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Gold And Silver Surge On QE3 Expectation Rerack

Tyler Durden's picture


Who'd a thunk that BTFD works for commodities even better than it does for stocks. Desks now advising clients that QE3 is likely (whether or not due to this article is irrelevant) and the result is presented below.



Next up: as bond yields jump by 100+ bps next, Bill Gross will be more than happy to load up at a special, new low price.


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Fri, 03/11/2011 - 13:01 | 1040871 Tortfeasor
Tortfeasor's picture

BTF Tsunami 

Fri, 03/11/2011 - 13:03 | 1040883 Tortfeasor
Tortfeasor's picture

Silver looks like a tsunami...flat, then the tide goes out, then a double-overhead

Fri, 03/11/2011 - 13:16 | 1040956 whatsinaname
whatsinaname's picture

while I think QE3 is a certainity, it aint coming without a tangible market drop. Ben may not be able to justify QE3 while crude is still over 110 (brent). Which means even though long term fundamentals for silvah and goldie are fine the current spike could be a head fake.

Fri, 03/11/2011 - 13:20 | 1040997 SilverRhino
SilverRhino's picture

QE3 is a DONE deal.  

Who do you think is going to have to purchase all of the UST's that are about to come onto the market in competition with the Treasury's standard sales as Japan deleverages and starts paying out insurance and rebuilds?

No QE3 = USA implodes. 

Fri, 03/11/2011 - 13:24 | 1041027 ColonelCooper
ColonelCooper's picture

And QE3 = USA explodes.  Choices.  Choices.

Fri, 03/11/2011 - 13:40 | 1041144 EscapeKey
EscapeKey's picture

No doubt some Keynesian macroidiots will attempt to sow doubt about QE4.

How did a school of economics, which is consistently wrong, get to be so powerful in todays economic environment?

Fri, 03/11/2011 - 13:58 | 1041269 pslater
pslater's picture

"How did a school of economics, which is consistently wrong, get to be so powerful in todays economic environment?"

Its perpetrated by the 'progressives' whose answer for every failed outcome is always the same: "We just didn't have enough resouces (money) and regulation into it last time.  If we just increase the funding and regulation 'X' times, I KNOW it will work next time."

Until, of course, it doesn't work next time either...

Fri, 03/11/2011 - 14:19 | 1041374 Founders Keeper
Founders Keeper's picture



Fri, 03/11/2011 - 15:40 | 1041799 UGrev
UGrev's picture

Let me refine your statement. The people weren't under enough control where 100% of their production went to service the government. Seriously.. this is what they want. 

Fri, 03/11/2011 - 20:57 | 1042938 gibbs
gibbs's picture


Fri, 03/11/2011 - 14:33 | 1041467 newworldorder
newworldorder's picture

When you never say no to power it is easy to be successful. There is a sexual expression for this, but I won't go there.

Fri, 03/11/2011 - 14:35 | 1041472 redpill
redpill's picture

Because it allows for easy bribery of enough of the populace to allow the policy to continue.  Government makes all the money they want, they pick the winners & losers, keep the necessary palms oiled, and everyone is happy until the day finally comes when it all falls apart, but that's the beauty of the ugly machine, with funny money and holding the title of Reserve Currency, you can stretch this bitch out a llllooonngggg time.


Fri, 03/11/2011 - 14:38 | 1041491 seek
seek's picture

The immortal wisdom of Glenn Frey: the lure of easy money has a very strong appeal.

Fri, 03/11/2011 - 21:32 | 1043035 StychoKiller
StychoKiller's picture

"Rock stars, is there anything they don't know?" -- Homer Simpson  :>D

Fri, 03/11/2011 - 17:23 | 1042140 RafterManFMJ
RafterManFMJ's picture

Essentially it told the politicos what they wanted to hear.

Deficits do not matter.

You can print, and thus fund MASSIVE welfare programs - and thus buy votes and power.

Hard money does not allow huge welfare states.

Fri, 03/11/2011 - 19:55 | 1042749 Mossy
Mossy's picture

Lysenkoism without the gulags.

Sat, 03/12/2011 - 11:44 | 1044318 Exposer of Inte...
Exposer of Internet Shills's picture

it's Satanic, to bring about a purposefull collaspe so that a ONE world government can eventually be formed.  Read about the powerfull influence Aliester Crowley had in the early part of the century (describing this) and then read the Bible.

Fri, 03/11/2011 - 13:51 | 1041207 Dr. Porkchop
Dr. Porkchop's picture

The inflation explosion kicks the can down the road a little while rather than an immediate and devastating depression, the kind that has angry mobs outside of politicians homes. The end result will likely be the same either way, but they'll buy time at whatever cost.

Fri, 03/11/2011 - 14:19 | 1041377 Temporalist
Temporalist's picture

They just want to buy enough time to be out of office so they can't be blamed.

Fri, 03/11/2011 - 15:03 | 1041638 Cyrano de Bivouac
Cyrano de Bivouac's picture

They also need time to dig a rat hole in Paraguay or Costa Rica to scurry off to when the time has come.

Fri, 03/11/2011 - 19:57 | 1042759 Papasmurf
Papasmurf's picture

They don't go out of office.  That's the root of the problem.

Fri, 03/11/2011 - 15:39 | 1041791 I am more equal...
I am more equal than others's picture

QE32 is like sheen on an 8 gram rock; sure, the party was great but the law of unintended consequences kicks in somewhere down the line.  The US and the world has smoked that big rock and are trying to prevent the consequences - Bernaked is trying to pull off bi-winning .... the manic phase is always the funnest.

Sat, 03/12/2011 - 10:35 | 1044110 huntergvl
huntergvl's picture

This time will be different. QE3 will not engender a market rally, it will lead to a harsh correction.

Of course there will be a QE3. No way to handle the treasury rollovers without it. But, it's obvious that the US economy is now officially 'STUCK.'

BTFD has a new risk dynamic. You might be able to trade it for a bit longer, but the risk of getting hammered to the downside has increased and will rise linearly as we approach 6/30.

Fri, 03/11/2011 - 13:26 | 1041036 DoChenRollingBearing
DoChenRollingBearing's picture

I just checked (12:20) and their handy gold/dollar calculator.

ALmost all this spike is due to the dollar taking a dump.

Fri, 03/11/2011 - 13:41 | 1041150 EscapeKey
EscapeKey's picture

I don't actually get this - why is this bullish for the Yen?

Fri, 03/11/2011 - 13:56 | 1041256 DoChenRollingBearing
DoChenRollingBearing's picture

Escape, the line I have read about the Yen going up is that when there is a BIG DISASTER in Japan, they repatriate their Yen to rebuild.

I do not know how reliable that info is.  ZH-er Orly writes often about FX, ask him/her!


Gold, by the way, is some $3 or $4 off its little tip of the spike there.  This might not be a big move, but remember I do not TRADE gold, I just buy and hold it.

Fri, 03/11/2011 - 14:01 | 1041285 EscapeKey
EscapeKey's picture

I get'cha. So they sell US Dollars and denominated assets in exchange for Yen. That would explain both the strength of the Yen as well as the Dollar weakness.

Thanks, DCRB.

Fri, 03/11/2011 - 14:04 | 1041300 dearth vader
dearth vader's picture

Piles of yen will be needed to pay for damages and insurance. Japanese institutional investors will dump $$ and €€ for yen.

Fri, 03/11/2011 - 13:41 | 1041148 pauldia
pauldia's picture

Who bought PIMCOS treasuries? Look for a new Homestead Act to bring back one trillion at very favorable terms. Also, your retirement funds are a little low on treasuries for your own good. Many buyers available.

Fri, 03/11/2011 - 14:06 | 1041311 dearth vader
dearth vader's picture

"Who bought PIMCOS treasuries?"

Must have been the bigger fool, but which one, indeed?

Fri, 03/11/2011 - 14:17 | 1041367 EscapeKey
EscapeKey's picture

I would say there's no bigger fool but Bernanke, but I don't think he's deliberately obtuse. The plan is obviously to shift ALL assets to the elite, and so far he's carrying out his job to perfection.

Fri, 03/11/2011 - 13:47 | 1041183 rustybenelli
rustybenelli's picture

I think the bernank needs political cover before he unleashes qe3.  Let the markets drop and then state due to the fragile nature of the recovery "forty acres and a mule for everyone".

Fri, 03/11/2011 - 14:13 | 1041341 Smu the Wonderhorse
Smu the Wonderhorse's picture

I think QE3 may be too politically difficult with prices already soaring.  What about another QE lite, i.e., not letting the Fed balance sheet shrink?

Fri, 03/11/2011 - 13:32 | 1041078 Yield2Greatness
Yield2Greatness's picture

Ben Bernake, is god and answers to no one.  Probably farts in bed and giggles when his wife inches away.

Fri, 03/11/2011 - 13:02 | 1040872 Gen X Gen Y Hybrid
Gen X Gen Y Hybrid's picture

As I said last week.....Friday effect.

Let's see that COT report.


Fri, 03/11/2011 - 13:01 | 1040875 Big Corked Boots
Big Corked Boots's picture

I suppose if you are going to hold silver you better like roller coasters.

Fri, 03/11/2011 - 13:06 | 1040892 fuu
fuu's picture

Uh ok. If you are holding silver and were not expecting this then you should sell me your weak hand.

Fri, 03/11/2011 - 13:13 | 1040935 Shameful
Shameful's picture

Hold on?  It's easy.  Just have to look up and see if the reason you bought silver/gold changed.  Is Zimbabwe Ben still manning the bridge?  Yep.  Does the US still have face melting deficits?  Yep.  Does the US have a plan to deal with the massive entitlements it's promised?  Nope.  Does the US have a foreign policy that does not involve free money or murder?  Nope.

Now if your trading, well then good luck to you, that's a whole different animal.

Fri, 03/11/2011 - 13:15 | 1040948 Tortfeasor
Tortfeasor's picture

That's the second "face melting" reference of my day.  Thanks!

Fri, 03/11/2011 - 14:22 | 1041395 Temporalist
Temporalist's picture

You forgot expanding empire and military industrial complex and police state.

Fri, 03/11/2011 - 14:42 | 1041508 Ricky Bobby
Ricky Bobby's picture


Fri, 03/11/2011 - 13:03 | 1040881 byukid
byukid's picture

"Silver to 10$ by next Thursday"

- Methman

Fri, 03/11/2011 - 13:25 | 1041017 Broomer
Broomer's picture

I don't intend to play games with the market, I'm just hoarding PSLV.

If a fall like the one in 2008 happens again I'm buying like a madman.

Sat, 03/12/2011 - 08:52 | 1043858 ManOfBliss
ManOfBliss's picture


Fri, 03/11/2011 - 13:27 | 1041040 Temporis
Temporis's picture

by Math Man on Sun, 03/06/2011 - 20:23 #1024792

"It only costs five bucks to dig it out of the ground!"

Fri, 03/11/2011 - 13:32 | 1041082 Long-John-Silver
Long-John-Silver's picture

He could also say "A gallon of diesel fuel will bring up an ounce of Silver".

Sat, 03/12/2011 - 07:19 | 1043789 Al Gorerhythm
Al Gorerhythm's picture

Willy the Retard, "You'll be puking PMs by Monday afternoon" He really doesn't have much to say or offer, does he.

Fri, 03/11/2011 - 20:00 | 1042776 Mossy
Mossy's picture

If silver drops to $10, I'm cleaning out my bank account, borrowing to the limit, and buying all I can get my hands on. The reasons silver has gone up have not vanished.

Fri, 03/11/2011 - 13:04 | 1040886 gorillaonyourback
gorillaonyourback's picture

Why did bill gross sell all his treasuries (assuming he did, my argument is as follows)?  I’ll tell you why, the global elite want us in a deflation spiral.  Why you ask?  Cuz they can't accept a currency collapse due to hyper inflation that would be the death of fiat currency, PERIOD, on a global scale.  If they continue printing; commodities keep going up, up, and up, then you reach a point where gold and silver become the default currency simply by the continued devaluation of the dollar to worthlessness.  Also food prices would rise, throwing all countries into revolution(people can't be hungry very long without getting grumpy) just look at Egypt, the middle east and north Africa, revolutions going on everywhere.

So you ask why deflation? It is now the only way to protect the fiat money system, they tried inflating with tarp and QE2 and as you see what happened, food prices soared, precious metals soared, stocks soared BUT something happened.   No wage inflation and no borrowing, AINT THAT A BITCH,  you need borrowing to keep the ponzi scheme going. 1million dollars turns into 10 million dollars in the fractional reserve system but you NEED PEOPLE TO BORROW to make 1mill into 10 mill. (Ya know, I thought trickledown economics was a bunch of hooey, now I know it is!)  

I am also convinced that TARP and QE2 was intended to give those selected few enough fiat currency to be ready to buy assets when the deflationary spiral plays out. Similar play book as in the 1930’s , just more zero’s.

So here we are today, bill gross gave the biggest clue for deflation, if he has the feds ear or vice versa and he is holding no treasuries(remember assumption) THERE WILL BE NO QE3.  That means no more free money by helicopter ben,  INTEREST RATES WILL SKY ROCKET, housing property values will decline,  stocks will surely decline, and oh yeah so will all commodities(yes gold and silver).  Cash will be very scarce, and i suppose what bill gross will turn into is one big property mogul cuz he has all that cash ready to buy property at 40-50% discount or better.

Wonder why insider selling is at an all time high?  cuz they are coming back in a year or two, to buy all their stocks back at a huge discount. BIGGEST FUCKIN PUMP AND DUMP EVER! 

Have you wondered why states are going after the public unions? cuz in a deflationary spiral the government loses.  Less tax receipts but still have to pay same wages as yesterday to the government workers.  oh yeah don’t expect your muni bonds to be doing very well either.  What do you want to bet, that the link of cola works both ways for social security benefits and if they don't now, they soon will be?

I wonder if in a few months Puppet Prez Obama comes out and says “We broke and we aint payin”.  OMG a default?  Yep, quacks and hacks a default.  How you gonna git blood out of a turnip?  Pretty sure that saying came from some dude hijacking some dudes turnip truck cuz he had sex with his sister/wife and he couldn’t find him so he took his turnip truck

If you think this sounds farfetched cuz the rich elites and the government loose in a deflationary spiral too, remember this, the rich elites will make a killing when asset prices drop and they r the only ones who will have cash.

What does one do in this scary world where there is a Muslim terrorist around every corner (FUCKIN FAUX NEWS)? Follow me here! Get back to basics cuz if you don’t you will get back to basics the hard way.  BE SELF SUSTAINABLE.  BE READY FOR REVOLUTION  don’t be afraid we need it.

Riddle me this, why did International Monetary Fund (IMF) grant loans to Haiti on the condition that it agreed to structural adjustment programs? I’ll tell you why it’s about food. The structural adjustment basically collapsed Haiti’s agricultural economy by shipping in food that was cheaper than what it cost them to grow themselves.  Poor Haiti had no idea that the food they were buying so cheap was subsidized by foreign governments for the sole purpose of collapsing their agricultural economy to turn them into a cheap island labor camp for the global elites, one big island maquiladora. 


What happened to the farmer in america?  Bought out by Monsanto, Cargill and other megalopolies

So my advice is 2u is if you have assets get into cash, I can’t believe I just wrote that:(, and be a farmer.  If you don’t have cash, get too some farm land and learn to be a farmer. Tiz gonna git wicked ugly.


Fri, 03/11/2011 - 13:11 | 1040928 Debtless
Debtless's picture

is the 5000 year bull in gold over? thx for the heads up.

Fri, 03/11/2011 - 13:18 | 1040973 nope-1004
nope-1004's picture

One flaw that could put a huge wedge in your argument is the assumption that the 'elites' aren't stocking up on PM's themselves.  Supply shortages are real, now ask yourself why.  Is it because your neighbor down the street is trying to secure 6,000,000 oz's of Silver?

Central banks are buying PM's like crazy.  Now you say they want a deflationary collapse?  Makes no sense.

Fri, 03/11/2011 - 13:23 | 1041010 gorillaonyourback
gorillaonyourback's picture

i think about it this way,  there has to be a certain amount of something(lets say gold) to be in circulation to be an effective currency if its not in circulation to be enough then i cant be a currency.

Fri, 03/11/2011 - 13:28 | 1041049 nope-1004
nope-1004's picture

So if there's not enough oil in the world, it's not an effective resource and not in demand?

So if gold and silver supply shortages increase, prices will fall (deflationary)?


I've got some Enron shares you may be interested in.


Fri, 03/11/2011 - 20:16 | 1042825 dumpster
dumpster's picture

  quote "effective currency if its not in circulation to be enough then i cant be a currency."



gold is money,, it stands behind the bills, or paper notes ,   gold just sets,, it does not have to be held in your pocket.

silvers role is to be the coinage of exchange

gold sets backing the free flow of bills of exchange

golds price is set to equal the number of such instruments,

so as if you want gold , you take the paper or warrant with value expressed in numbers on the bills , with a corresponding value attached to the gold. turn the paper in get gold . presto \

this ability to think is sure a dwendling commodity (pun)  

like every one needs to hold a big handful of gold to make the gold standard work (not enough gold cries out the crowd unable to think ,   


Fri, 03/11/2011 - 13:24 | 1041021 Max Hunter
Max Hunter's picture

Deflation; rates up, asset prices down.. Not gonna happen..

Mega defaults, service of ALL deficits (esp USG) would be catastrophic all the while revenues down..

Inflation is the easy way out for now. They just think they can control it.. say.. 25% over the next couple of years.. but they can't.. it will run away from them..

Fri, 03/11/2011 - 20:20 | 1042838 Papasmurf
Papasmurf's picture

Don't worry about central bank buying,  watch the thieves inside.  The stolen loot is being converted into precious metals while they disassemble the banks they work inside of.   There is no need or intention for the banks to survive.   I don't think bank survival is even possible over the longer term.  Why would insiders plan for that and hold cash?

Fri, 03/11/2011 - 13:12 | 1040941 High Plains Drifter
High Plains Drifter's picture

He probably sold the treasuries because it is as he has said, they are worthless and he probably sold them us ( the FED) just like he did his MBS stuff.  No big deal there, same old , same old.  Chair satan has stated many, many times, he will do whatever it takes to stop deflation. What you say is a possibility however. But to me, a metalhead, it matters not. I have as few of the FRN's as necessary and I simply don't care about them or what they do. I have enough food to last me for a while, enough water, enough ammo, and enough guns etc. I am ready for whatever may come. Just bring it. Let's get this party started.  I want to fight for the right, to party.........

Fri, 03/11/2011 - 13:17 | 1040944 66Sexy
66Sexy's picture

Red or Black. Hit or Stand. Raise or Fold.

Either way, they have us right where they want us.... guessin'. 

But I cant help but feel the same way i did back in 2005, looking to buy property at the highs.

Bubble economics, defined as the pressure to buy at the high to "protect yourself from a dollar collapse".


Fri, 03/11/2011 - 13:16 | 1040969 gorillaonyourback
gorillaonyourback's picture

guessin, but i guess be prepared for anything

Fri, 03/11/2011 - 13:15 | 1040962 6 String
6 String's picture

I actually agree with this thesis, short term. I believe, too, a concentrated effort by Bernak and his banking cronies is now incentived to let deflation take its effects.

One thing Bernake and the banks are losing is ALL credibility. This we know. What does one do when every once of their credibility is called into question....

They try to get it back. Remember JP Morgan and Goldman Sachs were out of Subprime BEFORE the train wreck...they are starting to tell their shadow HFT's to hit the reverse buttom, along with their prop desks for total profit.

Just as it starts getting ugly, QE3 to the bidless bond resuce.

Sat, 03/12/2011 - 21:28 | 1045347 gorillaonyourback
gorillaonyourback's picture

update on my opinion,  just listening to jim rickards and he has a very intersting point.  He agree the will be no QE3, but we will have perpetul QE.  this is how, all those bonds the fed has been buying and all those mortgage backed securities(mbs) they have, aprox 3 trillion, will be kicken off interest in the bonds and principle from the mbs.  that money will be used to continue buying bonds,  so they gonna print money to pay the interest on the bonds they hold FUCK I WISH I COULD PRINT A BOND THEN HOLD THAT BOND THEN PRINT THE MONEY FOR MY INTEREST AND PRINCIPLE.  can u see what a circle jerk it has become.  apparently of that 3 trillion the interest(they printin) and the principle and interst from the mbs total 750 billion a year.  and the dont expand the balance sheet they keep it at 3 trillion.  you gotta be fuckin kiddin right

Fri, 03/11/2011 - 13:17 | 1040965 bull-market_3.0
bull-market_3.0's picture

Why are you so certain that Gross is telegraphing deflation? Isn't it just as likely that Interest rates rise because Gross is telegraphing QE3?

Fri, 03/11/2011 - 13:20 | 1040990 gorillaonyourback
gorillaonyourback's picture

no he is telegraphin no QE3,  and alan greenspan is a paid consultant that should say alot. IM GUESSIN lololol

Fri, 03/11/2011 - 13:32 | 1041075 6 String
6 String's picture

Why are you so certain that Gross is telegraphing deflation? Isn't it just as likely that Interest rates rise because Gross is telegraphing QE3?

Good question, easy answer since Gross answered this question on public T.V. when he said that the stimulus is essentially a tripod: unfunded deficit spending, ZIRP, QE. He said that while QE will go away, he thinks the other two legs should remain for awhile.

So, as QE in initially pulled right after June 30, rates will indeed rise since Gross has pointed out when the Fed stops buying Treasuries, we lose the 70% buyer. Hence, rates rise. Gross said he'd be a buyer, but nowhere near these artificially low yields since the U.S. is in worse shape than Spain.

Those are his words I'm paraphrasing, not mine. Keep in mind, Gross has been frontrunning and telegrahphing every singe Fed action. I'd say he's got the full "expert network" finely oiled on his behalf.


Fri, 03/11/2011 - 13:34 | 1041101 gorillaonyourback
gorillaonyourback's picture

yes thats the only reason im makin this argument, Gross knows way more about whats comin than i do

Fri, 03/11/2011 - 13:19 | 1040980 Tortfeasor
Tortfeasor's picture

Your theory is he sold a cash-equivelant interest-paying instruments because he was afraid of DEFLATION?  The type where cash and interest bearing bonds increase in value?

So, if I parse your theory correctly, Bill Gross sold treasuries cause he doesn't like making money.  Or alternatively, because he's simultaneously the manager of the biggest pot of money in the world & an idiot.

Fri, 03/11/2011 - 13:53 | 1041215 MachoMan
MachoMan's picture

My guess is that he was told to sell by his perfectly legal information network in the hopes of raising QE 3/4/+ fears (because we're going the other way in the short term)...  or, alternatively, for plausible deniability to get some big, in your face, trades wrong...  in the hopes of not being a prime target after the security apparatus fades (I think he's undertaken quite a few efforts recently in these regards).  Who knows...  maybe he's just throwing a temper tantrum after being thrown out of the loop...

Fri, 03/11/2011 - 13:30 | 1041071 Abitdodgie
Abitdodgie's picture

Good idea but to have real inflation you have to have the FRN backed by something of value when a currency is back by nothing it is worthless and by the very nature of a paper money scheme (ponzi) you have to keep generating money or it will collapse ,so of they stop the printing (creation) of money ,game over , they cannot default or everyone will drop the dollar like a hot potato , game over . The only way they can go is the same way every (50 I think ) other fiat currency has gone hyperinflation and ,game over .What is really killing them TPTB is the price of oil ,don't forget we have lots of oil ,just no cheap oil left . That is why there will never be a global economy, or a global Government .

Fri, 03/11/2011 - 13:44 | 1041177 Eager learner
Eager learner's picture

This is from 2008 and I don't know how real it is but:

3 to 4.3 Billion Barrels of Technically Recoverable Oil Assessed in North Dakota and Montana’s Bakken Formation—25 Times More Than 1995 Estimate


Fri, 03/11/2011 - 16:54 | 1042012 trav7777
trav7777's picture

a tiny resource.  3Bbbl is not a very large find.

Fri, 03/11/2011 - 20:34 | 1042868 Papasmurf
Papasmurf's picture

Actually, to have inflation, all you need is less goods than you have of available money.  A bad economy will accomplish that just as quickly as a brisk one even if you shrink the money supply.   The difference is with no money velocity, there is no control.

Fri, 03/11/2011 - 14:39 | 1041464 Hugh_Jorgan
Hugh_Jorgan's picture


1. Deflation is incorrect,  I think you mean StagFlation.

2. You better be careful as you reject legitimate sources of information and call for a Revolution. I agree it is a very real possibility, but we should be VERY afraid of it.

It is one thing to say that a Revolution in your average Banana Republic is no big deal, when you have the whole western world to subsidize your country until the next tin-horn dictator takes the reins.

It is quite another to speak about "needing a revolution" in the heart of Western World itself. This is a leap into an abyss that we might not soon return from.

Remember, the American revolution was a unique in all of human history. We had the confluence of many providential events that coincided at precisely the right times. A Protestant Christian revival was just winding down, we had leadership that was strong, generally honest, forthright, and concerned with their constituency. Many of these Founders had also knew more about history, government, law, and economics than the professors that teach these subjects in ivy league schools today. We also had an electorate that was much more involved, they discussed issues and learned about the government in townhalls, churches and taverns. This is why our revolution ended the way it did.

Today you have the opposite in America. We have ignorant, self-serving, dishonest leadership. We have a morally bankrupt popular culture. We have very little common morality. Many of the decent people are fearful and risk averse. The electorate is generally uninvolved, ignorant of the law, of history and often the very reality of the world around them Plus, the vast majority of the population is absolutely unable to farm or hunt, they wouldn't even know where to start.

So, IMHO you should learn more about what happens 99% of the time when a country falls into "Revolution", before you welcome it. History shows a very ugly tale, indeed.

Fri, 03/11/2011 - 14:59 | 1041611 gorillaonyourback
gorillaonyourback's picture

thanks for the reality check, yes its easier said than done or to deal with.  but i look at it this way "its better to burn out than fade away".  And what i mean by using that statement is we live only a finite time here on earth, id prefer to go away fighting for my freedom than live as a financial slave under this system.  Im sure many people feel as you do that is to ugly a tale to think about but there are more and more feeling the way i do.  I see it every day in the desperation of our people, yes some are doing well but more and more are do worse and just living on the edge.  And thanks again because your absolutly right its something you have to think real hard about before you take to the streets.  egypt will be interesting to keep following

Fri, 03/11/2011 - 14:55 | 1041591 Terminus C
Terminus C's picture

I stopped reading at 'cuz'.

Fri, 03/11/2011 - 15:09 | 1041656 gorillaonyourback
gorillaonyourback's picture

sorry BRO, that its a little to informal,  no malice intended just laughin

Fri, 03/11/2011 - 14:59 | 1041617 Ignorance is bliss
Ignorance is bliss's picture

The last thing I want is the currency from a nation that defaults on its debt. When we default the dollar currency becomes tinder. It will loose value. The elite with piles of cash will have piles of worthless curency. Where unencumbered Gold and Silver will buy real assets, because that's what people will turn to.

Fri, 03/11/2011 - 16:56 | 1042022 trav7777
trav7777's picture

one there a person left on this planet who knows the difference between loose and lose?

Fri, 03/11/2011 - 17:52 | 1042261 Ms. Erable
Ms. Erable's picture

I long to lose my loose lady by the lamppost.

Fri, 03/11/2011 - 19:56 | 1042751 Al Gorerhythm
Al Gorerhythm's picture

I long to find your loose lady that you lost at the lamp post.

Fri, 03/11/2011 - 15:03 | 1041636 stantheman
stantheman's picture

Occam's razor.. which is better for Obama's re-election deflation or inflation. I would think inflation. Deflation would result in job losses and he is toast. So QE3 is coming.

Fri, 03/11/2011 - 19:43 | 1042694 naughtius maximus
naughtius maximus's picture

Its a good theory. I wouldn't junk it because I don't nessisarily agree with it.

Fri, 03/11/2011 - 13:04 | 1040890 High Plains Drifter
High Plains Drifter's picture

Hey Schmailes, how do you like that tsunami?  ha ha ha ha

Fri, 03/11/2011 - 13:06 | 1040891 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

But the trolls said Gold would collapse as soon as the trouble in the ME magically calmed down.

Fri, 03/11/2011 - 13:59 | 1041272 Dr. Porkchop
Dr. Porkchop's picture

Yes, in the troll mind, the run up in prices of the previous years unrelated to the ME never happened. Constantly shifting goal posts. It's ok. I don't believe that these trolls even buy their own bullshit. They are just bored and unemployed and have no gold.

Fri, 03/11/2011 - 14:23 | 1041409 destraht
destraht's picture

I have only 5g :(, but I am a nice person.

Fri, 03/11/2011 - 13:05 | 1040895 alien-IQ
alien-IQ's picture

and the USD taking it's traditional pounding.

Fri, 03/11/2011 - 13:06 | 1040906 Abitdodgie
Abitdodgie's picture

 silver could go up or down or it may even stay the same ! wow these days rock

Fri, 03/11/2011 - 13:07 | 1040907 viahj
viahj's picture

$34 was not the dip i was hoping for, i would really have liked <$30 to add to my hoard

Fri, 03/11/2011 - 13:08 | 1040910 NOTW777
NOTW777's picture

may from 34.05 to 35.62 just like that
bot pre-market and took profits WAY too early

Fri, 03/11/2011 - 13:10 | 1040931 whatsinaname
whatsinaname's picture

would love to see JPM stock get pounded on every uptick of Silvah.

but that aint happenin yet.. sure hope Wynter et al are doing their research well...

Fri, 03/11/2011 - 13:08 | 1040918 THE DORK OF CORK
THE DORK OF CORK's picture

This is a wild ride - I am considering buying another maple but perhaps I should just eat more pancakes with maple syrup and prepare for the great dying.

Fri, 03/11/2011 - 13:08 | 1040920 alien-IQ
alien-IQ's picture

and the USD taking it's traditional pounding. 76.78 will be either a bounce or the beginning of a truly ugly decline (ok...perhaps "beginning" is the wrong word...let's say...continuation)

Fri, 03/11/2011 - 13:11 | 1040923 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold has tested support twice now, and it looks like today's move will take us to resistance by the end of the day.  Will we finally break $1440 with authority next week?  If we do it is on to $1650!

Fri, 03/11/2011 - 13:17 | 1040967 HamyWanger
HamyWanger's picture

"If we do it is on to $1650!"

Drop the 1 at the beginning, and you're close to reality

Fri, 03/11/2011 - 13:19 | 1040984 Mr Lennon Hendrix
Mr Lennon Hendrix's picture


Fri, 03/11/2011 - 17:30 | 1042175 dumpster
dumpster's picture

one word to describe  hammy


Fri, 03/11/2011 - 13:10 | 1040929 HamyWanger
HamyWanger's picture

Huge crash coming to the PM complex soon... unload before it's too late

Fri, 03/11/2011 - 13:15 | 1040947 Vergeltung
Vergeltung's picture

I have not seen the real "Harry" posting here in weeks.....

Fri, 03/11/2011 - 13:16 | 1040959 HamyWanger
HamyWanger's picture

He died by urinal cake suffocation. 

Fri, 03/11/2011 - 13:31 | 1041053 Temporis
Temporis's picture

Sad but probably true...

Fri, 03/11/2011 - 13:58 | 1041265 Hulk
Hulk's picture

It wasn't suffocation Hamy, He actually ate the "big white mint"

Fri, 03/11/2011 - 15:17 | 1041690 Cyrano de Bivouac
Cyrano de Bivouac's picture

Yes and he was buried on Boot Hill with Johnny Bravo.

Fri, 03/11/2011 - 13:33 | 1041090 Atomizer
Atomizer's picture

He posts at MW

Fri, 03/11/2011 - 13:28 | 1041050 cosmictrainwreck
cosmictrainwreck's picture

Dude! where's your flag?! "it's just not the same...."

Fri, 03/11/2011 - 13:29 | 1041057 High Plains Drifter
High Plains Drifter's picture

Its called a correction numbnutts.  We metalheads are well aware of this and are looking over our shoulders. It is something you learn after all the things that have gone on the last few years. No worries mate, what goes down will go back up. The bull will be for our lifetimes. How can it end?  Chair satan is a friend of mine, he will blow me anytime. For a nickle or a dime, he won't charge for overtime......

Fri, 03/11/2011 - 14:27 | 1041427 destraht
destraht's picture

I don't have much gold at all but I own some silver. I live by the "don't cry, buy!" mantra. It works both ways for me.

Fri, 03/11/2011 - 14:31 | 1041451 gwar5
gwar5's picture

So many junks, so little time....

Fri, 03/11/2011 - 15:00 | 1041624 AmazingLarry
AmazingLarry's picture

Don't say "crash" say "bubble burst." We reserve "crash" for JPM, a-hole!



Fri, 03/11/2011 - 20:36 | 1042881 Papasmurf
Papasmurf's picture

The sky is falling and uncle Ben is printing gold eagles.

Fri, 03/11/2011 - 13:13 | 1040936 The Axe
The Axe's picture

computers are working fine....dollar down  risk has worked 10 million times. Q#ciscjust the bullshit reason CNBC would state....please.  

Fri, 03/11/2011 - 13:12 | 1040937 Thomas
Thomas's picture

I am long Dramamine.

Fri, 03/11/2011 - 13:30 | 1041066 High Plains Drifter
High Plains Drifter's picture

por que?



Fri, 03/11/2011 - 13:14 | 1040942 pendragon
pendragon's picture

is that the best you can do for an explanation of this move???

Fri, 03/11/2011 - 13:16 | 1040960 Tyler Durden
Tyler Durden's picture

More buyers than sellers?

Fri, 03/11/2011 - 13:20 | 1040989 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Maybe Blythe was in Japan today?

Fri, 03/11/2011 - 13:22 | 1041005 baby_BLYTHE
baby_BLYTHE's picture


Fri, 03/11/2011 - 13:29 | 1041045 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

After you make a little gain in SLV during the next couple months, as silver climbs to $42, take the profit and buy physical.  SLV is a clearinghouse for the bullion banks.  In the next year or so, when they are forced to liquidate due to demand/supply pressure, the shareholders of SLV will be told that only the top five share holders will be paid in physical bullion. 

SLV is operated by Barclays ishares, which is owned by the Rotheschildes.  This is one of the Rotheschildes last investments in the banking industry.  They will collapse this scheme as they always do and SLV holders will be paid in worthless fiat.

Like I said, have fun with it for now, but plan an exit strategy.  Good luck trading!

Fri, 03/11/2011 - 13:34 | 1041092 oddjob
oddjob's picture

#90 Barclays was buying the Silver producers huge yesterday.

Endeavour,First Majestic,Fortuna,Alexco

Fri, 03/11/2011 - 13:36 | 1041108 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Dear Blythe,


Thank you.



Sir Rotheschilde

Sent from his Chinese palace, I would presume.

Fri, 03/11/2011 - 13:44 | 1041170 baby_BLYTHE
baby_BLYTHE's picture

"I don't think the government should get involved in any pricing"- Jamie Diamon

Fri, 03/11/2011 - 14:00 | 1041104 Quintus
Quintus's picture

I may be wrong, but I believe Barclays sold iShares back in 2009 to CVC Capital partners.



Fri, 03/11/2011 - 14:01 | 1041291 Quintus
Quintus's picture

Junked for that?  OK, Asshole here are your facts:



Fri, 03/11/2011 - 14:15 | 1041352 Dr. Porkchop
Dr. Porkchop's picture

Don't take it personally. Some people just junk whatever for no real reason other than the fact that you can only masturbate so many times per day until you have to find other ways to amuse yourself.

I'll junk this one myself to get the ball rolling.

Fri, 03/11/2011 - 14:29 | 1041442 destraht
destraht's picture

Learn how to spell the ruler of the world properly. There will come a time for you.

Fri, 03/11/2011 - 15:44 | 1041722 stephysat28
stephysat28's picture

The white bread version you are referring to is incorrect, further spelling with E was the accepted version in the 18th and 19th and centuries. Its hard for americans for they just crawled out of the pond a short time ago.

Today, it would be spelled "Rotschild", and is pronounced approximately ROTE-shillt in German, not wroth(s)-child as it is in English.

Fri, 03/11/2011 - 13:33 | 1041079 cosmictrainwreck
cosmictrainwreck's picture

Mr. Lennon is right. did you catch my comment to "extend your time-frame"? The daily zoom-up/zoom-downs will give you ulcers.

Fri, 03/11/2011 - 13:38 | 1041126 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Short term trading is very different from the long term trend.  It is like seeing the forest, while walking the woods.  Many get lost, and frustrated.

Fri, 03/11/2011 - 20:45 | 1042910 gigit
gigit's picture

well said sir

Fri, 03/11/2011 - 13:50 | 1041206 Oh regional Indian
Oh regional Indian's picture

Indeed. We ain't seen nothin' yet. In the end game scenario we are in, everyone wil be pulling levers to make sure they find a chair when the music stops.

So, there will be massive windign and unwinding as risk races from Geo-politics to Finance to Earth changes, round and round and ever higher.

The corresponding in "price" will be dizzying.

The steady uptick in "value" will be a constant.

Just keep that in mind.


Fri, 03/11/2011 - 14:26 | 1041430 gwar5
gwar5's picture

Good get.

If you want a paper silver play with more security, try SLW

Canadian company that buys future silver production of miners



Fri, 03/11/2011 - 13:24 | 1041026 pendragon
pendragon's picture

it is a completely BS move. look at the rate differentials between euribors and eurodollars and yet eurusd is higher. ppt?

Fri, 03/11/2011 - 13:39 | 1041137 IQ 145
IQ 145's picture

 Fading the weekend; and taking short positions at the top; the EUR/USD decline resumes next week.

Fri, 03/11/2011 - 13:44 | 1041172 pendragon
pendragon's picture

maybe youre right. brutal move in aussie off the lows

Fri, 03/11/2011 - 13:30 | 1041072 High Plains Drifter
High Plains Drifter's picture

A nice fantasy , I must admit.........

Fri, 03/11/2011 - 14:24 | 1041404 SRV - ES339
SRV - ES339's picture

QE-3... cnbc crawler?

This has nothing to do with QEx... yesterday was a classic banker driven Ag raid related to their massive, illegal, short positions (opaque, as all corrupt financial games are, so details are subject to a wide range of speculation)... buyers are thanking Blythe and picking up bargains.

Fri, 03/11/2011 - 14:37 | 1041484 Snidley Whipsnae
Snidley Whipsnae's picture

If a devestating tsunami isn't a black swan, what is?

Fri, 03/11/2011 - 15:53 | 1041839 Fearless Rick
Fearless Rick's picture

How about absurdly low volume, maybe the lowest of the year, and the buyers are all part of the new PPT (Pump Priming Twits).

Fri, 03/11/2011 - 13:20 | 1040987 oddjob
oddjob's picture

Gartman told his subscribers to sell Gold for the fourth time this year,he is truly the best contrarian indicator out there.

Fri, 03/11/2011 - 13:21 | 1040999 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Gold is useless, that is why the NYFed will not give Germany its 4k tonnes back that Germany has on reserve at the aforementioned Fed.

Fri, 03/11/2011 - 13:33 | 1041087 pazmaker
pazmaker's picture

hahaha  thats good Lennon.  I got a good laugh

Fri, 03/11/2011 - 13:47 | 1041185 Long-John-Silver
Long-John-Silver's picture

They can't send the Germans Gold plated Tungsten bars.....

Fri, 03/11/2011 - 13:14 | 1040943 firstdivision
firstdivision's picture

I would be rather weary of this expectation since trader desks are advising people to load up in anticipation of QE3.  IBD's want to unload their crap before it goes sour.

Fri, 03/11/2011 - 13:38 | 1041117 baby_BLYTHE
baby_BLYTHE's picture

So a "double-dip" Great Depression is coming?

Please do share. The world is hanging in balance.

People's lives are being decimated by all this inflation, I hope you know ;)

Fri, 03/11/2011 - 13:44 | 1041169 cosmictrainwreck
cosmictrainwreck's picture

second time (at least) I've heard you refer to "double-dip". there can be no DD when the FIRST one never ended - which is where we are.... unless you believe .gov that we are in "recovery"

Fri, 03/11/2011 - 14:15 | 1041362 Dr. Porkchop
Dr. Porkchop's picture

It's a dam made of paper.

Fri, 03/11/2011 - 20:44 | 1042908 Papasmurf
Papasmurf's picture

it's damn paper

Fri, 03/11/2011 - 14:04 | 1041304 glenlloyd
glenlloyd's picture

A rececession / depression halted by inflation is not a recovery, it's just that the idiots at the NBER don't offset the GDP figures with the debt used to create said rise in GDP.

There never was a recovery.

Fri, 03/11/2011 - 14:34 | 1041476 destraht
destraht's picture

You make taking my medication so not fun when you talk like that.

Fri, 03/11/2011 - 13:15 | 1040946 lieutenantjohnchard
lieutenantjohnchard's picture

gold and silver dips are shorter in duration than a bill gross bond portfolio.

Fri, 03/11/2011 - 13:24 | 1040978 Cdad
Cdad's picture

Everyone should just...remember...remember this day when the criminal syndicate known as Wall Street used the death and destruction in Japan today to suggest to you that the tragedy is bullish.  Yep, several iterations of it it, from oil demand from Texas to Tokyo, long term reconstruction contracts...etc.

Remember, this day, the syndicate, a bullish thesis...for a nation that is broke [and has been for 20 years now] commencing massive construction projects.

When the VIX turns again, remember what this lot of people have told you...because the longer term problem in the US is that this group of people still have their jobs, still hold sway over or economic future.  This nation will not recover until this parasite class of people is cleansed from our system.

So until you see 100,000 financial services people fired, until we see the tv versions of these clowns released from the Ministry of Truth [CNBC], until it is announced that Ben Bernanke has decided to spend more time with family, until we see J. Dimon quit whining and instead start talking about just how his industry is ever going to repay Average Joe...there is nothing to do but buy metals, and buy the dip in the VIX.

Capital cannot reform in our current, corrupt banking system...and each time these moral midgets put forward their interpretations of things, each time they open their stupid mouths, it all becomes crystal clear.

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