Keeping The Faith


A special day requires a special podcast.

I know it's counter-intuitive but days like today are affirmation that you are doing the right thing by acquiring and holding physical precious metal. The world's latest attempt at creating prosperity through money-printing and debt ended in 2008. We are now in its death throes.

Only those with personal storage of physical precious metal will be spared from the coming disaster. Please don't give up now.


p.s. This may finally be the beginning of The End. Maybe it's not. As I've stated before, the main thing I've learned in the past 2.5 years is to never underestimate the power of The Powers That Be to put off the inevitable. However, anyone who reads Jim Sinclair's site can clearly tell that he is quite concerned that The End is nigh. He's practically pleading with CIGAs to come to one of his presentations/meetings and he's begging people to Get Out of The System (GOTS) before it's too late. To that end, Jim asked me if I would help him to promote his next three CIGA meetings. Of course I'm happy to oblige. I just wish that I was able to attend one of them but I can't make any of three. However, you should do everything in your power to make it to one. Every previous session has been met with rave reviews and I'm sure that each of these next three will be equally valuable.

The sessions will be in Chicago on July 8, Vancouver on July 10 and Scottsdale on July 12. You can read all about them and sign up here:


The Watchman
Jun 20, 2013 - 5:00pm

GLD Continues to be DRAINED-4.2 Tonnes Gone



Value US$41,348,020,663.61

The Watchman
Jun 20, 2013 - 5:02pm

Thanks, Watchman

Just wait till tomorrow...surprise

Jun 20, 2013 - 5:03pm



Jun 20, 2013 - 5:03pm



Jun 20, 2013 - 5:05pm
Jun 20, 2013 - 5:06pm

I'll take silver today

I'll take silver today none to be had here as that went quick.

Jun 20, 2013 - 5:14pm
Jun 20, 2013 - 5:16pm

Dow/Gold ratio up to new

Dow/Gold ratio up to new recent high today despite the stock market plunge, today the ratio hit 11.5.

Looks like the ratio is up a solid +100% since Sept. of 2011. Stocks have doubled in value relative to real money in less than 2 years.

I am sticking with my prediction of a final top in the ratio at around 14. Or Dow 17,500 -Gold 1250, or Dow 12,000 -Gold -850, or where ever the numbers finish.

My guess this might be the last counter trend rally in the super cycle which begin in 1999, how much longer the counter trend rally lasts is anyones guess, maybe another year or two.

Jun 20, 2013 - 5:22pm

Interest rates have risen 50%

"And herein lies the problem. The world runs on credit for everything, everywhere. If credit slows or God forbid seizes up, everything stops. Everything as in your employer’s ability to pay you or your grocery store to stock their shelves. I know this may (shouldn’t) come as a surprise but the food in your grocery store actually comes from farms, ranches and processing plants. The shelves do seem to “magically” re-stock themselves, but this happens at night while you are sleeping, AND it happens BECAUSE credit is available to move product. If credit becomes unavailable then so will products and goods. Please understand this and never forget it."

"To wrap this up I will tell you that when all is said and done, the banking system INCLUDING Central banks and sovereign treasuries themselves will need to recapitalize themselves. There is only one way to do it. The price of gold must be marked up to multiples of the current price to make these entities viable again. We are close to this happening. I can say that “we are close, very close” because you can see the carry trade beginning to unwind right before your very eyes and the margin calls will only increase from here."

Jun 20, 2013 - 5:29pm

GSR at 65:1 now . . .

Given this ratio, you would think silver is a comparative unloved orphan. Since gold is not money, we are told, then silver is much more important to modern living than gold due to its industrial and medicinal uses.

And, the ratio of all silver ever mined to all gold ever mined is about 9:1 with much more silver disappeared into the landfills than gold.

Silver is the canary in the goldmine. When the paper shackles are off, my guess is we'll see a GSR of 15:1 or less.

Jun 20, 2013 - 5:36pm

BTFD, any which way..

and we celebrated today with a credit card offer for 0% transfer, postposing the bill and buying $10k of Ag. A year to pay it back. 

Jun 20, 2013 - 5:39pm

10th? Times Like THESE...

are why it is so wonderful to have somewhere to come to where other people share your pain!

Thank you, Turd.


BTW, loved that The weeeeee-f*k slide photo.

So 'On Topic'!

Plus, gotta toughen-up our young-uns!

Jun 20, 2013 - 5:40pm


Because of the math.

Are you really going to let basic arithmetic get in the way of a perfectly effective propaganda campaign? Sheesh!

Jun 20, 2013 - 5:40pm

@SilverLeaf - from the previous thread...

"I got into my zen state"

"smokin' hot girl"

"filling my order"

"intermediate bottoms"

"up and down"

"gave me her contact information"

"asked me to stay in touch"

"made it clear that she meant it"

LOOK, just go back in there and plonk it on the counter.


Jun 20, 2013 - 5:45pm

Regarding the CoT

This is the best analogy I can give you.

The public panics and sells at the bottom out of fear.

The Cartel Banks (Mr. Potter) are buying what the public is panic selling. In the end, those that sell at "50¢ on the dollar" get screwed and The Banks win. Don't they always?

foscotanner ag1969
Jun 20, 2013 - 5:48pm


I do not like BTFD. This is no dip. It has lasted too long and is a wee bit more than a dip.

So I am using BTFC. The C stands for Canyon.


Jun 20, 2013 - 5:49pm

bad dog

Trading gold and silver is like working around two junkyard dogs: No sudden movements or they will bite you in your private parts.

Investing and stacking is like having a loveable old shepherd as your pet. Sure, he may bite you from time to time, but he won't maul you, and he always shows he's sorry later.

Bad dog today, bad dog!

Wallace Hartley
Jun 20, 2013 - 5:51pm

Gold Margin Hike of 25%

Right on cue...CME hikes margin requirements. Just hike it to 100% already and let's get this shit-storm started. The sooner we begin, the sooner it'll be over with.

Jun 20, 2013 - 5:58pm

So Turd said several times in the podcast......

That this is a special day. I now find myself wondering if he used "special" in this sense of special:

Howard Roark
Jun 20, 2013 - 6:01pm

Good podcast Turd

It´s a reality check, with humour!

Great stuff!

And goes well in the midst of a great challenge to our convictions. Do the EE run out of napalm?

Time to be brave.

And my sympathy to all with solvency issues.


Lady Gaugau
Jun 20, 2013 - 6:03pm


I .... wait, no ... I mean my long lost cousin from Timbuktu, needs some advice.

Let's say that he is selling his home that he has no hope of owning outright in the next five years, in the pricey state of California. (Yes, a displaced Timbuktuian.) He will come out of the deal with $400,000 cash.

He will be moving to another state where that kind of money will actually buy something. His goal and that of his uh, wife ... is to pay all cash for a house with some amount of land. It could be 12 to 18 months between the sale and purchase. 

If you were he ... where would you park $400,000 fiat? The choices are 1) Convert it to Ag and Au and hold on tight 2) US fiat in a safe at the bottom of a lake 3) US$ in multiple credit unions or 4) .... fill in the blank.

This uh ... cousin of mine, is a long time member of this site and while not the sharpest knife in the drawer, has a fairly decent knowledge of what's going on. While he has listened to Santa's advice to buy bullion to store in a vault in Singapore, at this moment that would not be a workable option. Neither would the vault in Switzerland. He does need to buy another house. Somewhere.

He's a fun kind of guy, willing to take reasonable risks and certainly not afraid of phyzz. And now that he's reading this (over my shoulder of course), he kinda' sees that all options carry more than a little risk. However, he is so bent on being completely free of all debt, he's willing to shoulder as much risk as necessary to make the move.

Thank you for any thoughts you might want to share. With him.

Lady G

Jun 20, 2013 - 6:03pm


I'm not to sure I agree with you. If they can take your pension....they can take your metals. All they have to do is declare any holders of Silver and Gold , enemy combatants.

Game over. Things are FUBAR. You can not reason with these zombies.

Jun 20, 2013 - 6:03pm

Awesome Pod * Truth well Told *

Enjoy that frosty, I will toast across Cyberspace!!

Nigel Black
Jun 20, 2013 - 6:09pm

CME Hikes Gold Margins By 25%

CME Hikes Gold Margins By 25% Tyler Durden's picture

Submitted by Tyler Durden on 06/20/2013 17:39 -0400

How very unexpected. And how, judging by today's massive selloff, it is almost as if someone knew in advance this would happen. Can JPMorgan just restock its vault with whatever gold it needs to meet its massive delivery demands (at three year low prices) so some normalcy can return to the market?

J.P. Cubish
Jun 20, 2013 - 6:12pm

Best Podcast EVER

I feel like I know you a lot better now. I really like you site. Nuff Said.

Jun 20, 2013 - 6:27pm

Margin hike 25%

This is a joke right?

So, physical Gold is that hard to find that they need to stop folk standing for delivery by hammering price - How very very interesting!

And maybe JPM has now got out of its short position in Silver? hmmmmm

Jun 20, 2013 - 6:30pm
Jun 20, 2013 - 6:39pm

When I first broke free

from the world as we know it by being educated by sites like this, silver was in the $19's. I find it ironic that as we return to this number I have become more convinced than ever that this is the course to financial protection. 40 more oz on the way......

Jun 20, 2013 - 6:41pm

Today is not the day you go to your LCS

Today is the day you go to the supermarket and get some supplies, and the other store, s_____ing goods store. You can go to the LCS next week if the CB's calm the markets and slow the bleed. Bugzy you know of what I speak, I hope others see what has happened or is in progress. OK back to just lurking best of luck to all. BTW me thinks Ben does not want the PM's to go down further it will only increase demand. Which will bring on the rush for exits! WE all live in a fake world that is about to become very real.

Jun 20, 2013 - 6:42pm

Bank of America whistle-blower’s bombshell

Bank of America whistle-blower’s bombshell: “We were told to lie”

Bombshell: Bank of America whistle-blowers detail horrid schemes to fleece borrowers, reward foreclosures (UPDATED)

Bank of America whistle-blower's bombshell: (Credit: Sashkin via Shutterstock/Salon)

Bank of America’s mortgage servicing unit systematically lied to homeowners, fraudulently denied loan modifications, and paid their staff bonuses for deliberately pushing people into foreclosure: Yes, these allegations were suspected by any homeowner who ever had to deal with the bank to try to get a loan modification – but now they come from six former employees and one contractor, whose sworn statements were added last week to a civil lawsuit filed in federal court in Massachusetts.

“Bank of America’s practice is to string homeowners along with no apparent intention of providing the permanent loan modifications it promises,” said Erika Brown, one of the former employees. The damning evidence would spur a series of criminal investigations of BofA executives, if we still had a rule of law in this country for Wall Street banks.

The government’s Home Affordable Modification Program (HAMP), which gave banks cash incentives to modify loans under certain standards, was supposed to streamline the process and help up to 4 million struggling homeowners (to date, active permanent modifications number about 870,000). In reality, Bank of America used it as a tool, say these former employees, to squeeze as much money as possible out of struggling borrowers before eventually foreclosing on them. Borrowers were supposed to make three trial payments before the loan modification became permanent; in actuality, many borrowers would make payments for a year or more, only to find themselves rejected for a permanent modification, and then owing the difference between the trial modification and their original payment. Former Treasury Secretary Timothy Geithner famously described HAMP as a means to “foam the runway” for the banks, spreading out foreclosures so banks could more readily absorb them.

These Bank of America employees offer the first glimpse into how they pulled it off. Employees, many of whom allege they were given no basic training on how to even use HAMP, were instructed to tell borrowers that documents were incomplete or missing when they were not, or that the file was “under review” when it hadn’t been accessed in months. Former loan-level representative Simone Gordon says flat-out in her affidavit that “we were told to lie to customers” about the receipt of documents and trial payments. She added that the bank would hold financial documents borrowers submitted for review for at least 30 days. “Once thirty days passed, Bank of America would consider many of these documents to be ‘stale’ and the homeowner would have to re-apply for a modification,” Gordon writes. Theresa Terrelonge, another ex-employee, said that the company would consistently tell homeowners to resubmit information, restarting the clock on the HAMP process.

Worse than this, Bank of America would simply throw out documents on a consistent basis. Former case management supervisor William Wilson alleged that, during bimonthly sessions called the “blitz,” case managers and underwriters would simply deny any file with financial documents that were more than 60 days old. “During a blitz, a single team would decline between 600 and 1,500 modification files at a time,” Wilson wrote. “I personally reviewed hundreds of files in which the computer systems showed that the homeowner had fulfilled a Trial Period Plan and was entitled to a permanent loan modification, but was nevertheless declined for a permanent modification during a blitz.” Employees were then instructed to make up a reason for the denial to submit to the Treasury Department, which monitored the program. Others say that bank employees falsified records in the computer system and removed documents from homeowner files to make it look like the borrower did not qualify for a permanent modification.

Senior managers provided carrots and sticks for employees to lie to customers and push them into foreclosure. Simone Gordon described meetings where managers created quotas for lower-level employees, and a bonus system for reaching those quotas. Employees “who placed ten or more accounts into foreclosure in a given month received a $500 bonus,” Gordon wrote. “Bank of America also gave employees gift cards to retail stores like Target or Bed Bath and Beyond as rewards for placing accounts into foreclosure.” Employees were closely monitored, and those who didn’t meet quotas, or who dared to give borrowers accurate information, were fired, as was anyone who “questioned the ethics … of declining loan modifications for false and fraudulent reasons,” according to William Wilson.

Bank of America characterized the affidavits as “rife with factual inaccuracies.” But they match complaints from borrowers having to resubmit documents multiple times, and getting denied for permanent modifications despite making all trial payments. And these statements come from all over the country from ex-employees without a relationship to one another. It did not result from one “rogue” bank branch.

Simply put, Bank of America didn’t want to hire enough staff to handle the crush of loan modification requests, and used these delaying tactics as a shortcut. They also pushed people into foreclosure to collect additional fees from them. And after rejecting borrowers for HAMP modifications, they would offer an in-house modification with a higher interest rate. This was all about profit maximization. “We were regularly drilled that it was our job to maximize fees for the Bank by fostering and extending delay of the HAMP modification process by any means we could,” wrote Simone Gordon in her affidavit.

It is a testament to the corruption of the federal regulatory and law enforcement apparatus that we’re only hearing evidence from inside Bank of America now, in a civil class-action lawsuit from wronged homeowners, when the behavior was so rampant for years. For example, the Treasury Department, charged with specific oversight for HAMP, didn’t sanction a single bank for failing to follow program guidelines for three years, and certainly did not uncover any of this criminal conduct. Steven Cupples, a former underwriter at Bank of America, explained in his statement how the bank falsified records to Treasury to make it look like they granted more modifications. But Treasury never investigated. Meanwhile, the Justice Department joined with state Attorneys General and other federal regulators to essentially bless this conduct in a series of weak settlements that incorporated other bank crimes as well, like “robo-signing” and submitting false documents to courts.

These affidavits, however, should return law enforcement to the case. William Wilson, the case management supervisor, alleges in his statement that this “ridiculous and immoral” conduct continued through August of 2012, when he was eventually fired for speaking up. That means Bank of America persisted with these activities for at least six months AFTER the main, $25 billion settlement to which they were a party. So state and federal regulators could sue Bank of America over this new criminal conduct, which post-dates the actions for which they released liability under the main settlement. Attorneys general in New York andFlorida have accused Bank of America of violating the terms of the settlement, but they could simply open new cases about these new deceptive practices.

They would have no shortage of evidence, in addition to the sworn affidavits. According to Theresa Terrelonge, most loan-level representatives conducted their business through email; in fact, various email communications have already been submitted under seal in the Massachusetts civil case. State Attorneys General or US Attorneys would have subpoena power to gather many more emails.

And they would have very specific targets: the ex-employees listed specific executives by name who authorized and directed the fraudulent process. “The delay and rejection programs were methodically carried out under the overall direction of Patrick Kerry, a Vice President who oversaw the entire eastern region’s loan modification process,” wrote William Wilson. Other executives mentioned by name include John Berens, Patricia Feltch and Rebecca Mairone (now at JPMorgan Chase, and already named in a separate financial fraud case). These are senior executives who, if this alleged conduct is true, should face criminal liability.

Bank accountability activists have already seized on the revelations. “This is not surprising, but absolutely sickening,” said Peggy Mears, organizer for the Home Defenders League. “Maybe finally our courts and elected officials will stand with communities over Wall Street and prosecute, and then lock up, these criminals.”

Sadly, it’s hard to raise hopes of that happening. Past experience shows that our top regulatory and law enforcement officials are primarily interested in covering for Wall Street’s crimes. These well-sourced allegations amount to an accusation of Bank of America stealing thousands of homes, and lying to the government about it. Homeowners who did everything asked of them were nevertheless pushed into foreclosure, all to fortify profits on Wall Street. There’s a clear path to punish Bank of America for this conduct. If it doesn’t result in prosecutions, it will once again confirm the sorry excuse for justice we have in America.

Update: Read the full affidavits from the active court case here.

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