• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Goldman Downgrades The USD

Tyler Durden's picture

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Wed, 05/18/2011 - 16:20 | 1288683 equity_momo
equity_momo's picture

Well , as loathe as i am to go all in on US toilet paper , this is the time.

Wed, 05/18/2011 - 16:49 | 1288785 Turd Ferguson
Turd Ferguson's picture

Sorry to jump the line but this post is very important. If you follow my blog, you need to take the time to read this:


Wed, 05/18/2011 - 16:53 | 1288806 DoChenRollingBearing
DoChenRollingBearing's picture

" Turd's Bottom #2..."

So many ways THAT could go...

We will all be watching, even a gold guy like me!

Wed, 05/18/2011 - 17:10 | 1288864 Turd Ferguson
Turd Ferguson's picture

Yes, DoChen. Turd's Bottom and #2 go together quite well.

Wed, 05/18/2011 - 17:18 | 1288900 narapoiddyslexia
narapoiddyslexia's picture

Looks like we need to switch to bitcoin. I just heard about it, but it sounds promising. Also, it looks like I don't have to "geek out" to use it.

See http://launch.is/blog/l019-bitcoin-p2p-currency-the-most-dangerous-project-weve-ev.html


Wed, 05/18/2011 - 18:32 | 1289157 CPL
CPL's picture

Weirdly the idea came from World of Warcraft gold farmers, chatted with one of the guys at a Linux Symposium a couple of years ago.  It's a neat concept, they are having problems with getting people to commit to it and the "exchange" hasn't been determined as of yet. How to measure the exchange against something without that "value" behind it.

That a side the security risks behind it are the same as any synthetic currency (fiat):

  • forced inflation,
  • general hacks that would mimic counterfeiting.


The idea is sound though but it would run completely contrary to what the Central banks are doing.  First guy that puts up a server would probably be dead the same hour.

Wed, 05/18/2011 - 19:57 | 1289504 narapoiddyslexia
narapoiddyslexia's picture

Is it digital silver, or digital gold? In that it is a medium of exchange outside the control of the mommy state?

Wed, 05/18/2011 - 21:37 | 1289895 CPL
CPL's picture

It is and it's not.  In 98 the big thing was eGold.  As in the currency in the "bank" was actually backed by gold.  It had a couple of years on it, I remember something scam worthy happening around it and the eGold bank collapsed after buddy got nailed for fucking with his own system and laundering.


So far when synthetic private, anything fiat wise, is developed it just gets ugly and ends up in the experiment burn pile.

Wed, 05/18/2011 - 20:40 | 1289654 Id fight Gandhi
Id fight Gandhi's picture

So to make money you need to play Warcraft and Mine gold? From there you can exchange for euros, dollars right?

Thu, 05/19/2011 - 01:02 | 1290396 Fedophile
Fedophile's picture


general hacks that would mimic counterfeiting.

A nearly impossible concerted effort of massive GPU farms effort would be needed to "hack" Bitcoin(BTC), at least with enough competition and there needn't be any material forced inflation either.

For instance, BTC uses cryptographic hashes to record transactions which are gathered into "blocks" and distributed through the BTC P2P network. Peers then add to the block a transaction to pay themselves (this is the incentive for participating and the only source of inflation) an agreed amount of BTC and then signing the transaction block with a SHA256 hash. To prevent cheating the hash must have a predetermined (by the network, on the fly) number of leading zeroes by fiddling with a small fudge factor in the block. This problem is made so hard to solve that even supercomputers couldn't overwhelm the network and pass off fake blocks as real but overall new blocks are made at the rate of every 10min. Transactions are made by signing your BTC over to the counter parties public key with your own and broadcasting the transaction to the network to be signed. 10min later your transaction is written in stone. For more read: http://www.bitcoin.org/bitcoin.pdf & http://www.bitcoin.org

In it's current form it's just a curious experiment, but there is massive potential as a BTC money system has the following properties:



There are cons to BTC though it's not because it's fiat, or that you can't print it out of thin air, without colossal P2P CPU effort that is, it's that you sure as hell can fractionally reserve it!


Thu, 05/19/2011 - 07:43 | 1290706 DrunkenMonkey
DrunkenMonkey's picture

You first.

Wed, 05/18/2011 - 16:58 | 1288822 equity_momo
equity_momo's picture

No apology neeeded , your blog is fantastic.  thanks for the link.

Wed, 05/18/2011 - 17:19 | 1288868 Spalding_Smailes
Spalding_Smailes's picture

More Snake oil ... 


Your Fearless Leader No, not The Bernank. The Turd!

Let's go back over the last four weeks chronologically.

1) In early April, the Turd gives you $45 as a price target by May silver option expiry.

2) Then, last week, I began to warn you to be careful and to watch for the brief, sharp correction that was coming.
The Wicked Witch even chimed in and tried to warn you.

3) Then, yesterday, when almost everyone in the media was trying to convince you to sell, The Turd stood alone and tried to reassure you.

So now here we are. Back to 1527 and 47.60. Feels good, doesn't it?
If you read all the posts above, then you know by now that we should expect this rally to carry us through next week. Silver will test, and likely best, $50. It may even see $52. Gold, now that it is through 1520, will accelerate toward $1550.
Beginning the week of the 9th, pattern suggests that we should see about a two-week downward consolidation. After that is completed, the table will be set for the wonderful and record-setting opportunity that will be presented to us in June.


Wed, 05/18/2011 - 17:57 | 1289043 XenoFrog
XenoFrog's picture

silver, a girl's best friend.

Wed, 05/18/2011 - 18:07 | 1289090 NidStyles
NidStyles's picture

yes, because everyone can predict what the CME will do, right?

Wed, 05/18/2011 - 18:50 | 1289224 Hugh G Rection
Hugh G Rection's picture

I hope you don't fail as a JP Morgue troller Smailes.


I hear demoted trolls are tasked with the daily cleaning of Blythe's anal glands.

Wed, 05/18/2011 - 18:48 | 1289217 Hugh G Rection
Hugh G Rection's picture

Nah man, go all in on the Iraqi Dinar.... it's going to revalue soon!

Wed, 05/18/2011 - 16:22 | 1288687 BobPaulson
BobPaulson's picture

Race you to the bottom!

Wed, 05/18/2011 - 16:25 | 1288694 Gubbmint Cheese
Gubbmint Cheese's picture

that's what DSK said...


Wed, 05/18/2011 - 17:30 | 1288943 Drag Racer
Drag Racer's picture

more like the blind leading the blind


Wed, 05/18/2011 - 18:38 | 1289170 CPL
CPL's picture

How can the world's biggest debtor help the second biggest debtor?


Make more debt.

Wed, 05/18/2011 - 16:25 | 1288690 Gubbmint Cheese
Gubbmint Cheese's picture

this is bullish for stocks....



Wed, 05/18/2011 - 16:25 | 1288706 hedgeless_horseman
hedgeless_horseman's picture

...in nominal terms.

Wed, 05/18/2011 - 16:46 | 1288777 DoChenRollingBearing
DoChenRollingBearing's picture

Bullish for EVERYTHING!!!

Wed, 05/18/2011 - 16:22 | 1288691 bob_dabolina
bob_dabolina's picture

I'll take the other end of that trade, thank you very much.

Wed, 05/18/2011 - 16:22 | 1288693 Ancona
Ancona's picture

Really? No shit Sherlock. When you massively overprint the dollar it can only devalue.

Wed, 05/18/2011 - 16:23 | 1288696 101 years and c...
101 years and counting's picture

so, do you take the contrarian trade or the reverse contrarian trade? 

Wed, 05/18/2011 - 16:32 | 1288722 hambone
hambone's picture

triple dog dare contrarian...

Wed, 05/18/2011 - 16:23 | 1288701 doomandbloom
doomandbloom's picture

Goldman's days are numbered...cant they see what happened to DSK?

Wed, 05/18/2011 - 16:27 | 1288702 Quinvarius
Quinvarius's picture

Long term this is correct.  Short term, I don't even attempt to play "guess the intervention" in the FOREX markets on 10 to 1 leverage.

Wed, 05/18/2011 - 16:34 | 1288726 bob_dabolina
bob_dabolina's picture

Try 50:1; 100:1, and 200:1 depending on what your broker approves.

Wed, 05/18/2011 - 16:34 | 1288730 Quinvarius
Quinvarius's picture

No thank you.

Wed, 05/18/2011 - 16:37 | 1288737 bob_dabolina
bob_dabolina's picture


That's pretty standard trading fx.

It's so easy even a Bernanke can do it.

Wed, 05/18/2011 - 16:25 | 1288707 cowdiddly
cowdiddly's picture

The problem with this is it is measured against equally shitty EUR an JYP. Humm which one stinks the worst. I just can't pick em

Wed, 05/18/2011 - 16:29 | 1288708 agent default
agent default's picture

With the EU clusterfuck getting worse, I would expect a USD rally in the near term.

Wed, 05/18/2011 - 17:44 | 1289002 Rainman
Rainman's picture

It's a race to disgrace. I say USD up too....but only because it's criminal network is so much more advanced than the EU. 

Wed, 05/18/2011 - 16:30 | 1288712 Forgiven
Forgiven's picture

This is actually BEARISH for the Euro - Whatever the squid pukes pump, you sell - that's what they're doing.

Wed, 05/18/2011 - 16:49 | 1288786 DoChenRollingBearing
DoChenRollingBearing's picture

Usually that is true.  The squid selling its part of Molycorp is what kept me from buying MCP at $13 - $14.

That would have been a (the only?) good time to buy squid product.

Wed, 05/18/2011 - 16:31 | 1288714 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

Stop wiping your ass with it, buy the USD!

Wed, 05/18/2011 - 16:34 | 1288728 hambone
hambone's picture

Sell dollar - sell euro - sell yen -

buy silver...

Wed, 05/18/2011 - 16:48 | 1288793 DoChenRollingBearing
DoChenRollingBearing's picture

Gold = safety

Silver = nice speculation, bigger gains vs. bigger risks.

Gold for me.


O/T, nasty little audio ad...

Wed, 05/18/2011 - 17:11 | 1288810 hambone
hambone's picture

Agreed silver v. gold although silver seems the bargain at the moment?

BTW - funny that Silver falls by 30%, falls and holds 50% fib at $34'ish, holds rising channel...and seemingly the love is gone?  It seems now is an excellent time to make my monthly purchase.

Glad to know why I shouldn't push the buy button now and should wait til ?

Wed, 05/18/2011 - 18:01 | 1289073 JW n FL
JW n FL's picture

I bought Monday and Tuesday.. not today.. I only buy on down days! lol

Wed, 05/18/2011 - 16:30 | 1288715 Teamtc321
Teamtc321's picture

GS got Dell's earning's correct also, lol.


Wed, 05/18/2011 - 16:29 | 1288719 Ricardo Pobre
Ricardo Pobre's picture

Somebody care to offer a hint to Tyler's hint about HPQ? 



Wed, 05/18/2011 - 16:33 | 1288733 bob_dabolina
bob_dabolina's picture

HPQ shit the bed. 

Check price action over the last month.

Wed, 05/18/2011 - 16:44 | 1288778 101 years and c...
101 years and counting's picture

HPQ makes printers.  all cb's are feverishly printing money.  means more sales for HPQ. 



Wed, 05/18/2011 - 16:57 | 1288815 Ricardo Pobre
Ricardo Pobre's picture

It's obvious now.  Thanks. 


I thought it had something to do with HPQ getting DSK-ed for -25% the last couple earnings announcements... 

Wed, 05/18/2011 - 16:31 | 1288727 Josh Randall
Josh Randall's picture


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