Friday, March 1, 2013

Friday Humor - This Is So Incredible You Couldn't Make It Up

We see huge orders from China, which are even bigger than the size of buying before the Lunar New Year...Demand from Indonesia was also robust, thanks to a stronger rupiah that kept domestic prices low.  - Singapore-based bullion dealer LINK

Rather than add more analysis about why this is the best time to step into the precious metals market since 2001, I thought I'd take a break and let everyone see for themselves how incredibly pathetic our Congresspeople are.

I will make one point of note first.  What is occurring right now is the hedge funds are recklessly trying to push the precious metals sector lower in order to try and maximize their gains on their record long short position in paper Comex gold futures:  Record Hedge Fund Short

But just like the hedge funds recklessly pushed AAPL to $700, they are recklessly trying to push the precious metals sector lower.  How well did the AAPL stunt work?  Let's look:  since September 21, AAPL stock is down 40%.  Gold is down 12.3%.  The precious metals sector is going to do the upside what AAPL did to the downside when the hedge funds start to cover.  I guarantee it.

Now for our dear pathetic Congressmoron, Maxine Waters.  Apparently Maxine somehow got through the educational system with out having to pass math and English..  According to Maxine, the "secrestration" cuts are going to cause 170 million job losses.  Don't believe me?  Watch for yourself:

"Secrestration?"  I'm sorry, can someone tell me what that word means.  I can't seem to find it in the Oxford English Dictionary.  In fact, I can't even find it in my Scrabble Dictionary and that dictionary has imaginary words in it.  Maybe someone has a copy of an Ebonics dictionary and it's in there...As for pathetic Maxine's math.  170 million jobs?  According to the most recent BLS employment report, the total number of jobs in the economy is 143 million. I said, you can't make it up.

It reminds of the joke about the high school spelling bee.

Teacher:  "Maxine, please spell "before."
Maxine:  "B-E-F-O-R-E"
Teacher:  "Very good, now use it in a sentence."
Maxine:  "Two and two be four"

Have a great weekend.


  1. Bank capital manipulation: the regulatory capital trade

    Bloomberg reports on a different technique that banks use to game the capital calculation: the regulatory capital trade.

    Blackstone Group LP, the world’s largest private-equity firm, has devised a way to profit from regulation: It’s helping banks meet tougher capital rules without the pain of selling assets or raising equity.

    The firm last year insured Citigroup Inc. (C) against any initial losses on a $1.2 billion pool of shipping loans, said two people with knowledge of the transaction, who asked not to be identified because the matter is private.

    The regulatory capital trade, Blackstone’s first, will let Citigroup cut how much it sets aside to cover defaults by as much as 96 percent, while keeping the loans on its balance sheet, the people said.

    For banks, the transactions offer a way to redeploy capital more profitably while meeting the stiffer requirements of the latest round of Basel rules. Critics say the practice doesn’t make the lenders any safer and pushes the lending risk into the unregulated shadow-banking industry.

    “It’s a form of financial engineering,” said Philippe Bodereau, London-based head of European credit research at Pacific Investment Management Co., the world’s largest bond investor. “It was dead but it seems to be coming back as investors scramble for yield. If you saw this on a massive scale, you would certainly question whether this was the best way for regulators to de-risk the system.

    Regulators have criticized banks for trying to meet the target by adjusting the models they use to calculate risk- weighted assets rather than raising capital. The Basel Committee, which brings together regulators from 27 nations, said in a January report that there are “substantial variations” in how banks determine the riskiness of assets.

  2. Maxine: "Two and two be four"


    Maybe she meant "thee castration".

  3. German Banks With Soured Ship Loans Forgo Seizing Vessels

    Deutsche Bank AG (DBK) and two other German lenders providing about 14 percent of credit to ship owners are forgoing seizing vessels even after soured loans to the industry rose to a record. Europe’s biggest bank by assets, as well as HSH Nordbank AG, the largest in the market, and Norddeutsche Landesbank Girozentrale, which finances 1,500 ships, are restructuring loans and setting money aside instead of repossessing vessels, officials from the companies said. They have about $69 billion in loans to the industry out of $500 billion in total, according to data compiled by the banks and Petrofin Research SA, an Athens-based consultant.

    An unprecedented $80 billion out of $125 billion of German loans to the industry aren’t performing as they should, estimates Paul Slater, chairman of Naples, Florida-based ship- finance consultant First International Corp.

    “We have to ride out the storm,” Oliver Faak, head of shipping at Hanover-based Norddeutsche Landesbank, said by phone Feb. 25. “There’s no use selling, as this floods the market with ships. We have to protect their values so banks don’t realize a loss at the low of the market.”

  4. What a racist.

    Clearly, she misspoke. Meant to say 170,000 jobs. Have a laugh at the "N-word's" expense, though.

    Hey, BTW, when you gonna remove that "Obama as Pimp" picture from your blog. Racist reichwing fool. You still calling him "Ape in Chief" or somesuch?

    1. I'm not a racist. I call it as I see it. You're the type of person who thinks anyone who doesn't support Obama is a racist.

      You'd be quite surprised if you knew who sent me that picture of Obama. And, no, I'm going to remove it.

      Take your politically/socially correct sanctimonious bullshit and shove it up your ass. The problem with this country is that not only are there way too many people like you trying to tell people how to conduct their affairs, but there's too many people who are giving in to people like you. Live and let live.

    2. By the way, I never once used the "n-word" as you refer to it. You're the one who put it out there. Not me. Methinks the lady doth protest too much.

    3. Of course you never "used" the "n-word", but people like you think in those terms all the time. That's what I was hinting at there.

      Lots of racists don't know they are. I am not a big Obama fan, and think you can be progressive and no fan (or even conservative) and not be a racist. The guy isn't a radical lefty. Or a pimp. Or "Ape in Chief" as you once wrote. That you like to laugh at people and make them seem dumb as in this "B-E-F-O-R-E" joke in relation to Waters has all the earmarkings of racism. I don't know what is in your heart, but you stupidly telegraph your feelings on your blog a lot.

      Ron Paul is not the Messiah, and neither is his son Rand. Ayn Rand was not a saint, and your ideology is just dumb selfish and simple thinking. The same type of thinking that lots of racists have. I've said my piece, and at least you have the courage to post my "bullshit". Good for you.

    4. Thanks for supporting sanity Dave. I am so sick of this point and accuse bullshit that comes from the left when you don't pander to their agenda. It is your blog and if people are offended by what you post then they should move on. Time to take our country back and allow freedom of speech and individuality.

    5. @Mr Anonymous "n-word."

      Wow! Not ONLY do you want to tell me how to live my life, you want to explain to ME how I think?

      That pretty much sums it all up there in a nutshell: "Dave, this is how you think and this is how you SHOULD act."

      Dave: "thanks. can you please tell me when it's okay to take shit and do I really have wash my hands after I wipe, even though my hands never touched those dirty areas that we aren't supposed to talk about?"

      Dude, take that cross you're carrying on your back and shove it up your ass.

    6. @"sanity" - Ayyy-Men, brother.

    7. "Ebonics" is a racial term. It refers to a stereotypical speaking style of a specific race (Black Americans). I think most people would consider it a derogatory term.

      Otherwise, I appreciate your market insight, Dave. I've been converting a lot of fiat to cash. I must admit, I have gotten a bit discouraged lately. I appreciate your 100% conviction. Your views are rock-solid and consistent. I often read and re-read your blog when I need to be reminded what's *really* going on.

    8. Dave has never used the "n-word" nor has disrepectful to anyone posting here - whether he agreed with them or not. His choice of words is not meant to be racial but born out of frustrations derived from the current finanical situation we are in. My only complaint with Dave's writings is that he spells congress wrong (it's CONgress, not Congress). Whether its Obama or Romney or Democrats or Republicans or Feds or banking industry, Dave has showed the most repect to them all by calling things the way they are. We're talking about the collapse of the old world order and people need to grow up and out of this political mentality that they support/believe in. What's coming down the turnpike is literal hell yet people are still ignorant of reality and treating it like it's their favorite tv show. Wait till your food is 3X higher and all that nonsense goes right out the window with the tv set.

    9. LOL. Point well taken on my egregious spelling error!

  5. Dave,

    All I can say is - you have to see it to believe it.


  6. Thanks for the feed RA. Ebonics isn't a racial term and racism isn't connoted by the use of it. Ebonics is a noun describing a "language" that the city of Oakland actually attempted to designate as an official language that should be taught in public schools.

    Look, I don't want to get into a debate about semantics and semiotics. I actually got my highest grade in college as an English major in a graduate level semiotics class.

    For that commenter above to reference the dreaded n word and accuse me of being racist tells a lot about him. I wasn't even thinking in racial terms. And then he had arrogance and audacity to tell me what to do with my blog and tell me how I think. Just incredible. Brave New World, there.

    I saw an elected Congressional representative, someone who is supposed to lead by example and who, by the way, has made sure her busband's business gets lots of taxpayer benefits, abuse the English language and make a mockery of the facts. Complete theatre of the absurd.

    What I saw was an example of how pathetic and corrupt our system has become.

    1. Nice clarification, Dave.

      I've learned a lot from reading your blog. Thank you for giving us free access. It is appreciated!

  7. Geez. Who let Captian Buzzkill into the party? Dave if you're going to be a racist at least be an equal opportunity racist. You're going to have to post a funny picture of Mitt. Maybe one of him in his magic underwear. I bet Captian Buzzkill would laugh at that.

    Hey Captian. Go read Victor Frankls book Mans Search For Meaning. Pay special attention the phrase "there's good and bad of every race". The only thing we hate around here is ignorance.

    I didn't whine when Fargo stereotyped my ancestory. I laughed my ass off. Heaven forbid you laugh while watching Undercover Brother.

    Love the line "theater of the absurd". I live five miles north of Detroit. Truly a great theater. As fucked up as it is I still love this place.

    1. ROFLMAO. LOVE "Fargo." Steve Buscemi and William H. Macy at their best

    2. A driver was stuck in a traffic jam on the highway outside Washington, DC.
      Nothing was moving. Suddenly, a man knocks on the window.
      The driver rolls down the window and asks, "What's going on?"
      "Terrorists have kidnapped Congress, and they're asking for a $100 million dollar ransom. Otherwise, they are going to douse them all in gasoline and set them on fire. We are going from car to car, collecting donations."
      "How much is everyone giving, on average?" the driver asks. The man replies, "Roughly a gallon."

  8. I don't know about you, Dave, but when some dingleberry (look it up) accuses me of being a racist, I have no problem stepping up to the plate and proudly admitting I am indeed a racist. If assholes are a race, then I am the biggest racist you'll ever meet since I consider myself superior to them. Keep the Obama Pimp Daddy picture, by the way. It's a howl, I love it, and more importantly, it bothers leftards (my word) to no end.

  9. Dave, don't you think the precious metals have been consolidating for too long. That's been almost 2 years since gold reached $1900 and silver $49. Precious metals have never stayed range-bound for 2 years since the bull market started. Is it possible something has changed. I know that the physical demand is extremely strong in Asia. But why don't precious metals react?

  10. Nah. There's been two other nasty price corrections/consolidations that lasted close to two years. I can't pull my trading software up right now, but the avg nasty correction has lasted 18-24 months.

    The metals are basing right now. Look at a chart of gold that goes back at least three years. Giant "wedge." The next move higher is usually proportionate to the length of the "base.'

    Don't underestimate the degree of manipulation in the paper market right now. The open interest in Comex silver is 750 million ozs. That means the shorts are short that much. There's only 37mm in the available for delivery "registered" category. Also, last year the world produced 1.1 billion ozs of silver. The Comex is short the equivalent of nearly 3/4 of a year of annual global production.

    Manipulation, corruption. The Government enables and allows it. Like all manipulation, it will fail and end badly for the manipulators.

  11. Silver hit $21 in March, 2008 and consolidated until September, 2010 for a period of 2½ years. We then had a bull impulse that lasted for about 7 months to April, 2011 and have consolidated since then.

    Over the last 5 years Silver has consolidated for 53 out of 60 months, which is horrible price action for the Silver investor.

    Even worse, Silver has not made a new nominal high for over 33 years. IMO, that makes Silver the most bullish commodity on the planet today by a longshot.

  12. Ahahahahaha !!! Ciao Dave, bello il "joke" sulla congresswoman !
    Qui da noi abbiamo l' "onorevole" Antonio Razzi ... visto che tu studi - e parli - italiano, ti mando questo link ad un suo discorso in parlamento:
    Senza parole ...


    1. LOL. Ciao Marco. Com'e stai? Grazie per il video incredibile del Parlamento italiano!


  13. Ciao Dave, io sto bene. Per fortuna qui da noi le ultime elezioni politiche hanno reso molto difficile formare un governo stabile ... sembra un paradosso, ma non è così ! L'ultimo governo prima delle elezioni - il governo Monti - aveva l'appoggio di circa il 90% del Parlamento (!) e ha praticamente distrutto quel poco che restava di economia reale, produttiva, in Italia !


    1. Capisco. I sistemi sia in Europa che negli Stati Uniti sono in atto, come la storia "Atlas Shrugged."

  14. I can testify you equally cap on all people, races, religions, males, females, bad drivers, good drivers, cat owners, dog owners, parents, politcal parties as well as non political parties. You are especially pleasant to listen to when referring to anyone living in Highlands Ranch, CO. Word.