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The Gold Melt Up Play By Play: Spot Hit $1,111
Even as China loses 1% of the value of its dollar foreign reserves overnight, the real question is whether Geithner feels lucky. The problem: the ability to push the price of gold lower is now completely lost as gold hits all time high after all time high - at last read gold is at $1,110 and rising.
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And Denninger is still CLUELESS when it comes to gold, as he leads his band of Kool-Aid drinkers over the edge with their pockets stuffed full of FRNs.
I'm not taking up for him and his view of PM - it's just that he sees it as a commodity, with very little functional value. You're not clueless just because someone doesn't share your view. If that were the logic we're applying, we'd all be CLUELESS here because we don't agree with the public gleefully watching CNBS.
He is CLUELESS because he BANNED ME after challenging a comment that HE made in the Ticker Forum concerning gold. HE opened the discussion, but one does NOT challenge The Great & Almighty Denninger. Intelligent and rational discussion is BANNED and THAT makes him CLUELESS.
BINGO.
Denninger is smart but definitely a zealot. He's either right or he's correct in his mind.
for some reason a while back he started teeing off on willie for some reason, don't know why? willie of course busted his balls real good by informing mr denniger that he is a good analyst as far as it goes but so far, he has never came up with a original idea in his life.......ha ha ha
this all happened not long after denniger was calling for a rtc version 2, the moron......man if this guy is so smart why is he calling for a government solution? he still thinks government would work, if we only had the right people in there. bullshit? the system is corrupt and is broken. case closed. denniger also thinks there is nothing wrong with the FED....
and someone says this guy has a clue..???
I think Denninger CAN be a useful source for info, but he's sloppy at times and doesn't allow much dissent. The final straw for me was his GDP analysis. The federal government currently only accounts for about 8.4% of GDP. He was stating that federal spending comprises 30% of GDP, and his followers all praised the analysis. Not to mention in a QOQ analysis he interprets 2Q +3.8% to 3Q -3.4% on a data point to represent a -7.2% print. Huh???
He still hasn't been able to admit that he was wrong on gold and bans non-donors every time he has a hissy fit because the market went up. This happened a couple of weeks ago, and he threatened a weeklong ban. SPX dumped 30 points the next day; Denninger's attitude magically changed and the ban was lifted.
He is sometimes a good source of info but his analysis needs to be taken with a handful of salt. I don't get the obsession with various body parts on that forum either...
I stopped reading Denninger because he is a real douchebag and turdball. And I mean that literally: he is a bag full of douche, and a ball of turds rolled into a form that is known as Karl Denninger.
Useful information, true, but all the same I find his blog a waste of time and a repetitive buzz of the same topics and expressions over and over and over again. B-O-R-I-N-G.
Getting kicked off the MT forums is a badge of honor. It demonstrates that you are intelligent and not a pathetic fawning sycophant.
I am Chumbawamba.
Spot on Chumba!
"You're not clueless just because someone doesn't share your view."
No. He is CLUELESS because of his INABILITY to see the FACTS as they are; instead choosing to surround himself with like thinking sycophants and yes-men.
"If that were the logic we're applying, we'd all be CLUELESS here because we don't agree with the public gleefully watching CNBS."
Umm...WTF?
GG, with all due respect I know where you stand on PM (and can guess LoneStar's bend). Gold bugs expecting to have a reasonable debate with Karl on that subject are as likely to get one as a Nazi skinhead at a Yom Kippur dinner. That's all I'm saying and LoneStar's axe grinding is of no value - man can run his blog (mouth) all he likes; doesn't change that Gold is at $1106 this morning. It's his blog; he can run it however the &*($ he likes.
As for the WTF, I'm not trying to debate the merits of PM, rather the lens that the Gold Bug applies to the world can just as easily be applied to us. Remember, we're the outsiders here and it's because we look at the situation/facts/data differently. That's all Karl is doing, albeit with very little tact.
So in other words, Denninger is clueless when it comes to gold. How is this controversial?
I am Chumbawamba.
karl has repeatedly stated that gold is useful for paperweights and door stops....
hey karl, how do you like me now???
S&P to 1200 by year end, gold may hit 2000, if not by year end then by Q1 2010, that's been my call all along, and I am sticking to it.
QE has not stopped at all, unlimited printing for MBS to continue unabated. Anyone holding the USD is a sucker.
USD = Tonya Harding
Au = Nancy Kerrigan
Tonya got busted.
When Mervyns went out of business last year, I bought what was left of their gold jewelry right before they closed. Really ugly clunky stuff. I figured I needed to own some gold if the world came to an end. My wife thought it was a stupid idea. Now that gold has doubled ...
Did you ever think your wife would love you for buying her something tacky?
Hmm, interesting strategy. What prices did you pay? I would hope it was heavily discounted. And what all did you get? Did you take the time to add up the weight and karat quality of each piece to determine just how much actual gold you got?
I am Chumbawamba.
"The problem: the ability to push the price of gold lower is now completely lost as gold hits all time high after all time high...."
I'm not sure I go along with this statement. As long as there are enough dumb people pouring their cash into paper gold futures on Comex and (most likely) non-existant gold in ETFs, price manipulation can still be achieved easily enough.
The TBTFs can simply go on selling gold they don't have knowing that if they ever get called out on it, they'll just got running to the nearest Central Bank for a bailout of physical metal, change the rules to forbid taking physical delivery or allowing settlement in paper. Indeed this latter tactic has already begun with the recent rule change to allow 'Delivery' of gold via ETF shares rather than actual metal.
The problem is that the physical market is extremely tight, and there is not enough real metal to go around. The big smackdowns of the past are losing their impact. At one time, they could smash the price $30 or $40 and the damage would last for months. Now, such takedowns are met by high-demand buying, and the damage is short-lived.
This isn't the same as the Hunt boys getting smacked around in the early 1980's with silver. The COMEX changed the rules on them and destroyed their market-cornering gig. Now the buyers are Russia, China, and the Middle East, and they demand metal, not paper. Force majeur, anyone?
There was an incident in late September where a big player (still unnamed) who demanded physical and it basically threw the market into a frenzy. The Germans and the Chinese in Hong Kong have demanded the return of all of their physical metal. And the central banks have begun to buy, rather than sell, physical. In years past, the TBTFs could naked short sell with abandon, but now the rest of the world is forcing their hand. I wouldn't want to be short six months of world-wide gold production when that margin call comes in.
Timmy and Ben are probably assuming the fetal position as we speak, sobbing and demanding a do-over. They are losing their game, and they know it.
the hunt brothers were white southern gentile boys swimming in a sea infested with yiddish money grubbers. when they started doing things similar to the way the new yorkers do, the pseudo bosses got mad at them for daring to do such a thing and attempting to actually manipulate the comex(God forbid it). so they used their political powers to change the rules of the game in the mid stream, so to speak. this hung the hunt boys out to dry and of course the brotherhood made money off of the demise of these silly upstart goyim....
Remember, remember the fifth of November!
This was the day after the RBI announced their new involvement in the gold market.
Central banks then shifted to "net buyers" pyschologically.
Love your work!
hedge/pension funds our HOLDING LESS THEN 1% in Gold. Combine that with the fact when the cat is out of the bag that ETF and paper Gold dont have all the gold they say they have www.marketoracle.co.uk/article9030 we will see Gold in the thousands of USD$
The dollar has little reason to go up, and gold has little reason to go down as long as our government keeps doing this: http://research.stlouisfed.org/fred2/series/WSECOUT .
Oh looky! Russia might BUY gold now. Looks like the report that it was selling has outlived it usefulness.
http://www.iii.co.uk/news/?type=afxnews&articleid=7616587&subject=market...
It was just a crude attempt on their part to try to bring the price down a bit just so they could buy more. Only the utter imbeciles would believe that Russia is about to sell any of its Gold.
"Even as China loses 1% of the value of its dollar foreign reserves overnight"
Yes, but you have to remember that by buying Gold [which may be much more than what it has publicly stated], it will preserve (and maybe appreciate) not only the dollar value of its overall forex reserves, but also in terms of purchasing power.
China has way more gold than they are letting on. You think that announcement out of the blue earlier in the year that they pushed their holdings up over 1000 tonnes was just a one time thing? The Chinese are smart. While the West is playing its stupid paper games and crowing over how awesome it is, the Chinese are accumulating gold. In another few months they'll make an announcement about their holdings that will stun the financial world. China recently became the largest gold producer in the world as well. Put 2 and 2 together.
I'm not saying anything Gordon doesn't know...this is for everyone else who is already educated in the intrinsic merits of gold.
I am Chumbawamba.
so much for deflation eh EW fools?
I recently saw a video of him taken in August this year. There was a brief flash of intense emotion, perhaps even anger, when he was describing how the dollar will rise spectacularly when those damn debtors begin scrambling maniacally for dollars in order to pay back their creditors demanding repayment.
What the moron did not anticipate was people defaulting en masse on their various fraudulent "loans" and giving their looters...er..."creditors" the FINGER. Didn't see THAT coming, DID YOU, Mr. Prechter?
Hahaha, yes. This is why I know. I couldn't care less about the pile of collection letters. Dollars? Pfeh. Any dollars I get are stockpiled only as long as needed to come up with enough to buy another gold round. The velocity of FRN in my household is at lightspeed.
I am Chumbawamba.
Big fuck you to Treasuries starting an auction week. Not looking good...
This will end very ugly. Gold is nowhere near a bubble, but the groundwork is being laid out to form a bubble. It won't be long before the postal carrier, store clerk, and plumber will be telling you to buy gold. I recently sold a little physical gold on craigslist and the buyers were, to be nice, financial morons. Make no mistake, the bubble will form because the country always needs a new bubble. It's anybody's guess what that price will be. I'm guessing 1500+.
Well, selling it now makes you the moron, IMNSHO.
Duh: "all these morons buying my gold are so stupid! I'm going to go put my new dollars in the bank earning 0.03% interest. Oh, and my accounts are with Citibank. Too big to fail, right?"
I am Chumbawamba channeling and idiot.
Here we go again...Gold being attacked again to peddle some more utterly WORTHLESS Treasuries.
How about Silver? If we could eliminate the JPM Put, the price of Silver could sky-rocket (past Gold).
How can JPM continue to control so much of the short market in Silver? Are these covered positions? How much money have they lost on this play until now? And they are a bailed-out bank. I sure don't agree with THIS use of my money!
They can perform all kinds of illegal actions since the only protection for investors is the CORRUPT and COMPROMISED taxpayer-paid FRAUDS at the CFTC, including that new Goldman Sucks PLANT into the Chairmanship.
China is actively encouraging their people to buy gold and silver. They will not just roll over their contracts; eventually they will demand physical. There are only something like a billion ounces of silver available in the entire world, and it is an industrial consumable. That's a $17B market, which is not even a round-off error in the overall derivatives game. China could corner the physical market tomorrow, if it wanted to. The gold market, too, for that matter.
Unfortunately for JPM, there isn't enough silver available to cover, and they will get crushed if China ever decides to play tough with COMEX. When it happens, pull up a chair, pop open a cold one, and sit back to watch the fireworks display of all time.
JPM is practically the Fed at this point. They can create as much "money" out of thin air as needed to cover their "losses". What they can't do is create the physical metals out of thin air. The price will run up for the same reason Gold price eventually blasted past $1000 level - when there is severe shortage of the physical metal available for delivery.
Just a trend, but silver has rocketed past gold at each top. Three times since '04. Every time gold went sideways or down silver went running right past it.
See for yourself here.
http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3186525&cmd=...[s180216591]&disp=P
Fuck gold, get a look at the silver chart today. Price capping is on in full effect. JP Morgan must be pulling out all the stops to keep the price from going over the magic number of $18. And in the last few minutes they seem to be winning the battle. But not the war, which is far from over.
I am Chumbawamba.
My wife keeps telling me to purchase gold contracts..I keep telling her its over-valued. I'm the one eating mud right now but I do expect a decent pullback.
occasionally denniger shows up at these little sign carrying protest they have (which do absolutely no good) but nevertheless make them feel better about themselves i guess. i am very surprised someone who he has verbally assaulted before(and there are many) has not shown up and got in his fat face....
I think Peter has been reading the ZH blog...
http://www.youtube.com/watch?v=K01aY6_ogs0&feature=sub
Piss on Denninger all you want, but I've made a fair chunk of change reading his posts and forums. In my book, he and many of the members of his http://tickerforum.org are the smartest group of people online.