Tuesday, May 29, 2012

DRAMA!

No ......not Johnny Drama but EU drama. Bullshit drama. Headline manipulating bullshit drama...designed to confuse you and to draw out the shorts to chop up like little pieces of sushi at a Japanese cook-off. Its extend and pretend at its finest as the global fiat ponzi tries to extricate itself from the overleveraged  casino bet its made over the past thirty years. Simple plan is to maintain the Too big to fail banks at the expense of the real economy and try and keep control of the paper backed digital fiat world. Damn the torpedoes and foch the real economy. Let the Chinese sort that out........we've got a global casino to work on. Meanwhile erstwhile economists and business sorts scurry to try and explain just what really makes sense from the multitude of monetary interventions that seem to be occurring on a daily schedule now. It is really comical now to hear the likes of Joe Kiernan and Steve LIESman debate monetary and fiscal policy while bringing out the Rick Santellis for their perfunctory display of reality. It is truly a tired dog and pony show on a fading business network. Trying to glean a morsel of intelligent and/or useful information is virtually a waste now and turning on the mute and letting the ticker on the screen go is about all the use I have for CNBS now.

In fact BREAKING NEWS is really BROKEN NEWS. Its laughable how they've destroyed any semblance of credibility they might have had in order to be "team players" for the ponzi. Oh well if most of us were making 2 million a year like Kiernan we might continue the clown act for the boyz up front too. Fortunately we don't have to deal with that question. Sitting in the cheap seats does have some advantages.....like maintaining a modicum of dignity.....something Joe K should search for.


from ZH, courtesy of The Telegraph, we learn that Germany is quietly reminding the world that the stealthy, but voluntary, accumulation of gold is what it is all about. As part of a renewed push for quasi-Federalism, whereby Germany would fund a "European Redemption Pact", in which Berlin would, in the form of Germany-backed joint bonds, be responsible for any sovereign debt over the 60% Maastrtich limit, but with a big catch. The catch is that "a key motive is to relieve the European Central Bank of its duties as chief fire-fighter. "We have got to get the ECB out of the game of distributing money, and separate fiscal and monetary policy. Germany has only two votes on the ECB Council and has no way to control consolidation," he said. Germany would have a lockhold over the fund, able to enforce discipline. Each state would have to pledge 20pc of their debt as collateral. "The assets could be taken from the country’s currency and gold reserves. The collateral nominated would only be used in the event that a country does not meet its payment obligations," said the proposal.
In other words: a perfectly legitimate, and fully voluntary scheme in which sovereign gold is pledged to a German "pawn broker" until such time as the joint bonds are extinguished, and if for some "unpredictable" reason, a country fails to meet its obligations, read defaults, all the pledged gold goes to Germany!
But why Gold? Why not spam. After all gold is selling off, spam is stable, and the dollar is soaring. Couldn't Germany merely demand that broke countries simply pledge all their USD reserves, and keep their worthless, stinking yellow metal?


Game still on with the miners and I would have to say we aren't lost yet but their rise from the ashes may still be premature......more oversold on the monthly may still be in order........so be prepared and don't panic. If they take gold down to 1400 in the next month I will add to my physical. Otherwise......let's watch. I'd rather be in miners than cash with just how screwed up the banking system is right now. gl all.




49 comments:

  1. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/29_Newmont_CEO_-_China_Doing_Everything_It_Can_to_Get_Gold.html

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  2. Some comments:

    Phil Davis mentioned that California's debt has now reached 361 billion. He points out that what is going on in Europe now, will coming here to the US eventually.
    He wrote the the European Commission is considering giving Spain until 2014 to reach its budget deficit target of 3%. So, more extend & pretend.

    Keystone wrote again that they believe Europe, the US, and China will announce a coordinated plan to "fix" the world's debt problems and thus pump the markets. Keystone believes that this will occur in June, perhaps around the time of the FOMC meeting of 6/20/12. Keystone believes that should the markets get pumped in June, the rally will be over by Labor Day. Each QE/LTRO injection will work for a shorter period of time.
    I am still hoping to buy some RWM. Keystone believes S&P 1320-1334 is sideways action. Perhaps we get a sideways day today.

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    1. couldn't agree more with those comments.....thnx doc

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    2. Let's just sell California to China. The state is already full of Communists so it'll be a seamless transition.

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  3. well the red market requests seems to be coming as ordered.....now lets watch how miners perform today....

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  4. WOW.....look at OSIR........good one chuck......GBG AND CGR...green now in a sea of red.....AUQ held first support

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  5. heheheh....well GBG just went red hehehehe....someone must have seen the green and said adios

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  6. Kinda scary with the S&P below 1320, but maybe is was just an initial gap down. Looks like it is try to recover.

    Unfortunately, never bought any OSIR. Still holding NKTR which just limps along.

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  7. Miners holding up well in my book. typical shake the tree. bankers trying to scare folks from taking delivery in the front month....pm's get green by close.

    Biderman at trim tabs...the AVERAGE state worker retires with 94k. Sonoma County workers 104K ten years ago the amount was 1/3 of the current level.

    Cali will blow up and Texas will bail us out. I propose we give Texas..Los Angeles as collateral. It would take a Texan to fix that shit house.

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    1. Love Cali but then only a scorched earth will allow a phoenix to take place there......watta mess......and yes gold looks very strong today with market.....watch vid above it addresses the current pricing in a non conspiratorial manner

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  8. Cali is beyond fixing..... Have family out there your right Cali is a total Cluster fock.

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  9. the reply button not working.

    I was competing for Ca State construction projects until 2009. Small projects they were maybe 150K the largest. Most 10-15k. They have made it impossible for a small contractor..non union...to participate.

    The largest firms in Cali do not pay tax.

    The Mexicans in large part send the tax free dollars/welfare/disability dollars to Mexico.

    No adults inthe room.

    It is stressfull to live here. Cops on every corner with a radar gun trying to pay for their retirement.

    Can't go anywhere without paying to park.

    I do not like to leave my place.

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    1. DONT leave it.....I'm plannin on visiting you some day sheeps...and eat your food.......

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    2. My last trip to Cali was a hotel stay in Fresno a couple years ago. All I remember is Mexican roach coaches every other block and more whores walking the streets than a Bangkok brothel. It had a 3rd world country feel to it.

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  10. Euro under 1.24.....Oil under 88 and falling.... Bring on the deflation....Housing sales were a bust today, and rates are the lowest ever...
    Something is definitely brewing.....

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    1. This will continue until the FED acts. I'm with Doc's call above. FOMC meeting in June will likely coincide with $80 oil which may be the target before they act. I hope gold and silver get beaten down a little more before then. Who doesn't like a sale?

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    2. On the plus side, now I can take that long awaited European vacation I've been putting off. Can't wait for the EURO to get to 1:1

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    3. Don't get me wrong a sale is great but I have been buying for the past month. I have plenty of cash to buy more but would like to take a break. But if they break down from these levels, I will make one more big purchase for me.

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  11. Here comes GOLD and Silver! Hopefully the miners will follow......

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  12. 99 percent of folks can't take advantage of the low rates.

    In my area the "weak" hands getting shaken out to those who were lucky enough to be out of the market for some reason or capitulated early and are now the "strong" hands. (I hate this terminology..how about currently f'd to newly f'd)

    Gasoline still high in Cali $4.30 range.

    There are 2 or three smallish tracts going up around...good luck.

    There is a KB tract open and selling homes built in 2 0 0 8!

    Things are not better and have not been better. Just the deck chairs get re-arranged.

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    1. Totaly Agree Sheeps.....Things suck now and have not gotten better. They keep building Condos up and down the Hudson only to see no one buy them. I have see prices in some of these units fall 50+ percent in the past 4 years and they continue to fall as the add supply. Price of gas only down 15 cents from last year while prices on everything essential are up at least 10% over last year.

      People really feel it too....I have seen people do many things they said they would never do to save money...funny how that happens...

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    2. Same here, many of my close friends have had to take second jobs. So sad... remember when only the man had to work? Then it was women too, now both are having to work double shifts to pay for the babysitting while they're at work! What the hell? We have screwed the pooch.

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    3. There are condos in Seattle with tape still on the windows from when they were built 4 years ago. I chuckle every time I drive past them.

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    4. Another issue jambing up home sales on Long Island is property taxes. Avg is approx 10k for a Cape on 60×100. Depending on home sale price/mortgage your property tax can exceed your interest and principle. Lot of inventory sitting and tax lein sales are through the roof. In my neighborhood there are visually 6 foreclosures as the properties are no longer maintained and this issue is becoming much more common place here on Long Island. Been living here twenty five years and never saw this stuff...... Good friend of mine just took his house off after 8 months couldn't get no where near his price and anyone interested had problems with financing........ Yup it all sucks!

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    5. Tom, my property taxes on LI have more than doubled in the 15 years since I moved into my home. That's a CAGR of about 5.5% which is absurd over such a long period of time. I don't expect the growth rate to slow but rather, it will likely increase as more and more people are unable to pay. Of course the level of service provided by the county will decline as well.

      Not sure where all the money is going but most likely police pensions.

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    6. Tom: Property tax exceeding interest and principal?? That's just wrong. Are they gold plating the sewer pipes there? :)

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    7. Silver,
      Pensions (NY Pension System is rated in top 5 as to funding but if they had to use private GAP methods heheeee), Beni's, Salaries ect..... Totally agree Prop Taxes as a percentage are going to increase dramatically as values continue to depreciate and in real dollars as well! Not to mention escalation in usage fees, fines ect..... Hell we pay Cops 150k on average to act as revenue collectors..... Yes Jay property taxes have exceeded I&P for most folks and we are going thru a exodus and I'm not that far behind....

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    8. http://cnsnews.com/news/article/escape-new-york-high-taxing-empire-state-loses-34-million-residents-10-years

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  13. Yup gold turned 20bucks in minutes while i was on the phone with gainesville and they changed my bullion order in mid deal....SHIT.......heheheheeh....oh well

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  14. Big buyers again stepped in and the cartel DOES NOT like giving their gold away at discounts.......shakeout of the miners too.......all in a days work......time to recreate........I picked up my AUQ trade at its support that i sold yest......small but it all adds up

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  15. 10 Year down like this and gold and silver almost green? I'M LOVING IT :)

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  16. Never a lack of sumthin to eat here...I have give away eggs..plenty oranges, avocados, potatoes, onions, all kinds of herbs, a wave of tomatoes..onion ....peppers.....lettuce...grapes... a lot of work however.

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  17. shit howdy, slv and miners going off...

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  18. Just to note, Keystone wrote that they are taking a long position in SVU. Chart looks interesting and it pays a dividend with a 7.4 % yield. It looks like the ex-dividend date has already passed though, since the company lists 6/1 as the "record date", so could be too late to capture the dividend. I probably will just watch for now.

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  19. Doc, interesting chart, yummy divi, but that balance sheet...I am going to watch this too.

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  20. Has anyone here tried Forex? I'm thinking about opening an account and placing a heavily levered bet against the Euro.

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    1. I did once, fastest $1000 I ever lost hahaha! It was during the last Euro crisis too. I don't think I'll ever touch it again personally. Would rather just buy calls or puts on FXE.

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    2. Thanks HUBZ. I think I'll go the FXE route. I just checked the options chain and it's full of liquidity. Just what I was looking for.

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    3. Yes but be careful on that bet. I have Forex account and am now waiting for a squeeze since everyone and their brother is short the EUR. One spark will ignite a massive short covering rally. Risk/reward favors that scenario.

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  21. Could be moment of truth time in Euro land...

    Euro maybe to crash? Dollar to soar? PM's de-couple and soar as well.

    Looks like gold turned out to be a barbaric safety trade today.

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  22. hehehe....barbaric......i mentioned that today would be very key for the miner trade.....i like the action as hub says

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    1. Yup that was quite a swing from this morning!

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  23. Bull flags forming on the 10 minute on most of my miners......could be a nice close or nice day manana

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  24. http://www.zerohedge.com/news/what-does-gold-know-stocks-dont

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  25. Things are better ...not.
    http://www.dailyjobcuts.com/

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  26. http://www.forbes.com/sites/afontevecchia/2012/05/30/bond-vigilantes-target-spain-and-italy-push-yields-dangerously-high/?partner=yahootix

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  27. close was watching paint dry.....or was it?......bull flags intact on many miners for tomorrow

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  28. 'bout time for a banker raid...I hope not. I like the charts. I be cautious and not say to much.

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    1. eventually the market will prevail.....can't give away physical forever at discount prices.....that just won't be tolerated and it is painful for the boyz to do that

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