Opportunities from Fed Interventions As Forces of Inflation Set to Finally Break Loose

silver break freeSubmitted by Deepcaster:

“The Fed wants to kill all signs of inflation to hide the damage they’re doing to the middle class. First the Fed leaves food and energy out of the CPI, and then they get the Labor Department to lie about the figures. Their last trick — smash the price of gold and silver. What are they going to do when the bond market (fearful of inflation) collapses? You can’t fool all of the people all of the time.”

I promise you, when the true forces of inflation finally break loose, the Fed won’t be able to disguise what they’ve wrought. When the true forces break out — it will be a national disgrace and an emergency. “Then you will know the truth, and the truth will set you free.” The rest of this year should be something to behold.”

Lowered Prices

 

 

 

“The CPI is manipulated, and I believe gold is being manipulated as well. The Fed’s QE4ever is inflating everything — school tuition, hair cuts, food, gas, insurance, medicine. They’ve already “rearranged” the CPI, so what’s left for them to do to keep us from knowing about inflation? Oh yes, it’s gold, so c’mon, Bernanke, keep the lid on gold. Slam it in after-market trading in the thin paper-gold markets of the night.

“I promise you, when the true forces of inflation finally break loose, the Fed won’t be able to disguise what they’ve wrought. When the true forces break out — it will be a national disgrace and an emergency. “Then you will know the truth, and the truth will set you free.” The rest of this year should be something to behold.”

 

“Richard’s Remarks,” Richard Russell

DowTheoryLetters.com, 05/17/2013

 

 

Legendary Newsletter Writer (since 1969!), Richard Russell is now singing the same Tune that Deepcaster and others (e.g., gata.org) have been singing for years. The Key Implicit Question which we answer here, is how to Profit and Protect in an Interventional Universe.

 

Given the Massive, Continuing, Multi-Market Interventions, savvy Investors today face a Great Dilemma.

 

Whether to continue to bet that Equities Markets will continue to rise, because, they hope, The Fed and other Central Banks will continue to print Hot Money even though they, The Investors, know that Economic Fundamentals do not support the Rally.

 

OR

 

Since Economic Fundamentals do not support the Rally to bet against further Equities Rises, since they, The Investors, know this Rally is built on the Sand of mere Printed Liquidity, and cannot last forever and is likely doomed to end in Economic Stagnation and Hyperinflation – i.e., in Hyperstagflation.

 

Trader Dan Norcini had it nailed when commenting on the Release of The Fed’s Minutes and Bernanke’s Testimony.

“In summary, this is everything that was communicated (by The Fed – ed.):  “We will scale back the QE when we think the economy is strong enough to no longer need it in a full dose.”  Who among us learned anything new from that statement?  This is the same dance that the Fed has been feeding the markets for many months now. 

“It just goes to show that everyone with a functioning brain how utterly phony the stock market rally is and how dependent it is on the cocaine being force fed into it to sustain itself.  If the Fed spooks the equity markets into seriously believing that they are going to pull the plug on the QE program, what we saw yesterday afternoon with that violent downside selling wave that temporarily engulfed the stock market will look like a mini rehearsal for a massive waterfall decline.

“This is why Bernanke chose to start off his speech in a soothing fashion.  He and the rest of the FOMC governors knew they had a tiger by the tail and if they let go, there is going to be serious trouble. …

“…the Fed itself has now become the greatest source of market instability and volatility that any risk manager must reckon with in this day and age.”

 

Trader Dan’s Market Views, traderdannorcini.blogspot.com

 

Indeed, the level of the S&P, at any particular time, now has “achieved” a 90% Correlation with The Fed’s Balance Sheet (Haver Analytics, Gluskin, Sheff), so it is a no-brainer to know what would happen if The Fed stopped QE – Lookout below. But this correlation is an ominous and sad commentary on Fed Policy and the True State (sick) of the Economy.

 

Fortunately, a select few Investments are likely to be Profitable and Protective whichever Result (of the two above) is forthcoming. However, in either case, one and possibly two, Key Sectors are likely to Collapse. But those who have Independent Information Sources and Courage for the Truth are likely to know in advance which ones and when and to prepare.

 

The Dilemma is apparently made more difficult because the Millennia-tested Safe-Havens, Gold and Silver, have had their Paper Prices dramatically Smashed Down for Many Months and especially in the April, 2013 and subsequent Takedowns.

 

But it is critical to Note that the mid-April, 2013 and Subsequent Takedowns have been of the Paper Price only. Premiums for Deliverable Physical Metal have skyrocketed.

 

Why the Brutal Takedowns? And what is Next?

 

In a Superb essay, “Washington Signals Deep Dollar Concern,” (Institute for Political Economy, paulcraigroberts.org) former Asst. Treasury Secretary, Paul Craig Roberts shows how important it is for The Fed and other Western Mega-Banks to support the Dollar, Of course, if Real Money, Gold and Silver, were to skyrocket in Price, that would further weaken and delegitimize The Fed’s (and other Central Banks’) Fiat Currency and Treasury Securities. Thus the Ongoing attacks on Gold and Silver. Consider:

 

“Over the past month there has been a statistically improbable concurrence of events that can only be explained as a conspiracy to protect the dollar from the Federal Reserve’s policy of Quantitative Easing (QE)….

 

“Quantitative Easing has been underway since December 2008. During these 54 months, the Federal Reserve has created several trillion new dollars with which the Fed has monetized the same amount of debt.

“One result of this policy is that most real US interest rates are negative. Another result is that the supply of dollars has outstripped the world’s demand for dollars.

“These two results are the reason that the Federal Reserve’s policy of printing money with which to purchase Treasury bonds and mortgage backed derivatives threatens the dollar’s exchange value and, thus, the dollar’s role as world reserve currency….

“Washington has stifled the threat from other currencies by convincing other large currencies to out-print the dollar. Japan has complied, and the European Central Bank, though somewhat constrained by Germany, has entered the printing mode in order to bail out the private banks endangered by the ‘sovereign debt crisis.’

“That leaves gold and silver. The enormous increase in the prices of gold and silver over the last decade convinced Washington that there are a number of miscreants who do not trust the dollar and whose numbers must not be permitted to increase.

“The price of gold rose from $272 an ounce in December 2000 to $1,917.50 on August 23, 2011. The financial gangsters who own and run America panicked. With the price of the dollar collapsing in relation to historical real money, how could the dollar’s exchange rate to other currencies be valid? If the dollar’s exchange value came under attack, the Federal Reserve would have to stop printing and would lose control over interest rates.

“The bond and stock market bubbles would pop, and the interest payments on the federal debt would explode, leaving Washington even more indebted and unable to finance its wars, police state, and bankster bailouts.

“Something had to be done about the rising price of gold and silver….

“That the decline in gold and silver prices is an orchestration is apparent from the fact that the demand for bullion in the physical market has increased while naked short sales in the paper market imply a flight from bullion.

“What does this illegal manipulation of markets by the Federal Reserve tell us? It tells us that the Federal Reserve sees no way out of printing money in order to support the federal deficit and the insolvent banks. If the dollar came under attack and the Federal Reserve had to stop printing dollars, interest rates would rise. The bond and stock markets would collapse. The dollar would be abandoned as reserve currency. Washington would no longer be able to pay its bills and would lose its hegemony. The world of hubristic Washington would collapse.

“It remains to be seen whether Washington can prevail over the world demand for gold and silver. …

“When the dollar goes, Washington’s power goes, which is why the bullion market is rigged. Protect the power. That is the agenda. Is it another Washington over-reach?”

Washington Signals Dollar Deep Concerns,” Paul Craig Roberts,

paulcraigroberts.org, 05/18/2013

 

Roberts raises the right question. Will The Fed be able to pull it off, i.e., protect the Dollar, continue to successfully suppress the Precious Metals Prices and in so doing, revive the Economy (of course, The Fed’s Main Goal — to protect its Mega-Bank shareholder/Owners and other Mega-Banks — has largely been achieved provided The Fed can continue its Money Printing Game).

 

Our regular readers know that we think the Most likely Result is that Fed and other Central Banks’ Money Printing is creating an Equities Bubble and will result in Hyperinflation (already at 8.7% in the USA, e.g., per shadowstats.com) and an eventual Economic Crash.

 

Thus, Hyperstagflation is the outcome we believe will occur.

 

But we could be wrong. The Fed and allied Central Banks and Mega-Banks could pull it off.

 

In any event, Fortunately, there are Select Investments which provide Profit and Protection in either Scenario.

 

One General Category for Profit and Protection is Food Commodities. With 80 Million People added to the World’s Population each year and hundreds of millions in the Developing World with increasing Purchasing Power, the demand is there. And supply increases are constrained by the fact that Most Arable Farmland is already in use and production increases from the “Green Revolution” have mainly reached their limit.

 

The Other Category is Real Money, i.e., Physical Gold and Silver, acquired at Current Bargain Basement Prices. But Timing and the Form of Precious Metals purchased are Critical as we explain in our June 2013 Letter at deepcaster.com.

 

 

In any event, Short term, (for the next few weeks or very few months) the Fed’s strategy of a Strengthening Dollar, vis à vis other Fiat Currencies, is working. The Fed has succeeded in getting other Key Major Central Banks to increase Fiat Money Printing as well.

 

Indeed, the Bank of Japan is in the lead. And the European Central Bank and Bank of Australia and others are following.

 

And to conceal the Price inflating effect of all this – but only for a while – the Central Banks have been suppressing Gold and Silver Prices, and the BLS has cooperated by dramatically understating Real Inflation.

But given The Fed’s Ongoing Orgy of printing ($85 billion per month) long-term the $US is likely toast vis à vis Real Assets. The move away from the $US has begun already, with Australia and France and others already agreeing to close deals in Chinese Yuan.

However, Short-term The Market most vulnerable to collapse is the U.S. Treasuries Market, since, considering U.S. downstream unfunded liabilities of over $100 Trillion as well as $17 Trillion in Outstanding (and unpayable, given any reasonably likely economic scenario) Debt, the U.S. is the most Heavily indebted Nation in the World. Indeed, the 10-year U.S. T-bond is already hinting at collapse with the yield popping over 2% as we write. We will be watching the Ten Year Yield very closely.

The Great Bond-Bubble Bursting is near thanks to Fed printing, the only issue is which month, or week, will the Acceleration to that Burst occur.

If (when) the US 10 Year continues down (i.e., and Yield Spikes Up), a Massive Collapse in the Bond Market (i.e., much lower Bond prices / much higher Interest rates) becomes increasingly probable. Such a Collapse would Wreak Havoc on the economy because credit would become very expensive or unavailable, as it became in the late 1970s to early 1980s and again in 1994.

Consider Goldman CEO Lloyd Blankfein’s Warning about the Prospects for a Bond Market Collapse:

“I worry now…I look out of the corner of my eye, to the ’94 period … you’d think in hindsight (it) should have been expected … (it) really was stunning.”

Lloyd Blankfein, 05/01/2013

But consider his approach to this prospect:

“We focus on how to benefit from the Crisis.”

Blankfein, Bloomberg, 05/22/2013

In sum, long-dated U.S. Treasuries and the $U.S. provide Great Opportunities for Profitable Shorting when the time is ripe. And Gold and Silver provide Great Profit and Protection Opportunities Period.

Best regards,

 

Deepcaster

May 24, 2013

 

lets get physical

Comments

  1. and when it does… 

  2. I’m ready, more ready than most (as the majority of us on SD are). Let’s fukkin pull it already, because it is gonna happen. The cake is baked.

    • Well, the “good guys” are trying to topple it sooner, rather than Later. 
      The Bad Guys make more fiat and have more time to buy cheap PMs 
      if it topples Later, rather than SOONER. Maybe!?! lol @CDL

  3. Probably a good couple of years away.  Still a lot of tricks in the bag.  Also, has anybody seen a list of what countries have the most gold?  I’m pretty sure US is up by a good margin.

    • Stack,
       
      I wouldn’t believe that!

    • I’ll probably take a hit here for voicing a reality check but anyway…. Regardless of what you may hear I’m pretty sure the US has twice as much gold tonnage as the next country, I think Germany.  Think about that.  Also, I sometimes think that too many folks on here use sites like this one (which does provide some useful info) as their only source of news.  That would be like the far left democrats using MSNBC as their source for news.  I own PMs and I am more prepared than most in the event of a “black swan event”.  BUT, I don’t live for that to happen.

    • There is no way to know for sure, but the suppression efforts of the FED, UST and bullion banks over the last few decades says you are wrong on that. And the last real audit of US gold was in 1956. That’s well before the run on US gold leading to Nixon closing the gold window in 1971.
       
      Reality check indeed.

    • Gosh…..thinking with gold struggling and now in a bear market, Germany should be able to get that fraction of  their Gold  back even faster….no need to wait seven years now, right??

    • If you don’t think the United States has twice as much gold as the next country than you really are drinking the kool-aid.  On top of that the US is the third highest producer of gold.  There are different sources for these numbers including the World Gold Council. 

    • I’m a Kool-Aid drinker? LOL…that’s a new one. Well, I’ve followed this sector almost everyday since the mid 1990′s, so I would hope that longevity and experience might count for something. And I hate to tell you but the WGC isn’t a very good source for just about anything that is related to gold. That is, unless you think people like Jon Nadler are accurate and truthful as well. I certainly don’t.
       
       

    • Okay, I’ll play along.  Which country does have the most gold?

    • Nobody knows, that’s my whole point. But looking at the lease and swap agreements which are becoming center stage now, some countries might get stiffed trying to get their gold back.
       
      http://www.goldcore.com/goldcore_blog/belgian-central-bank-says-25-tons-or-10-gold-reserves-loan

    • You better take a look at how much gold the US exported the last couple years…

  4. I have said it here before & I will post it again
    at some point down the road there will be an offshore price for gold & silver ( many times the US price ) & a US price for gold & silver held here
    Also it will be illegal to move US gold & silver – offshore
    also I expect US miners to go broke & their mines to be taken over by the government

  5. We’re fucked! We’re fucked!!!!!!!!!!

    • Hold on Partner, we still have one Silver bullet left….
      Industry will come calling soon for our SILVER!!! that should then be end game for the crooks!

  6. Trying to keep up with Jim Willie’s phraseology I came up with a phrase that describes what we are experiencing in light of how the government lies about how ‘good’ things are and how ‘low’ inflation is  and how rich we are becoming.
     I call it Hedonic Embeggarment. 
    Hedonics is the economic art that basically replaces one good for another, based on price and satisfaction.  If the government tells you that by the application of hedonics, the inflation rate is 1.7%.  The adjustment to your social security check, veterans benefits, pay raises, EBT cards or any other system by which the income increases is going to be based on BLSBS CPI.  Take it or leave it you frigging sheep people, be glad we are even paying you anything,  then you get to decide how you’ll geet to spend this magnificent increase in your government transfer payment.
    You can replace steak with hamburger; hamburger with chicken, chicken with ALPO and ALPO with chicken fried dog crap.  Salad becomes lawn clippings and that nice little 2 br bungalow becomes a nice little van down by the river.  

    Yes, you can, to one degree or other, replace one consumer item with another as your income erodes in relationship the real price inflations.  Maybe when heat and high becomes unaffordable you can burn the furniture. That a hedonic relationship that our our Dear Leaders would gladly foist on us.  Bunking up with 3 generations living above the bakery in a 1 bedroom  cold water walk up   flat in Bed Sty sould work   So would the idea of having us all living in 250 sq ft cubicles in some urban jungle sh** hole in Detroit, home of 70,000 empty buildings.  What’s the next step—FEMA camps. That’s hedonics too.
    So this is my contribution to the meme.
    Hedonic embeggarment.
    You heard it here first.
    As for opportunties from the freakin’ Fed  I’ll take my chance with phyzz and send a nice big bucket of STFU to the gummint.

  7. Not inflation. Its deflation. Just as bad, just as evil. As I have said before when the ride stops, there will be no money, if there is no velocity of money how can you have inflation? Inflation means that people are prepared to part with their cash for goods. This will not happen. You need money before you can spend it. With out the endless hope of a market making money there is no money, when the fed does finally kill of QE, to coin a phrase “we are proper fucked”. People will loose jobs, this means less money in circulation, means that prices of stuff go down. This is deflation. Might get to a point where the price of goods are so low that they won’t be worth producing, more jobs lost, less goods be produced, less money in circulation.
     
    Now, sorry that I don’t tub thump, but I will tell you how it is. Doesn’t matter to a Heavy metal collector like myself. Inflation, deflation, precious metals will hedge against both scenarios nicely.
     
    But selling deflation as a reason to buy precious metals is a tough sell. Trust me, either way, inflation, deflation, its all good.

  8. How about neither Inflation nor Deflation? It is called NOTHING …. meaning, No More Food, because our water supply is kaput! Cannot grow any more plants, no food for the animals, then …. Oblivion! Soylent Green is very organic ! Does anyone here know why cannibalism is taboo ? Because human flesh is the most succulent and delicious of all flesh!

  9. Anyone see the 10 year bond today?  Up a huge 15 basis points to 2.17%  This is starting to be unsettling for the Fed.  With their massive holdings of treasuries, that had a bad day.  I’m smelling a market sell off very soon.  Personally, I didn’t think yields would go this high this quickly.  Just a few months ago the 10 year was at 1.30%  All the swaps and put options held by the big commercial banks won’t be liking these moves.  Rob Kirby has spoken about all the derivatives that suppress the interest rates by betting on yield going low and staying low.  Also, the 30 year note went up 15 basis points today.  With the market only going up 100 pts on the dow, you won’t think you would see this much movement on the treasuries.  Am I missing something or am I just making a big deal about nothing?

    • DV I thing the reason of the Fed rates going up is explained by Dave from Denver. He has a post on Bro Jo’s site that speaks to the real fear of traders and other informed holders of trading desks.  He is talking about something bad that will happen with the BOJ and the Fed in the next few months.  The Fed auctions are being priced up to get at least some action.  the Fed bought about 65%% of the 2 yr issuance, is forced to buy 50% of the entire new issue treasury market and owns 30% of the bond market to date.
      It could very well be that the Fed sees an impending ‘failed offering’, one in which they have to buy the entire issue.  This forces up the offered rate   German had a couple of those last summer and it scared the heck out of them. 
      The failure of a bond market offering, even a small one, would spell serious problems, expose the fraud of the system and BOJ is closer to this that the Fed.   If BOJ faces failure even as rates are jumping over 1% this could be a horrific event.  I do not know what would come of this but the effect on stock market would be chilling as rates would necessarily jump and jump a lot.   Maybe 3, 3.5% or even 4% for the bellwether US 10yr.

    • DV  more on the bond prices, rates and evaporation of markets   Over on Harvey Organ’s channel Holter is on a tear about the BOJ and their psycho bond markets.  The BOJ says buy 1% 10 yr bonds in a 2% inflation market or else—-.  This might be what Sinclair was hinting.  If the entire world of collateral is 10 to 100 times pledged, something that the EU is ranting about over the weekend, we may have that shadow banking empire on edge.  I explained what I thought was shadow banking and was actually talking about old money. It might be part of the shadow banking, maybe they are interconnected given the nature of the BIS and its century old bases with the new and old world banks.
      The idea that that BOJ bonds have no collateral backing, if course, and if the bond rates go to 2% or higher the entire tax revenues of Japan would be used to pay the interest (50% now goes to that payment) then the Eurocrats are probably crapping their pants, realizing their entire 45 trillion banking system is rehypoed to infinity and there is no collateral available.  It’s been pledged to 100 times its value.
      This makes the $500 million in phony bank certs from HSBC and Standard bank that were supposedly collateral for the hypo and rehypo paper gold trading scam of HKMEX show the true nature of the trillion dollar markets  HKMEX is a tip of the iceberg but if what appears to be true is actually the case,  HKMEX is just a phony front for paper gold price suppression that helps China to short the paper gold and buy the real gold at a $200 lower price.
      Maybe Jim sinclair saw something we missed but is really on the minds of the bond houses and traders.  If the BOJ has a few more days or a week or two of what it experinced in the last few days, the bond markets in Japan, US, China, Germany and the EU could go tits up
      That coiled spring of rate suppression that has kept the bond market alive with promises of sugar plum fairies, fully secured Central bank bonds, and decent safe yields 200 BPS above inflation will  be stripped raw by the BOJ falsities.  Rates then skyrocket, bond bubbles burst worldwide,  Japan Inc collapses along with Greece, Spain, italy and France, and the whole house of cards comes crashing down like the subprime mortgage fiasco did when homes dropped by 50-75% of the mortgages on tghe homes and rates shot up to 6% from their suppressed 1% teaser rates.
      Europe will  implode and liquidity will dry up,  That continent will  go into a credit and cash flow lock down.  Japan will be destroyed. The fed will come out guns blazing with QE 2000 and it won’t stop the crash.   this could get nasty.

    • Sounds like good times AG, ;)
       
      That is scorched Earth and Mad Max all rolled into one.

  10. He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity (Ecclesiates 5:10)
    Don’t shoot the messenger :)

    • P16:16…You’re not being a good messenger, brother.  Scripture needs to be interpreted in it’s full context, in this case Ecc 5:10-20.  Work.  Wealth.  They are gifts from God, not to be abused.  Money is a good servant, but a bad master.  Make your money(silver) a servant to serve others, not your master so it masters you.  That is what the Lord is saying through Moses.

  11. But he shall not multiply horses to himself, nor cause the people to return to Egypt, to the end that he should multiply horses: forasmuch as the LORD hath said unto you, Ye shall henceforth return no more that way.  Neither shall he multiply wives to himself, that his heart turn not away: neither shall he greatly multiply to himself silver and gold.And it shall be, when he sitteth upon the throne of his kingdom, that he shall write him a copy of this law in a book out of that which is before the priests the Levites:  And it shall be with him, and he shall read therein all the days of his life: that he may learn to fear the LORD his God, to keep all the words of this law and these statutes, to do them: That his heart be not lifted up above his brethren, and that he turn not aside from the commandment, to the right hand, or to the left: to the end that he may prolong his days in his kingdom, he, and his children, in the midst of Israel. (Deuteronomy 17:16-20)

    Again don’t shoot the messenger :)

    • Proverbs you’re clearly taking Scripture out of context in a deluded attempt to scare those who don’t have a full understanding of what God really says about gold and silver away from them. 
      The above passage in Deut was directly written to the future kings of Israel, and they were not to greatly multiply silver and gold to themselves in expense of the people.  Attempting to use the passage to claim that God said it was wrong to save wealth is contorting scripture to support pre-held views and beliefs.

      -Doc

    • proverbs specializes in just that doc, making him wicked or deceived and therefore dangerous.

  12. Don’t you just hate Greek, translated to Latin, translated to English? If your going to quote from a Bible, can you please use one that has been translated to read as normalized English. May I suggest the Good News Bible. Its rather good. KGV is such a bore.

  13. Holy tamole Duckvision   15 BPS in one day.  I regularly check and didnt catch this one.   That 29% in one month, up frm 1.67%   If this gets out of hand it’ll make the GLD gold theft look like small taters.  You are right.   This is not good and could be really bad for the market.  There’s an old say, three jumps and a stumble.  Meaning 3 interest rate increases and the stock market tanks.
     
    Pat  A wierd thought occurred to me.   If the Queen has that connection to social security, arranged in 1933-34 and she is certainly connected to the Fed through her bank holdings, it seems that as the British empire faded and that was clear even before WWI, abundantly clear after WWI and between the great depression and WWII, plus a not-so-subtle shove by the US gov and their subprime bailout of the UK after WWII that effectively emasculated and bankrupted Great Britain, the Queen and her mother saw the handwriting on the wall
    Their entire bloodline, British and German, was witness to the rise and fall of empires, virtually all for the same reason.  Empire overreach with debt, war, welfare, FIAT, a depleted treasury and a depleted and weary population with few men left to ‘carry on’, I am guessing QEII saw the need to pass the baton to her ‘colonial subjects’   If the connections with the British royalty is still financially strong in ways I do not know, it seems a fitting way for her ‘children’ to carry the torch.  We are as close to the British as any peoples.  My dad and his friends, gin and tonic Canadians of the stiff upper English mold , would refer to the  the USA as  ”those Colonials’, looking down their noses at their American cousins.  You’d think they just lost the revolutionary war and still smarted from the loss.
    Anyways, what is your take on the Queen still pulling the string of empire by proxy through the colonies.?
     

    • U know how I Feel…

    • …although I do hold out Hope, that as the bank$ter$ are shown the door, (and in the EARLY STAGES)
      the “royals” see the opportunity to DECISIVELY “Switch Sides” and HASTEN THE PROCESS of kicking 
      some Bank$ter$ Heiny all the way back to the Stone Ages! IF (and that’s a big IF) these “royals” are 
      worth a pinch of p!$$, then they will help “WE the PEOPLE” and redeem themselves… who knows?

  14. Maybe the Royals, horndogs all,  consider this sort of activity like some people watch internet porn.
    If you can’t get it up with a real empire,  digital empire  porn might do  the trick.   I guess her sceptre has more than one use.  Double D batteries optional, like her bra size.
    Sorry Proverbs 1616,  Bless all the pygmies down in Borneo. 

  15. Good little amount of info in this video that could send crude and the metals higher short term.
     


  16. The message is getting out. S is going to hit the fan. TPTB think if they block the internet people will stay asleep. I’m still waiting for the Ag from the May 1st pay back “attack the bankers” buy silver thing. Silver, What silver? It’s been 4 weeks and I’m still waiting for three retailers to deliver. The Doc included. Supply must be tighter than ever!

    • no doubt some people are waiting, but premiums keep shrinking even with stagnant prices.  I’m not buying the tight supply theory.

    • You don’t seem to buy into much of anything put forward here, so why believe others that just told you the facts on their own orders?
       
      Amusing. Maybe you’re finding silver @$15 like jiggy at unnamed pawn shops and yard sales too? I’m kind of surprised people aren’t simply throwing it from their rooftops by now. 

  17. Guys, a 2.17% yield on the 10 year, and Japan at .90-1% is not that big of a deal.
    Add 1-2 basis points, and then we have something.
    QE won’t let the bond market do anything crazy, they have plenty of ammo.
     

  18. If those BOJ rates bump much at all the derivative market will really get dicey   Those back these bonds and ours too.  I dont know the exact effect but it’s the derivatives that present the worst problem  The rate increases will be costly but if the WMDs go off, it’s a whole different matter.  I think that is the important factor.  Those total 100 times the fed and the BOJ debt.

  19. It’s going to get uglier before the party ends. That’s it in a nutshell right?  It wasn’t much of a party let me tell you.  Guy’s been selling me Silver for $24/oz since the 17th of May.  

  20. Supply and Demand story: Last Friday, called up the 3rd coin/bullion store dealer in my city. He states $1.50 over spot for generic silver, and $5 over spot for ASE/Maples (vs $3.50/$6 from the other dealer). It was a long ride and cost me $30 in taxi fare (as they were located on the edge of the city) and what do I find? They have no generic silver in stock …. maybe next weekend! LOL
     
    I went to the other dealer in town and got lucky. One guy quoted me $3.50 over spot for generic and as I said I was buying 2 tube (20x1oz), another guy said – I’ll give it to you for $2.50 over. I bought 4 rolls, total of 80x1oz. Last of my paper money for accumulation.

  21. nice buy G8  I’m guessing that the LCSs are buying under spot and need to sell to make a couple of bucks per ounce.  No business wants to be out of inventory or sell at a loss  that can’t continue.  If a seller is selling silver for $2 over it is not because they want to sell at these low prices. But when a firm can sell for a $3 profit on $22 spot that is a decent profit, just about 12-13% profit.  It’s better profit margin than selling for $1 when silver was $35 an ounce.  Less inventory selling but with a profit retention that keeps a business open and in operation.  12% on smaller volume beats 3% on heavy volume.  Fixed costs ramp up with higher volume, eroding the bottom line.  Selling smaller volumes with one person taking care of the sales makes sense.

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