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Gold Surges As Curve Butterfly Funds Stocks Higher
Earlier rumors of a liquidation-based selling have proven to be false, as gold has surged by over $12 from the day's lows to its highest level in months.
Elsewhere, the new carry correlation trade confirms it is truly the 2s10s30s butterfly that is the new source of funding for stocks, and for spiking HFT momentum. And the big institutions who have now gamed the latest funding pair, continue to sell into the HFT bid, as stocks rise purely as a side effect of a normalization in the butterfly wings, and never on any actual fundamentals, which as David Rosenberg once again demonstrated earlier, continue to get worse and worse. But remember: GM has to IPO today, and Geithner can't possibly do it on a downtick, let alone a red close. Also, we have another POMO tomorrow as the Fed once again prepares to give a blank check to the PDs to ramp the S&P another 3% higher. All in all, another day in Central Planning.
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What the heck just happened with stocks?!
Dow up 60 in about 20 minutes.
DavidC
"highest level in months" - should be "month"
another reckless exageration (not you DavidC): gold prices were that high in early July so no "s" needed
PPT under the lash. Politburo just read Harvey Organ's 8-18 post
I keep hearing that delfation is going to crush the price of gold, yet it keeps going up. Maybe gold isn't an inflation hedge, but is instead a currency hedge.
Currency Hedge +
Midtowng, there is so much for you to learn. Start at Gata.org and free your mind.
Gold will go up here in America if deflation actually happens because of 3 reasons:
1) Helicopter Ben would literally start dropping money from Helicopters
2) If that wasn't enough and our economy actually deflated then we would have to default on our massive debt. As our creditors wouldn't take kindly to not being paid back the dollar would take it up the ass.
3) There is an Asian Put under the price of Gold.
now you're playin' with the big boys. damn straight it's a currency hedge and indeed "the only one that has ever work." It of course is NOT a replacement for money nor is it possible for it to be. Having said that GLD is now i believe "country number 8" on the gold list. any questions as to the power of what has been ridiculed as "inefficient market theory"? it is YOU of course that is "inefficient." insofar as "equities" are concerned I am unfamiliar with the concept "high gold=death to equities." Perhaps the Canadian bubble blower Mr. Rosenberg can enlighten me? Why do I suddenly hear the theme to "The World is Not Enough" playing?
Gold is a deflation hedge (1814-1830, 1864-1897, 1929-1933).
The market is bifurcating. Deflation in hard assets (think houses) and inflation in food, commodities, etc...
We are not in a normal world where we can just look at economic factors in the old way. Forex, EU and other factors makes the "deflation" story seem real. I don't buy it... we are in a bifurcating market where PMs are a good storehouse for what is coming.
When the USD defaults, you'll see PMs rise in a way that you'll think you are dreaming.
it has defaulted. those holding paper want to extend the illusion long enough to buy real assets. the us needs to get thru to november without an outright declaration of default.
Gold- Central planning hedge.
By Ambrose Evans-Pritchard
Published: 12:01AM BST 15 May 2006
The funny thing about this story? I've heard everyone say it's at a top, it's toppy, it's going to crash, goldbugs suck, there is no inflation, the dollar is safe.
Here we are 4 years later waiting for Grandich's great crash as well as many others. So until we see an actual top in the metal, there is no point in fighting the crowd. As many tried way, way, way back in 2006.
Man I love pissing in the Wheaties of the Keynesians just for shits and giggles every now and then.
I seem to have missed that crash. Maybe I just wasn't paying attention. ;-)
I'll give him credit though; it was part of his prediction that $575 was the low and it kissed it, but we did not have a 20,30 or even 40% crash in the metals. Hell, we could have a 20% crash tomorrow and that would just give the Central Banks in India and China a boner!
we could have a 20% crash tomorrow and that would just give the Central Banks in India and China a boner!
Me too..................under a Grand?. :>)
Never see it unless it's SEIZED and Nationalized as the Globalists devise a new currency.
That earlier move down in the price of Gold followed immediately by the rapid rise smells like crap. Did someone see large orders coming in and decide to front run the market for maximum profit? Who knows. But if this happened in a stock they would investi.......(slaps forehead)......Oh, that's right, the SEC is out to lunch as well.
Welcome to the new normal.
When gold advances and the "market" stays flat you get this kind of chart:
http://v3.caseyresearch.com/images/20090731.gif
One of those "duh" thingies.
T'was Goldilocks executing the large special customer er, excuse me, counter-party sales orders orders and then filling the small not so special custxxxxergurgle... counter-party buy orders. They figgered' out that if they just crossed the crap, t'would have had a smaller P&L on the commish than if they added in a great big super duper senior saver larger than life unnecessary bid-offer spread on top.
Like a cherry on yer' Sunday!
Knukles
CEO, Life Coach Industries.
Making the Inexplicable Obvious to Those Not Blessed in Execution of God's Work
Bought phys on the dip this morning.
This warrants a Goled, bitchez
Tyler, perhaps a mention on new jersey getting charged by the SEC and then settling on its "fradulent municipal bond offerings" might interest your readers here.
Fraud? In New Jersey? You have got to be kidding.
faust,
LOL, you owe me a keyboard..diet Coke....Blown!
Ain't nothin' illegal in Jersey 'till you're caught.
NJ settles SEC fraud charges
The government says the state of New Jersey has settled civil fraud charges for failing to inform municipal bond investors that it was underfunding its largest pension plans... New Jersey neither admitted nor denied the allegations. No financial penalty was levied against the state.
There are no laws.
being ramped higher for a take down..friday-wednesday
Stocks, gold or both?
Turd,
While GS/JPM, may do just that, check out Harvey Organs post today........
Look at Who, and Where the Buyers are............and amounts.
Comex is shitting brickes.
Miners are pretty today. Silver Wheaton doesn't care that silver got smacked. Is that bullish?
Miners are pretty today. Silver Wheaton doesn't care that silver got smacked. Is that bullish?
When you buy it at under $4.25 an oz, SW doesn't give a whit.IB ... because of option expiration on 26th (next wednesday) ?
yes one of the key drivers..
gold..
Spinning my wheels trying to figure out the verb in the second clause of this post's title. I'm going to settle on 'Funds'. O_o
But but what about the audjpy cross?
looking like a good trade to me right about now..
An almost hysterical antagonism toward the gold standard is one issue which unites statists of all persuasions. They seem to sense... that gold and economic freedom are inseparable. -Alan Greenspan
Charles de Gaulle was a statist yet he liked Gold.
Don't believe anything that comes out of that scumbags mouth.
Did he like gold, or did he dislike getting molested by the US? Exorbitant privilege and all.
Ok Ok maybe it was Jacque Rueff whispering in his ear.
Just look at the filthy crooks pump up gold, this is a rigged market.
News flash.
Perhaps US Prepares For Gold Standard http://news.goldseek.com/GoldSeek/1282111440.php Frankly I don't need believe anyone with monetary stores of value at arms reach as we're one nation under fraud; moving swiftly to 100% possession is the law among rat basturd lawless dead head fed goons!! Think folks which hung onto bankster thin air promises of the 30's will fair better than deep depression II reality crashing upon us daily!!! Natural consequence!! We don't get to vote for change as chit happens to sheople who don't defend true liberty and allow elitists fascist neoCONoplian 4th reichers do the thinkin for them!!!
I am as open-minded as anyone, but I have a hard time giving much credibility to the left-field ravings of Bix Weir. I mean, honestly, does ANYONE, even the most diehard pro-golder, take this man seriously?
Pretty damn far fetched I'll say. What's about all the "gold" presidential dollars? They won't circulate! Nobody wants them (see Susan B. Anthony dollar). They ain't gold anyhow. The seigniorage is what pays. And the redesign of the paper bills is no different from what any other country is doing since they are counterfeiting the crap out of them. Buncha crap.
Bill Still (Money Masters) new film, The Secret of Oz has just been posted in full, for free, on uTube.
Still does a very thorough job of documenting the endeavours of the same group of people, the bankers, to (re)install their debt-based money system, through war, assassination and continual lies and propaganda.
We need money not backed by debt, and an honest store of wealth.
The free market, allowed to operate unfettered, will take care of the rest. We need a massive and continual contraction of government and government regulation, worldwide, and a shift back to personal responsibility.
Freegold would supply the check on inflation you mention as necessary. Gold would not back the money, but the markets themselves would punish irresponsible management of currency with a high gold price in that currency, and the outflow of capital (gold) would ensue.
That video seems very anti-gold when I believe in reality it is anti-central bankster/gold manipulator/miner-supplier-controller. It is very pro-silver though as the currency of the masses. Unfortunately I think the time has passed for silver as its above ground supply has shrunk considerably and it will be much more valuable this time around compared to the past based on scarcity. I believe in all the PMs but a complete mix of metals including the SPMs like copper and nickel should provide a greater source of currency.
Agreed, it seems very anti gold, but that is not a reason to not take valid points into consideration, whatever ones pre-existing bias. I am as bullish on gold as anyone else, maybe more than many, but that does not stop me from considering new information when I find it. I am always open to the possibility I am wrong.
Despite the anti-gold stance of this documentary, I remain bullish.
Bill Still demonstrates, very well IMO, how it is debt-backed money that is the root of the problem, and that gold has, in the past, been little better at enabling freedom and justice in society, but has rather, in the last couple of centuries, been another tool of the bankers.
I see gold as being used differently in the future, as a store of wealth, and as the punisher of any currency debasement. It would be good if the currency was not debt-backed, too. But gold is needed to provide discipline.
Temporalist said:
Currency does not need any metal backing, just as it needs no debt backing.
PMs should be a store of wealth, not currencies. Store of wealth is an essential function in a properly functioning monetary system. A better explanation of the mechanics of this function is found at the second link in my post above.
RR<
The reason the COLORED Gold POTUS dollars are not circulating, is because the dumb bstds keep printing $1.00 paper bills.
A Coin lasts approx 40yrs, and paper note, 5 yrs max.
It costs the US taxpayers 600 Milllion a year to print paper $1.00 bills.
We currently have over 6 Billion of the POTUS metal coins in storage, and make new one's every year, and they also go to storage.
Legislation to STOP the minting has been intro'd to cease, as the storage costs is unreal.
It would be SMARTER to stop printing paper $1.00 bills.
Then folks would have no choice but to use the 6 billion in coins.
They SHOULD stop printing those damned annoying $1 bills already! Along with fives and tens as well. If we had kept our circulating coins and currency up to date with inflation since the 1930s, our smallest coin today would be the quarter dollar, and our smallest bill would be the $20.
Face it: we are stuck with 2010 prices, but a 1930 physical monetary system. The fact that it is grossly inefficient for both merchants and customers alike is lost on 99.99% of the American public, but it is the truth. The fact that people let change pile up on their dressers and in their vehicles, and routinely throw away one cent coins (as I do), is ample proof of that.
Correct! You get the kewpie doll. Ask the Canadians about the loonies. No paper for the small denominations. The coins will not circulate, as you say, as long as the bills are printed. Why do we continue to print them? Politics and unions. The Bureau of Engraving and Printing has a printers union, and large companies produce a hell of a lot of very fine paper. It's rigged.
Stocks trying so hard to break that 1100 mark. Triple top it bitchez!
One good thing- this affair proves that Democracy does not work.
funny how that douche bag Johhny Bravo is MIA...the character matches the economic crap he spews......Where are you lil Johhny...
I think deep down, JB really wants gold to go up, mainly because JPM gives him the day off from trolling here on up days.
the other day he was manifesting large on the ignorance of rosie. said he was "always" wrong. didn't know he was allergic to gold, too.
He's aurophobic -- and a troll.
In all seriousness and honesty, I often ask myself why such people go to the lengths they do to troll and to spread their disinformation, lies and doubts. Are they merely paid shills for the power establishment who are just "doing their jobs" by disrupting and polluting meaningfull online conversation and debate, or do they honestly believe the crap that they spout and spread? Or are they merely sadistic perverts who get their jollies from disrupting sincere dialogue and tormenting others with their incessant jabs and insults?
Whatever the case, I cannot help but note (as have many others) that the sheer ruthless and relentless determination with which they troll threads which touch on issues sensitive to the heart of the status-quo power structure belies their feigned sincerity and honest participation in such discussions.
I have also repeatedly noted that the fervor with which such trolls post and disrupt online discussion tends to be in direct proportion to the extent to which their comments support everything status-quo and the existing power structure, and conversely, in direct proportion to the extent to which the topic(s) under discussion attacks the fundamental foundations upon which the existing political and financial power structures are based, such as fiat currency vs. gold, the gross corruption within both Washington and Wall Street, and the wildly inflated myth of the "terrorist threat" used to support the American military-war machine, and its domestic twin of the Police/Surveillance State. But of all such anti-state topics, none have drawn as much hysterical and fervent vitriol from the status-quo defenders, both here and in other online forums, than the discussion over gold and the inevitable failures and fraud of fiat currency and fractional-reserve central banking.
In any event, I find trolls such as JohnnyBravo to be some of the most despicable humans I have ever had the misfortune to encounter. They prove to me that, regardless of their motives, true evil does exist on earth.
Hallelujah on that brother. Twisted little Apparatchiks.
Well said, sir.
Wonderful post!
In all seriousness and honesty, I often ask myself why such people go to the lengths they do to troll and to spread their disinformation, lies and doubts.
You left out the possibility that I think is most accurate. They are insecure about their belief system so they come here and act confident. Let's face it, we live in an unbelievably complex financial world and with so many "conspiracy theories" out there, the idea that FRNs (the very things we've valued our whole lives) aren't really valuable and possibly more importantly will reach their true value of zero one day just sounds too crazy to be true. Imagine a Roman or Egyptian believing that the empire wouldn't be there one day....
Unconsciously, they are hoping that one of us will give them the confidence to buy gold.
In the good old days they used to write poems called the frogs.
http://en.wikipedia.org/wiki/The_Frogs
And johnny doesn't have to be a paid troll. There are plenty of people who will move heaven and earth for a shot on the inside of the powers that be. They try to teach EVERYONE to give freely wihle always setting a price themselves. They try to teach everyone to sacrifice for something big in order to make it sacred and more facistly ingrained.
I met a rich construction guy in this life. He was always trying to get me to do something for him for free. Always. He told me his philosophy in life is to find good people and use them. I told him my philosophy is to find bad people and NEVER lift a finger for them. That's why the people who control all the resources always try to use it and flaunt it to find manipulatable people. They call people who try to get their resources gold diggers. But the real gold diggers are the people who have them and try waste as much time as possible on learning how to manipulate instead of learning how to meet their own needs. They firmly believe that 20 hours spent manipulating someone is always a wiser investment than 1 hour spent learning how to do something yourself. Because they firmly believe they can get everyone to meet their needs no matter what. And that sets up a ponzi pool. As they eventually run out of suckers.
That's the secret of governing. Have no value no skills whatsoever other than the ability to get other people to give you their resources.
Secretly, JB is a Gold Bug.....his posts are simply a way to keep him off the Gv't RADAR, when they come to seize physical...(clandestine GB).
A little OT but what is with the companies being bought out thinking that they are worth 20 to 30 times EBITA? POT I can sort of understand as growth for food, but BKS is a joke. Who wants to buy a dying model?
Oh wait it all makes sense no...DDRX...yeah...
full metal jacket rat basturd porkin pigmen will march!! You don't know that then get ready to be re-educated lest you fight for true liberty!! Guaranteed our nation/founding Forefathers constitution is redeemed by blood!! No other way with the free lunch rotting bunch basturds singin we are the world and expecting all to voluntarily hold hands!! Tyranny and treason season comes soon!!
PPT under the lash this p.m.
Avoided being gored by the ramp-up. (Barely, no pun intended.) Still looking for another opportunity to pile on some Puts for the next smackdown interval.
Can't shake the feeling that we're setting up for something big.
Buy your puts today. Tomorrow will be down in the morning and up in the afternoon, but next week the bombs start to fall.
It could smash to 1080 if the please donate to blah blah fails and the war machine gets nervous enough about not ever having any free pocket change to keep up it's illegal activities. They desperately need about 40 billion which had they not lost people trust would have poured into them. As it is now it's simply trickling and while they sit and acuse some terrorist group of diverting afghani flood victim money. They are really just sour graping about nothing coming in to steal for themselves. Because they've pretty much fucked up every disaster for the last decade.
http://www.youtube.com/watch?v=sr0gNJ090JA&feature
Is there an index that tracks the 2s10s30s butterfly outside of the Bloomberg example shown above?
Meaning, is there a symbol that it correlates to?
where is that punk Jonny Bravo ? ever since the market ran through his stop he hasn't shown his face on this blog
You noticed that as well, eh?
Did you really think such a troll, a coward at heart, was going to step up and admit his error? After claiming that "my predictions are always correct", I will be curious to see how he weasels out of being shown up by gold's rise to $1230 today (especially if it should rise higher in the days to follow).
But on that note, he may in fact not come back --- not as JohnnyBravo, anyway. We already know he has a penchant for changing his handle when the old one has become inconveniently embarrassing. In that vein, please read the comments from the newbie "VWbug" --- we may already have the reborn JohnnyBravo in our midst! Like a troll phoenix rising from the ashes of his credibility.
I noticed that VWBug appeared not 30 minutes after I made the bet with JB that if gold closed higher than the close a few days ago in a year's time, that he would shut down his account and never comment on this blog again (similarly, I would do the same if it closed below--fat chance of that).
I was all like "Already!?"
Indeed. Same arguments, similar prose style, same passive aggressive attitude. It's him alright. Master Bates -> Johnny Bravo (and Edward Teach possibly) -> VWBug.
What a guy. His relentless commitment to enlighten us poor confused goldbugs is truly inspiring. He could have spent his time trading and earning money with his flawless market predictions, but instead he chooses to bestow upon us the fruits of his genius. Truly, we are privileged.
Yeah, "VWbug" even had the stupidity to use, in one of his comments yesterday, this classic line which JohnnyBravo/MasterBates has used over and over again:
by VWbugon Tue, 08/17/2010 - 17:49
#527519
No point, no point at all. I suggest you panic. Maybe suicide would be quicker since now the atlantic is dead and the pacific can't be far behind.
Or...buy guns, ammo and canned ham, that seems to be the best way to go about things.
/sarcasm off ('cause ..well some people really wouldn't get it, i know it scares me too)
http://www.zerohedge.com/article/government-lies-american-people-about-s...
But he uses the same weak and pathetic points, the same flawed logic, the same strawman arguments, ad hominen attacks and Boolean Fallacies: it all fits, and marks him as just another sockpuppet of MasterBates/JohnnyBravo. This would be more than enough, in any judiciously moderated forum, to have had him banned long ago.
- Public Service Announcement -
It has been decided that since stocks going up is better than stocks going down, therefore from now on stocks can only go up. Please be advised that if you disagree you better come hard because otherwise we'll bury you.
We'll now return to our regularly scheduled manipulation, er, program.
One thing that just occured to me is the HFT-Bid bias creeping into the option markets. So instead of the puts having higher premium values, the calls will creep up over time. That would be delicious irony, being able to put on a larger position because the bots themselves messed up the bias in Put/Calls.
What do you guys think? Too short-term (bid bias) for it to sink into option pricing?
This is excellent analysis of Ponzi gold! (Maybe ZH could link this?)
http://www.financeandeconomics.org/Articles%20archive/2010.08.18%20Gold.htm
There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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