Friday, May 10, 2013

"They" Are Throwing Jokes At Us Daily Now

I'm not worried about this price action because it is occurring only in the paper gold markets of London and New York.  Soon as Japan and China closed up for the weekend last night, the London paper pimps went to work on the price.  The real currency war going on behind the scenes is the "war" over physical gold.  Everything else is a distraction.  More than 400 tonnes of gold has disappeared from visible, above-ground vault stocks since Jan 1.  Where the hell is all of it going?   -  Me in response to someone who asked me about today's price action on the Comex.
I mentioned yesterday that our entire system has become a complete farce.  Ben Bernanke and Barack Obama, directly and through their media whores, tell us the economy is getting better.  Yet, how come a new record amount of people jump on the food stamp and Social Security Disability Insurance gravy train every month?   Every month.  Close to 16% of our population receives food stamps now.  That's a fact.  It was reported the other day that Michigan had to specifically pass a State law that forbids the use of food stamp debit cards in strip clubs and liquor stores.  That's not a joke?

And then I see the Treasury's new Padrino, Jack Lew - the guy who used his position at Citibank to fleece the student loan system - was on CNBC early this morning exclaiming that "U.S. growth is not sufficient."  This was in the context of urging Japan and Europe to do more to stimulate their economies.  Well Jack, if our economy is so strong, how come the Fed needs to keep pumping $85 billion per month - at a rate of over $1 trillion in a year - into the system?  Jack Lew is a complete joke.

How about the housing market.  More on this in coming days.  If you look at the real data below the hedge fund and flipper buying in the hot "bubble" markets - the same hot markets that crashed hard in 2007 - the housing market is actually turning south.  If this were not the case, then how come Bernanke feels compelled to pump $40 billion per month into the mortgage market?   Seriously?  The housing market needs this?  It's a joke.  Bernanke is a joke.  $40 billion per month equates to roughly 145,000 homes per month if you use the median price according to the Census Bureau.  What happens if Bernanke pulls that $40 billion away?  You tell me...

Now of course, most of that $40 billion is being injected into the big banks so they can keep bad mortgages on their books from collapsing and issue new, future bad mortgages to new suckers who think the housing market has bottomed.  And Freddie Mac announced today that it was going to start issuing new bonds that are not backed by the Government?  Huh?  Is this some kind of joke?  According to Freddie Mac, the bond market is strong enough for it to issue this type of paper.   Hmmm.  Okay fine.  Let's see how strong that bond market is if the Fed stops printing up $85 billion per month to support both Treasuries and home mortgages?   See what I mean?  It's a complete joke.

And if you want to see the biggest joke of them all - the reason the U.S. stock markets are starting to move up bubblicious parabolic fashion, just look at what has happened to Japan's stock market since the Government started printing trillions of yen:

(click to enlarge)

See what I mean?   Our system has become nothing but one big joke.  And the joke's on us because while we watch the farcical tragedy unfold, the producers, directors and actors are stealing everything we own...

For everyone who is holding onto real, physical gold and silver, keep holding on tight.  It might be a roller coaster ride for a bit but patience will be amply rewarded.  The main mining stock indices jumped up over 5% two days ago.  It was reported again yesterday that insiders are piling into the smaller mining stocks at record rates.  I chat with many of these insiders all the time.  They get the joke and they also understand that it's a joke how undervalued their shares are.  They are putting their money where their mouths are.  Given that NYSE insiders are dumping their company's shares in droves, we know they get it also.   How about you, Ben, Barack and Jack?  Et tu, si brutti corrotti?

Which one do you trust?


  1. It's hard to believe people would buy these over a yielding miner...

    PIK Note Sales Surge in Europe as Junk Yields Tumble to Records

    Sales of payment-in-kind notes, the riskiest, highest-yielding debt, are surging at a record pace in Europe as junk-rated borrowers take advantage of investors’ appetite for yield in a market paying the lowest-ever rates.

    Issuance of so-called payment-in-kind bonds climbed to $2.05 billion this year, $176.6 million short of the full-year record set in 2008 and more than the $1.8 billion sold in the U.S. so far in 2013, according to data compiled by Bloomberg. The notes typically pay a higher coupon than cash-only bonds to compensate for their low place in the capital structure and the possibility issuers can pay interest with debt.

    “As spreads get tighter, you may be willing to accept something that is maybe a bit more inherently risky, but also pays better,” said Patrick Kersting, a London-based credit analyst at Bank of America Merrill Lynch. “As the market has gotten tighter, the appetite to take on a bit more risk has probably gotten a bit greater.”

    this is bottom of the barrel stuff.........

  2. The price action reminds me of what Shakespeare once said, "you protest too much". That's whats going on,the Central Banksters are scared shitless,they know that the gold is going from west to east and they are trying(read protesting)by using the Crimex. This is a freaking joke,like trying to bail out a row boat with a teaspoon. Thanks for confirming my own perspective.

  3. Guess What’s Hidden in the Immigration Bill? A National Biometric Database for Citizens

    From Wired:

    The immigration reform measure the Senate began debating yesterday would create a national biometric database of virtually every adult in the U.S., in what privacy groups fear could be the first step to a ubiquitous national identification system.

    Buried in the more than 800 pages of the bipartisan legislation (.pdf) is language mandating the creation of the innocuously-named “photo tool,” a massive federal database administered by the Department of Homeland Security and containing names, ages, Social Security numbers and photographs of everyone in the country with a driver’s license or other state-issued photo ID.

    This piece of the Border Security, Economic Opportunity, and Immigration Modernization Act is aimed at curbing employment of undocumented immigrants. But privacy advocates fear the inevitable mission creep, ending with the proof of self being required at polling places, to rent a house, buy a gun, open a bank account, acquire credit, board a plane or even attend a sporting event or log on the internet. Think of it as a government version of Foursquare, with Big Brother cataloging every check-in.

    “It starts to change the relationship between the citizen and state, you do have to get permission to do things,” said Chris Calabrese, a congressional lobbyist with the American Civil Liberties Union. “More fundamentally, it could be the start of keeping a record of all things.”

    1. Would this prevent me from being raped by the T.S.A. when I check in at the airport? I don't like the Orwellian Big Brother undertone but, I also don't care for some degenerate asshole running his fingers under the waistband of my pants either. That free feel was also after my free dose of radiation from the x-ray machine. Either way the government sucks.

    2. Michael JacksonFriday, 10 May, 2013

      Biology goes digital

      "The same tools and techniques for combinatorial calculations, the kind of analytical computer use that we do today, when applied to biological systems, has an even greater impact. As we begin to say, “We’re going to take the analog world of biology—how genes work, how diseases work—put them in a digital framework, calculate for a while, do some machine learning on how things happen,” we’ll be able to not only help you become a better human being, but predict what’s going to happen to you physically in terms of your health, and so forth." - Google executive chairman Eric Schmidt, Feb. 2013.

      Video and PDF at:

      It's not just Governments alone but Businesses as well that will determine a person's life and what is best for them.

      It's the end of all personal liberties. God have mercy on our souls.

  4. The Basel Committee and the Global Banking Mafia

    Kabbalists of the money world are looking for this ratio’s magic number, which would guarantee the stability of the banking system. In fact, the Committee is seeking to legitimise what is a crime.

    No cunning standards and formulae will remove the main effect of the «partial» coverage (reservation) of obligations – the banking crises. In the almost four decades that the Committee has existed, the world has been witness to a countless number of banking failures and crises.

    In fact, the Committee gave the go-ahead for a financial-monetary orgy, respectfully called «the development of monetary and financial markets» in economic textbooks.

    The new version contained extremely feeble attempts to take account of new banking risks (besides credit risks), especially in view of the rapid development of derivatives markets, the emergence of hedge funds and other institutional speculators, with which banks were extremely closely linked.

    «Basel III»: the partial rehabilitation of gold
    Basel III has raised the status of gold dramatically. New rules have been provided to transfer gold to a bank’s tier 1 capital at 100 percent of its value. Banks now have the opportunity to replace their paper assets (primarily US Treasury bonds) with gold.

  5. If you need evidence of tyranny and the fascist business model strangling the economic life of this country, there is no better evidence than the events surrounding the April intervention in the precious metals markets by JPMorgan in their fiduciary responsibility as guardian and gatekeeper of the massive and ongoing criminal fraud emanating on a daily basis from Wall Street and Washington. btw great chart on the Nikkei.

  6. What did the BOJ start doing in Japan Nov 2012 exactly?

  7. "More than 400 tonnes of gold has disappeared from visible, above-ground vault stocks since Jan 1" Okay, you said on a previous post that 2500 tonnes is mined annually. 2500/12 equals approximately 200 tonnes a month. 400 tonnes in four months is therefore no big deal. I'm assuming I'm missing something. Please advise.

    1. C'mon guy. Do you think they mine bars out of the ground? WTF?

      First of all, India and China accounted for at least 700 tonnes of importation over those four months. Really China alone had over 1000 tonnes delivered on the SGE, but a lot of gold might have come internally. China's share of the 700 tonnes was imported thru Hong Kong. Then there's the rest of the world. Viet Nam, Turkey, OPEC countries, etc are all hoovering up gold the way Oprah hoovers up food at an all you can eat buffet.

    2. Dave, you forgot to mention the delivery problem at the Shanghai Gold Exchange this week because there is nothing to be delivered. The Gold futures on Shanghai Futures Exchange is in backwardation now. As of Friday, the settlement price for the June contract was 290.74 (RMB/gram) and for the Dec contract 290.39. It shouldn't occur because China does NOT have ZIRP.
      By and by, how do you manage to sleep well at night? The volatility always brings insomnia...

  8. Michael JacksonFriday, 10 May, 2013

    "Nevada lawmakers moves to tax golfing"

    "The leader of the Nevada Assembly introduced a proposal Wednesday that would revamp the state's live entertainment tax, extending fees on a range of activities and events from recreational golf to NASCAR races.

    Speaker Marilyn Kirkpatrick, D-North Las Vegas, said early estimates show that her plan could generate about $50 million in sorely needed revenue for the state budget.

    Her proposal, AB498, seeks to close loopholes in the current law and eliminate exemptions that Kirkpatrick says are unnecessary.

    The proposal also would impose fees on ski lift tickets, movie tickets, gym memberships and the annual Burning Man festival."

    The states are showing a lot of "cracks-at-the-seams", proposing the most stupid ideas in trying to wring every last dime out of taxpayers who are flat broke. It's just going to force people to cut back even harder. China's economy has slowed down due to weakening consumer demands. Once the Government can no longer replace the consumer as the engine, it will also bring down businesses who are getting government checks to run their business (like the "recycling industry").

    It really does relate with what is happening in the PM's, housing market, unemployment (don't get me started on that one), commerce, and many other area. Globalism has tied all this together. It's only a matter of time before war breaks out and takes the internet down. Eventually, things will not be able to be contained. But Gold will survive. It's where we live that will determine if we do.

  9. Dave, If you have not all ready looked at this article you should.
    Being that this is Saturday I think that based on this release we could see gold take a moon pounding Sunday night. Any comments and insight is always appreciated.

    1. Just another example of a joke they're throwing at us.

      True story: My partner's oldest son is a senior exec at big regional bank. He was recently in DC meeting with Fed staff. To a man they admitted that no one at the Fed has any clue whatsoever how the Fed can possibly even begin extracting itself from QE.

      Play the tape - what would happen? Housing market crashes, Treasury yields go through the roof. The economy collapses.

      Bill Gross/Pimpco recently piled into a their highest amount of Treasury holdings in a long time. That tells you all you need to know...

  10. In the immortal words of Israeli Prime Minister Benjamin Netanyahu to Jonathan Pollard on exiting the spy’s prison cell after a friendly visit in 2002: “Once we squeeze all we can out of the United States it can dry up and blow away.”