RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 03/06/10

Comments

[unwashedmass]

any definitive word yet on how many are standing for delivery in gold at the Comex?

rumor now is that its far more than the comex can possibly meet....(which would justify the hysterical pounding gold has been getting the past couple of hours....desperate investment banks do desperate things, eh?)

anyone know or heard anything definite yet?

[Hephasteus]

There was a dog here the other day that could feel things in his nuts but he didn't feel a comex default. All I know is june is when the world butts heads.

[unwashedmass]

apparently there seem to be quite a few folks who didn't know that they were supposed to wait until the june contract.......

this is going to be fascinating to watch. right they are trying to pound both gold and silver. .....

don't know what that is going to achieve....the cat is outa the bag on that baby.....Comex prices are a fantasy....

premiums are rocketing everywhere....

[Hephasteus]

Well it's not a very straightforward situation. It's all tied to oil. Comex default won't happen first. Oil is priced in both fiat and gold so first oil has to rocket up in price relative to fiat. That's what caused the last crash was the move in oil to $140. And the projections to $200 were spot on they just were not sustainable. You had the big selloff of gold after the crash because oil stopped moving as both a fiat and metal item. It was moving mostly on metal and took little fiat to make up the difference. The BP spill was intentional as both a way to give reasoning behind the rocketing of oil prices that is coming. Before comex defaults I think europe soaking up the gold supply will cause them to let it go. Gold should immediately correct to 1450 ish. But for some reason the hybrid fiat/metal system crashes at prices above 1350. So the only way to control it is for the taps to turn off. Because the next crash there just isn't enough sellable obtainable liquid gold to maintain even the reduced economic activity.

The fed reserve has hoovered up all it can with the cash for gold structure. I still can't see it clearly in my mind how it will all play out but the first seam will break this month. Governments will start trying to get the gold back by any force necessary. The people will hit the governments with huge hatred contempt right to exist energy. The government will hit the people back with the same energy. They'll figure out it's not going to be fun trying to govern people who can't stand you and either back down or lose most of us forever. Before all that they will probably spring the carbon credit and try to start the bullying and see how it goes. If the fuck you list is managable they'll keep it up if it's not they might fold. But they are stupid and crazy, so anthing can happen.