TFMR Podcast - Saturday, November 29

Almost messy as mine:

http://tracypaye.com/wp-content/uploads/2012/03/messy-desk-716382.gif

Just kidding.  Fantastic analysis my friend, fantastic.

Thank you for staying on top of these stories.  After listening to Jim W., and reading his two reports for this month (I am a happy paid subscriber, notwithstanding his detractors), I truly enjoy hearing and reading your analysis.

The crude oil, paper price collapse is epic, as the entire USA shale oil "miracle" depends upon higher paper prices per barrel.  Like any of the underlying assets, all of it has been leveraged and bet on by Wall Street in the form of massive derivatives.  This cannot bode well at all, under any scenario I have imagined.

I do absolutely believe that the Ferguson, MO circus was programming.  The message is loud and clear:  even if the rabble PLANS AND PREPARES FOR UPRISING, THE STATE AND ITS MACHINERY CAN STILL CRUSH THE REBELLION!!

This was a demonstration for the world, by the elite, that shows when the currency starts to be rejected in a more noticeable, meaningful way, either in a collapse, or devaluation, then the response by the masses will NOT be to riot as any such uprising will be crushed.  Period.

Jim Willie's scenario of a USA-only paper currency is looking more and more likely.

I'm stacking ammo supplies, and reloading ammo.  In a time of collapse, especially here in Kalifornia, I am certain that ammo will retain its value at a minimum.  Who knows if it doubles or triples?  

Thanks again my friend.

as I listen now.

In the end it all summarizes towards what will be the basis of Russian currency- if it will be nationalization of central bank and , as follows, Russian assets and resources 100% behind a paper currency, as history tells, since this will be spent on arms race, it will have a life time of 6 years , same as assignats that were backed by all property of France. Such printing in turn, demand- in order not to lose value of currency as happened with assignats- increase in currency backing in proportion to military spending- direct proportion, as , in contrast with USD, there is no leverage built in such national currency. USD can last 120-140 years depending on average interest paid on creation of money to bankers- 120 years if its 5% ( 100%/5%=20 , 20*6 = 120 years) as USD is backed by future liquid assets and resources; This formula was proved already by Thomas Paine, the same, yes.  

This 1 to 1 relation between Russian ruble and available, liquid resources of Russian state (backing the currency 100%) will demand that it expands these resources or assets at the pace of its arms spending, which it can only do by occupying other countries costless. First, Ukraine; Second, divide Central Asia with China , taking Kazakhstan;  third, occupy Eastern  Europe  (little value though) and move towards Middle East (and so get closer to the USA involvement in war) ; fourth, and finally-this move will be too expensive-  move against China which will end the poker played by Putin. 

They -and Putin- should give up now to avoid  WWIII, they ( Russians and Putin )- will not.  As Hitler, they are not rational and think some miracle may help them even as the economy is as weak as Hitler's ( Hitler basically had engineering knowledge lacked resources, Russia basically has resources but lack engineering/production knowledge) . You need both to wage winning wars. 

As soon as Russia will change monetary regime as Khazin recommends, either the crush of Russia or military expansion will be the only choices.  And even if they find their own Napoleon later who will be a master of tactical nukes..they will not prevail.

I had an issue with my credit card not approving turds monthly fee. It took a few days to correct. I went thru Turd withdrawal. As a gold bug news junkie there is no place on the web that provides anywhere near as much information as TFMR. Most market days you get two updates from turd with charts and excellent analysis of all the various markets and other geopolitical issues that impact gold and silver. There is in depth analysis of the COT's, open interest, GOFO changes etc. On top of that the vault member are always finding up to the minutes articles and other useful information in the comments.

So I did what I had to do and signed for the yearly instead of the monthly.

Thanks Turd for a kick ass website!

To study 10 year charts of crude priced in all currencies to see how much of the weakness in crude is due to US $ strength

India getting rid of the import restrictions out of nowhere on Friday...

Where does money come from? Printing it yourself, unsurprisingly, is illegal. But in today's digital society, creating money has less and less to do with the printing of notes or minting of coins.

"If you ask people where money comes from, most of them will say it's made by the government," says Ben Dyson, founder of the UK organization Positive Money, part of a growing international movement pushing for reform to the current monetary system."But the reality is that the government is only responsible for creating three percent of the money that we use, and that three percent is the cash: the coins and the paper money."

In fact, money is created when commercial banks issue credit, or "make loans". Banks don't take money from someone else's account when they make a new loan. Rather, they enter the amount of the loan simultaneously as a debt and a credit, in equal amount, on either side of a double-entry bookkeeping ledger.

“When a bank makes a loan ... it credits the borrower's bank account with a bank deposit ... At that moment, new money is created," explains the Bank of England in its 2014 introduction to money in the modern economy.

That is how new money - and debt - enter the financial system. Conversely, when a borrower pays back a bank loan, the entries on both sides of the ledger are cancelled - both the "money" (credit record) and the corresponding debt are destroyed.  Cash is actually just a physical token that people can obtain for money that originally arose as an electronic credit record in the banking system, when a loan was approved

So if everyone in the Eurozone paid back the principal of all their bank debts tomorrow, at the end of the day, there would be no debt, but neither would there be any money left anywhere in the system. The modern monetary system, in fact, is a scorekeeping system composed of precisely equal amounts of bank credit and bank debt.

Financial instability, social disadvantage

"What this means for the economy is that because it is the banks that are creating the money and deciding who to lend it to, they get to choose where that money goes, for what purposes," Dyson told DW. The monetary reform movement argues that this is not only undemocratic, but damaging to the economy too.

According to Positive Money's research, in the ten years leading up to the financial crisis, around half of the money created by commercial banks was going directly into mortgage lending - loans to enable people to buy houses or commercial property - and around a third into the financial market, in order to buy existing financial assets, not to make new investments in things like factories.

"All that mortgage lending had the effect of pushing up house prices, and created a lot of instability in the market," Dyson says. Unaffordable housing has been a particular problem for the UK during the past couple of decades, as mortgage over-lending has relentlessly inflated a bubble in the price of housing.

If and when that bubble pops, many people will be left with housing debt in excess of the current market value of the house they borrowed so much money to buy. Precisely that problem - the bursting of a huge bubble in real estate prices - is what led to the economic depression in Spain after 2008. Instead of spending money on consumer goods or investment, Spaniards have been trying to pay down excessive debt accumulated pre-2008 during a decade-long era of real estate speculation.

Martin Wolf, the chief economics commentator at the Financial Times, has written several recent columns in favor of stripping the banks of their monopoly on the power to create money.  Lord Adair Turner, former head of the UK's Financial Services Authority, recently wrote a Financial Times opinion article calling on the UK government to direct the Bank of England to create debt-free money to fund the government deficit.
 

http://www.dw.de/debate-over-monetary-system-grows/a-18100679

Picked up from my LCS yesterday......love the kilo size!!

Let alone think it but my guess is that we have a false flag terrorist attack in our not too distant future. Obviously I hope that I am wrong but it would give TPTB 'something to point at' (using Bill Holter's words) and would be the perfect excuse for why the financial 'house of cards' suddenly collapsed

I don't think I've ever heard Turd quite this cranked up. When it crashes, it will go like this: crude oil will crater. Commodities will crater, including gold and silver. Stocks and equities will crater, possibly with trading closed down while the tbtj get their money before everyone else. Bonds and the dollar will soar, then crash. Finally, gold and silver will take their rocket ride as the ultima hombres. That's what's coming. Stand clear, fire in the hole!

I'll know when the results of the Swiss Initiative are released. It will be when I hear a loud thud - gold and silver prices hitting the floor.  

If the Swiss government  among others are afraid of a strong currency, then wouldn't the rising USD be negative for the U.S. economy going forward ?

This whole thing just stinks to me.  I have come to not believe in coincidence.  When enough dots appear to make a picture, you have to see it for what it is- the work of an artist or artists.

An initiative to "save our Swiss gold" is presented by a main stream political entity, the Swiss People's Party, complete with the required number of signatures to force a referendum in early 2013.  Whenever anything comes out of the main stream political system, I have to ask myself what or who is behind it.  If the bullion banking system is going to fail, and it is going to take the derivative system with it, they will want to either create such an enormous distraction that we are too busy to even notice (war, false flag), or, have a scapegoat or scapegoats all ready to blame, or both.

The media has had lots of gold stories lately, like ISIS wanting to go to gold and silver money, and Russia buying lots of gold.  The news with regard to the Swiss gold initiative have been open about the Swiss gov't and the SCB not wanting this initiative to succeed.

Let's suppose for a moment that the vote comes in tomorrow as a "yes" vote.  A victory for democracy and the Swiss people.  Then the markets open Sunday night and all hell breaks loose.  Gold skyrockets, the euro tanks, the dollar blows through 90 like it's not even there.  Derivatives in everything start tripping and by the end of the day Monday the entire world has forever changed.  Why?  Because some simple people who didn't know what was good for them used their democratic collective and it caused a disastrous result.  In the future we should 1, stop letting people vote on stuff, and 2, get rid of that barbaric relic once and for all (accept for those of us who know what's best for everyone else)!

On July 8 ,2013, shortly after the SGI was set in motion, GOFO rates started to slip negative, and have accelerated ever since to where we are about to see a negative rate on the one year lease.  I think that those who own the gold know what is about to go down and they have been taking their gold off the market ever since mid 2013, and as a result the supply of available leasable gold has been exhausted.

Turd put it about right.  I don't have the mental capacity to join all the dots either, but man, this just doesn't feel right.  I feel like we are being led down the garden path only to have the garden burnt to the ground and then be blamed for it. But if we are I want to be able to point at this post and say  "That whole thing just stunk to me!"

According to Willie and Kirby the separation between physical and paper gold is already significantly wide.

The minimum premium for large purchases of 5 mil or more is 35%.  Kirby says 50% to even 100%.  If that is the case and I was a miner I would sell my product to the very rich willing to pay this premium. Unless, they are obligated to only sell to the bullion banks at an official spot price. If so, how much longer can this last? To me, that profit potential is just too great.

So the federal reserve note of $ 100 can be printed ( mined ) for about $ 1.45. While true money i.e. Gold is mined for around $ 1,200; essentially at a loss. 

Therefore I give you, Golden Earring;......

GOLDEN EARRING LYRICS

"Twilight Zone"

(somewhere in a lonely hotel room,
There's a guy starting to realize
That eternal fate has turned its back on him,
It's two a.m...........)

It's two a.m., the fear has gone
I'm sittin' here waitin', the gun still warm
Maybe my connection is tired of takin' chances
Yeah there's a storm on the loose, sirens in my head
I'm wrapped up in silence, all circuits are dead
I cannot decode, my whole life spins into a frenzy

Help I'm steppin' into the twilight zone
The place is a madhouse, feels like being cloned
My beacon's been moved under moon and star
Where am I to go, now that I've gone too far
Help I'm steppin' into the twilight zone
The place is a madhouse, feels like being cloned
My beacon's been moved under moon and star
Where am I to go, now that I've gone too far
Soon you will come to know,
When the bullet hits the bone
Soon you will come to know, when the bullet hits the bone

I'm falling down a spiral, destination unknown
A double-crossed messenger, all alone
I can't get no connection, can't get through, where are you
Well the night weighs heavy on his guilty mind
This far from the borderline
And when the hit man comes
He knows damn well he has been cheated

Help I'm steppin' into the twilight zone
The place is a madhouse, feels like being cloned
My beacon's been moved under moon and star
Where am I to go, now that I've gone too far
Help I'm steppin' into the twilight zone
The place is a madhouse, feels like being cloned
My beacon's been moved under moon and star
Where am I to go, now that I've gone too far
Soon you will come to know, when the bullet hits the bone
Soon you will come to know, when the bullet hits the bone