PM's are and how they represent sound money.

Could anyone imagine what the average U.S. citizen would think about China recognizing the PM's as real money and actually promoting it to their citizens to purchase and hold and then the U.S. tries to ban or confiscate their gold or silver?

I'm pretty sure it would be met with stiff public resistance and would not go very smoothly. Confiscation this time is problematic for them.

I deeply believe that our Govt. would be incredibly short sighted not to grab the reigns on this gold/silver issue and declare the U.S. is going to at least partially back their currency with gold/silver. They could declare a price level and I believe the rest of the world would follow along. Just as they have since WWII.

IMO, there is no way the U.S. and the banking system will allow that to happen anytime soon given how they are guarding the paper gold/silver concept in GLD and SLV and the price of the actual physical PM.

I think that (as TF has pointed out also) a low grade currency/financial war has been ongoing for some time and I feel that Chavez is going to be the one to poke a stick in the eye of the Anglo-American banking system even further now that he has made his initial move. This is just starting up and I believe Iran will be next to do so in some fashion followed by Russia and then China making some gold related currency move one after the other to back up Venezuela when they do make the move.

Venezuela demanding gold for settlement of petroleum or something else other then USD doesn't seem far fetched. It appears to be destiny. I'm pretty sure Chavez will put a oil embargo on the U.S once he actually gets his gold back and it's been authenticated as real.

VeneCHRussia has a plan, imho.

tyberious
Aug 30, 2011 - 11:24am

Chavez

From Jim Willie's Hat Trick Letter @ goldenjackass.com

Dictator Hugo Chavez has retrieved the Venezuelan gold bullion held abroad. It is not planned, but rather done. He intends to nationalize the gold mining industry, since it is vital to monetary health during the global financial crisis, if not survival. The Chavez emissaries demanded the 99 tons of gold from their account at the Bank of England. The total amount was much more like 211 tons from the various accounts. The bankers had to appeal to the continent, which was successfully drained of gold bullion from other banks in the land of watches, chocolate, and yodeling. According to Bloomberg, other Venezuelan gold accounts are held under the trusty hands of banks in New York, London, and Toronto. The JPMorgan vault only contains 10.6 tons of physical gold. Actually from the CME update of metal depository statistics, JPM only has 338,303 ounces of registered gold in storage. Keep in mind that JPMorgan and other big US and London banks typically have pledged 100 times as much via their fractional banking and associated paper contract games. So the Bank of England and JPMorgan had to solicit substantial other supplies from Central Europe, where the sweat beaded on the foreheads and the glances were stern. But the gold was handed over in volume. Men armed with court action threats and other men armed with weapons were reportedly present.

A well connected source informed that "the logistics of the relocation of Venezuelan gold was known. They retained experienced and efficient professionals. The retrieval and delivery was done under the radar screen and published publicly as a time lagged news story, once all was completed. The retrieval will crush many of the major bullion banks. These criminals have sold in excess of 50 thousand metric tones of allocated metal they do not actually have to unassuming customers. That quantity equates to approx to 25 years of global production. If you think the subprime mortgage chapter was a mega-fraud, then what comes next will be a shocker." In no way did the London and European bank supervisors wish to deny a hostile client like Chavez, who would rant and rave about corrupt gold banking practices from his Caracas pulpit for the world to hear, for days on end, but with credibility. The key fact is that the majority bulk of Venezuelan gold bullion was retrieved quickly and quietly, without incident, efficiently, and then reported publicly. One should infer that great precision was deployed, and pressure exerted to extract the gold at pressure points. The ripple effects will be felt next, in my view as weakening the gold banking system in general. Savvy analyst Ben Davies believes the Chavez gold delivery demands make for a major Game Changer, exposing the fractional gold banking practices as corrupt, causing great problems. Some unexpected consequences will make their way to the surface in coming months, maybe weeks. Look for fresh evidence of massive drainage of GLD inventory, since designed for corrupted diversions and betrayal of its investors. Adam Hamilton of Zeal (non-)Intelligence is due for a rude awakening, cold water on its naive clueless face.

Implications are rather big. The Venezuelan Govt is alarmed at the monetary system breakdown and seeks preparation for the upcoming shocks. Foreign Minister Nicolas Maduro lectured about how the global financial system based on the USDollar had entered into a crisis of uncertainty. He claimed to be part of a plan to construct a new international monetary system, for particular usage in South America, to protect his nation from this situation. Such a vehicle would be incredibly difficult to manage and create. This bears watching, to see if a fledgling barter system is created at a high level. Details on the Venezuelan reserves makeup have been revealed. Official figures cite their total gold holdings at 365 tons, of which 211 tons are held overseas at the Bank of England, JPMorgan Chase, Barclays, Standard Chartered, and the Bank of Nova Scotia. Since 1980, Venezuela has held 99 tons of gold at the Bank of England, which is destined to come home. Strongman autocrat Chavez intends to eliminate the dictatorship of the USDollar as he calls it, by putting into action a plan to diversify its $28.7 billion in reserves away from US banks. Other cash reserves totaling $6.3 billion will be shifted into currencies from emerging markets where Venezuela feels loyalty and brotherhood. Funds will shift toward China, Russia, Brazil, and India, according to the central bank head Nelson Merentes. The 365.8 metric tons of gold reserves owned by Venezuela makes it the 15th-largest holder of the precious metal in the world, according the World Gold Council. Their gold holdings accounted for about 61% of the country's international reserves. Venezuela produces 11 metric tons of gold per year, and pirate miners extract an additional 10 to 11 tons a year, so claims the government. See the Bloomberg article (CLICK HERE).

backseatdriver
Aug 30, 2011 - 11:24am
agauinvest
Aug 30, 2011 - 11:25am

Liberty Dollar

Wonder how different this may or may not have been if they simply did not use the term "dollar." Maybe not much different, since there still would be all sorts of tax collection issues associated with using them in trade whatever they were called.

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