TFMR Podcast #44 - Jackass on the Barbie

318

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!

TF

  318 Comments

¤
May 24, 2013 - 7:14pm

Redneck_Rampage

Thanks for the encouraging words

Love your poster name btw

Save_America1st
May 24, 2013 - 7:14pm

Thanks Turd!

And please send all our thanks to Jim Willie for us. He definitely is a podcast favorite anywhere he is interviewed especially here in Turdville.

If it's okay, I have a suggestion also for another favorite of mine. You seem to be a guest on Dr. Dave Janda's show frequently. If anyone on here hasn't made Dr. Dave a weekly favorite, please bookmark and download his weekly interviews here at Operation Freedom: https://davejanda.com/operation_freedom/

I know he's a frequent visitor of Turdville...So I was thinkin'....for a switcheroo, do you think Dr. Dave would agree to have you interview him for TFMetalsReport sometime???

You've been great on his show every time you've been on there, and I think it would be great to flip it and have you interview Dr. Dave. Just a thought...

Anyways...awesome interview for the long holiday weekend, thanks again!

I hope everyone has a great weekend. Stay safe out there...be good.

And keep on stackin'!!!

Kcap
May 24, 2013 - 8:10pm

@lament...

Yes, agreed.

Re: the currency weighting of .0720...

Could you elaborate for the benefit of the board since this is more expert stuff?

I would but I wouldn't do it justice since you brought it up.

I will add that one advantage of this or next weekend would be it really would be unexpected with the holiday. By August, everyone's antennae begin to perk up again and Sept would be obvious.

I would also offer this. That the net short ratio is so low that it "could" be extricated in another manufactured waterfall drop on Sunday night. We could see the raid of all raids due to the holiday. It could include a $5 drop and a $4-7 rebound....then sideways for the week in net neutrality and then that next weekend could be it.

So...with an attained silver net neutral position in combination with currency equilibrium....well....just sayin.

Thoughts?

Kcap

May 24, 2013 - 8:18pm

RE: record short levels

A) record short squeeze, handing the shorts their arses (is it still swearing if using proper English spelling :-) )

B) the beginning of the explicit end of the COMEX, whereby paper price declines toward its intrinsic paper value, BUT the frigging manipulators STILL clean up even MORE fiat on the way down as it happens, with not further need to get out

C) headfake down to some ungodly numbers (18/1200?) before the rocket ride upwards?

At any rate, the distinct possiblity of rather nasty volatility next week. Glad I am not in the market.

Local LCS: Physical premiums still @ $2.75 for generic (single oz or 10 oz bar, curious there is no difference), $5 for ASE/Maples -- curious to see what would happen upon further drops. 90% is around $20-21 per dollar face -- do not even bother to ask anymore due to the size of the premium.

TIP: ask your LCS if there are any distressed/'soiled'/corroded or painted ASEs for sale, my guy sells them at generic silver prices. Worth a shot if you have not tried yet -- mine often forgets to put them in the generic round display.

Kcap
May 24, 2013 - 8:19pm

@lament (2)

You are not your average poster.

Thanks for sharing.

Kcap

Lamenting Laverne
May 24, 2013 - 8:22pm

Stop you guys...;-D

(Silver) You make me nervous ;-) I am sure I have found absolutely obvious-to-others-stuff and made grave mistakes at it at well, and that I should go back to baking sponge cakes instead tout suite... Btw - I just checked and the values are more different than yesterday - so no soup for me.

Anyways, after finding those funny looking patterns in the USD/YEN cross sometime back, where it seemed YenGold was actively used to recalibrate the USD, I wanted to look at Gold strictly as a currency and hedging instrument in order to see if that could explain all those take downs.

On the back of my long-to-be unfinished Whatdoyado? posts, that tried to explain the world happenings using Oil and Gold events as timeline, it had become clear to me that whenever market management was needed for something, they would introduce a new paper vehicle to use in the controlling efforts. Then one day Xty made a comment that she had noticed that a new Gold cross with Turkish Lira, so I got real curious to see what that cross had been doing during the recent mega smash on the 12/15th April.

It turns out that the XAU/TRY only started trading on the 7. May 2012 according to Netdania, and it turns out that this cross seemed to have been the most out of whack and was brought into the most perfect alignment with XAU/USD during the raid, while the USD/TRY was essentially flat. This was the classic tell tell of a currency calibration maneuver for me.

Chart 1: XAU/USD - XAU/TRY

Chart 2: USD/TRY - XAU/TRY

So I decided that given the epic size of the raid, and the near perfect alignment of the XAU/TRY to XAU/USD that was a result, that I could now rely on USD/TRY to be calibrated to perfection. Being a math moron, I need absolutes to be able to understand anything. The relative stuff just fluffs away from me. So assuming that USD/TRY was a fixed perfection on the close of the 6. May, when I started looking at this, I went through the other major XAU crosses to see how they lined up. They all all looked more or less like this, with the same kind of gap at the last close:

The only difference was YenGold that looked like this:

That made sense, since I had convinced myself that there is an animal spirit updraft in the USD/Yen had been suppressed since the Asian crisis in 1997 and used for a managed decent of the USD against the Yen up until the fall 2012, where the Yen started weakening dramatically against the USD, and hence the YenGold rose very quickly. Other than that I cannot explain exactly, why it made sense to compare XAU/CURR with USD/TRY, but the similarity between all the crosses led me to start thinking about my ratio, because I thought it is natural that all the currencies are linked somehow with each other and with Gold at the same time.

So I made this small spreadsheet:

The formular for Currency Ratio 2 Gold is "1 USD Exchange Rate" / "XAU Exchange Rate" * 100. The AUD, EUR and GBP has been inverted, so all exchange rates express the number of currency units needed for one USD, so they can be compared more easily.

I thought it was interesting to see so equal ratios, and I wondered if that had always been like this, or if meddling with that ratio (bringing the fiats in balance with Gold - and bringing the fiats in different relationship with the USD) might have something to do with all the Gold smashes over time. I also thought that it would have to be a pre-requisite for a currency reset, that this ratio would match on top of all sorts of other plans that must be ready of course.

So I went back to the beginning of the Gold Bull Market, and this is what I found:

Notice how the ratio is pretty different between the currencies with a notable outlier in the GBP. After the first run up, the ratio for GBP has been brought in line - sorta - with the other currencies.

Up to the 24-01-2000 the work is perfected with ratio alignment, and although it does not reach the original level from 1999 again, the currencies are now synchronized. Up to the 10-03-2000, which is the dot com burst, where Gold seemed to want to run up, but was kept in check - the exercise seems to be strengthening the USD against all currencies - except Yen, which as already explained above was strengthened to manage the decent of the USD...I think.

So to recap - step 1: lift all fiats against gold - step 2: lift the USD against its fiat peers.

But then something odd happens. The XAU/CURR crosses only starts trading after 24-03-2005. Before that a Yearly calibration seems to be happening in March. Above table shows the result after "calibration". Now the ratios are no longer aligned, but the ratios for all currencies are overall higher than last "nice sync", so they appear stronger in relation to Gold than before (If I have not confused my own rationale).

Also now it seems the tension has been released in the Yen, and the three European counterparties GBP, EUR and CHF has risen, while the resource currencies have fallen further against the USD. Cannot explain that yet, and haven't checked if that is a pattern.

I have many more examples, but should probably post in a new comment, because this one is getting long. So I will end with saying that in the examples there is a clear tendency to have low ratios just before smashes - aka all fiat less strong against Gold, and USD have fallen markedly against the other fiats. After the smash plus wiggles up and down, the fiat complex is always stronger against Gold and the USD is always stronger against the other fiats.

So interim conclusion according to this approach is that Gold smashes are conducted to save all fiats and particularly the USD from embarrassment. More examples later.

silver66
May 24, 2013 - 8:41pm

Riff raffel

to the person who wins the book $10,000 gold here is a link to an interview by the Author

https://www.firstpost.com/investing/gold-will-rise-against-usd-it-may-hi...

Silver66

daveyboy
May 24, 2013 - 9:19pm

He made these seem

He made these same predictions in 2009 imminent collapse and here we are in 2013.....

He will be right eventually but he is no oracle or economic prophet

Jim Willie [goldenjackass.com] writes of an Asian led initiative ending dollar hegemony beginning this weekend. Willie suspects that the Fed/Treasury is covertly loaning foreign central banks the money with which the central banks are now using to buy US debt. Increasingly, US debt is being bought by foreign central banks taking up the slack of investors abandoning US Treasury debt. Willie confirms Chapman's comments and says he solicited and received "multiple confirmations." He adds, "CHAOS WILL PREVAIL WITHIN SEVERAL MONTHS, PERHAPS A YEAR AT MOST{his emphasis}." - See more at: https://www.henrymakow.com/ash.FYu6tNWC.dpuf
Maximillion
May 24, 2013 - 9:21pm

Contrarian view

'BRICKS' are screwed, duh = Eg S Africa(the S in BRICS) owns loads of paper $ and knows they're worthless but can still buy physical PM with the paper at an artificially low suppressed price, so that argument does not quite work.

COT shows large specs (ie hedge funds using your pension monies) increase their short positions in both silver and gold whilst the big fish continue to get out of their short position.Duh = any chance that the large specs are simply going short to pay their dues to the big fish using your money??

Just my weird perspective maybe!

"The few who understand the system, will either be so interested from it's profits or so dependent on it's favors, that there will be no opposition from either class." — Rothschild Brothers of London, 1863

ag1969
May 24, 2013 - 9:28pm

Tonight at 10:00 EST on H2 (History 2) Americas Book of Secrets

Uncovering the conspiracies behind America's 40 year drug campaign and about how the CIA runs drugs with military transport and Wall St. harbors the money.

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