Saturday, June 23, 2012

I WANT MY MONEY

And I want it now. As we devolve into the end of the greatest fiat bubble experiment in the history of the world there will be many more bizarre spectacles like the RBS/Nat West fiasco. Whether it is a glitch or an actual cash problem, it does not matter.......its trouble. Its CONfidence. Its just not what we need right now when we have 12 million angry customers frozen out of their accounts. Its disastrous and its going to have repercussions. We may not see them, but this is more than just a bump in the road for the Eurozone. As this is written there is still no guarantee the issue is solved. Hopefully by Monday it will be or the mainstream media will be forced to cover it. Sandusky can occupy 90% of the news time for only so long. Of course maybe some of you think that a little college town in Pennsylvania deserves that type of attention. After all we've never heard of a person in a position of power/privilege committing these type of acts before. sarcasm off.

The beatdown on the metals last week left a lot of the PM investors devastated. I can't say it made me happy...since I had no trade on prior to it...but it is what it is. I will hold and I have no intention of moving. This is the trade and you need to get out if the paper game leaves you sick to your stomach. Because folks its going to get even worse. When people with the history of Sinclair is crushed by this action you know its getting extreme. What do YOU expect. THIS IS THE WAR TO KEEP THE SUPREMACY OF THE DOLLAR. And not just the dollar but many fiat currencies are at war here for their survival. See ya all on the other side. gl

48 comments:

  1. I hate to say this... But I think fiat may win. Everyone and their mother put money on QE3 the last 2 times Ben spoke. But he's holding firm against destroying America. I'm not sure if it's because he enjoys some semblance of civilized life or if this is all planned to take gold down for accumulation.

    I've been an extremely harsh critic of Ben ever since he became Fed chairman. But now I'm really starting to wonder if he's actually a hero. Give the politicians/banks a couple shots of whiskey, then after they are drunk, let them try to find their way back to the hotel.

    I might be giving Ben too much credit, but I'm starting to believe.

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    1. Really like your analogy, but at this point, Ben is looking more at politics than economics, Obama's star is fading, Romney is on the rise, Ben's hedging his political bet right now, enough twist and talk to keep the market from spiraling down, but not enough to whip the gold bugs (and oil prices) into a frenzy. I would agree he is doing a decent job of walking the tightrope and dealing with a fiscal mess unlike we have ever seen. Gold's rise from the $300's to the $1,600's has already discounted alot of monetary debasement in my view, but with the printing we and all other countries will need to satisfy govt pension and health care liabilities, not to mention current consumption (aka food stamps and other give aways), well that's just frightening. I do not see a good ending, which means gold doing a triple over the next decade and that may be conservative. Fiat always loses if the time frame is long enough.

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    2. Jay, you are not the only one putting Ben in a positive light. There is a poster on Trader Dan "Mark" that praises Ben's work. Quite frankly, Ben has been doing a decent job. Gasoline prices have come down, and this may stimulate the economy. We may be blaming the Fed too much, and not realize that it is our Government that is demanding all the spending.

      Will fiat win? Probably, because the governments of the world will not want to go back to any Gold Standard. But, the question is,...Will the present fiat system be replaced by another? If a new fiat system emerges, what will your present day dollars be worth?

      I think what is challenging for us all is,...What is the big picture? Where are we heading? I believe we tend to focus on a "small group of trees", and not realize that those trees are part of a large forest--and a very vast forest indeed. Martin Armstrong write that the only way to try to predict what will happen is through computer modeling. We tend to think that if "A" happens, then "B" will follow. But it is not that simple.

      What we do know is that fiat systems have failed through the centuries. Gold & silver has been used as money and has retained its value for thousands of years. It is reasonable to accumulate some. I believe that the cycle theories will be correct, and our present day system will fail. But, that could be years yet into the future. Let's keep reading, question what we see, and try to improve our overall awareness.

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  2. Ironic not enough physical fiat to go around? It's not a simple issue of fiat versus pm, it's more of what is real and what isn't. With so much funny QE entering the global system, there is not enough usable money available to keep the most basic levels of velocity at the day to day level functioning. RBS is the problem you will be seeing with ZIRP policy, people will want their hands on physical cash versus 0.05% percent interest held in an insolvent institution. ZIRP is essentially causing bank runs, as banks both don't have the physical cash and the fractional reserve system pretty much means insolvency at the slightest loss of CONfidence. The fed knows to maintain the banking system, rates will actually have to go up to stop the bank runs. Unfortunately that will be too late.

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  3. there will always be fiat of course....the only question is in what form the current fiat will exist....and yes there will be digital fiat......and gold and silver will NOT be the answer....at least not the only answer. They may enter into the equation and perhaps even in a significant way....but ultimately i believe they will serve as an anchor of value..and as a form of "money".......between now and the other side you had better focus on what you can fix....your food, security, neighbors, family, and friends

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  4. I think you have to look at england as a model for US...they somehow have kept the pound floating high with huge structural problems fiscally and ecnomically....they will print...but is the printing counted now in real dollars or supposed value of currency...

    Immred states a great point....how does a bank keep enough of customer money for reserves when people with wealth will take it elsewhere for yield....the search for yield will cripple banks at 0%....

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  5. If you want to give credit to Big Ben and the Fed, then you have to know what side of the fence you’re sitting on. If you’re on the Plebe’s side of the fence, his policies are killing us. If you’re a TBTF, Government or the Cabal, yeah I guess he’s doing a fine job……. Good point by Red, most folks hear “Print” they think “Paper” $$$$. Time to get the rear in gear and check stock!

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  6. Tom brings up an important point. Many of us derive income off of the ponzi either directly or indirectly including the market, military, military pensions, military health ins, state and local government workers and pensioneers, insurance, teachers, teachers pensions, hospitals doctors and all health care workers......well.....you get the point. So always be careful how you wish to have this cookie crumble. NOT defending it! Just look in the mirror. One of my favorite questions during the health care debate was to ask (without knowing) people who were cursing the government option.......hehhehee....it was hilarious virtually all the people I asked had a military or government based health care policy......granted my area was skewed......but when i said well YOU have a government option......they looked at me blankly

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  7. Note:

    My point above about Ben & the Fed was not meant to be supportive of their activities. My point was that the various World Governments and their Central banks are working together. It is my understanding that the USA spends 300 billion a month, yet only collects 200 billion a month via taxes. So, the difference (100 Billion) must be created. Thus, you just can't blame Ben/Fed.

    I agree with Tom's post. Those people that are living on fixed income and were depending on interest payments from their savings,...they are being crushed by the present day policies.

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  8. yes doc Ben is only maintaining the fiat ponzi.....my only point was prepare well and do your best to anticipate that the transition to the next ponzi will not be good.....and it will be heralded by crisis and pain. the elements are being put in place for this as we speak......

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  9. BTW they could care less about the weak the infirmed, the children, the middle class.........they are all but sheep

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  10. Gary North says only 6000 of the world's inhabitants control everything. Sounds about right...read parts of Aftershock today and he's a big PM proponent but says it is ultimately a bubble that will burst (not anytime soon). What I did not understand is he's calling for $10-25/bbl. oil and $12-15/gal. gasoline in the U.S. Also very ticked off today to hear that we are giving foreign aid (and lots of it) to Egypt. I'd like to know where the money is coming from since we really are flat out of it. So in spite of the populace pushback, nothing changes.

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    1. where is the money coming from??? Where it always has come from. From the printing press. We are the world's reserve currency and that is how we steal the resources and products from the rest of the world......especially the developed world. Until the status of the world's reserve currency is lost we will continue to fund our profligate spending. Our retirement, our military complex, and our overall standard of living. BTW the military insures our dollar status.....always has

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  11. The top have been seriously checking in more often on their sanctuary points over the past 18 months. Yes Kli, everybody left behind when the music stops is screwed. The charade of pretending to pay back any of the sovereign debt is being put aside to buy another 6 months.

    As for those still trying to play the PM trade, even Sinclair has joined the Alpo trade with Mr. Fred.

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    1. must be near the bottom then???? hehehehhe......or....alpo time??????

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  12. stopped out of ANTH..Purchased more ARNA at opening...hedgies are all over this stock right now...more moves than Shakira's hips...

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  13. still playing gold out today.....market crushed ....gold up....miners down...but relatively out performing...PPP HL both green

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  14. Silver fighting this morning, I like it! Go ARNA ;)

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  15. GALE is getting a bid this morning...

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  16. Low volume selling this am on KGC. Now it's back to unchanged. Is this a sign of selling exhaustion?

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    1. See the same thing on AUQ and yep I think you're correct.

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  17. S&P down to 1310'ish. Maybe that will be the bottom for awhile.
    This is the end of the quarter week, so possible mini-rally is being set up.

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  18. Friday: New Greek finance minister hospitalized after fainting...

    ATHENS -- Incoming Greek finance minister Vassilis Rapanos was admitted to the hospital Friday, the government said, with unconfirmed reports saying the 65-year-old senior banker had fainted.


    Today: Greek Finance Minister Resigns Just Days After Appointment


    They should warn people that looking at the Greek books may be hazardous to one's health. :)

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  19. Cyprus needs bailout
    http://www.marketwatch.com/story/cyprus-seeking-euro-zone-bailout-2012-06-25?link=MW_home_latest_news

    help, I've fallen to the floor and can't get up..please help me... Never worry again about a fall, get the print all you can clapper from centralbanks, ltd...for 29.95 plus tax and shipping...send your checks to 201 market st, federal reserve bldn..San Francisco in care of Janet Yellen

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  20. Is anyone trading today? I've been so busy with my day job that I haven't had much time to look at the markets.

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  21. OMG, markets RED red and I'm green! Hate to get too excited, looks like the decoupling has begun in earnest, let's hope it lasts.

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  22. I'm just watching the game....its would be hilarious if it weren't truly happening

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  23. the failure of the summit will force the ECBs hand to monetize in a big way....look for this to occur rather quickly if the summit triggers a panic selloff. My guess is they construct a nice fear trade with some smaller short squeezes then with fear reaching extreme....the ECB acts.... 3 weeks tops could even occur this weekend but I think they want true peep fear first... i think they want Red nibbling on Alpo first.....or me breaking out my freeze dried veges

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  24. Bought a few more ARNA contracts at a lower strike price. Trying to take advantage of this latest shakeout.

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    1. I picked up more shares today too...36 million shares were bought by someone today...they are really trying to keep this symbol in check now....more bs articles on one stock then I can recall

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  25. Richard Russell continues:

    “The world is now producing far more goods (and more competitively) than ever before. I think deep in his heart, Bernanke knows and understands this. As a result, he does not want to use all the possible anti-deflation ammunition that the Fed can muster. The reason -- it is dawning on Bernanke that the Fed cannot defeat the powers of deflation and the primary bear trend.

    The result is that the sinking economy is actually producing signals ahead of the Fed, and Bernanke knows it, but cannot talk about it - it's too frightening. Now Bernanke is playing for time. He's hoping that somehow, some way, the US economy will not get worse and that it might even improve slightly. Bernanke is worrying about the Fed's bulging balance sheet. It's so huge, how will he ever contract it?

    In the meantime, the stock market is more puzzled than ever. With uncertainty looming large, the market backs off. It is giving up on QE3. In the absence of QE3 the market does what it always does to protect itself, it backs off.

    Sadly, the whole world is searching for income and safety, and the fact is that there is no income and there is no ultimate safety. Then how does one build wealth? The Asians know the answer to that -- YOU BUY and HOLD GOLD -- and exercise a lot of patience.

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  26. i love the noise...while the noise played loudly the miners retraced their respective 50 fibs and are green on a blood red day.......just have to wait to see if the form higher highs and higher lows with a new channel..or do they flush the peeps one more time...just because they can......heheheheh

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  27. My Dear Extended Family,

    Never before in the entire period of 1968 to 1980, or 2001 to present, have I received so many copies of classical deflationist scenarios in one day. It would seem as if the God of Deflation overflew the gold guys and dropped their leaflets.

    Classical deflation does not have a snowball’s chance in hell of occurring now for any length of time. To assume that you have to hold the belief that Bernanke is a mole in the present administration, placed their covertly to bury the present administration so deep that there will never be a democrat in office after 2013 anywhere.

    If you believe there is a political appetite for the collapse of the Western financial system, they had a perfect chance in 2008 and did not accept that great opportunity to purge the system of Banksters for political reasons.

    The problems of 2008 are here now and greater. Derivatives still challenge the entire system at a greater level. A major under the covers audit is being done right now of some major banks for serious OTC derivative problems. Market miscreant activity allowed the break to near nothing for many financial institutions. The activity specifically is the absence of the uptick rule, which is still missing. The regulators are controlled by Washington which in turn is owned by the hedge fund and bankster’s lobby.

    Nothing whatsoever has changed except the degree of difficulty which has risen to a level never existing in market history.

    The rescue will come in the form of QE to infinity for the entire western world’s financial system.

    The market historians making fun of the gold community may not like the fact that it was the huge communication to his prison authorities and the system that actually got him the opportunity for freedom. Whatever the mental level reason for his hate of “Gold Bugs,” he is wrong.

    Gold is going to and through $2111 on its way towards Alf’s levels.

    The euro and the dollar, in that order, will be bailed out. QE will rise to infinity the longer Bernanke plays chicken with the present administration for perseverance of the private bank, the Fed, and its power.

    Please stop sending me copies of the latest tome from our respected market historian. The history he is going to make now is his largest market error in his career, scaring the life out of investment protection insurance non trading gold holders, so much so that when they leave they will never return to the gold market.

    I have written about Currency Induced Cost Push Inflation hundreds of times. They are all in the compendium. Our beloved historian does not understand this concept, but will be defrocked by it.

    This popular writer is determined to walk the halls of ivy again, doing anything necessary to make that happen. Part of that is not having a history of being rescued by the “Gold Bugs,” which he was. I knew him in the 70s when he looked down at me as not in his high circles.

    Nothing has changed.

    Respectfully,
    Jim

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    1. in case you are wondering he is taking a swipe at Martin Armstrong......he thinks "they" own him and he may be right

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  28. Moody's is in a bad mood again:

    Moody’s Downgrades 28 Spanish Banks

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  29. I have been reading some of Armstrong's articles. I don't think he "hates" the Gold Bugs. But, he writes that those Gold Bugs that believe in hyperinflation are wrong. He believes that there cannot be hyperinflation in the USA unless the USA as we know it no longer exists. He explains that the USA is an Empire and that the US dollar is the reserve currency. He writes that Hyperinflation has never occurred in any country throughout history that satisfied the above two conditions (ie. Empire/Reserve Currency). He does believe in acquiring gold/silver and that at some point, it will rise in value. But he believes the timeline will be much longer.

    I don't know if he is right, but he does try to explain his reasoning.

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    1. I really like Armstrong's writings for the most part and have for awhile but he has turned rather hateful towards gold as of late. I don't completely follow his logic on it either. To me hyper inflation isn't really about printing, it's more a loss of faith in the system. Something that's really incalculable imho. It's a currency event. I have no idea where gold will be in the next 5 or 10 years but I can't see it ever being worthless. If it ever gets to that point shit will be bad and I hope I'll be six feet under :)

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  30. What do you guys think of copper? Can it be considered a precious metal? Does anyone own any physical copper? Thanks.

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    1. copper is NOT a precious metal but it is well worth holding as a store of value.....just like good farmland, fresh water, etc.....

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    2. also the PTB will most likely never try and take your copper

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  31. Got a section of the my roof covered in copper.
    QE to infinity stagflation can easily 3-5k gold.
    hyperinflation is 10-100k gold.
    That's from a US centric perspective, it could get much worse in Denmark or Egypt.

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    1. tsk tsk.....such a pessimist....;-)

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  32. Kli
    Silver update on Martin Armstrong
    http://m.youtube.com/?reload=7&rdm=m5zadq61h#/watch?v=MYjLxVRoCHI

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  33. I agree with Doc on Martin Armstrong. He does say gold's time will come, it just isn't here yet. His model says 2017, I believe. That year coincides with Jim Rogers' 18 year commodity bull market. I read M.Armstrong because alot of what he says is brilliant. And Jim Sinclair's timing hasn't been perfect either.

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