A Look At No POMO Friday As Saudi, Yemen, Kuwait And Bahrain Brace For Protests

Tyler Durden's picture

Newsflow tomorrow is going to be heavy as Saudi, Yemen, Kuwait and Bahrain all prepare for protests. And if today's actions are any harbinger of what to expect, there will be serious unrest, quite possible turning violent even lethal. The wildcard still continues to be Iran, also a hotbed of recent protest, which has so far not made much noise about the crackdown on Shi'ites in the wealthy Saudi kingdom. Reuters summarizes what to look forward to: " Arab uprisings that have spread to the conservative Gulf region face a crucial test this week in Saudi Arabia where activists have made unprecedented calls for mass protests against the kingdom's absolute monarchy. Protests are planned in other Gulf countries such as Yemen, Kuwait and Bahrain on Friday, the region's weekend. The time after Friday prayers has proved to be crucial in popular uprisings that have brought down Tunisian and Egyptian rulers who once seemed invulnerable. More than 32,000 people have backed a Facebook call to hold two demonstrations in the country, the first of them on Friday. Saudi police dispersed a protest by a Shi'ite minority in the OPEC member's oil-producing Eastern province near Bahrain on Thursday with one to four people wounded as shots were heard, witnesses said." Furthermore, as we disclosed earlier, the Fed may have made a major error by not conducting a market stabilizing POMO tomorrow - arguably the day it will be needed more than ever. Those so inclined are urged to put on some fat tails insurance ahead of tomrrow's events which will most certainly result in some very violent swings in either direction.

From Reuters:

 "What the regime is worried about is setting a precedent for protests, that when people have problems they're going to feel more comfortable and more willing to take to the streets," said Shadi Hamid, an analyst with the Brookings Institute in Qatar.

Washington -- which has buttressed the Gulf dynasties as a counterbalance to Iran -- raised the stakes in comments this week calling peaceful assembly a universal right that must be respected even in a country that claims unique status as an Islamic state like Saudi Arabia.

Foreign Minister Prince Saud al-Faisal slammed "foreign intervention" in a news conference on Wednesday that seemed to highlight the problems facing a family that monopolises political life in a country named after them.

"The called-for reform does not come via protests and (the clerics) have forbidden protests since they violate the Koran and the way of the Prophet," said Prince Saud, who has occupied the foreign minister portfolio since 1975.

And while the Saudi regime still has the funds to continue attempting to bribe its population into loving it, other countries are less fortunate:

The protest movements hit populous Yemen a month ago and spread to the Gulf states where dynasties who secured their rule in colonial times and have bought their people's acquiescence by dispensing petrodollars.

Bahrain has been the most vulnerable. Majority Shi'ites who resent domination by the al-Khalifa dynasty have staged pro-democracy protests and analysts say Saudi pressure has been heavy on Manama to stamp them out.

This week hardline Shi'ite groups formed an alliance to ditch the monarchy and turn Bahrain -- an island state whose rulers look to Riyadh for support -- into a republic. They are planning a march on the royal palace on Friday.

Yemen is also set for an escalation after opposition groups, who have held pro-democracy marches for the past month, rejected veteran ruler Ali Abdullah Saleh's offer of reforms on Thursday.

A small number of Kuwaitis held protests this week, while activists and intellectuals in the United Arab Emirates petitioned the rulers for democratic elections. Last week Omanis clashed with police over jobs and corruption in government.

Several Gulf rulers seem to hope more money will solve their problems.

Saudi King Abdullah has vowed to distribute some $37 billion in handouts to students, the unemployed and other low-income Saudis via a series of pay bonuses and benefits announced as he returned in February after a three-month absence for medical treatment.

Gulf Arab oil producers launched a $20 billion aid package on Thursday for poorer Gulf countries Bahrain and Oman.

"For most of us, it's not about money, it's about having a share in our government," said Mohammed al-Mansoori, a rights activist in the United Arab Emirates. "In other places people have dignity, here, people don't."

As we have said previously, the market will be far more surprised by events out of Europe before this month is over, as that is where the real time bomb continues to tick.

We will follow tomorrow's events early so grab your popcorn.

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DoChenRollingBearing's picture

Tomorrow is going to be a great day!

duncecap rack's picture

You are a gold guy. Do you have any ideas why gold and silver didn't catch a haven bid today?

tmosley's picture

Nothing moves in a straight line.  There will always be corrections as gold and silver climb the wall of worry.

Don't let the dunces and delivery drivers get you down.  This is nothing but healthy consolidation.

william the bastard's picture

Can't buy the dip until you end the slip

depression's picture

holla for da dolla

US dollar and 10 year treasury have bottomed, everything else has topped, copper called this inflection point early but everyone said "this time it's different"

silver paper (SLV) bugs man the lifeboats

Confuchius's picture


Remember, the paper "crimex" prices are for paper. Not metal. Real Gold / Silver costs more. Not only costs you more paper fiat to acquire, it does not change much day to day.

DoChenRollingBearing's picture

Turd Ferguson would be the guy to ask.  I too would have thought gold would have gone up.

But, it is important to understand that I do not trade gold.  I buy and hold it.  I am in FOFOA's camp:


Mr Lennon Hendrix's picture

I wanted to test support this week, thought that since last weekend, and I have support at $1407.  This is just the way it goes, gotta wind it up to let it go, technical stuff.  SLW isand has been on the 30 week moving average since June/July of '09.  When SLW breaks out then it also pulls back sharply because playing both sides of the elasticity generates the largest amount of gain. 

JPM shorts, they hit, then China buys.  Then JPM shorts, China buys.  On and on.  All the while Bernanke gets to run the world, or, Obama, whoever.

Pegasus Muse's picture

Picked up a couple hundred 1oz Ag rounds today -- cheap.  Under $35.  Never thought I'd see that price again.

SLW:  increased my position on the 7% off sale

AG (First Majestic):  12% off; had to buy more

I'll be grinning about my winnings in a couple innings.  Think of how cheap 35 will seem when its sitting at 50.

Vanderdekken's picture

Hmmm.... and i thought it was cheap when i bought it at $13/oz. Wish i had more fiat dollars to play around with; When's bernanke going to rain money out of the helicopters?

Tulli's picture


  Gold and silver are usually the last ones off the dance floor when the music is readu to stop. One reason for this is that when faced with margin calls traders sell the metals last. The trading today in gold and silver suggests that margin liquidation is taking place. When that happens, everything goes out the window.


This is great for accumulators, so BTFD in gold and silver when you get a nice setup.

depression's picture

Physical metal will not sell off much if at all. The paper markets will fluctuate in response to the COMEX/JPM games being played but physical prices and global physical demand will hold steady or just ignore the paper market and continue to rise unabated. At some point soon physical delivery demand will overwhelm COMEX.

william the bastard's picture

Because the Fed inflate-a-bubble has failed again and rates will be rising as global economic growth collpases.

Rising rates have killed every gold rally since the rule of Valentinian III

Mr Lennon Hendrix's picture

Rates can't rise the interest on the debt would crush income.  Right now 1/3 US debt pays for the "right" to use the dollar as a domestic currencie. Raise the rate marginaly and that goes to half.  The US would be forced to cut its military budget.  Ain't no way that is happening. 

william the bastard's picture

Not only are you betting on it you're getting lousy odds!

gwar5's picture

Half of PM move the down is the result of relative strenthening in the USD (kitco)

StychoKiller's picture

People sold stock(s) and bought FRNs.  When the $ goes up, Gold & Silver go down (usually!)

NewThor's picture

Who needs POMO when you got the ninja's of the PPT?

Ben Bernanke will make sure the Dow Jones closes today over 12,000.

He's real big on psychological barriers. Anti-christs are funny like that.




r101958's picture

Exactly!....and they will be out in force tomorrow.

StychoKiller's picture

Dow closed at 11,984.61, on your planet perhaps it's still above 12,000. :>D

sheeple's picture

not sure bud, looks like a set up for commodity sell off tomorrow

Confuchius's picture


Keep in mind: Ag & Au are money, not "commodities".

Motorhead's picture

Even Halliburton is down today.  What is this world coming to?

Cash_is_Trash's picture

To the end of fiat, my friend.

fredquimby's picture

FOA 10/09/2001

"In other words, the current price of gold means that you are buying a slice of the world’s gold supply with a proportionately smaller slice of the world’s money. You can currently buy x% of the world’s gold with y% of the world’s money, where x is much bigger than y. When gold will become the unit of account of the world’s wealth, you will find yourself able to claim a much bigger slice of that wealth than you would have been able to do with fiat money before the collapse."


Jeremy Roenick's picture

As they used to say in the '80's...

It's on like Donkey Kong...

Jeremy Roenick's picture

As they used to say in the '80's...

It's on like Donkey Kong...

Johnny Lawrence's picture

And the struggle into the close to stay above 12k and the 50-day on the S&P

JimRogers's picture

You don't think they'll toss 7 billion down the POMO-hole just cuz its not on some schedule?

POMO erreday!





dick cheneys ghost's picture

sexual prey in the saudi jungle.........a look into saudi society





youngman's picture

What has me befuddled today is the rush to Treasuries..."security"...but gold and silver are down...to me a better security...WTF

tickhound's picture

It's called the "zombie effect"

Translational Lift's picture

The people that buy stocks and bonds don't know there's gold and silver out there.

GOSPLAN HERO's picture

Silver, my homies.

Judge Judy Scheinlok's picture

I'm going to create a robotic army of protesters and they will look like this:



When they are not protesting in my chosen locations they will be trading in the pits of the CBOT.

"emotional affordances in human robot interaction". It's coming to a town near you.

[Skin on / Skin off]

Armando Javier Finkeltein of the Boise Finkelsteins's picture

"Hey Abdul, what are you going to do?  What do you say after prayers tomorrow we loot,riot and grab ass blonde bimbo reporters?" " Sounds good to me."

"What about me?", shouts Mohammed Bruce.  "Anbody seen Anderson Cooper?"





wisefool's picture

Arabs are fierce people but not easily fooled. If a bernank showed up with a chart that said 32/47 virgins was enough, we can give you a ukrainian nurse and an F-14.

zaknick's picture

Anderson Cooper (a Vanderbilt I understand) is a little biatch who got biatch slapped in Tahrir square and went home crying to mommy.

Biatch slapped!

wisefool's picture

yucky stuff to hitch your wagon to post modern perfume. I got "honey badger" and the american counter part on my shoes and arabian carpet right now. But the chickens are safe from kadaffie.

- PePe le France me something.

sulfur's picture

Sell the fucking shit