Wednesday, May 29, 2013

BEATEN LIKE A DOG

Gold trader
Paper gold traders and especially paper gold and silver miner traders feel like the picture above. They're supposed to. They're in a sector whose headline price threatens the very system that owns the casino. Let the free market price of gold reveal itself and the fiat ponzi collapses. They system knows this and must protect the illusion that the currency is not being debased. Now having said how important it is to control this price one needs to consider this. There IS a limit to how long this game of paper shorting gold can go......and that is the loss of physical to the "strong hands". These hands are not going to be relinquishing the actual physical metal just because the price suddenly drops another 5 or 10%....in fact the ponzi discovered that accelerated buying of physical occurred with the last breakdown in price and has only slightly pulled back over the last few weeks.... So you see, the law of unintended consequences doesn't always work against the "little people" IF they took advantage of the silver and gold paper price dump over the past few weeks. 

Now for the miners.......money boyz are still accumulating and exiting shorts selectively.....the only problem is there are no weak hands to shake now so a lot of shorts in the fast money speculative crowd are trapped in their shorts. As stated here many times over the last year THIS IS A CROWDED TRADE......but its a lot less crowded now......OUCH (how I know). BUT here in lies a problem. We have some very stubborn leaves that did NOT shake off the tree. The game was to shake out as many weak hands from a very crowded trade and even though everything including the kitchen sink was thrown at the sector, many of the expected weak hands have NOT turned loose of their shares .....The expected capitulatory volume never materialized even though the market makers crushed the prices on most of the miners to force the shares into the strong hands of the cartel.......CAN THEY SHAKE OUT MORE SHARES???  Stay tuned, but time is running out on this game. You have a very interesting game developing. If you can't cover your shorts then your going to reap the wind. gl boyz













Monday, May 27, 2013

GOLD MINER'S LAST STAND

The strain on the precious metal's trader is taking its toll on sentiment. Bullish sentiment is at all time lows and only those that have a death wish seem to want to take on the bankers. Hedge fund managers have jumped on the banker band wagon and have built a large short position on the COMEX.....unfortunately the bankers are now net long indicating a blood bath for the hedgees may not be too far off. Whether one can stay solvent playing in the precious metals paper game with the bankers still remains to be seen. Many of the "true believers" in the miners have already been crushed...leaving the game to only the big money players, which of course was always the game the boyz  intended to create in this sector. More than likely a significant bullish move in miners is nearing.  Just remember this move will be signified by disbelief....even worse just as you accept finally that a significant bottom was put in....expect to have your guts ripped out with a wicked correction in the face of overwhelmingly bullish fundamentals (kinda like now).

We are facing one of the most distorted markets in history created by Fed intervention trying to hold together a system that is corrupt from top to bottom. If the equity market breaks into more than a 15% correction the entire system tied to the equity market will be at risk of collapse.....pensions and insurance swaps could collapse in a Tsunami of defaults in just a matter of days. THAT is the risk facing the rigged game. Meanwhile everyday that goes by just adds that much more malinvestment to a system that is desperately in need of real growth. Of course with a rigged system we can manipulate enough of the statistics to indicate that some type of "slow growth" is occurring a "slow economic recovery"....when actually we are just guaranteeing that ultimately NO real growth or recovery will occur. This can be easily seen by looking at the "denominator of DOOM"...the M2....its exponential growth mathematically ensures failure of the fiat ponzi printing game. "They" know this and they are making preparations for the eventuality of failure by preparing their asset allocation and geopolitical strategies. We can't do anything to contain this unless your patriotism involves the unusual combination of courage AND sacrifice....which brings me to this current holiday. What would the many soldiers, mothers, wives, and children who made the ultimate sacrifice defending the constitution think if they could see what happened their country today? Would they even recognize it? What would they think of politicians today making millions and millions while they're in office and even more from corporations AFTER the leave office? What would they think of 107 million Americans of working age that are unemployed and yet the OFFICIAL unemployment (U3) is at 7.5%??  What would they think of a politician like Lindsey Graham advocating endless wars in hell holes run by OUR own dictators? I wonder.





Scroll ahead to the Karen Hudes interview on IMF at about 35 min



Wednesday, May 22, 2013

NATURE'S FURY

No one, not even the Cabal can stop the fury of Nature's Law. Violate the law of Nature and you can unleash hell. Unfortunately for the informed, the question remains just how far the fury of Nature will be pushed in this Grand Supercycle collapse. As the balances in Nature are stretched beyond the abyss, the structure of society begins to show cracks in multiple areas. The Fed is well aware of these fractures and is attempting to hold them together with a variety of smoke and mirrors. Outright monetization and malinvestment have kept many sectors of the U.S. in a surreal bubble while other areas are in relative devastation, quietly swept under the rug, hidden from outside eyes. 

Rolling out new forms of "stability" controls for society will serve to prevent complete breakdown for awhile, but once JIT delivery systems fail and food becomes either scarce or just too expensive the masses will turn on themselves and anyone that stands between themselves and a meal. THAT is what the PTB do NOT want to face. However when Nature's Law is violated these will be likely repercussions. Some allude to the possibility that the PTB desire this type of breakdown for the public to accept a complete tyrannical police state. 

The announcement today that Bernanke and the Fed are considering ending QE possibly "sooner" than later but maybe never or at least not before we see a solid recovery but maybe we might "decrease" it a little early but not too early but sooner than you might think before we said we wouldn't stop before a solid recovery was in place. OR...as I like to say keeping it simple....JAWBONE it.......since that's all they have. Mathematically he can't stop printing.....hell......he can't even say he's going to stop printing WHILE HE IS PRINTING...Remember when he stopped QE2??? He printed the entire time after he stopped QE2 and the economy was collapsing with the market. He HAD to announce QE to infinity because QE3 alone couldn't stop the collapse....it was THAT bad!

The absurdity of pretending anything has changed other than some fast money thrown into the system to create an illusion we are growing this broken economy is laughable. Have fun living la Vida loca.......I know I am....ya gotta laugh or you'll cry....









Message from Joe
The main tactic and intelligence of the dark side of our nature used on us within us is the fact that ," We do not see it coming and become blind and unaware to it", that's what it means when we keep bashing and bitiching about powerful's manipulation especially in the market and in this particular case the Gold market not realizing that by participating in the pool of corruption and dark manipulation of Gold market including mining ( trading & investing) that we are no better than the ones who manipulate it since our goal is the same as powerful manipulators which is make money from what we everyday confirm is corrupt casino, awareness is the key and again goes back to we are what we do. The one that participates in corruption is as guilty as the one who manipulates it since their ultimate goal which is not kosher is to make money from dark pool. You do not need to be religious to understand it, concept of ethics and morality and lack of it is universal. Here is Al Pacino's line playing the role of Devil, " They never see me coming" :

Sunday, May 19, 2013

PRELUDE TO WAR

Unprecedented turmoil and destabilization today in dozens of countries and regions around the world should make anyone with vision shudder. But then of course it is not unprecedented in recent history and it appears to only be part of a larger pattern of global tyranny that is playing out. Couple this "unprecedented" disintegration of institutions and countries with what seems to be a paradox of affluence in many other countries leaves many cursory onlookers scratching their heads. Its hard to reconcile in a country like the U.S. with 107 million working age people NOT working but Porsche sales rising YOY. OR that over 60 million "affluent" Americans on food stamps and growing next to the big box crowded Friday night Red Lobsters. Of course lying beneath these so-called signs of affluence are many contradictions that are being ignored because THEY want you to ignore them. 

A couple that managed to slug through the 2007-2008 collapse with significant debt and an underwater mortgage is now starting to take on even more debt as they purchase a new car for commuting to replace their ten year old Chevy with 160,000 miles. Their mortgage may be less but their debt is growing. Their savings instead of growing remains the same as it was in 2007....virtually zero. Just enough to make it to the next months as long as they BOTH retain their jobs. Of course they are part of the Friday night crowd at Red Lobster. Why not? Its been their behavior for almost twenty years of their marriage. They aren't on food stamps. They didn't lose their jobs like millions did during the last 5 years. So they have not changed their behavior one iota. 

They watch 22 minutes of news every night at 5:30 during their evening meal and it portrays a "recovery"...and all is well with the stock market making all time new highs. So of course as Dr. Bernanke said many times in 2007....there is nothing to be alarmed about. CONfidence. Its what's for dinner tonight. I hope you digest your meal well.

Now while you are eating I want you to digest a sprinkling of CONdiments. They're ONE TRILLION this year that we are sprinkling on your CONfidence meal. The reason you need the CONdiments is the CONfidence meal has a 1.5 QUADRILLION hole its falling into and swallowing it faster than you can slurp the CONdiments. Those CONdiments are an illusion....but they "sure do taste good".....DON'T they!!





Wednesday, May 15, 2013

THE BATTLE

The Titans in the sky continue to wage war while the small fry retail players wonder how long Nature's laws can be levitated. Its a dance that has no ending......or does it? As the pundits on CNBS pirouette to every cliche talking point cajoling the retail listeners to just have one last dance with the devil. Its reached such a cacophony of the ridiculous that one keeps expecting the straight faced shills to suddenly break into hysterical laughter. Underlying their ludicrous claims of unending market rises, one can sense an almost palpable fear permeating their rising choruses.

What none of us has the ability to see are the real battles going on in the puppeteer's command and control centers. None of us have access to the real measurements of what is occurring within our "recovery". As the metrics are intertwined with real and imagined recovery statistics one becomes almost hypnotized by the ping pong effect of rising markets as economies contract. Japan is falling further into depression and approaching a 500% debt to GDP....virtually unheard of in developed nations without complete collapse.

As our own Western markets rise in the face of a collapsing infrastructure and consumer spending, we argue about whether we can get one more squeeze out of the "market"......from "unending" Fed printing. More and more pundits now proclaim that the Dow can easily reach 20,000 and beyond. Just the noise to expect as we climb the "last bubble". One thing is certain.....it will end...and it will end badly. The question is will ANY of us be standing as it sucks down what is left of a facade of a Republic. Listen to the noise......its what is making you dance. Dance little proles...dance. gl

Sunday, May 12, 2013

SAUSAGE

After a lengthy bear correction in a gold and silver secular bull run time seems to favor the bulls as the physical market (the real market) is colliding head on with the paper market. Reports of bullion banks now settling customers holding allocated gold in paper should make anyone that's holding paper gold realize their game is coming to an end. Liquidation of GLD may have more to do with the fear of paper redemptions not even being made in a real crisis and of course that's why many own gold.......for a crisis. As the big boyz go net long on the leveraged contracts on the COMEX one has to wonder just how long they can carry the paper short on gold without creating a critical loss of bullion. Price can rectify some of the wrong but it can also stampede a run of bullion accumulation.

Grinding the miner trade into sausage has been brutal and is also nearing a turn but of course the damage has been extensive. Anyone remaining in this trade with 20/20 hindsight can see just how damaged their portfolio is. The big question is will they now turn the trade for their own profit having created a dramatic low that has forced all but the most stalwart trader out. Some smaller miners are trading at less per share than their revenue/share. Some miners have P/Es less than 4. NO ONE wants in the trade. Can you blame them?

Right now the battle is how long the illusion that fiat currencies backed by promises only can hold the sheeple in the system until the East drains the last of the bullion from the West. The East knows the system is in peril but then so are they. Killing off the West without being in the strongest position yourself to support an alternative reserve currency is not a mistake the East wants to make. So how and when the plug gets pulled is only a guess at this juncture. For hints at what is in store for you if you reside within the Western banking system just look at what is taking place now as the confiscation of assets begin in earnest in the debtor countries. Wealth cannot be created for the West....it can only be confiscated now. Money printing is only for the survival of the over-leveraged bank balance sheets and for propping up the Government deficit spending. All of which ends badly.


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.








Sunday, May 5, 2013

IS THIS MONEY

Do you want to put this in a jar and bury it in your backyard? If someone broke into your home at least they couldn't take it. That may be a positive, but today fiat is made to disappear with a keystroke. If you doubt that easily happen, then just go to one of the thousands of MF Global customers and ask how their money and paper assets were taken. It wasn't hauled out in the back of dump trucks. BILLIONS were erased from their lives with a keystroke and nary a whimper in the media. Thousands of people robbed in broad daylight and not even a couple of sacks to carry off the loot was needed. Just a keystroke by some lackey in a JPM back room. CONfidence and trust......the foundations of any fiat system based upon a promise.....a promise your paper money and paper assets are backed by the rule of law. NOT ANYMORE. That has all changed Cyprus was the clarion call for many more sheeple that believed a system based upon law would be there for them if they just trusted their government. Well you can see how that turned out for them. We talk about it but for tens of thousands of Cypriots their lack of understanding of what kind of collapse the World is in allowed them to be deluded into leaving their fiat in a system that never had their interests protected. 

Now we have entered into an even more fascinating and dangerous phase of this collapse. The digital monetization of debt. This year we will roughly monetize about 1 Trillion in government debt in the U.S. alone. We are actually running a higher yearly debt than 1 Trillion when all of our unfunded liabilities are factored in.....much higher. Back in 1980 when Volker took on inflation we had about 1 Trillion in TOTAL debt. That's right... we are running more debt yearly now than the total national debt was when Volker stepped in to raise interest rates. Can you imagine what would happen if interest rates are raised on a total debt today that may be as high as 100 Trillion if you count the unfunded mandates? 

What choice do they have now? Debasement of the currency with unending money printing or raising interest rates and creating instant depression. Until the costs of essentials begins to get out of control and shortages become unmanageable then they will print. Oh...they will jawbone they are going to have an exit strategy and that digital printing can be controlled but mathematics dictate otherwise. NO STOPPING. Look what's happening around us. I've never seen anything like this in my study of history except perhaps before WW2.....this is worse.......gl pollyannas







Wednesday, May 1, 2013

ECONOMIC SUSPENDED ANIMATION

Trying to even make a unique post to describe the unbelievable sequence of recent events becomes an exercise complete futility. Its getting old. Its groundhog day endlessly. Watching CNBS pundits has become a virtual comedy act with the participants trying to maintain straight faces while describing the latest faux statistics and attempting their positive spins.  Daily descriptions of a slowly recovering economy are followed by real world collapses in virtually every important ingredient composing our lives. Belief in anything now is called into question, yet the entire ponzi continues to operate due to the most unholy alliances of governments and private banks the world has ever seen. It truly defies gravity. Nature's laws seem to be only a speed bump for this game.

I look at facts like Cyprus. Factually anyone with over 100K in a banks lost virtually everything above that number......with little hope of ever seeing it returned. You look at the outright theft occurring throughout the financial system and you realize its like a cancer that is metastasizing faster and faster. There is nothing to stop it. There is no therapeutic agent that's even slowing it down....its just spreading across the globe sucking the life out of the unaware hosts. Its doing it through unseen ways with debasement of currencies that are slowly bleeding the most vulnerable to death without them even realizing they are being killed. Its not only is killing the most vulnerable but it weakening the strongest members of the free market through a variety of mechanisms. Just the worsening of malinvestment alone is enough to destroy our future by violating nature's law of economics which allows the "strongest" to take over the management of an overleveraged bust. NOT this time.....at least NOT yet. The cancer just keeps growing.

I watch the fragility of the host wondering where the tipping point is. Now we don't even print money or trade paper stock share certificates. Everything is a key stroke. You have NOTHING that verifies your "ownership" if it becomes "lost" digitally in hyperspace. You think this can't happen? Did you not see what a "flash crash" looks like? Its not "money" its "magic". You don't get it do you? The ultimate counterfeiting machine is now in the hands of the psychopaths.....they can make you believe you have money with just a keystroke........and they can take it all away with the same mechanism....in a nanosecond. We are so vulnerable and we're just sitting there blissfully thinking the merry-go-round will never stop. When it does an awful lot of "Cypriots" are going to crying. POOOF......it was just air anyway. When that realization comes there will be a rush for REAL value. It doesn't just have to be PMs but its safe to say that this will be ONE of the primary recipients of Nature's Law. Enjoy the game....its a Dooozy!!! gl