tag:blogger.com,1999:blog-3034901630224544639.post1157804392078975750..comments2024-02-23T05:16:46.265-05:00Comments on Along The Watchtower: Two Charts and A WarningTurd Fergusonhttp://www.blogger.com/profile/03393759110641882003noreply@blogger.comBlogger38125tag:blogger.com,1999:blog-3034901630224544639.post-31408126318708327092010-12-18T13:55:37.080-05:002010-12-18T13:55:37.080-05:00Regarding that Another/FOA series, what they said ...Regarding that Another/FOA series, what they said was almost too outrageous to believe that Western world had been so grossly mismanaged gold that they traded it for Saudi's crude oil at too low a price that it allowed Saudi to corner the gold market. They were saying Saudi actually had 5000+ tons of gold on book despite their official report of 300 tons. That's incredible.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-71237902941145870892010-12-18T11:31:52.877-05:002010-12-18T11:31:52.877-05:00It was a take I had never considered before for su...It was a take I had never considered before for sure, and I respect FOFOA, FOA, and Another like no others. My takeaway was gold was the only true money, but that doesn't diminish silver, platinum, and other commodities values as hard assets. Any hard asset is better than freakin fiat, to what extent versus other hard assets is more difficult to quantify.<br />I have gold, TRE, and silver, so I guess I've bet most of my lot with gold ( and Jim Sinclair! ).Pathttps://www.blogger.com/profile/06492536986178776444noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-64821430614247685402010-12-18T11:03:27.788-05:002010-12-18T11:03:27.788-05:00I'm fascinated by FOFOA's freegold take, b...I'm fascinated by FOFOA's freegold take, but I'm not sure why it leaves no room for silver as a monetary metal. Does he envision a wider silver:gold ratio than today? If so, how much higher?<br /><br />In a global economy without an undisputed reserve currency, I think both silver and gold will go up. And the physical demand squeeze on silver in a world of too many billions of people desperate to maintain wealth, and unable to afford gold, will be a bigger factor than ever before.<br /><br />What do you folks think? Will the silver:gold ratio return to its historic average, or will freegold emerge leaving silver behind?Matthewhttps://www.blogger.com/profile/07880457931709662636noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-75434676280689372172010-12-18T10:56:25.788-05:002010-12-18T10:56:25.788-05:00Sorry that there has not been a weekend update yet...Sorry that there has not been a weekend update yet. The Turd is currently busy working the concession stand at a 5th grade girls basketball game. Please check back in a couple hours.Turd Fergusonhttps://www.blogger.com/profile/03393759110641882003noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-1368084541799996322010-12-18T07:49:14.211-05:002010-12-18T07:49:14.211-05:00http://fofoa.blogspot.com/
This may rock your worl...http://fofoa.blogspot.com/<br />This may rock your world quite a bit. Long read but excellent and what it says about silver vs. gold should be studied carefully.Pathttps://www.blogger.com/profile/06492536986178776444noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-31345677980761906042010-12-18T01:10:55.179-05:002010-12-18T01:10:55.179-05:00Ya know Rui, the thing that stinks here is that we...Ya know Rui, the thing that stinks here is that we have seen OVER and OVER that the banks would sell theur youngest child AND their wife for a buck.<br /><br />NINJA loans during the subprime scandal just to get commissions; regulatorswriting over in pen the forms filled out in pencil by oil companies.<br /><br />The whole thing is disgusting.<br /><br />And if I'm China, and I'm a Commie and hate capitalism to begin with, why not go for something like this. <br /><br />They say to themselves, those capitalist pig dogs sell us their debt, and then monetize it when we stop buying it. Fine. Lets screw them and then point out to a world that is sympathetic to our view anyway that their business practices are at best unethical. We'll trade our soon to be worthless $$ for gold and silver, and then walk away from unfair derivatives.<br /><br />Hell, that should work NOW for people getting screwed in mortgages. But as Matt Taibbi points out regularly, the whole system is rigged.<br /><br />But China is NOT in our jurisdiction if you will.<br /><br />I wish Taibbi or even better Ron or Rand Paul would take up this silver cause. I read that Ron Paul has over 50% of his net worth in metals. Bet Rand does too. This would be right up their alley. Anyone a constituent of one of them??Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-31875285122888651482010-12-18T00:25:18.204-05:002010-12-18T00:25:18.204-05:00Cris, very good find on that default link.
The st...Cris, very good find on that default link.<br /><br />The story I heard from two sources about Chinese SOEs is this: Back in 2008 during that mad oil run to 150$/barrel, their state run airline companies and some other firms were fooled into a oil derivative contract w/ Goldman (surprise, surprise it's Goldman again) at the strike price around 90/barrel or sth.<br /><br />These SOEs were stupid (think Chinese Fannie & Freddie) and thought they had got a cannot-lose free profit deal only to be crushed when oil came down to 40s. The loss was so huge it got their central government mad and they came out flushing the derivative deals down the toilet. Goldman still came away w/ lots of money tho.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-6594936495838024492010-12-17T23:29:40.558-05:002010-12-17T23:29:40.558-05:00Rui,
All good points, but not sure about #3. Hop...Rui,<br /><br />All good points, but not sure about #3. Hopefully SOMEONE actually looks at the data and inspects. Up until now, it is not clear that anyone has really inspected the contracts to sort out what is what.<br /><br />But a theory posted elsewhere that I thought made sense comes to mind: some had theorized JP Morgan would all of a sudden turn on a dime and "go long". Others said they would lose too much money on their shorts and couldn't do so. <br /><br />Here is a way that could actually occur.<br /><br />Lets say China was in effect the "big short", using JP Morgan as dupes -- ie JPM being short on the COMEX but being offset by long positions in OTC swaps, of which China was the counter party short position.<br /><br />Then China "goes long", walks away from their shorts, and leaves JPM, and the US in effect, holding the bag.<br /><br />China laid the groundwork for defaulting on select derivatives:<br /><br />http://www.chinaeconomicreview.com/dailybriefing/2009_09_02/SASAC_clarifies_statement_on_derivatives_contracts.html<br /><br />"The report that the State Assets Supervision and Administration Commission (SASAC) would allow Chinese state-owned enterprises (SOEs) to default on derivative deals was misinterpreted, Reuters reported, citing a government source. The source said the warning was only meant to address specific contracts and SASAC was targeting specific deals that may have been too complex for the SOEs to understand. The specific deals or the banks involved have not been named." <br /><br />I like that line "too complex for the SOEs to understand" -- sounds like JPM, no?<br /><br />Far fetched. Perhaps. But after the mortgage scandal, and the lack of regulatory oversight there, and in the oil spill etc, nothing would surprise me anymore. <br /><br />The whole system is corrupt, just in search of money and profit. And it IS CLEAR that no one on this side has been providing appropriate oversight. Hopefully that will change. We shall see. Won't hold my breath.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-83466594746177535722010-12-17T21:56:38.726-05:002010-12-17T21:56:38.726-05:00Cris, it's possible that a few of Chinese stat...Cris, it's possible that a few of Chinese state-owned companies got fooled into an OTC silver contract and trapped since there's no sign of them being any smarter than AIG but I just don't think it's their long standing official strategy.<br /><br />#1 I don't think it's worth going through such hassle just for a dominant position in the refinery business.<br /><br />#2 They have been secretly acquiring gold since 2003/4 so it'd be odd they could also have an ongoing silver rigging plan in parallel. <br /><br />#3 Fed/Trea are very sensitive to gold and silver, and unlike the Public, they could see what's going on in the OTC books so it's unlikely they'd allow AIG, Bears and JPM to engage in a business not inline with their perceived best interest.<br /><br />#4 Also notice China has been encouraging their citizens to own silver since early 2009 so it doesn't add up they could tell their fellow citizens to pretty much squeeze their naked shorting state owned companies.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-21911795772329124712010-12-17T21:31:30.628-05:002010-12-17T21:31:30.628-05:00I don't know Rui. His reasoning about China b...I don't know Rui. His reasoning about China being behind JPM as the "big short" seems pretty airtight to me:<br /><br />First posited in 2003!:<br /><br />http://www.investmentrarities.com/ted_butler_comentary/07-08-03.html<br /><br />then updated here in 2009:<br /><br />http://news.silverseek.com/TedButler/1252075929.php<br /><br />But like you, I cannot reconcile this hypothesis with the reports from King World News, and their eerily accurate inside source, that China is the primary BoS.<br /><br />The deeper you go in the rat hole, the more confusing it gets.<br /><br />One way or another though, it seems no one will escape the effects of an oncoming physical shortage.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-28001696733931031272010-12-17T21:07:12.497-05:002010-12-17T21:07:12.497-05:00Strange. Ted Butler suspects that China was behind...Strange. Ted Butler suspects that China was behind the mass silver short. What the heck?! How could you be both BOS and a naked rigger? I just noticed that he has had that suspicion for years, and his reasoning doesn't seem very convincing.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-49939956856069928062010-12-17T21:04:18.438-05:002010-12-17T21:04:18.438-05:00This comment has been removed by the author.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-62099942822091777262010-12-17T19:07:43.504-05:002010-12-17T19:07:43.504-05:00Testing high of dxy range at 80.5. watching for t...Testing high of dxy range at 80.5. watching for the bottom to drop out.....Mr Lennon Hendrixhttps://www.blogger.com/profile/07859347238367669491noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-1491065259743694302010-12-17T17:58:03.290-05:002010-12-17T17:58:03.290-05:00GG & Don: Excellent observations, both!GG & Don: Excellent observations, both!Turd Fergusonhttps://www.blogger.com/profile/03393759110641882003noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-71884506026117184702010-12-17T17:25:41.601-05:002010-12-17T17:25:41.601-05:00Turd - FYI (David Franklin of Sprott on silver)
h...Turd - FYI (David Franklin of Sprott on silver)<br /><br />http://watch.bnn.ca/squeezeplay/december-2010/squeezeplay-december-9-2010/#clip387082Gubbmint Cheesehttps://www.blogger.com/profile/00749035711127584805noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-73910873179153850602010-12-17T16:15:04.324-05:002010-12-17T16:15:04.324-05:00Marcus:
You have an interesting observation. It w...Marcus:<br />You have an interesting observation. It would seem that the Asian BoS have already obtained the bulk of their silver at lower prices, and are now puposely "leaking" to encourage the public to come in and finish the job. Not only substantial buying potential, but it keeps the BoS's hands clean.Donhttps://www.blogger.com/profile/02944211559839620616noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-68728657743958560942010-12-17T16:01:05.403-05:002010-12-17T16:01:05.403-05:00HRH Turd
Now that position limits are not being in...HRH Turd<br />Now that position limits are not being instituted by the statutory deadline (something that JPM would have known al along , but BoS would not have known) might it not be the case that what we saw today was massive LONG Comex buying by BoS?<br /><br />If it was, and if it continues, BoS has the power to strip the Comex of all its physical. <br /><br />I'm not experienced in al this, so this may just be illogical wishful thinking.Turdle GGhttps://www.blogger.com/profile/01132822226095829192noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-44974600205300145872010-12-17T14:48:59.424-05:002010-12-17T14:48:59.424-05:00I'm quite surprised by the late strength also ...I'm quite surprised by the late strength also as seeing as its friday and year end I was expecting some profit booking, but no strong buying, excellent. augers well for asia monday. imoUnknownhttps://www.blogger.com/profile/15711183963029377013noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-60184425375748473332010-12-17T14:48:47.253-05:002010-12-17T14:48:47.253-05:00Turd, the only things BM's painting tonight ar...Turd, the only things BM's painting tonight are her toe nails. Doesn't look like she's been able to 'touch up' (in an art sense of the expression) the silver chart.<br /><br />We mustn't forget that volumes will get thin in the silver market next week and Dan Norcini's notorious 'locals' will be having a field day. They've always sided with the shorters in years past but Dan's hinted that they may have other plans this year. That would be a nice Christmas present!Chris Gordonhttps://www.blogger.com/profile/03980297713917269925noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-81462106341158688262010-12-17T14:47:23.100-05:002010-12-17T14:47:23.100-05:00This comment has been removed by the author.Chris Gordonhttps://www.blogger.com/profile/03980297713917269925noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-36082885049086822352010-12-17T14:28:36.191-05:002010-12-17T14:28:36.191-05:00Nice read on the metals by Jim Willie at marketora...Nice read on the metals by Jim Willie at marketoracle. Basically says what we Turdistas have known or suspected all along.<br /><br />http://www.marketoracle.co.uk/Article25035.html <br /><br />Here's the meat of it:<br /><br />The Chinese have done something remarkable, only to be done if they know the game is over and the victory over fiat paper money is complete. The Chinese have laid out their game plan, their modus operandi, their tactics if not strategy, through an anonymous London broker. Hats off to the King World News for sharing the invaluable information that should encourage even the most timid and reticent investor. The Anglo bankers are stuck!! They are running out of physical metal to sell in a fractional scheme. They cannot afford to pounce too hard on the price, with either naked shorts or higher margin requirements. Doing so only plays into the Chinese hands, which are grabbing all the bullion available. So the challenge is for the Anglo bankers to control the pace of the demise of the Gold & Silver metal market. This is game over. In these times of monetary hyper-inflation, called euphemistically and absurdly Quantitative Easing by another name, the prospects for a double and triple in the Gold & Silver price is utterly obvious.Marcushttps://www.blogger.com/profile/06784002654652573172noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-82866767926364858132010-12-17T14:25:43.325-05:002010-12-17T14:25:43.325-05:00Funny how after creating a huge phony strength in ...Funny how after creating a huge phony strength in USDX and EE still had their @$$ handed to them in the silver market.Ruihttps://www.blogger.com/profile/01381363570926076708noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-70044047226664015142010-12-17T14:20:38.035-05:002010-12-17T14:20:38.035-05:00This comment has been removed by the author.Marcushttps://www.blogger.com/profile/06784002654652573172noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-27714911118386371192010-12-17T14:09:32.899-05:002010-12-17T14:09:32.899-05:00Chris: I'm with ya. That close had all the mar...Chris: I'm with ya. That close had all the markings of a BoS buying spree intended to jam price right up Blythe's a$$.Turd Fergusonhttps://www.blogger.com/profile/03393759110641882003noreply@blogger.comtag:blogger.com,1999:blog-3034901630224544639.post-30221405355618357702010-12-17T14:09:18.968-05:002010-12-17T14:09:18.968-05:00HFT, LMFAO!! Brother you got me there!
Thanks I...HFT, LMFAO!! Brother you got me there!<br /><br />Thanks I needed that!amorhttps://www.blogger.com/profile/00156067677741873655noreply@blogger.com