TFMR Podcast #44 - Jackass on the Barbie


For a holiday treat, Jim Willie stops by for an informative and enlightening podcast.

Jim and I cover three main topics today:

  1. The recent takedown in gold and silver and the incredible physical demand which followed.
  2. News and behind-the-scenes events related to the recent G20 meeting in Turkey.
  3. The Fed's ongoing ZIRP and QE∞ and their total inability to exit the treasury market. Ever.

So there you have it. Nearly 45 minutes of uninterrupted Jackassian wisdom. Enjoy.

Have a great weekend!



Lamenting Laverne
May 26, 2013 - 2:13pm

Podcast - thanks!

Btw - The podcast was great as always!

One comment though. Unless new cooperation between Qatar and Iran has emerged, or a new field has been discovered, the actual initial understanding was reached some years ago.

What I have heard is that when drilling started in the North Field - which is, if I remember correctly, the third largest Gas field discovered, and that traverses the nautical borders between Qatar and Iran, they quickly realized on both sides that if they continued to put greedy indiscriminate little straws into that reservoir without a coordinated plan, they would soon lose pressure and kill the reservoir altogether. So an "off limit zone" was agreed, within which none of the countries would drill.

This is the story I heard from feet on the ground in the area. This confirms the basic premise of what JW says, even if the timing does not match entirely.

May 26, 2013 - 2:25pm

Bearish silver chart

Anyone else seeing a reverse/inverse cup and handle formation going in to friday's closing?

May 26, 2013 - 2:37pm

Karen Hudes on C2C last night

Reposted from Riff-Raff thread:

Some thoughts about last night's program.

Can't say that I was impressed. She kept talking in circles and never really got out of her anger loop regarding how she was sidelined.

The only seeming message she had was for folks to lobby for her to get back in (to the world bank) so that she could fix it. It came across as sour grapes, as she never said how. (John B. Wells, the host, had asked her repeatedly.)

Also, she said things could be fixed and that it was imminently doable -- if only they would put her back.

In other words, I got the impression that she thinks the rule of law will prevail without societal dislocation, and that many of her contemporaries are in agreement.

However, I remain highly skeptical.

Am I alone in my subjective assessment of this interview? Am I missing something?

silver66 Utilitarian
May 26, 2013 - 3:13pm


Good post, I would encourage further investigation by Turdites of the SCO. Any sharing of what you know (if you are comfortable) would be greatly appreciated. There are 3 or 4 of us up here in Canada that discuss this on an ad hoc basis via e-mail and the occasional phone call. I have not been following it for a decade like yourself

I think it is a really big deal, Just like the new development bank that was signed in South Africa


May 26, 2013 - 3:56pm

Grant Williams from ZH

Just listened to out on the deck while bbq'ing

very good


May 26, 2013 - 4:01pm

Bad math.....and the unknowable amount of hoarded gold

I've been of the unstated opinion for about a year or so that there is more gold available (off the books/not for sale) then what is stated to be in circulation or in the possession of govts. etc.

I find it hard to believe that in all of human-kinds history that there is a small and finite amount of gold approx. equal to a swimming pool size cube. It doesn't seem possible to me.

What if the amount of gold itself has been artificially marketed as being scarcer then what it might actually be? Like diamonds and thus creating the impression they are scarce and therefore more valuable in that particular supply/demand paradigm?

The amount of golden treasure over the centuries that has been found or plundered (wars) must be immense imho compared to what is purported to be a relatively small (and highly imaginable) cube.

None of what I'm saying above contradicts what we talk about here regarding the markets we know about or all of the paper or gold certificate leveraging we think or know takes place. I believe all of that takes place.

It's the 'real' or finite (and hoarded) amount of gold (annually mined/recycled and exported) that I question that no one really knows exists and to what extent or amount.

Just like time itself....does anyone really know what time it is...or in this much gold there really is or what's left and who holds 'X' amount? Nope.

The amount of privately held gold that can't be figured into any equation (whether it be held in private or by CB's/militaries etc.) might be staggering. Allowing the markets to know this unknowable larger number (even an approx. one if possible) would have a very negative effect on the commodity known as gold.

Which begs the question....if some of the available 'known' amount in circulation is being paper leveraged at an admitted ratio of at least 100-1 then why isn't the current open market physical gold at least 25-50 times more valuable per oz?

That's why we discuss what we do here. Something obviously doesn't add up....on purpose.

alan2102 Kerbouchard
May 26, 2013 - 4:03pm

Karen Hudes

I'm listening to the interview right now on youtube:

..... have only heard about 30 minutes so far, but:

1. I hear NO anger at all in her voice, yet. She is talking about very disturbing stuff, with impassioned energy, but I hear no anger. No sour grapes. Yet.

2. Yes, she is naive. That was my impression from the getgo, a couple weeks ago when she first popped up. She has this idea that everything is going to go smoothly and that justice will be done, no problemmo. Jeez! I wish! I hope!

3. Regarding "talking in circles": I agree that she could organize her presentation a lot better, and not ramble so much. But then, she is not so different in this respect than Jim Willie and many other interviewees. They just sit down and gab, without an outline.

I suggest that we all keep an open mind about this and not load it with too much negativity and skepticism. She obviously has the best of intents and a lot of good energy, and has at least some connections in high places. Who knows? Maybe she will garner some support and crack something open.

Kerbouchard alan2102
May 26, 2013 - 4:08pm


You're right. I'm afraid my choice of the word, anger, was misplaced. What I meant to say was that she sounds as if she's still dealing with what's happened to her, and therefore my impression of her was that she needed to break out of that mindset in order to present her case more effectively. That's also why I used another expression, sour grapes -- another poor descriptive choice on my part.

My intent was not to be a character detective. And yes, she deserves a chance. After all, she's doing more than me!

May 26, 2013 - 4:08pm

Oh my - this is good!

Pinched from a ZH post. If you don't have 48mins, start watching at approx 33.30 for the gold stuff...

edit: hahaha silver66 - just seen you beat me to it, and we both said the same thing.

May 26, 2013 - 4:21pm

Bad math

Looks like I'll have to take a look at the vid.

It's almost odd that the three of us posted something about bad math in a short span without seeing each others posts.

I haven't been to ZH since yesterday morning.

May 26, 2013 - 4:23pm

Calling all Math whiz's

I keep hearing that there are only three Olympic size pools of gold above ground. Every time this gets quoted my BS meter has a very slight vibration.

Hell, they trotted out the Queen for a photo op a while back and there looked like huge quantities in the BOE vaults(leaving aside who owns it)

Was watching a documentary posted here about the NAZI war gold and it was impressive in scope.

We know the volume of a 400 oz bar or the volume of a AGE. Perhaps a quick calc to see if what is know to exist is more than a few pools in volume

Got to run now and put the steaks on the bbq


May 26, 2013 - 4:25pm

More Karen Hudes

Here's one that we missed (the text below, not the video) on the first pass. It is a long page, going far past this quoted material:

Wednesday, March 27th, 2013 | Posted by Jim Fetzer The World Bank: Rejecting “The Rule of Law” “The proverb, ‘What you don’t know can’t hurt you”, originated in 1576 as, ‘So long as I know it not, it hurteth mee not.’ But the opposite is true. Unpleasant hidden truths do the most harm. The best way to fight corruption is to expose it. Think of the World Bank as ENRON.” … Karen Hudes

by Karen Hudes (with Jim Fetzer)

Karen Hudes

When, thanks to Mark Novitsky, a federal whistleblower, I learned that Karen Hudes, who earned her J.D. at Yale, our most distinguished School of Law, and an M.Phil. in economics at the University of Amsterdam, which is also a formidable institution, had been removed from her position as Senior Counsel for the World Bank because of her efforts to expose corruption and reaffirm the rule of law in the form of appropriate standards of accounting, I was dumbfounded.

What initially appear to be obscure issues of international finance, moreover, have the potential to sever ties between us and our NATO allies and weaken the national security of the United States. The stakes involved are therefore extremely high for every American citizen.

During the World Bank and IMF Annual Meetings last October, with her encouragement, the Development Committee informed President Jim Yong Kim of the need for “a more open, transparent and accountable World Bank Group.” The reasons that motivated that request included the following series of disturbing developments:

The Crisis in Cyprus as a Mini-Model

The threat by EU bankers to loot savings accounts held in Cyprus has raised red flags all over the world. As The New York Times (25 March 2013) has reported,

LIMASSOL, CYPRUS — It is not just about rich Russians and Cypriot retirees. Also vitally at stake in this island country’s banking crisis is Cyprus’s credibility as a place for international companies to continue doing business.

Take Avid Life Media, the Canadian-owned operator of some of the world’s biggest online dating sites. Only a few weeks ago it set up an office here as a base for its international operations, attracted to Cyprus — as hundreds of other foreign businesses have been — because of its reputation for financial stability, a low corporate tax rate, a friendly banking environment and most of all, a strong rule of law.

Now imagine that was the case for the most important bank of all, which affects the world’s economy. Imagine that bank accounts were being looted world-wide and you will begin to appreciate the dimensions of the problem.


May 26, 2013 - 4:29pm

Alternate Prediction

Just to take the opposite side of what I already posted (in which case I am sure to be correct, unless tonight is flat and uneventful), maybe tonight could be the fleecing of the shorts? Now the EE won't be caught with any margin calls and they know what level all the stops are at (the buy and the sell stops). They make the markets and the rules, and don't have to play by them. Their pockets are deep and since they determine the price with their over sized positions to date they have been able to monkey hammer the price to wherever they want.

What if they ran the price up by a few dollars tonight in the slow markets? They could fleece the new spec shorts (who no doubt have stops in place) and make money on the upside, then beat it back to the current level again having pocketed some more fiat (not that money is the ultimate game but by discouraging people from the metals market because of crazy volatility it would make it easier for them to manage). Kind of like the Seinfeld episode where George does the opposite of what he normally would do.

Just a thought. I don't try to trade this stuff anyway so my ounces will remain at 31.1 grams.


PS Still think the first scenario is more likely (they hammer the price down) just because ultimately the game is about propping the fiat system and they don't want the PM to be seen as an alternative. Although a little volatility may be positive for them in the big scheme of things.

alan2102 Kerbouchard
May 26, 2013 - 4:39pm


Ok, I see, but I'm also not hearing an obsession with her personal case. I do hear her referring to it -- but what else would you expect? She is her, after all, and it IS an example of the very malfeasance/injustice that she is talking about.

I do agree that "get me back into the world bank" and "people have got to educate themselves" (etc.) would seem to be dreadfully inadequate prescriptions. This whole plan of hers to re-assume her world bank position and work with other whistle-blowers and the U.S. state governers to root-out the corruption seems highly quixotic and unlikely. But God bless her and who the heck knows? Maybe something will come of it. She has utter conviction and a lot of energy. May she run with it, and Godspeed.

May 26, 2013 - 4:39pm


Thanks for the heads up....I'll have to look for that vid on the WWII gold.

I know that CBC documentary touched on some war gold aspects also but I don't recall any estimates on the amount.

May 26, 2013 - 5:07pm

Kitco Countdown

One month to go until their June 26, 2013 deadline!!!

Here is the latest (final?) report from their trustee in bankruptcy (just the link. Go to CCAA Proceedings then choose reports. The latest one is on top).

Note that there is still a lot of money in their pool accounts. Wonder what becomes of that money if/when they are shut down?


May 26, 2013 - 5:35pm

Short Term Memory...

California Faces a New Quandary, Too Much Money

hehehehe....hahahaha....oh.hohohoho...please stop the comedy

Now we know what gov't officials want to do when "they think" there is now "extra money" floating around...hmmm..wonder how that balance sheet is looking though...

1. Spend it

2.Spend it


3. Spend it...

okay...Indiana would like to cut income taxes

Spartacus Rex
May 26, 2013 - 6:06pm

Re: DPH, Silver 66 et al / Gold approx. equal to a swimming pool

For those who might appreciate visuals, does a great job explaining topics such as the U.S. Debt, Cyprus Bail Out, etc. and the one for visualizing the World’s Gold Stack can be found below.

Gold - Visualized in Bullion Bars and finally in a solid gold cube Here’s a link showing two charts showing the loss of purchasing power of FRNs (Fiat Paper IOUs for a US Dollar) vs. Gold Here’s a link to a graph showing Gold /Bonds/Stocks/ (FRN IOU for a) USD Percentage Growth since 1970
May 26, 2013 - 6:14pm

ND Silver Open

Weird gap down in the pre open seems to show on my screen (sorry wasn't watching as was on another window). First minute tick had a big 18K NDU that stood in the way of a larger price rise (looked like it wanted to go higher only to be met with blocks of 500 sell trades). Volume has settled down now to blocks of 10 trades, a far cry from the first minute tick as always.


Edit This is new. Gap down tick shows a time of 16:59 on May 26. Market doesn't usually open until 17:00. Don't know what to make of that.

May 26, 2013 - 6:17pm

This is a long w/e.  If there

This is a long w/e. If there is to be a smash down it would be in their interest to wait for Monday night I would think. This is typically what I've seen on these occasions.

May 26, 2013 - 6:18pm

“Breaking news: Obama

“Breaking news: Obama Destroys the Bill of Rights on Memorial day

May 26, 2013 - 6:44pm

@ Ag1969

You need a personal trainer :) I will happily help you out with your sore joints for a couple of silver eagles of course ;). How is that for some shameless message board advertising? PM me if you are interested. Its what I do for a living. That goes for all of you too.

May 26, 2013 - 6:48pm


Probably the first weekend in a long time I forgot about (or didn't care?) about how the metals opened up.

Let's see what 8:00 EST brings us.

Thanks Zoltan...I honestly do care though and appreciate your weekly/daily updates on those numbers

Also....S-Rex... thanks for that link regarding the physical gold etc. infographics

Spartacus Rex
May 26, 2013 - 6:53pm


My pleasure! Sorry, for some reason the hyperlinks aren't coming through, requiring a copy&paste into browser pain. Also looking forward to the open.

May 26, 2013 - 7:01pm

@ dph

I feel the same way. Who gives a shit. Buy and STACK because in a decade none of this will matter. Taking the boat out to the lake tonight for some good old Nebraska bass fishing. Cheers!

Down Range
May 26, 2013 - 7:09pm

You MUST listen to this to the end!!!!!!!!

Silver66 posted this earlier, but I wanted to emphasize that IF YOU ONLY LISTEN TO ONE THING THIS WEEKEND,


Gold is discussed as the last item.

Sorry for the two thread post, but it was so good, I didn't want anyone to miss it.

Spartacus Rex
May 26, 2013 - 7:16pm

Anyone else read this yet?

From paper reserves to gold reserves 2013-MAY-23 by Gabriel M. Mueller The issue which has swept down the centuries...and which will have to be fought sooner or the people vs. the banks. - Lord Acton, Historian...1834 - 1902

May 26, 2013 - 7:20pm

One mans manifest

Reclaim your thoughts!


May 26, 2013 - 7:39pm
May 26, 2013 - 7:56pm

@Silver66 Shanghai Cooperative Orginasation

The alphabet soup varies from one side to the other on the globe. A crude and simple way to look at the group is to think about NATO. The reason I bring up NATO is because of the war games the various SCO partners play. There is no secret to or about the SCO and it has never attempted to hide desires. A focus since around 2000 has been the need to address the Caspian Sea reserves. What good are reserves if you do not have reliable access? So a pipeline would be needed.

This pipeline would service Russia, China, India and more. The route of the pipeline prompted the USA to challenge the route by having military occupations in Iraq, Afghanistan and so many others of the lesser discussed “stan” countries. Remember a land pipeline means no need to concede to world’s largest naval power. (China could challenge that in the future, but their shipyards are still years away from completion)

I used to have a decent library but only have a few books left after recent travels. One book I kept (mainly for the original pipeline map along with ethnic maps by Peter Palm) is by Lutz Kleveman and published in 2003. It is called “The New Great Game, blood and oil in central america”.

The SCO has pacts to protect each other in case of invasion. Here again nothing new, plenty of information with little research. The saddest point is that MSM fails to report on it. Think about what it would mean if the US Senate’s desire to back Israel without discussion is accepted in DC and then Israel attacks Iran. Then Iran agrees to war????? That is one really big reason the start investigating what the SCO is all about before we accept WWIII.

It gets fun when you take the public information about the SCO players and think about GOLD RATIOS !!! … I have to believe they read “Gold Wars, the battle against sound money as seen from a swiss perspective” by Ferdinand Lips and published 2001.

I am sure I miss a lot, but reading the tea leaves of the SCO appears easier than today’s Washington DC or the old Kremlin. Bottom line, as a serf, there is nothing for me to do except follow the suggestions on sites like TF Metal or Peak Prosperity. Accepting viewpoints like DrkPurpleHaze’s about the Elites simply allows one to feel confident about preparing and sleep at night.

"So don't worry about tomorrow, for tomorrow will bring its own worries. Today's trouble is enough for today.” NIV Matthew 6:34


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