Additional Covert QE On The Way?

Wed, May 16, 2012 - 3:59pm

An alert Turdite sent me an email last evening where he connected some dots about additional quantitative easing. I've been thinking about it off and on today and I've concluded that it deserves a discussion here.

Before we get started and, as background, please take a few minutes to watch this video:

Video unavailable

"IMHO, QE3 is presently being implemented via the Chartering of NEW Bank Holding Companies in the United States which will utilize Chinese held U.S. Treasuries as their BASE Capital.
-The Chinese held US Treasuries will be utilized as BASE CAPITAL upon which to create TRILLIONS of digital FRN via fractional reserve.
While these Treasuries were held outside of the U.S. Banking System FRN could not be created via fractional reserve; -but, now these Treasuries WILL be used as a basis to generate digital FRN out of thin air.
IF China holds $1.2 Trillion of U.S. Treasuries....
...THEN $1.2 Trillion in U.S. Treasuries = the possible creation of $10.8 Trillion new digital FRN via fractional reserve banking.
Sounds kinda like a money printing scheme doesn't it?
-NO 'Dollar of Capital' rule as Our Host would say...
Sounds a tad inflationary doesn't it?
THIS is exactly how the U.S. Banks Counterfeited FRN and ramped up inflation during the housing bubble.
-It is going to be done again with the help of the Chinese.
The Chinese ARE NOT going to 'dump' their Treasuries: the Chinese are going to print Trillions of digital FRN and go on an unprecedented .GOV/FED sponsored Leveraged Domestic Buying Binge!"

This rather interesting idea seems to have been generated by this little-noticed story from last week.

The banks in question are: (from the article)

  • China Investment Corp., or CIC, and other Chinese entities were permitted to acquire an 80% stake in New York's Bank of East Asia (U.S.A.) NA. CIC manages a portion of China's huge foreign exchange reserves.
  • Separately Wednesday, the Fed also allowed the Agricultural Bank of China Ltd. to establish a branch in New York and the Bank of China Ltd. to have a branch in Chicago.

Now, for those of you unfamiliar with fractional reserve banking, I suggest you watch this:

Fractional Reserve Banking

Whether it's overt or covert QE, growth of the money supply equals growth of debt and vice versa. And, as you can plainly see on this chart, rising debt causes equally rising gold prices.

Put it all together and what do ya do? BTFD and keep stacking.


About the Author

turd [at] tfmetalsreport [dot] com ()


Big Buffalo · May 17, 2012 - 2:27pm

Found this at

Found this at

choose a product and it'll say "The Canadian Maple Leaf silver coin is exempt from IRS 1099B brokerage reporting which makes the silver Maple Leaf one of the most private investments today."

It appears anything that has a dollar value (ie $50 gold buffalo) is exempt from IRS 1099B, (with the exception of the Gold Maple), and anything that's "bullion" would be 1099 (ie bars, or bullion coins).

I'm not an accountant, the above link is helpful. Good Luck.

(Also, these can not be taxed if they were given out as gifts under $10,000 in value.)

recaptureamerica · May 17, 2012 - 2:27pm

China May Surpass India as

China May Surpass India as Biggest Gold Market, WGC Says (Update 1)

RaRaRasputin · May 17, 2012 - 2:35pm

Latest SGT interview with Bix

Here's a quick conversation I had yesterday with Sean at MELTDOWN UPDATE: The JP Morgan Derivatives Book is Blowing Up More to follow! Bix Weir
recaptureamerica · May 17, 2012 - 2:35pm
paulindoon Groaner · May 17, 2012 - 2:37pm

Re:I had to work today so what was the fuel under the metals??

Groaner: From Dan:

It seems as if the catalyst for today's surge higher was the Philadelphia Fed business index drop to an unexpected -5.8. Business conditions in that corner of the realm are worsening rather quickl

Groaner · May 17, 2012 - 2:41pm

When is the last time you saw gold rise 2.5%?

How many times have you seen it drop more than that? crooks.

Big Buffalo · May 17, 2012 - 2:49pm

8300 Tax form

So am I reading this correctly: If you purchase more than $10,000 in a rotating 12 month period, then the company is required to report the sale.

How does that apply with "_________ coin is exempt from IRS 1099B brokerage reporting"?

GoldMania3000 · May 17, 2012 - 2:51pm

JPMorgan Chase & Co.

JPMorgan Chase & Co. (JPM)


34.22 Down 1.24(3.49%) 2:50PM EDT - Nasdaq Real Time Price

Mickey · May 17, 2012 - 2:51pm

Key point we forget

whats the main driver behind higher PM prices in USD?

Not to difficult to figure that out.

Market watch article:

Groaner · May 17, 2012 - 2:57pm

What about Australian gold coins?

The Kangeroos are Legal tender with a $100 face value, so they should be exempt too, no?

Read the description.

GoldMania3000 · May 17, 2012 - 3:02pm

Jim Sinclair’s

Jim Sinclair’s Commentary

Here is an example of the irrefutable truth that proper decisions can only be made when and only when you are balanced.

Gold has a magnet t $2111. Gold’s price is going to and through that price.

Stuff the naysayers, all of them, especially the ones in the community. Stuff the coin and bullion sellers that tell you to sell all shares and only buy what they sell to you

¤ · May 17, 2012 - 3:03pm

Static-X - Push It

Need an energy boost?

Static-X - Push It (Video)
Icarus Groaner · May 17, 2012 - 3:09pm

Reporting Capital Gains

Groaner asks:

So what about monster boxes of silver maples. They have to be reported when you sell them?

Australian coins dont have to be reported?? Why, what's the difference?

If my memory serves me correctly when they passed the reporting law there were no Australian coins, so they were not considered as reportable in the law. Same goes for philharmonics and gold eagles. I think the law was passed in the early eighties.

A monster box of silver maples is not reportable as it's only 500 oz and below the threshold of 1000 oz.


Gold or platinum bars any size over 32 oz

 25 oz or more, maple leafs, kruggerands, Onzas

 1000 oz or more of silver bars

$1000 face value or more of 90% silver coins



Be Prepared · May 17, 2012 - 3:10pm

H-P considers cutting 25,000 jobs.. that's just great...

H-P shares edge higher on report of major job cuts

SAN FRANCISCO (MarketWatch) --

Shares of Hewlett-Packard HPQ +0.48% were up slightly on Thursday, bucking a tech sector retreat, on a media report that the company is planning a major round of layoffs. A report from Bloomberg said the Palo Alto, Calif.-based corporation is considering reducing its workforce by 8% or as many as 25,000 jobs. An H-P spokesman said the company does not comment on speculation. The Nasdaq Composite Index COMP -1.29% was down more than 1% at 2,837.


I don't see a lot of companies looking to hire 25,000 people, except McDonalds, and I see a lot of companies looking to layout mass quantities of people. The economy just keeps improving.... I tell ya.... 

Be Prepared · May 17, 2012 - 3:12pm

Don't worry about Reporting...

....Because Charlies already told all of us that it's only good enough to be sewn in the lining of your clothes.

¤ · May 17, 2012 - 3:12pm

Do you want to change it?

Nine Inch Nails - The Hand That Feeds
Dr G · May 17, 2012 - 3:13pm

BREAKING: Obama's literary

BREAKING: Obama's literary agent in 1991: "Obama born in Kenya and raised in Hawaii..."


Groaner Icarus · May 17, 2012 - 3:18pm

I think its the amount of coins you sell

it seems like 25 ounces or more, will be reported..

Hey, I just want to stock up on any and then pay a 40% capital gains on them.. forget that.

of course those scum bags will change the laws when its to their advantage.. 

Gold Five · May 17, 2012 - 3:18pm

Re: 8300 Tax Form

So am I reading this correctly: If you purchase more than $10,000 in a rotating 12 month period, then the company is required to report the sale.

​That would be $10,000 in cash. As I understand it, personal checks don't count. The supposed premise of the reporting is to catch money laundering.

Dr G Gold Five · May 17, 2012 - 3:23pm

@GoldFive, that is my

@GoldFive, that is my understanding as well. My LCS always beg me to use a check, they simply can't explain to the bank where all the cash is coming from when they try to deposit. They said it raises too many red flags.

Sonofagun · May 17, 2012 - 3:28pm

This from Silverwealth


  • for those who want to trade something newly in an uptrend after long abuse, UNG is in play as I said one week ago. Buyers coming in on the dips.

    gold and silver have impulsed up but can do anything here. It is ENTIRELY up to the thin early morning trading done by the hoods and SweatHogs and banksters. If they want a run most of the price action will come overnight and will shoot up thru next pivot at 1602. If today was bogus or needs to digest then overnight will be slow down and consolidation or a crash again. Feeling lucky? Are you? Thats what they want from you. They want you leaving them with your gambling money so they decide OVERNIGHT in THIN traffic the entire direction of the Market. In the morning you will be left with either the smouldering ruins of a trade gone bad or a lotto ticket to the fucking moon over 1600.

    those are the parameters. Anybody who has 'conviction' here is a fool and a moron. You are playing in a virtual Casino with the most disgusting,degenerate sharks the world has on show. TA is extremely limited in its ability to cover real criminal action and will most often LAG.

  • Turd, I know sometimes this guy is a real PITA for you, put I've got to admit , shit like this is pretty classic, and keeps some of us in check (on a trading perspective). Some how an odd balance with yourself, Ivars , and Dr.G . Geo-political nuances peppered in comments, and of course, some of it designed at times to get under your skin.
  • I hope he is paying to post this shit, but is is however....for the most part........good.
recaptureamerica · May 17, 2012 - 3:30pm

Provident has 1 kg silver

Provident has 1 kg silver Australian big ass coins for 961.00 And year of the dragon 1 oz gold (.9999) bars for 16.99 over spot. Nice!

brokerk22 · May 17, 2012 - 3:33pm

from Silverwealth

Anybody who has 'conviction' here is a fool and a moron. You are playing in a virtual Casino with the most disgusting,degenerate sharks the world has on show. TA is extremely limited in its ability to cover real criminal action and will most often LAG.

This is pure garbage post from him. Does it occur to him that people actually do buy and hold things for the long-term. Because they have conviction on something long-term. Not just for a day or week.

Basil GoldMania3000 · May 17, 2012 - 3:46pm

Santa said ....

Jim Sinclair’s Commentary

Here is an example of the irrefutable truth that proper decisions can only be made when and only when you are balanced.

Gold has a magnet t $2111. Gold’s price is going to and through that price.

What a total joke - Santa is himself the most die-hard perma-bull of the lot !! 

Nobody could possibly be less balanced or more biased !!

Dr G · May 17, 2012 - 3:49pm

Re: SilverWealth, he is

Re: SilverWealth, he is posting that in a trading forum. The buddies he is directing that to don't buy and hold.

You really can't take post meant for one setting and cross-post it to another setting. It doesn't work very well in many cases. Different audiences with different needs.

wtfdik · May 17, 2012 - 3:53pm

big call volume on july GLD

big call volume on july GLD

Dr G · May 17, 2012 - 3:56pm

Basil, interesting point. He

Basil, interesting point. He has vision, but he isn't a God and he doesn't have a crystal ball and his magic numbers aren't magic. So there is always something to what he says except for when there isn't. There have certainly been times when he is wrong, but rather than call him on it we mostly say "well, we must not understand the markets like he does," or "well, it must come to pass down the road."

He has credibility, but that doesn't make one infallible. We would all be best off with a measured dose of bear and bull as we go through our decision making processes. Logic, not emotion.

recaptureamerica · May 17, 2012 - 3:59pm

Dr. G. In your humble

Dr. G. In your humble opinion do you think silver goes up or down tomorrow when FB opens to be traded?

Tyler · May 17, 2012 - 4:07pm

Obama story

Looks like it might be legit - hasn't been picked up by CNN or FOX as far as I can tell so far.

Also a quick defense from the NY Mag.

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