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Houston, This Is Blythe, I Have A Problem

Tyler Durden's picture


And silver surges on margin hike news, taking out $32, and fresh 31 year highs. Something is very wrong. Our only question: how long before the American taxpayer has to repeat the AIG experience, and bail out JP Morgan over its billions in silver shorts. For our non tinfoil heat wearing friends in the various operating subsidiaries of the FT, we have one comment: "We have sold everything we can produce in silver and have demand for at least twice that volume,” said David Madge, head of bullion sales at the Royal Canadian Mint, which produces the silver Maple Leaf coin. Silver coin sales at the US Mint and the Austrian Mint also hit record levels in January"


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Fri, 02/18/2011 - 11:24 | 974068 Turd Ferguson
Turd Ferguson's picture

Yes, read that!

Also, if you are trading PMs, I strongly suggest you take time to read this, too:

Fri, 02/18/2011 - 11:28 | 974092 doomandbloom
doomandbloom's picture

what is the problem....master! :-)

Fri, 02/18/2011 - 12:01 | 974257 IQ 145
IQ 145's picture

 There isn't any problem; it's my birthday, it's a full moon, and God loves me. Since I'm 200% invested in Silver Bullion, this is merely God's way of giving me a birthday present; quite simple, really. Oh, and by the way, Thanks God.

Fri, 02/18/2011 - 11:32 | 974107 Cognitive Dissonance
Cognitive Dissonance's picture

I think you have hit the nail on the head Turd. We shall see, we shall see.

   Recall for a moment how the EE caps price. They do so by flooding the Comex with an almost endless amount of unbacked, paper silver. Think about that trade, though. To sell short, you need a buyer on the other side of the trade. And now, at this late hour, how can you reduce the open interest in the March contract if you're only selling new paper shorts to resolute longs who intend to stand for delivery in eight days? By raiding and selling, you're only compounding your problem because you are creating more open interest! If you're Blythe, you're left with only being able to freely sell the forward contracts in an attempt to influence the spot and nearby price. Does this explain the current backwardation? Probably.

   To the point, however, what's a girl to do? You can see by looking at the chart above that Blythe tried to raid today but she didn't seem to do it with the usual bluster and gusto. How could she? Every new March contract she sells only adds to her problem. She is truly caught in a catch-22. Again, what's a girl to do?

   If the March longs stay resolute, she's screwed. Even if only 20,000 stand for delivery, thats 100,000,000 ounces that the Comex has to deliver. By most estimates, that's their entire inventory. She and The Evil Empire must, somehow, convince/force March contract holders to close their positions but if they can't scare them by crushing price, how do they do it? They could get the CME to raise margin requirements but if you're ready to stand for delivery by putting up 100% of the cost in eight days, a margin increase today is of zero consequence.

Fri, 02/18/2011 - 11:48 | 974192 alien-IQ
alien-IQ's picture

I realize I may be jumping the shark here...but when it comes to JPM...well...they simply seem to operate by a different set of "rules" here goes: What are the odds of JPM being simply "pardoned" for their short position? As in forgotten and never need to cover? I realize this is an outrageous proposition...but then again...isn't this market outrageous? Isn't this system outrageous?

Any thoughts on this?

Fri, 02/18/2011 - 11:50 | 974204 EscapeKey
EscapeKey's picture

What are the odds of JPM being simply "pardoned" for their short position?

100%. They will, without a doubt, be pardoned.

Fri, 02/18/2011 - 11:57 | 974237 Cognitive Dissonance
Cognitive Dissonance's picture

Agreed. The rules will be changed when the rules are no longer convenient for the Ponzi and the Ponzi players/manipulators/teat suckers.

Fri, 02/18/2011 - 12:20 | 974359 SWRichmond
SWRichmond's picture

Silver is on a train today again...up $0.75 as I write this.

Fri, 02/18/2011 - 13:33 | 974815 Hephasteus
Hephasteus's picture

He has it right but here's the monkey wrench in the machine.

Comex has to paint a 30 dollar tape. If they can't paint a 30 dollar tape then the scheme is busted. It's got something to do with the dollar being simply a derivative of the silver and gold price. If silver is high but gold is low the dollar falls. If gold is high and silver is low the dollar falls fast, if gold and silver is high the dollar falls mega fast. Something tells me gold is 1500 for it's tape. If both silver and gold go above those set points then everyone dumps dollar, dollar goes way up then boom falls on the floor.

Wynter's plan is to push comex for settlement in cash. But since they are already blowing out the tape even if they get offered 50 percent over spot to roll and play it another month it will only drop the price down to 30.50 ish. May be worth another months play may not.

The really horrible news is the gold bugs are coming next also. And they aren't going to dick around. They won't have the people stripping bars and coins out of shops like silver does but they are going to empty comex.

Then you got double dollar fall. Government printing like mad with world dumping it. Time for a really good look at a 5 dollar can of soup. People are going to go hungry this year and being in america or europe won't help you at all. It will actually hurt you as everybody will be dumping dollar reserves competing with your dollars.


Fri, 02/18/2011 - 13:59 | 974929 malusDiaz
malusDiaz's picture

it has to do with the Weight of Money:


50$ Gold Coin = 1 avoirdupois oz 

avoirdupois oz of 50$ bills = 1 400$...


1$ Silver Coin = 1 troy oz

1 troy oz of 1$ bills = 31.1$


Those are break points... 

Fri, 02/18/2011 - 16:18 | 975398 Hephasteus
Hephasteus's picture

I've never been persuaded by the weight of an arguement until now. LOL

Fri, 02/18/2011 - 13:59 | 974930 malusDiaz
malusDiaz's picture

it has to do with the Weight of Money:


50$ Gold Coin = 1 avoirdupois oz 

avoirdupois oz of 50$ bills = 1 400$...


1$ Silver Coin = 1 troy oz

1 troy oz of 1$ bills = 31.1$


Those are break points... 

Fri, 02/18/2011 - 12:34 | 974440 Math Man
Math Man's picture

Seriously, why does the rumor persist?

JP Morgan closed their prop commodities desk last summer, and has had a trading profit EVERY SINGLE day since last June.

Both of which, make the probability of having a massive silver short approximatley ZERO.

This JP Morgan rumor is the biggest lie out there. 

Silver may be moving up, but it is not because JP Morgan is short.

I just bought some July 25 puts. 

Fri, 02/18/2011 - 12:39 | 974470 tmosley
tmosley's picture

No-one has EVER cooked the books before.


Fri, 02/18/2011 - 12:44 | 974508 alien-IQ
alien-IQ's picture

Your faith in JPM's honesty is...interesting.

Fri, 02/18/2011 - 13:13 | 974709 Pegasus Muse
Pegasus Muse's picture

That will push us ever closer to a new justice/political system.  Like what's going on in the ME right now.  The difference being, since we have a Second Amendment, government thugs will not be pulling a Bahrain on us.  Could be just the opposite.

Fri, 02/18/2011 - 11:56 | 974229 whatsinaname
whatsinaname's picture

After all they dont need to mark to market any losses to eternity ?

Fri, 02/18/2011 - 12:05 | 974272 yellowbr
yellowbr's picture

Then JPM will have defaulted and lost more than some credibility. Oh, and by the way the COMEX also.

That would be the beginning of the end.

Fri, 02/18/2011 - 12:10 | 974285 alien-IQ
alien-IQ's picture

What credibility do they have now? In fact, ever since the adoption of mark-to-unicorn accounting standards...what credibility do ANY of the TBTF banks have?

Fri, 02/18/2011 - 12:11 | 974294 Oh regional Indian
Oh regional Indian's picture

Alien, I think we are in (and more and more obviously now, with ME tensions rising) the war that will make such pardon's Unnecessary.
Looking at the ME dominoes tripping, oil rising, PM's rising, inflation inflating, jobs dis-appearing...clearly this situation is not going to go to bed nicely. It will be warred on.

And unless something is done NOW, by most of us, the next cycle will look just like this one. And therein lies the tragedy.

Did not think I'd see 32 today. But the big boyz are not out of ammo by a long shot yet. It must be suiting them for allowing this. The ARE the government after all. Moneylenders always have been.

Exciting times though, for sure.

Fri, 02/18/2011 - 13:03 | 974651 gwar5
gwar5's picture

James Turk suggested it's possible JPM could call for the government to grant them a force majeure because their position so untenable. And since they are part of the cartel that really runs this country that may well happen.

But in practical terms, considering their criminal behavior in mortgages, and other activites, so much confidence would be destroyed in the banks and the dollar there will be a big shake out, not head scratching this time.  

Ron Paul has got to love this. I am so glad he's sitting in the chairperson seat right now.  Short JPM. Buy gold.


Fri, 02/18/2011 - 21:15 | 976295 StychoKiller
StychoKiller's picture

Sounds like the price whipsaw that JPM is holding onto is starting to glow cherry-red from all the movement(s) -- and poor Blythe with no asbestos gloves on!

Fri, 02/18/2011 - 11:43 | 974174 Thomas
Thomas's picture

If you wish to listen to a podcast by one of the douche bags who posts occasional comments at ZH, try the following... 

(OK. So I'm jumping a thread with self promo: shoot me.)

Fri, 02/18/2011 - 11:48 | 974193 Nine Pies
Nine Pies's picture

Great write-up, TF.  Thank you.

Fri, 02/18/2011 - 12:09 | 974282 Snidley Whipsnae
Snidley Whipsnae's picture

Great summary turd... thanks

Fri, 02/18/2011 - 12:10 | 974286 philgramm
philgramm's picture

Long live the Turd.  Happy B'day brotha!!!

Fri, 02/18/2011 - 12:12 | 974300 IQ 145
IQ 145's picture

 It's just rubbish. You don't know anything at all about the Comex. They've been rolling over contracts since you were in grade school. You're just going to make a fool out of yourself with these kind of breathless anouncements that will, and I'm telling you right now, they will; turn out to be nothing. non-events. The Comex problem is the global warming of the financial blog world; enthusiasm and belief on the part of people who don't have the basic science under their belt. What you're looking at is a bull market in Silver; this is suprising? Why ? You want to know how to make a lot of money on this; ask me politely and I'll tell you. I don't do theories or make up stories; but the Comex is waiting patiently to give you lots and lots of free money.

Fri, 02/18/2011 - 12:43 | 974514 tmosley
tmosley's picture

You don't get it.  These guys are highly leveraged.  If they were planning to roll their contracts this month, they would be doing it NOW after this margin hike announcement.

You have normalcy bias.  It WILL kill you.

Fri, 02/18/2011 - 12:41 | 974487 Overpowered By Funk
Overpowered By Funk's picture

You're my favorite Turd.

Fri, 02/18/2011 - 11:36 | 974132 Azannoth
Azannoth's picture

Congressional Commission: Blythe why did you short 1 years worth of production of silver ?

Blythe: because silver has no real value, and you can't eat it :°|


Fri, 02/18/2011 - 11:38 | 974150 EscapeKey
EscapeKey's picture

Nah, they'll just claim they were "a market maker in precious metals, and worked to stabilise the environment, and provide a service for the financial community."

Plus, of course, some rubbish about this "once in a lifetime event" being "impossible to predict".

Fri, 02/18/2011 - 11:50 | 974202 Amish Hacker
Amish Hacker's picture

And they provided liquidity (Kudlow's favorite word). Don't forget liquidity.

Fri, 02/18/2011 - 21:18 | 976299 StychoKiller
StychoKiller's picture

They used to execute people by pouring molten metal into their mouths -- liquidity is waay overrated!

Fri, 02/18/2011 - 11:48 | 974190 markmotive
markmotive's picture

Here's the reality. If the tin-foil hat wearing folks are wrong about JPM's short position, silver is just another industrial commodity with growing demand. Still a good reason to be bullish.

If the tin-foil hat wearing folks are right about JPM, silver could see a massive short-squeeze sending it to $50 or beyond.

Fri, 02/18/2011 - 11:56 | 974228 jus_lite_reading
jus_lite_reading's picture

And the conclusion is- BUY SILVER either way.

Fri, 02/18/2011 - 12:40 | 974480 repete
repete's picture

anyone see the vw short sqeeze? never shorted with common after that.

Fri, 02/18/2011 - 12:08 | 974279 I think I need ...
I think I need to buy a gun's picture

Bernanke a few minutes ago..."the international monetary system must be reformed to benefit all"

Fri, 02/18/2011 - 19:44 | 976037 naughtius maximus
naughtius maximus's picture

The international monitary system must be abolished!

Fri, 02/18/2011 - 11:16 | 974017 slow_roast
slow_roast's picture

Will it hold?  I don't know...but this was expected.  It would be great to see a pullback and then a slingshot higher.

Fri, 02/18/2011 - 11:54 | 974224 jus_lite_reading
jus_lite_reading's picture

I smell $35...

I may have to adjust my $40 in 3 weeks prediction to $400 in 3 weeks! ;)

Fri, 02/18/2011 - 12:02 | 974262 unky
unky's picture

yes my friend, i think so too

Fri, 02/18/2011 - 12:11 | 974298 jus_lite_reading
jus_lite_reading's picture

Someone stated yesterday that if we see silver going up $1 for days in a row, it may be time to panic. What happens when silver goes up $5 in a single day?

I'm tempted to place a sizable order just for the hell of it. Who needs fiat money when you have silver?

Fri, 02/18/2011 - 12:26 | 974388 Kali
Kali's picture

Yup.  While very happy to see it blow past 32.50, this is making me nervous.  Good for silver, but a sign of SHTF?  Yikes!

Fri, 02/18/2011 - 13:55 | 974919 jus_lite_reading
jus_lite_reading's picture

Do you prefer to be slow roasted or beheaded? If you're wearing a silver colar, you'll survive.

Fri, 02/18/2011 - 21:22 | 976305 StychoKiller
StychoKiller's picture

Kali my love!  What is thy bidding, my mistress?

Bet you're looking forward to the upcoming Great Implosion and all the blood it will generate.

Fri, 02/18/2011 - 12:13 | 974308 Snidley Whipsnae
Snidley Whipsnae's picture

Silver up 45 cents in the last hour and fifteen minutes... That is impressive!

Fri, 02/18/2011 - 16:46 | 975464 Treeplanter
Treeplanter's picture

Will take profits at $37.  Turn margin bought silver mining shares into my money so I canbuy the next dip.  QE will fuel shorts and status quo happiness and create more dips.  With one exception.  Not touching SLW.  It will have extra booster rockets when the first moonshot happens.

Fri, 02/18/2011 - 11:59 | 974243 IQ 145
IQ 145's picture

 This is the slingshot following the last pullback. 

Fri, 02/18/2011 - 11:17 | 974025 Top_Kill
Top_Kill's picture

We Have a problem....bitchez

Fri, 02/18/2011 - 11:17 | 974027 RobotTrader
RobotTrader's picture

Absolutely no stress whatsoever shown on this chart.

Seems like if JPM was going to have a problem, the stock would be tanking now.

Fri, 02/18/2011 - 11:19 | 974033 tmosley
tmosley's picture

Lern2Read, dumbass.  Everyone knows they are going the be bailed out.

Price that stock in silver, and you will see a different story.

Fri, 02/18/2011 - 11:37 | 974123 Red Neck Repugnicant
Red Neck Repugnicant's picture

Denominate JPM against your out-of-this-cosmos douche-bagginess, and they're effectively insolvent. 

Fri, 02/18/2011 - 11:37 | 974141 TheGreatPonzi
TheGreatPonzi's picture

Get out. Go troll the Yahoo finance or Marketwatch forums with your socialist propaganda. I'm sure you'll be welcome. 

Fri, 02/18/2011 - 11:38 | 974148 tmosley
tmosley's picture

You are not wanted, boy.  You have nothing to contribute.

Get out.

Fri, 02/18/2011 - 11:55 | 974187 Red Neck Repugnicant
Red Neck Repugnicant's picture

Get out.....

You are not wanted, boy .....


.....You doom/gloom libertarian douche bags sound like a bunch of cranky old geezers who are just one insult away from calling me a "whippersnapper" and flinging your AARP card at me.  

As long as you don't take the tennis balls off the end of your walker and throw them at me, I'm staying. 



Fri, 02/18/2011 - 12:07 | 974277 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Holey shit dude, how much money are you losing on your silver shorts to be flying off the handle this early in the day?


Sorry it's not working out for you, but attacking the people who (unintentionally) tried to give you better advice is not the way forward.

Fri, 02/18/2011 - 12:46 | 974529 tmosley
tmosley's picture

You never contribute anything, and you clearly hate everyone here.  Why do you stay?

Masochism is the only answer I can come up with.  

Hey, the last time I ordered you to head down to the local gay biker club and set yourself up to pull a train, you disappeared for quite a while.

Do it again, bitch.

Fri, 02/18/2011 - 21:25 | 976312 StychoKiller
StychoKiller's picture

According to George Washington, he could also be a Psyops plant.

Fri, 02/18/2011 - 12:51 | 974574 HoofHearted
HoofHearted's picture

Stay, go, whatever...but at least say something intelligent, or witty, or anything of substance.

Because we're tired of just saying, "Don't pay attention to him. He's one of the special ones that ride the short bus."

Either say something of substance or close your mouth and let others assume what is actually true.

Fri, 02/18/2011 - 11:41 | 974163 DonnieD
DonnieD's picture

If you're going to post something like that, at least make it funny.

Fri, 02/18/2011 - 11:42 | 974172 Ricky Bobby
Ricky Bobby's picture

Red neck .. Boot licking camp guard.

Fri, 02/18/2011 - 11:59 | 974246 MarketTruth
MarketTruth's picture

Guys, JP Morg is a key member/owner of the privately owned United States Federal Reserve Central bank. As such, they literally own the Fed money printer. The point IS NOT profit or stock value, it is targeted price suppression. JP Morg stock will not be effected because they literally can print money.

Fri, 02/18/2011 - 15:55 | 975325 Troy Ounce
Troy Ounce's picture


The "raison d'etre" for Central Banks is the suppression of the gold price.


Fri, 02/18/2011 - 11:21 | 974049 Unmisinformed
Unmisinformed's picture

Jesus, do you listen to yourself?



Fri, 02/18/2011 - 11:20 | 974050 hack3434
hack3434's picture

Excellent...back to where it was a year ago. 

Fri, 02/18/2011 - 11:28 | 974090 lieutenantjohnchard
lieutenantjohnchard's picture

the old catfish mouth robo uber bull bear wanna be has spoken. there is no jpm silver short position. it's a myth he says, posting from his apartment in los angeles, where he sits in retirement bliss from the mint he made trading stocks, or so he says.

meanwhile, as he would say, silver explodes higher, doing the exact opposite of what he pounded the desk saying it would not do.

Fri, 02/18/2011 - 11:28 | 974091 Hulk
Hulk's picture

Chart is due to socialized losses

Fri, 02/18/2011 - 11:30 | 974105 beastie
beastie's picture


What's your guesstimation on the HUI today? The reason I ask is we have Option Expiration and rising Silver.

Fri, 02/18/2011 - 11:35 | 974129 lieutenantjohnchard
lieutenantjohnchard's picture

old catfish mouth doesn't do requests. he weighs in from on high, and then scampers off to the safety and security of his "veranda" overlooking a jam packed los angeles freeway, where he brainstorms some cockamamied idea exactly opposite of what he just posted.

Fri, 02/18/2011 - 11:58 | 974238 beastie
beastie's picture

Two sides to every arguement. I would like Robo to present his.

Having read though his posts and his friend Rasputin on "the other board" it is obvious (imho) he has been influenced by Rasputin.

It is obvious he is an experienced trader. I want to know if emotion is getting in the way of his trading.

Just my opinion. Awaiting Robo opinion.

Fri, 02/18/2011 - 12:10 | 974288 lieutenantjohnchard
lieutenantjohnchard's picture

granted, there are two sides to every trade. and he's on both sides with no thesis, as a fellow poster made clear recently.

he's an easy target, and i am predisposed to believe little of what he says about his "trading." i think he's a legend in his own mind, transposing the success of others onto himself. i believe you would be better off trusting yourself, and going with what you see with your own eyes and experience in the world.

Fri, 02/18/2011 - 11:32 | 974118 Dr. Engali
Dr. Engali's picture

That's due to the Bernanke put.

Fri, 02/18/2011 - 11:45 | 974181 Robot Traders Mom
Robot Traders Mom's picture

Come upstairs and lick my neck again you little tool for a son

Fri, 02/18/2011 - 15:25 | 975228 MsCreant
MsCreant's picture

Comedy Gold. 

I don't hate Robo at all, I want to make that clear.

But someone was inspired to create this attractive avatar, cook a up name, and post stuff like this. It's funny as shit on so many levels. Robo really matters to someone in our midst.

Or could it be it really is Robo's mom?


Fri, 02/18/2011 - 21:39 | 976344 doggings
doggings's picture

well it is all that you say..

but it is also basic trolling, day 1 lesson 1, Imp-ing.

first imp them with humorous misspellings of their name, (HomoTrader etc, see if you can drag in some anti-homophobes while you're at it) then their mum, sisters, nans and all female relatives.

sometimes its as though none of you even went to troll school at all.


Sat, 02/19/2011 - 13:07 | 977447 MsCreant
MsCreant's picture

CD has posted some stuff on disinformation tactics, similar, but not always the same as trolling. I have also seen some anarchist materials on how to disrupt an enemy.

This is the first "troll schooling" I have had. Thanks doggings!

Fri, 02/18/2011 - 11:55 | 974226 IQ 145
IQ 145's picture

 The situation is irrelevant to JPM; it has nothing to do with JPM; JPM doesn't care; what you're witnessing is the functioning of the Silver Market; It's a bull market. You find this surprising ? You haven't been paying attention. All the BS about JPM is just "internet wisdom".

Fri, 02/18/2011 - 12:15 | 974320 Bay of Pigs
Bay of Pigs's picture

Junk for ignorance. 

Fri, 02/18/2011 - 11:57 | 974233 SheepDog-One
SheepDog-One's picture

You are the most worthless ignorant poster ever RoboTrader.

Fri, 02/18/2011 - 12:25 | 974384 oddjob
oddjob's picture

I think the term 'carping weisenheiminer' is more apt for Robo.

Fri, 02/18/2011 - 17:17 | 975561 akak
akak's picture

If RoboTroll's posts could be made here in the physical medium most appropriate to their intellectual and financial profundity, they would be in spraypaint --- or perhaps crayon.

Fri, 02/18/2011 - 12:10 | 974287 searcher68
searcher68's picture

Lots of supporting volume at these highs too. Oh yeah, goin' to the moon baby!

Fri, 02/18/2011 - 12:17 | 974333 alien-IQ
alien-IQ's picture

Robo...don't you feel like the guy wearing the "Free Charles Manson" t-shirt at Sharon Tate's funeral?

Fri, 02/18/2011 - 12:43 | 974502 Math Man
Math Man's picture

JPMs not tanking.  Because they don't have a short.

The commodities prop desk was closed to comply with the Volker rule.

And they had a trading profit every day in the 2nd half of the year.

The short rumor is not true.


The best part about this little rally is the puts just got cheaper.

It only costs 5 bucks to dig it out of the ground.

I just bought myself some more July puts on SLV.



Fri, 02/18/2011 - 16:49 | 975477 Treeplanter
Treeplanter's picture

Put your toe in the water and short these guys when the chart shows a top formation.

Fri, 02/18/2011 - 11:17 | 974028 tmosley
tmosley's picture

How long?  

Not long.

Cause what you reap,

is what you sow!

Fri, 02/18/2011 - 11:23 | 974066 Dr. Richard Head
Dr. Richard Head's picture

Sleep Now in the Fire -

Loved how they shut down Wall Street for a point.

Fri, 02/18/2011 - 11:18 | 974029 uno
uno's picture

the MSM will say no-one saw it coming

Fri, 02/18/2011 - 11:19 | 974038 The Count
The Count's picture


Follow the yellow brick road...

Fri, 02/18/2011 - 11:21 | 974040 101 years and c...
101 years and counting's picture

Use your Chase CC's to buy silver.  Make JPM pay for their own demise. And then default on your credit cards.  Fuck them.

Fri, 02/18/2011 - 11:55 | 974222 Mr Poopra
Mr Poopra's picture

That's so funny that you said that, I just ordered another 140 Buffalos on my new Chase card.  The irony is just too much.

Fri, 02/18/2011 - 11:19 | 974042 pgarner
pgarner's picture

Let's roll!

Fri, 02/18/2011 - 11:20 | 974043 lieutenantjohnchard
lieutenantjohnchard's picture

but wait ... robo catfish mouth uber bull bear wanna be said silver bulls like the scroomers (his words) gentleman jim sinclair and eric king were going down.

it's great to be on the other side of a trade against the old catfish mouth.

Fri, 02/18/2011 - 11:58 | 974241 SheepDog-One
SheepDog-One's picture

And amazing how Robo catfishmouth can STILL come around and strut about claiming he was somehow right!

Fri, 02/18/2011 - 12:18 | 974339 IQ 145
IQ 145's picture

 You have to admit she has a pretty bra, tho.

Fri, 02/18/2011 - 13:06 | 974673 lieutenantjohnchard
lieutenantjohnchard's picture

he's shameless.

Fri, 02/18/2011 - 11:23 | 974045 Apostle of Unknown
Apostle of Unknown's picture

I can already see her giving instructions to her own personal Waylon Smithers: "Find me 5000 tons of silver and bring it to New York. Oh and Smithers, you have 1 week."

Fri, 02/18/2011 - 11:39 | 974153 Jean Valjean
Jean Valjean's picture

Question:  Is Blyth's version of Smithers a lesbian?

Fri, 02/18/2011 - 11:21 | 974046 bania
bania's picture

So long $31, we hardly knew ye...

Fri, 02/18/2011 - 11:28 | 974093 Max Hunter
Max Hunter's picture

Thanks.. I needed that.. LOL 

Fri, 02/18/2011 - 11:21 | 974052 slow_roast
slow_roast's picture

This reeks of desperation to cut Open Interest.  Perhaps this was the smell of blood in the water to many funds that there is easy money to be made buying contracts and selling them at a premium in a few weeks?

Fri, 02/18/2011 - 11:23 | 974054 LawsofPhysics
LawsofPhysics's picture

Perhaps, this time it really is different.  Bullshit laws of economics, meet the very real Laws of Physics, Thermodynamics, and Biochemistry.  There is a very real cost for creating capital on a finite world with finite resources.  Gee, maybe real commodities do in fact need to get to real refiners and to real customers after all. Gee, perhaps you do indeed only make the problem worse when all that money you print does not find its way into the hands of innovators or the real value-added market movers.

The financial sector of the world economy remains a cancer that the broader sectors of the world economy can no longer sustain.  This time is indeed different, buy physical metals, everything in the world of paper is based on mark-to-unicorn accounting (hint; it ain't real)


Hedge accordingly.

Fri, 02/18/2011 - 11:32 | 974098 SWRichmond
SWRichmond's picture

Bullshit laws of economics, meet the very real Laws of Physics, Thermodynamics, and Biochemistry.

My undying faith that simple mathematics will prevail are the foundation for my being long PMs and miners.

Edit: I am now actively selling Treasuries and buying PMs.  Let's see if we can't get a wave started here.

Fri, 02/18/2011 - 11:51 | 974210 TreadwCare
TreadwCare's picture

Galbraith was on Bloomberg Surveillance this morning again and I was left dumbfounded, astounded, and downright DISSED, as in cognitive dissonance (this one's for you CD).  He said deficits don't matter, they're just numbers on some electronic ledger, and if China told the US Treasury they didn't want to purchase our bonds anymore we'd just reverse the flow of numbers . . .

Credit to the Bloomberg guys even they gave pause and did essentially a 'lol wut?'.

Fri, 02/18/2011 - 12:21 | 974362 IQ 145
IQ 145's picture

 I congratulate you. Especially notice that you will profit more from Silver than Gold.

Fri, 02/18/2011 - 16:50 | 975483 Treeplanter
Treeplanter's picture

TBT and silver.

Fri, 02/18/2011 - 21:43 | 976353 StychoKiller
StychoKiller's picture

The upper bound on ALL positive exponential functions is ∞

Fri, 02/18/2011 - 11:41 | 974131 Bay of Pigs
Bay of Pigs's picture



Fri, 02/18/2011 - 11:43 | 974175 Jean Valjean
Jean Valjean's picture

I really liked it too.  Few people understand that inflation of the money supply is theft of innovation.  Fewer still can explain it so plainly.

Fri, 02/18/2011 - 12:24 | 974375 IQ 145
IQ 145's picture

 Excellent. well said. "The financial sector of the world economy remains a cancer---" yes, indeed. And silver is the prevention.

Fri, 02/18/2011 - 12:47 | 974543 Saxxon
Saxxon's picture

+1 good post LawOfPhysics.

Fri, 02/18/2011 - 11:21 | 974057 The Count
The Count's picture

PS Has nothing to do with this article, but I just needed to say this: Most Ron Paul forum memembers are just as clueless as the MSM. So don't expect too much help from that side either. 

Fri, 02/18/2011 - 11:23 | 974062 Cognitive Dissonance
Cognitive Dissonance's picture

Interesting that Silver is taking off precisely when Gold is being stepped on. Do you think there is some rotation here?

Fri, 02/18/2011 - 11:25 | 974075 LawsofPhysics
LawsofPhysics's picture

I'll bet an ounce of silver that the answer is yes.  Perhaps the financial douchebags are finally eating each other.  One can only hope.

Fri, 02/18/2011 - 11:27 | 974089 Dr. Engali
Dr. Engali's picture

The common person can't afford an ounce of gold,but they can buy some silver.

Fri, 02/18/2011 - 11:34 | 974125 Cognitive Dissonance
Cognitive Dissonance's picture

That's one of the reasons I started my Johnny Silverseed project. BTW I will be updating it in a week or so. It was interesting to watch how my new recruits handled the Silver correction.

Fri, 02/18/2011 - 12:28 | 974399 IQ 145
IQ 145's picture

 Well you're on the same side as me and God; so you must be right.

Fri, 02/18/2011 - 11:38 | 974147 Cdad
Cdad's picture


It looks to me that the morning gold sell off, such as it is, is about to reverse.  $1383.50 was significant on an intermediate term chart.  Should serve as a spring board.

Fri, 02/18/2011 - 11:46 | 974179 Cognitive Dissonance
Cognitive Dissonance's picture

You appear to be correct. It held twice within the hour and now $1,386 is about to be pushed on the up side. We shall see. This is almost as much fun as video games. :>)

edit: And as I posted this, Gold pushed above the $1,386 resistance. Let's see if it holds.

Fri, 02/18/2011 - 16:54 | 975497 Treeplanter
Treeplanter's picture

I see 2 things.  A much more severe shortage of silver and the old 16:1 ration to gold.  As market supression is eroded that old ratio gets into play.

Fri, 02/18/2011 - 21:47 | 976362 StychoKiller
StychoKiller's picture

The number of spinning plates is getting to be too large for The Bernank! :>D

Fri, 02/18/2011 - 11:23 | 974063 Caviar Emptor
Caviar Emptor's picture

Spiked after reports of Bahrain army firing live rounds from helicopters and APCs on protestors and mourners. Casualties already reported. 

It's war: Sunni vs Shia

Fri, 02/18/2011 - 11:25 | 974069 The Count
The Count's picture

It always amuses me that the Muslims hate each other as much as them claim to hate us...

Fri, 02/18/2011 - 11:29 | 974101 SWRichmond
SWRichmond's picture

You'd think our "betters" would be able to find a strategy in there somewhere...

Fri, 02/18/2011 - 12:30 | 974410 IQ 145
IQ 145's picture

 Yes, I enjoy this also. Crazy is crazy, once you're completely nuts, confusion comes easily.

Fri, 02/18/2011 - 16:56 | 975502 Treeplanter
Treeplanter's picture

They hate us more.  Envy and misery. 

Fri, 02/18/2011 - 11:27 | 974084 LawsofPhysics
LawsofPhysics's picture

Look around, don't think that divid and conquer won't work in the U.S. just as easily.  Good thing we still have lots of arable land.

Fri, 02/18/2011 - 11:31 | 974067 Pee Wee
Pee Wee's picture

Blythe, this is Houston, our eyes are closed so no one can see it coming.

Houston, this is Blythe, I'm not worried, you will bail me out just like usual and I'm looking forward to my bonus.

Fri, 02/18/2011 - 11:25 | 974072 TheGreatPonzi
TheGreatPonzi's picture

Continue to make pressure on Blythe. 

For the dumbasses such as Bigger Dickus who think JPM has closed its short since a while, it was simply impossible to do it without suffering a catastrophic loss (just look at the figures). 

And if JPM is currently hedging the short, this is even worse for them...


Fri, 02/18/2011 - 11:25 | 974076 Arthor Bearing
Arthor Bearing's picture

Eleventy Gazillion Brazilian Bajilion Monopoly dollars to JPM!

It won't matter if the banks get bailed out, they're all broke anyway. Physical stuff (especially non-eroded and depleted arable land) is what's most important now

Fri, 02/18/2011 - 11:26 | 974082 firstdivision
firstdivision's picture

I would wager a guess that JPM unwound most of its silver trade when the price was getting squashed last month.

Fri, 02/18/2011 - 11:30 | 974109 TheGreatPonzi
TheGreatPonzi's picture

If they did so, I applaud their cold calm. 

Taking a several billion dollars loss and abandoning every further hope to suppress the silver price demands to be sure it won't go down anymore. 

Though, if they think their Federal Reserve friends will bail them out, sure thing, but the money created for that will add to the inflationary pressures... 

Fri, 02/18/2011 - 11:27 | 974086 overmedicatedun...
overmedicatedundersexed's picture

Gold not yet taking off..??

Silver ratio returning to a more normal level?

love the move in Ag but gold not confirming it.

so much turmoil in the world news- so small amount of PM.s to go around..

got 20% in PM and PM stocks, only one in my

family or friends and neighbors  who does..

guess it's a bubble LOL


Fri, 02/18/2011 - 12:36 | 974455 SilverIsKing
SilverIsKing's picture

By definition, a closing of the Gold:Silver ratio would mean that gold does not confirm silver's move.  In other words, how can silver close the gap without outperforming gold?

Fri, 02/18/2011 - 11:27 | 974087 Fortunes Favor
Fortunes Favor's picture

Another Silver short squeeze in the making but this time its a mining company

Fri, 02/18/2011 - 11:40 | 974156 The Count
The Count's picture

Interesting stuff. Which shares are they talking about?

Fri, 02/18/2011 - 12:12 | 974307 yellowbr
yellowbr's picture

Word is that's TRE.

Fri, 02/18/2011 - 11:30 | 974103 Misean
Fri, 02/18/2011 - 12:55 | 974611 IQ 145
IQ 145's picture

 You betcha; just like "the lone Ranger's great white horse, Silver". Used to listen to the radio show on my crystal set as a rugrat. This week I made over a 100K on my margin buy up at 27.23; maybe the radio show was some kind of good "programming"; ha, ha. Sorry, a little giddy today. It's my birthday, I made it to 68 and the world is paying me off for doing my homework and knowing WTF I'm doing; God obviously loves me; I'm having a HAPPY BIRTHDAY.

Fri, 02/18/2011 - 11:30 | 974104 Jim in MN
Jim in MN's picture

Protip: Need to call chicago, not houston these days

Fri, 02/18/2011 - 11:31 | 974113 99er
Fri, 02/18/2011 - 11:31 | 974114 Sqworl
Sqworl's picture


Fri, 02/18/2011 - 11:35 | 974128 Cognitive Dissonance
Cognitive Dissonance's picture

Do my eyes deceive me or is that Sqworl? :>)

Nice to see you sluming around ZH.

Fri, 02/18/2011 - 11:32 | 974120 jobs1234
jobs1234's picture

This seems to be a statement from the markets that Bernank is full of it.

Fri, 02/18/2011 - 11:36 | 974127 The Count
The Count's picture

The best PM strategy: Once gold has gone to 10,000 and silver to 500 an ouce, you have to sell and invest all that money in land. As in farmland/forest/etc. Because thats the only thing they wont devalue/confiscate/make illegal.

Fri, 02/18/2011 - 11:49 | 974194 Big Corked Boots
Big Corked Boots's picture

Not true. You should research the Highlands Preservation Act in New Jersey to see how a corrupt state government (led by Jim McGreevy) confiscates the property of (mostly Republican) land owners.

Fri, 02/18/2011 - 12:05 | 974270 SheepDog-One
SheepDog-One's picture

Nice idea, but how do you figure they wont make land illegal or confiscate it? They already do it all the time.

Fri, 02/18/2011 - 12:30 | 974404 The Count
The Count's picture

You are right. We are all screwed. There is no escape.

Fri, 02/18/2011 - 12:16 | 974328 Cindy_Dies_In_T...
Cindy_Dies_In_The_End's picture



You already pay property taxes, haha

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