Tuesday, July 9, 2013

FORT FREEDOM

THE TRANSLATION IS NOT "FORT FREEDOM"
It seems like an appropriate Orwellian name of a re-education camp that we may have for "remedial" training in our future state. After all, we should be properly punished for our impudence in challenging the fiat paradigm of unbridled money printing for a "better way of life". By now you should know it had to be done, just as TARP had to be done to save us from a crisis that we were told did not exist right up until the week we had to have TARP. That's right there was NO need for TARP since there was NO crisis. At least that's what we were told over and over as 2008 unwound in all of its splendor. CNBS trotted out pundit after pundit to soothe a rattled investor class as each collapse occurred. I remember. I remember being riveted to the surreal scenes daily as the Wall Street bankers batted around the volatility with coordinated CNBS breaking news reports at EXACTLY the perfect turning point in a critical market move......usually reversing a downslide with the release and whipsawing the shorts caught in a deadly squeeze. Of course without the heroic efforts of our Fed and our government working together our way of life could not have been saved and the "system would have collapsed". I think that about covers it in a nutshell. Basically "we lied to you for your own protection".

Now of course we have a market that is completely homogenized for the masses and we are told that everything is improving and the crisis that never was until it was is now over because we have printed several Trillion dollars and the economy is in such sound shape that we can stop printing the 85 Billion/mo that we really don't need since the economy is improving so rapidly. Of course there is the slight problem of 60 million people on food stamps and the 125 million people now below the poverty line and the real unemployment of 23.4% and the seeping inflation in essentials and the rigged housing market and the imploding bond market and the continued misses on the top line in most earnings reports and the loss of full time jobs becoming part time employees. Why go on? It only confounds the proles and makes it difficult to concentrate on Dancing With The Stars. 

You're tools. We're all tools. We've been tools and we will remain tools. It doesn't even make us mad any more we're so used to being used as tools.

Don't buy gold or silver. Wait until gold gets cheaper. The bears in gold have never owned gold and still don't own gold and some are waiting to buy it below 1000. Chances are they will NEVER OWN an ounce of gold. Not so much because it won't get below 1000 but when it does they will NOT buy one ounce. They don't know what physical gold is and they will NOT know what it is until its much too late. As Marc Faber once said (taking some literary liberties)......That's why gold is not for little people. gl all



52 comments:

  1. Looks like the Chinese have solved the tungsten problem in those German Gold bars, everything is refined to .9999 as soon as they receive a shipment from the Fed or JPM. Now that's value added!

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    1. yes..the "instant refinement" kills two birds with one stone........verifies purity and removes previous owner

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  2. http://www.zerohedge.com/news/2013-07-09/chinese-exports-slump-most-2009

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  3. http://www.zerohedge.com/news/2013-07-10/here-comes-stall-speed-barclays-cuts-q2-gdp-forecast-06

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  4. Replies
    1. I woke up this morning. Fired up the iPad while still in bed. Had Scottrade loaded up and had my trigger finger on the sell button. But I didn't sell....

      -The Muslim Brotherhood won't sit back and watch 85 years of work go down the toilet. Expect a lot more chaos in Egypt/Syria

      -I'm getting this strange gut feeling that Ben is going to "take back" his tapering plan. Notice how equities shot up at the same time the news was horrible? Someone knows something.

      -Asia is quite literally running out of physical gold to sell.


      I'll leave my money on the table a couple more days... unless I see a big pop of $50 an ounce.



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  5. http://jessescrossroadscafe.blogspot.com/2013/07/comex-gold-inventories-how-low-can-you.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29

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    1. Picked up some junk silver US coins at 0.15 over spot over lunch.

      Dealers distributor also had some gold eagles and plenty of Krug ready to ship.

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  6. http://www.silverdoctors.com/shanghai-gold-volume-shock/#more-29016

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  7. impending move in MSTX, huge volume, coiled up, fast track could be imminent...
    I'm in a bunch here...

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    1. thnx i added a little to my little...hehhehe

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  8. Dang... Did I call it earlier or what? Now I might hold my GLD until next week. Ben canceled the tapering plan!

    Fed Wants More Job Gains Before Slowing Bond Buys: Minutes

    Reuters Even as consensus built within the Federal Reserve in June about the likely need to begin pulling back on economic stimulus measures soon, many officials wanted more reassurance the employment recovery was on solid ground before a policy retreat.

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  9. KLI and all: Real time gold at 1270! Wait til Asia opens.

    My little GLD position is going to buy a high grade steak later this week. :)

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  10. Hit 1282...congrats Jay. But ya gotta love how they hold it down till AH. Excellent commentary Kli. But, but we aren't Printing, just buying bonds...I'm pretty sure this means absolutely nothing to the man on the street aka sheeple.

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  11. real time price = 1284 now

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  12. South Africa's gold mine crisis:

    http://www.bbc.co.uk/news/business-23249467

    No idea what this means for the mining sector in general, but considering how this entire industry has been targeted for destruction, it's not promising.

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  13. it means that if gold stays down very long mines are going to drop like flys......and as more miners go off line due to the high cost to mine lower and lower grade mines then the supply curve will become very distorted and that is game over for the manipulation

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  14. I just sold my GLD and took profits. GL all.

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  15. Kli--Once again, thank you for maintaining this blog thereby giving us a place to consolidate thoughts and possible actions. Just read a book by Scott Patterson saying at least 40% of trades are dark now thanks to the bots. No wonder trading has become so difficult for us little people.

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  16. Congrats Jay, don't think they let it get up to 1300 this time around.

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  17. Mining Weekly reporting gold production in S.Africa -2.4% in May.

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  18. Gold is making a big push end of trading day.

    Maybe KLI was right all along and Ben never once intended to taper.

    Ben sure does send out a lot of mixed signals.

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    1. we're headed for a major crash Jay......this is just a complete charade of ponzi duct tape holding this together......once they rip any of the tape of it all implodes.....watch for the first tape pulled off.....China? Europe? Japan? Egypt? Iran? its just a matter of time

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  19. http://www.silverseek.com/article/twelve-factoids-silver-12285

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  20. Paper Gold should ramp-o for a few days or weeks...

    A jar of peaut butter approaching 10 bucks, groceries really ramping. Gasoline was said to up almost 10 percent over the next month. Fast food burger meal approaching 10 bucks.

    Somehow meat, chicken seemed cheap. 2 nice Fillet Migon's 14 bucks. (smallish).

    The Bernanke is on the head of a pin now. The only thing that can save his assface is a calamity.

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  21. The question is NOT whether a calamity CAN be arranged its really whether a calamity can be avoided....it reminds me of trying to navigate an aircraft carrier at full speed through a harbor FILLED with mines

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  22. its not whether we hit the mine but when

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  23. http://econocasts.blogspot.ca/2013/07/20130711-gold-cycle-chart.html

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  24. Maybe if we print enough money, we can buy & ship more stuff.

    http://www.forbes.com/sites/abrambrown/2013/07/12/gloomy-sign-for-global-economy-ups-slashes-profit-guidance/?partner=yahootix

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    1. May cost more to ship all those bills than they ae worth. LOL

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  25. I'm starting to see major inflation here in the Seattle area. Fast food meals cost anywhere from $7-10 now.

    What are you guys seeing in other parts of the US?

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    1. I see sneaky bastards!! At the store grabbed a package of chocolate chip cookies. They used to have four rows in the plastic tray but now it is 3 rows. Guess what didn't change - that's right the price was the same as before.

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    2. They started doing that out here with frozen dinners. I notice less meatballs and smaller pieces of chicken in the frozen dinners.


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    3. went to friendly's with my wife and daughter. kids chicken fingers , wife got fish and chips, I got clam strips and fries , ice tea and coke. $32.00 bucks, and meals don't include happy ending sundae anymore. won't go back again, total ripoff

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    4. very tough for mom and pops to make money now in food service, but with increasing prices the demand side of equation could hit a critical mass and an implosion could occur in not only mom and pop but big boxes too.....I don't see ANY relief from this stagflation. It was funny to listen to david rosenberg on the CNBS and Bloomy today....he's bullish now on equities and the economy (with reservations) BUT....he NEVER once mentioned in his weak support scenario DEBT!!! Imagine what happens as the bond spread increases to the debt service and the consumer. Its a self defeating moral hazard that will destroy Rosey's recovery scenario. What a corner Ben is backed into. I say he DOES implement a move on lowering QE this year .....and SHOWS you just how IMPORTANT and CRITICAL QE is to our "recovery"...it should be quite a show......it should really drag in the shorts to equities

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    5. KLI: At some point, QE will do more harm than good. When our Mc Donalds meals start costing $15 and gas is at $10 a gallon, chaos will ensue. How will Ben or the next Fed chairman convince Americans that QE is still good when they can't even afford put food on their tables?



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    6. Your question Jay goes to the essence of QE and that is its limit. As I have repeatedly said there is a limit and the cost of essentials is the limit. Don't look here however since the U.S. has more flexibility than many countries where food essentials make up a MUCH larger percentage of per capita income. This is why populations are beginning to show up on the streets in countries like Egypt. Watch the developing nations for the break in human tolerance of the ponzi. This is why I watch the spreading upheaval overseas. Don't forget our neighbor to the south either for early signs of stress.

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  26. It cannot get that bad Jay...Something WILL break first.

    Lunch for 2 at Panda Express $20.

    Still, if you eat off the $1 value menu it is cheaper than the grocery store until you add in the medical expense of eating like that all the time.

    I bought a can of Barbasol shave cream...the can is half the size of the old can and was 2x as much.

    Ear of corn .50 cents. Non dairy Creamer $5.00 per gallon..Did not by either.



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  27. http://news.goldseek.com/GoldSeek/1373643545.php

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  28. Re: http://news.goldseek.com/GoldSeek/1373643545.php

    The stage is set. Portugal, perhaps, is the next test case.

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  29. Since you asked, I about freaked at $10 (plus tax) for 3 rolls of paper towels yesterday at the Harris Teeter grocery store. That's the chain being bought by Kroeger, bet they close lots of registers and want you doing self checkout. Remember when I grew up, we paid about .20/gal. gas...we would get .50 worth and drive those big ole cars around on a Sat. night.And yet, peeps APPEAR richer than ever. Of course at the top, they are. They have no clue what's coming. It'll make the Zimmerman trial look like a walk in the park as far as divisiveness goes. Lots of my contemporaries leaving the big city for full time abodes in the mountains/at the shore.

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  30. watch response to Zimmerman verdict. It has some potential to start some fires.

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  31. nothing to see here now move along

    http://www.brotherjohnf.com/archives/198427

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  32. This comment has been removed by the author.

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  33. The blacks in the courtroom want to lynch Zimmerman. Either way could be a hot day in the various harlems.

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    1. this is all part of the divide and conquer strategy. Zimmerman's grandmother was black but NO mention made on MSM. The game has always been to keep the population weakened and distracted by race baiting.......it works well

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  34. Check out Chris Wargas's new site, cubejelly. He has a piece today on gold and miners. Interesting take.

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