Wednesday, May 8, 2013

FRIED FISH

That's what this entire mess looks like to me. I'm not referring to the miner trade......its obviously torched if you've been long like I've been. No....its what this country and its citizens look like.....and not just this country but virtually every Western country is now or is soon to become. 

With the subjugation of the citizenry by the corporatocracy virtually complete one has to wonder what the next step will be. Probably something that would include kneeling in a field perhaps....or maybe just a blender version of mass mediocracy. Apparently their is no limit to the extent we will forfeit the values and freedoms that our forefathers tried to protect with that piece of parchment paper. Its occurring at all levels of society now. Decades of conditioning have taken their toll and now the final solution is nearing. 

Acceptance of a police state, state sponsored torture, openly removing American citizen's constitutionally protected rights, not even a whimper from bought and paid for politicians and certainly no cry from the vast majority of our citizens.......reminds me of another time and place not too many decades ago. An entire country molded into accepting some of the most heinous crimes committed against humanity.....Hitler??? no wait....Stalin???....wait....Mao???.....Pol Pot??? and I could go on. I decided to leave perhaps the biggest Offending nation of all off the list and let you fill that in. It shouldn't be hard, but just a hint....their numbers are even going to get larger...and the interesting part is I can't decide if their final tally will be in the hundreds of millions or Billions...with an S. Hyperbole??? maybe....maybe not. One thing is certain there is going to be a reckoning. 

Back to the market. Everyday becomes more surreal. The market grinds higher and higher with the real economy barely breathing as we celebrate the most absurd breaking news stories as if they really meant something meaningful in the real economy. There is some very real stress occurring in our society and I'm seeing it in spades now. gl to all of you and I hope you can at least have some laughs at what this game has degraded into. I almost spit my coffee out driving home this morning when Larry Krudlow was gushing over the 200 BILLION + in savings that we MAY get this year if the PROJECTED DEFICIT this year is ONLY 900 BILLION instead of over 1Trillion as earlier projected this year. FANTASTIC as Larry said. He should have said GREEN SHOOTS!!!!
from Harvey today  "On the physical front, we had two blockbuster commentaries on the huge importing of gold into China and into India.

China reported a massive 223 tonnes of gold entering the country. 
The entire world ex China ex Russia produces around 2200 tonnes of gold or 183 tonnes per month.  Thus China took over 100% of monthly global production.

India resumed its purchases of gold and they are on tap to bring in over 1000 tonnes of gold  India produces no gold.

However, the purchase of gold is hurting India's current account deficit and thus the government is desperately trying to curve India's appetite for gold.
The change of that happening is zero!!
from ZH commenter  I maintain that there is a serious gold and silver market event about to happen and this is so much talk which will fail to contain the metals.
The Shanghai Gold Exchnange has been delivering 200 tons /month for 20 months and the physical pull from LBMA is relentless.
Scroll down to see the enormous gold draw on Shanghai over the past two years:
LBMA / Comex collapsing:
Quote:
One thing is certain today, the bullion banks are on the long side of all of this selling.  We are seeing cracks appearing in the fractional reserve LBMA and COMEX price setting mechanisms.  It’s really thanks to the most recent paper market discount that we are evidencing this accelerated migration of bullion from the West to the East...
 ...And even though this activity (intervention) bought a little more time for these guys, the immediate and unanticipated but accelerated bullion demand (all over the world), actually ended up digging an even deeper hole for the Fed, the Bank for International Settlements (BIS), and the agent bullion banks.  They have actually shot themselves in the foot.
By simply tracking the movements in the international wholesale market, it’s clear that a major supply problem is brewing.  Where has this bullion gone?  It is clearly Fed and Bank for International Settlements borrowed bullion.  What they are doing is seeking to avert a fractional reserve delivery default.  These are in the price setting centers of London and the COMEX.  And it is further extenuated by arbitragers who are moving bullion out of the COMEX and reselling it at higher, real global prices.  
So you have a perfect storm here.  This (Western gold) bullion is not coming back.  It’s being re-melted, cast into kilobars, and it’s ending up directly in Eastern hemisphere central bank and sovereign vaults.  And all of this time the bullion banks are calling for lower prices, and the mainstream media is touting a bear market.  The bullion banks are fully aware of this threat, and they are exiting these mismatched short positions.








32 comments:

  1. Trade idea??

    Tesla Motors (TSLA) stock has been going straight up and there will be a big pop today due to excellent earnings. Phil Davis wrote about posssibly shorting it. Market correction could be coming in June (Inlet's charts).

    Buy some TSLA puts at some point??

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    1. I think the casino is dead Doc.......heheheh....but if you have some funny money that you don't mind donating then sure give it a shot.....just remember their game is to take the shorts apart. Since they nailed me in mid 2009 trying a short I won't hit it hard other than a few shots at them with RWM and those were usually not winners....leverage is their friend and options are like candy for them

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    2. Tesla is on the most shorted stock list, so at some point you get a huge short squeeze I would think and not a point at which one wants to be short. Problem with puts is it may be some time before Tesla stumbles and it surely would be a month after your puts expire.

      Long term - I believe Chrysler formed the last auto company by an individual that still exists, so sooner or later Tesla gets bought out or fails....

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  2. AFFY was a 25+% gain today...if you bought at end of day yesterday and sold at top today..

    I think BIO scalping season is near...ASCO coming...check your beaten up spec bio whom is presenting..Abstracts come out on the 15th...

    I didn't buy yesterday, to chicken to chase it..

    Doc or Kli, My sister in law was just diagnosed with stage 4 Ovarian cancer-its a sarcoma, very rare..any alternative ideas and is their any correlation with PH levels in body, I was reading some studies on acid for alkalinity with cancer not able to grow in Alkaline but uses acid as host?

    44 yrs old, it's like Everyone has said here...the market is meaningless when compared to life...

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    1. Sorry chuck for your sis....i don't have much to offer you....your bottom line tells it all. I spoke to my Doc yesterday and he asked me a question why I thought I had developed a condition I have. I pointed out the window to the six lanes of traffic zooming by his office building not 100 ft away....and said that's why.....I then reminded him of a study on naval jet pilots that were based on aircraft carriers that had "certain" medical metrics studied 20 years ago that HE and I had discussed 15 years before when we I first met him.....(he had done the study)... I said "remember those pilots....I'm one of those pilots.....what we've allowed them to do to us, is killing us".....

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  3. Would you believe my Internet here went down just after I posted the TSLA idea! That has to be some sort of sign itself. Internet was down all morning--no idea why.

    Honest, sorry about your sister in law. I had a patient with Liposarcoma that developed within his neck and became metastatic. He went to a specialized cancer center--multiple surgeries/radiation/chemotherapy--but eventually lost the fight. Hopefully there is some sort of treatment center in her area--maybe there are some new treatment trials she could get into.

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  4. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/9_The_Single_Most_Important_Chart_For_All_Of_2013.html

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  5. Thought you get a kick out of this Kli, is it a bottom?
    http://www.theglobeandmail.com/globe-investor/inside-the-market/junior-mining-stocks-see-record-insider-buying/article11638717/

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    1. pretty pessimistic in this place for sure.......smells dead....that's a good sign

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  6. here comes the next brutal attack on the miners, I wonder how ugly it gets today.

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  7. Hi Kli and the group. Stress in the miners for sure today also Jim Sinclair has this day picked at a big down day in the metals and then the move up will start looks good so far maybe we get a bottom here to trade. Have a great day.
    Matt

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    1. Hi Ron...Drokes gold trading letter has predicted that IF last months low in gold was THE major bottom then he expected to have a retest of THAT low or even a little lower in the near future.....he reiterated that point again last night and ouila we get today's smackdown after hitting the first serious resistance.......so from a technical standpoint patience remains in seeing if this is the major bottom as Sinclair alludes to.....

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    2. 1320-1380.....see how it performs there

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    3. if your referring to Gold 1320 would be sweet!!! The miners well not so much....

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  8. Total slaughter of gold longs today:

    Gold
    1,423.00
    -45.80
    -3.12%

    Is this it KLI? Is this the final beat down before gold skyrockets? I've been hesitant to trade my fiat for physical gold these last few weeks because I'm trying to hit the bottom.

    At the same time, I don't want to miss the boat.


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    1. dunno Jay.....rather than throw it all average in IF you are buying physical.....BTW the low does not mean you will buy physical any cheaper.....the premiums vs spot price are NOT allowing you the savings you may expect.....but if you can pick up one of the lower premium coins at your LCS it helps.....my fiat is low here so I need a few weeks of basing to get another buy....don't care where they push it Jay......things are broken and I know you don't realize what's coming but there are other things to concentrate on too.......tighten you ship up...things are going to get rocky ahead

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  9. did miners finally decouple from gold prices. I am really surprised. some miners r green

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    1. very few sellers left with some selective buying.....

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  10. Major reversal in PMs...interesting.

    And check out the 10-year. Was 1.63 a week and a half ago, now 1.90! Strange stuff going on, this market is as real as the Easter Bunny!

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  11. Look at that Tesla Motors go!
    Just watching still.

    I would like to see Gold revisit 1320.

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  12. http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/5/10_Maguire_-_Perfect_Storm_In_Gold_As_LBMA_%26_COMEX_Collapsing.html

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  13. kli,

    at one point today, gold was crushed, yet miners held tough. could it be the bottem is already in for the miners? today's action in miners was very promising.

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    1. may indicate selling exhaustion/selective accumulation continuing.....still can have a very rocky bottoming pattern if this is the bottom to shake out the hanger on's with a little more chop

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  14. http://www.economicpolicyjournal.com/2012/12/how-government-is-coming-after-your-ira.html?m=1

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    1. KLI: Many of us have worked hard all our lives To contribute to 401(k) and IRAs. If the government ever tries to steal this money, It could start a revolution.

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    2. Jay, Jay - those sneaky bastards are already stealing from your IRA/401k thru ZIRP. Now what does it matter: 1) ZIRP or 2) low interest government bonds. Stealing is stealing.

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  15. Yes Jay Inlet is correct debasement of the currency through ZIRP and QE is degrading you 401K...but that will most likely NOT be enough for these bastards....they will "require" you to own Gov Bonds with your 40lk or they'll change the tax structure in a more punitive way......there will be a variety of ways to extract wealth from those that still have something left to steal....and NO....the "people" are sheep......don't expect much response....other than whining.

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  16. Jay, you need to start taking some steps to disassociate yourself from the whole 401k/IRA scam. As a first step, stop contributing all together, even that minimum required to get the company match. Most companies are reducing or eliminating the match anyway. Same for goes for your IRA, whether you have a ROTH or Traditional, stop all contributions.

    Next step is to assess whether you can take the money out. If you have balances > 6 figures, then the penalty + tax hit may be too much to swallow, in which case you just leave it alone. For balances < 6 figures, bite the bullet and get what you can, since your hit will be smaller. This is what I've been doing the last few years, and growing my "nest egg" outside these plans, in accounts that I have immediate access without penalties. It's not as though those are any safer, all paper is at risk in one form or another, but still better than having most of your wealth tied up in an account you can't touch for 20-30 years. And who knows what it'll be worth, if any, by that time.

    And make no mistake, the mindless sheep will not do a damn thing, and take it up the ass like they have taken everything else the last 10-12 years.

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    1. I agree and have been doing the same. Mainly putting it on my mortgage. I have put a nice dent into it by doing this :) The penalty isn't that much.

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  17. ud,

    You may not be a troll.... hehehehe but your right on point with the following statement!

    "And make no mistake, the mindless sheep will not do a damn thing, and take it up the ass like they have taken everything else the last 10-12 years"

    Happy MOTHER'S DAY to all you MOM'S out there!!!

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  18. The issue of IRA/401K confiscation was brought up on the Financial Sense radio show this week. Financial Sense felt that these announcements are so far just "trial balloons" to check the reaction of the public. Actual immplementation of such a plan could be years into the future. However, they admitted that should it look like legislation would be passed, they would advise their clients to take possession of their money and pay the tax.

    I agree with Inlet though that the ZIRP is a form of stealing. Also, the debasement of the currency is destroying future purchasing power. Phil Davis wrote about Japan last week and stated that if a Japanese citizen had the equivalent of 1 million dollars in Yen in the bank, the purchasing power is now about 750,000 dollars due to the recent massive Yen printing Japan is doing. So, your saving are effectively stolen.

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