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Treasury To Stop Funding Its Market Manipulation Fund To Delay US Bankruptcy

Tyler Durden's picture


After pillaging the G Fund and Civil Service Retirement and Disability Fund (CSRDF), aka the Government retirement funds, Tim Geithner was just forced to resort to the final debt ceiling extension measure: suspending reinvestment in the Exchange Stabilization Fund, better known as the mechanism by which the Treasury manipulates the stock, bond and FX markets, often times indirectly (thank you Brian Sack and Citadel fat pipe) and on occasion with CIA assistance. What this means is that FX vol will likely hit unseen levels in the next several weeks as the Treasury's manipulative ways are strongly curtailed.

From the Treasury:

Update: As Previously Announced, Treasury to Employ Final Extraordinary Measure to Extend U.S. Borrowing Authority Until August 2

WASHINGTON – Today, the U.S. Department of the Treasury released the following statement from Jeffrey Goldstein, Under Secretary for Domestic Finance, regarding the use of the last of the four previously announced measures available to keep our nation under the statutory debt limit, suspension of reinvestment of the Exchange Stabilization Fund.
“Today, as previously announced, the Treasury Department will suspend reinvestment of the Exchange Stabilization Fund, the last of the measures available to keep the nation under the statutory debt limit.  In order to prevent a default on the nation’s obligations, Congress must enact a timely increase of the debt ceiling.”
The U.S. reached the debt limit on May 16, 2011, but the Treasury Department has employed three previous measures to temporarily extend our ability to meet the nation’s obligations.  Those measures, in order taken, are (1) suspending issuance of State and Local Government Series (SLGS) Treasury securities; (2) declaring a “debt issuance suspension period” of the Civil Service Retirement and Disability Fund (CSRDF); and (3) suspending reinvestment of the Government Securities Investment Fund (G Fund).
As previously stated in the May, June, and July monthly updates, taken altogether, these four extraordinary measures allow the Treasury to extend borrowing authority until August 2, 2011. 


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Fri, 07/15/2011 - 15:40 | 1460588 trav7777
trav7777's picture

Unstable, bitchez

Fri, 07/15/2011 - 15:54 | 1460661 TaxSlave
TaxSlave's picture

Blind man, to nobody in particular:

All right, dammit, who left the plunger in the toilet!?


Fri, 07/15/2011 - 16:03 | 1460710 Fish Gone Bad
Fish Gone Bad's picture

The treasury fund would be wise to load up on FAZ and then push the market over a cliff.

Fri, 07/15/2011 - 16:27 | 1460806 Baron Robber
Baron Robber's picture

congressman already have/are/will

Fri, 07/15/2011 - 16:45 | 1460883 Caveman93
Caveman93's picture

Short the muthas HARD!

Fri, 07/15/2011 - 16:04 | 1460721 unwashedmass
unwashedmass's picture


and now the fun begins


Fri, 07/15/2011 - 16:06 | 1460733 Ahmeexnal
Ahmeexnal's picture

Soros is about to checkmate the US dollar.

Fri, 07/15/2011 - 16:09 | 1460741 augie
augie's picture

Do you think there will even be a "goodbye 1500...." thread for gold? Or will it go straight to "goodbye 1,999...."? 

Fri, 07/15/2011 - 17:41 | 1461014 tiger7905
tiger7905's picture

Jim Sinclair says watch $1764, he expects significant resistance here.

Fri, 07/15/2011 - 16:49 | 1460892 Bicycle Repairman
Bicycle Repairman's picture

It's a threat.  If people don't listen, Timmy will go all "2008" on their ass.  The question is: will it go that far?

Sat, 07/16/2011 - 03:41 | 1461796 darkstar7646
darkstar7646's picture

And further.

Unless someone (like that one judge in Hennepin County, Minnesota) forces "entitlements" to be paid as a function of retaining social order, things are going to finally get to 2008's end-game.

Fri, 07/15/2011 - 20:48 | 1461378 mt paul
mt paul's picture

made me laugh


Sat, 07/16/2011 - 13:30 | 1462138 Morbo
Morbo's picture

"And thank you for your support." - Bartles & James

Sat, 07/16/2011 - 14:42 | 1462246 Tim White
Tim White's picture


Fri, 07/15/2011 - 23:34 | 1461612 Tuffmug
Tuffmug's picture

Unstable is something needed right now. Stable is just more status quo BS: bail outs aka thefts, bloated and corrupted government, manipulated markets, manufactured inflation aka theft via fiat money manipulation, wars for oil and economic advantage and "wars" on drugs and terrorism to facilitate fascist control, torture and murder in the name of protecting freedom and democracy and on and on and on and ......

Boy do I ever want a government shut down!  

Sat, 07/16/2011 - 03:42 | 1461797 darkstar7646
darkstar7646's picture

Hope you are:

1) Well armed
2) Ready and mentally prepared to kill people.

That's what this level of government shutdown will force on the productive class.

Fri, 07/15/2011 - 15:42 | 1460593 Fortunes Favor
Fortunes Favor's picture

Stock Market Strategy: Carry Trade Weakness Suggests S&P 500 Overpriced

Fri, 07/15/2011 - 16:00 | 1460690 WALLST8MY8BALL
WALLST8MY8BALL's picture

STFR - Sell The Fucking Rally!

Fri, 07/15/2011 - 15:46 | 1460596 Doyle Hargraves
Doyle Hargraves's picture

Dow 5000/S&P 700 by Aug 1 bitchez!

Fri, 07/15/2011 - 16:22 | 1460792 Whatta
Whatta's picture

Nary a chance. Bernank will jerk QE3 from his rearside quicker than you can say "$750 billion more to the banksters" before ther will let this market go to those levels again.

Remember, Owe-bama has to be reelected.

Fri, 07/15/2011 - 16:32 | 1460829 treemagnet
treemagnet's picture

That QE shit is becoming low grade fuel fast. 

Fri, 07/15/2011 - 16:39 | 1460854 SheepDog-One
SheepDog-One's picture

How many times over has QE3 been priced in already? What a clown show.

Fri, 07/15/2011 - 15:44 | 1460605 hack3434
Fri, 07/15/2011 - 16:56 | 1460919 magis00
magis00's picture

Worth Watching - Absolutely worth watching . . .

Sun, 07/17/2011 - 18:30 | 1464773 purplefrog
purplefrog's picture

Wow.  I totally agree.

Fri, 07/15/2011 - 18:09 | 1461074 bank guy in Brussels
bank guy in Brussels's picture

Indeed great videos by Eric deCarbonnel of, despite the hour-plus in length, a bombshell of a presentation on « The ESF and Its History »:

To try to summarise in text Eric deCarbonnel's main points, which he backs by some great detective work and many historical documents he shows on the videos:

Zero Hedge readers will get a surprise here, as deCarbonnel asks: Is the secretive US Treasury Exchange Stablilization Fund, or ESF, the real culprit, and not the Fed? (ZH has been covering aspects of the ESF, since 2009.)

The fascinating fresh broad perspective on the ESF that deCarbonnel provides, is terrific, and frightening.

According to deCarbonnel, the Fed is actually NOT the main player of the US financial oligarchy; deCarbonnel says the Fed actually lost most of its power in 1934, in favour of another, more secretive US financial mechanism, this 'Exchange Stabilization Fund' or ESF within the Treasury Department, which deCarbonnel says is the boss of the Fed and not the other way around.

On deCarbonnel's view, it seems 'End the Fed' would just be another empty 'victory' if it happens, as the Fed's major functions would just continue from inside Treasury.

The ESF was created on 30 January 1934 as part of the Gold Reserve Act signed into law by US President Franklin Roosevelt on that day. Even at the time, the ESF was seen by some, as the most insidious part of the legislation by which the gold of US citizens was confiscated and nationalised.

Key to the ESF, operating from the Treasury Department, and conducting some operations via the New York Fed, is that the ESF is subject to no oversight from Congress or anyone else, and does not need to obey any law, with hardly anyone realising what it is. The ESF was from the start a 'slush fund' with, in effect, absolutely no restrictions on its use and no one to ask any questions about it.

With what deCarbonnel details about the operations of the ESF ever since then, as the tool for secretly funding every major scheme of America's rulers, it seems 30 January 1934 might be cited as the day America itself really died, becoming in fact a lawless nation run by secret means.

In 1934 the ESF was immediately funded by billions in instant government profit on gold holdings, the profit realised from the instant devaluation of the dollar in 1934, when the US regime nationalised all private gold and seized most of it. The theory was, the ESF could be deployed in the markets to prop up the dollar, but the ESF quickly started to be used for every major kind of US government espionage, propaganda, and criminality, which all of course can be said to be related to 'propping up the dollar'.

The ESF funded the US spy operations through the World War II era, the OSS that became the CIA. The ESF helped establish Bretton Woods, and also became a source and part-template for two global 'slush funds' which would operate much more visibly, the IMF and the World Bank.

Decade after decade, the ESF continued to fund many of the various Cold War and post-Cold-War attacks on other countries, the bribing of global politicians, the funding of military coups, and so on. According to deCarbonnel, the ESF is the conduit to receive much of the monies that US governmental forces obtain via illicit means such as drug sales and money laundering, and then re-deploys those monies for every kind of criminal use not only against other governments, but also US citizens.

For decades now, the ESF has also been a means of funding for much of the US propaganda apparatus, specifically the bribing and buying of false media stories around the world and within the USA, media deceptions as under CIA spymaster Frank Wisner playing 'Wisner's Wurlitzer', the media 'music' that the US rulers want to hear played.

Though deCarbonnel cites historical events going back to the 1930s and 1940s, he presents a picture of the ESF as being as active and insidious and dangerous today as ever, in fact more catastrophically so. It is the ESF, says deCarbonnel, rather than 'the Fed', which is in charge of US financial and monetary manipulation both inside the US and overseas.

As he moves toward the present era, deCarbonnel raises the question of how it is that after 1980, the US was able to continue the massive running-up of US government deficits, without sparking the inflation that had been the hallmark of the 1960s and especially the 1970s.

The answer which deCarbonnel gives to that question is that the US has been 'exporting' its inflation overseas via ESF operations, partly even by literal huge shipments of green cash abroad by US-supported drug dealers. He says the US in fact actually NEEDS a massive global heroin trade, from the poppies grown in Afghanistan, in order to keep wads of cash flowing out of the US, which in turn keeps inflation much lower and prevents the US dollar Ponzi scheme from collapsing at an earlier date.

Going further, deCarbonnel suggests that the main reason for 11 September 2001 and the invasion of Afghanistan, was to revive the poppy - heroin production in Afghani territory, which the Taliban had essentially eliminated before the Americans invaded. Charts shown by deCarbonnel, indicate that in mid-2001 the US teetered on dangerously high money supply flows, which deCarbonnel says occurred precisely because the heroin trade had dropped to low levels due to lack of supply, and there were no longer drug dealers taking so many bucketloads of cash out of the US.

A lot to digest here ... clearly the ESF needs to be better known and understood by everyone trying to understand the US financial oligarchy.

The five YouTube videos by deCarbonnel on this topic can be found as cited above, on Eric deCarbonnel's website:

« What I have been afraid to blog about: The ESF and Its History_Part 1 »

Fri, 07/15/2011 - 22:11 | 1461480 Raymond Reason
Raymond Reason's picture

They are intriguing videos.  I'm amazed at how little can be found on the web about the ESF...almost nothing on govt websites.    Wondering if this fund is also related to the alleged Black Eagle Fund, which was Gold seized from the Japanese after WWII and used for black ops?? 

Fri, 07/15/2011 - 23:09 | 1461577 Manthong
Manthong's picture

Just ask yourself; just what do you, as an elitist government central planner, control freak and closet Fabian Socialist do with many, many billions of dollars in totally unaccountable funds?

Fri, 07/15/2011 - 15:44 | 1460606 Dr. Engali
Dr. Engali's picture

This is the end....

Fri, 07/15/2011 - 15:45 | 1460607 Arius
Arius's picture

now, i am getting scared ...

what we will do w/ papa gov. watching over us ...

Fri, 07/15/2011 - 15:44 | 1460611 Deepskyy
Deepskyy's picture

This house of cards is getting pretty wobbly.


Fri, 07/15/2011 - 16:02 | 1460705 youngman
youngman's picture

Don´t FART

Fri, 07/15/2011 - 18:27 | 1461102 TN Jed
TN Jed's picture
Radiohead - House of Cards

Fri, 07/15/2011 - 15:45 | 1460612 ShankyS
ShankyS's picture

No more PPT?

Fri, 07/15/2011 - 15:50 | 1460643 Bananamerican
Bananamerican's picture

i'll believe it when i see it....

Sat, 07/16/2011 - 03:44 | 1461799 darkstar7646
darkstar7646's picture

The only real question becomes then:

How much stock does the Federal Government, through the PPT, hold?

Fri, 07/15/2011 - 15:45 | 1460613 newstreet
newstreet's picture

Carthago delenda est.

Fri, 07/15/2011 - 15:46 | 1460619 MobBarley
MobBarley's picture

I feel that somehow, ZH is using these Fredericks of Hollywood ads

to counter the onset of global economic depression. It's hard to 

manifest a reality of social, emotional, and economic mega-poverty looking

at such soft pliable rotund fannies and mammaries. Thank you Fredericks of Hollywood!

Thanks a bunch!

Fri, 07/15/2011 - 15:49 | 1460635 Vic Vinegar
Vic Vinegar's picture

Agree with the sentiment. 

It seems as though you are making good choices with the other websites you visit as well...

Fri, 07/15/2011 - 16:05 | 1460727 konputa
konputa's picture

Haha. +36-26-36

Fri, 07/15/2011 - 16:18 | 1460756 Gene Parmesan
Gene Parmesan's picture

Only if she's 5'3"*


(*assuming you meant 36-24-36, of course)

Fri, 07/15/2011 - 23:20 | 1461578 GoinFawr
GoinFawr's picture

Mr.Parmigiano Reggiano, nuance'r. Or are you judging those who might like a little shake to their shack?

Sat, 07/16/2011 - 12:25 | 1462075 Absinthe Minded
Absinthe Minded's picture

Then why do my ads keep coming up for dating Ukrainian midget transvestites? I don't work for the SEC.

Fri, 07/15/2011 - 15:52 | 1460646 centerline
centerline's picture

The ads are probably tailored to you via your previous web searches and other information gathered from your online behavior.  I clearly am not doing this right because I don't get those ads.  Guess I will have do some work here to get some eye candy on my ZH pages.

Fri, 07/15/2011 - 16:00 | 1460693 NotApplicable
NotApplicable's picture

All I ever see is two local banks competing for the online market. No thanks, I'll stick with my crappy credit union.

Fri, 07/15/2011 - 16:06 | 1460735 andybev01
andybev01's picture

No ads for me. Firefox ad-blocker is extraordinary.

I make up for it by sending alms to the Tylers via the

DONATE TO ZERO HEDGE link...hint, hint.

Sat, 07/16/2011 - 07:15 | 1461858 fredquimby
fredquimby's picture

Adblock Plus. Not seen an ad for years.

Fri, 07/15/2011 - 16:08 | 1460743 cougar_w
cougar_w's picture

I get lots of ads for credit scores, insurance. They either don't know jack about me and those are the default "ZH loser" ads, or they know my age (50+) and figure I'm a tight-wad.

Hey Google: I'm a scientist! A mad scientist!! I like explosions and Tesla coils and Gothic castles. I'm telling you with my mind --- MMMmmmmmMMMmmm -- there! Now let me see some useful l33t m4d sci3nce stuffage in teh ads.

Fri, 07/15/2011 - 16:40 | 1460863 konputa
konputa's picture

I do find it amusing to compare ad experiences. I see Audemar Piguet and mail order bride ads when viewing 0H from my cellphone. Funny too because I've never shopped for either from my cell phone.

Sat, 07/16/2011 - 11:12 | 1462001 hedgeless_horseman
hedgeless_horseman's picture


Fri, 07/15/2011 - 16:49 | 1460893 MachoMan
MachoMan's picture

Mine are all over the place...  I get one with an asian girl with a mullet in a bathing suit in a bald guy's arms talking about online security...  i get another one with "hot dates" of varying persuasions...  I get another with a photoshopped old man face on a ripped body trying to sell some vitamin shit...  and another one with a "try this trick to stay asleep" and usually has a woman with gigantic boobs (i dunno what they're getting at...  sex coma?)...  view your credit score...  I don't think my cookies (few/none dealing with any of these issues) jive with their advertising model... 

Fri, 07/15/2011 - 16:38 | 1460853 mcmoo
mcmoo's picture

Yeah....All I ever see is ads for silver! I really have to expand my horizons.

Fri, 07/15/2011 - 17:37 | 1461006 narapoiddyslexia
narapoiddyslexia's picture

Same here. Silver and gold. 

Fri, 07/15/2011 - 18:01 | 1461064 Transitory Disi...
Transitory Disinflation's picture

I see "Buy tulip bulbs" "Buy Chinese Solars" :(

Fri, 07/15/2011 - 20:48 | 1461377 Pure Evil
Pure Evil's picture

Every time ZH posts something about Obamie I get ads to join the legions of Obama zombies sucking down the last crystal of hopium in their crack pipes.

If only I had enough change in my pocket to donate for another four years.

Sat, 07/16/2011 - 01:06 | 1461706 slewie the pi-rat
slewie the pi-rat's picture

tyler as cookie monster

Sat, 07/16/2011 - 01:00 | 1461702 mt paul
mt paul's picture

fork lift adds ...


very long silver

fork lift long ...

Fri, 07/15/2011 - 15:47 | 1460626 centerline
centerline's picture

Shutting down the slush fund.  This is new.  Wonder what happens when this button is pushed?  

Fri, 07/15/2011 - 16:42 | 1460872 Raymond Reason
Raymond Reason's picture

Black ops temporarily suspended.

Fri, 07/15/2011 - 15:48 | 1460629 Dick Darlington
Dick Darlington's picture

And equities go nuts... When the equity bubble finally bursts even Albert Edwards will be considered "bullish" with his S&P 500 @ 400 call.

Fri, 07/15/2011 - 16:18 | 1460631 Bay of Pigs
Bay of Pigs's picture

Flash Crash Part II?

"90 handles? That's just waaaaaaaaaay too much".

Fri, 07/15/2011 - 15:49 | 1460634 Gringo Viejo
Gringo Viejo's picture

Tim be tiptoein' thru the tulips now!

Fri, 07/15/2011 - 21:47 | 1461446 Zero Govt
Zero Govt's picture

Timmay has robbed savings (stored wealth) at these Pensions and will be replacing it (?) with debt... money/wealth will be spent and replaced with debt that needs servicing (interst payments)

repeat the above a few times to understand how truly insidious this act of Timmays is

Fri, 07/15/2011 - 15:49 | 1460639 SheepDog-One
SheepDog-One's picture

But for now, bullish!

Fri, 07/15/2011 - 15:54 | 1460659 centerline
centerline's picture

The sharks can smell the loose monetary policy in the water.

Fri, 07/15/2011 - 16:07 | 1460736 unwashedmass
unwashedmass's picture


the nice thing is....they always treated the metals stocks as if they had the cooties, and never pushed them up....they are radically, astronomically UNDERVALUED>

this is the time that its gonna pay off, the one little stable corner of the market......

Fri, 07/15/2011 - 15:49 | 1460640 hambone
hambone's picture

I thought the ESF is the dark lord we don't talk about???  Curses, a pock, a plague on all our houses now!!!  Run away.  Tyler - you have gone tooooo far.

Fri, 07/15/2011 - 16:04 | 1460720 NotApplicable
NotApplicable's picture

It's okay now though, since it is providing Timmah with some petty cash to pay off the widow and orphan holders of maturing Treasurys.

To paraphrase my Grandmother's stance on Social Security, "Why if it wasn't for the ESF, we wouldn't have anything at all!"

Fri, 07/15/2011 - 16:24 | 1460766 hambone
hambone's picture

Laundering american drug money straight from the world wide drug wars in Afghanistan and Colombia directly back into the ponzi-nomics of America.  We don't even bother going after foreign dictators w/ this cash anymore, we're satisfied w/ maintaining our own homegrown Wall St. scam.

Fuck - when even this is breaking do they maintain the manipulation...beware the Matrix could be exposed.

Fri, 07/15/2011 - 16:27 | 1460804 rdenner
rdenner's picture

I think I just saw a black cat walk across the room... TWICE!!


They are tinkering with the programming of the Matrix!



Fri, 07/15/2011 - 17:39 | 1461011 Rainman
Rainman's picture


Sat, 07/16/2011 - 12:31 | 1462078 Absinthe Minded
Absinthe Minded's picture

The fund that shall not be named.

Fri, 07/15/2011 - 15:50 | 1460641 WALLST8MY8BALL
WALLST8MY8BALL's picture

Plunge Protection getting flushed away?

Fri, 07/15/2011 - 15:50 | 1460642 Seasmoke
Seasmoke's picture

i guess things are no longer Stable

Fri, 07/15/2011 - 15:51 | 1460644 Kneecap Shalls
Kneecap Shalls's picture

Can enough morality be injected into the HOC in 2 weeks to make it topple?

Fri, 07/15/2011 - 15:51 | 1460645 TaxSlave
TaxSlave's picture


Unbelievable that they even admit such a facility exists, and that they tax the snot out of us to distort market prices.

Maybe it's not funny.  But I laughed when I saw this.

For this kind of crap, they expect us to be willingly enslaved unto the seventh generation?

Yes, it IS funny.

Fri, 07/15/2011 - 15:52 | 1460652 cosmictrainwreck
cosmictrainwreck's picture

HOLY SHIT! don't tell me there's now a possibility of price discovery?

Fri, 07/15/2011 - 16:02 | 1460701 Kneecap Shalls
Kneecap Shalls's picture

Yeah, see...the honesty works its way in for two weeks.  This becomes a train wreck.  Markets plunge as this is what they would do without the FED's current flotation devices at work.  And then the wheels are greased for QEIII and beyond.  And the debt ceiling gets raised.  Its all part fo the Master Plan....bwaaa haa haa.  Evil empire at work.

But when does morality inject itself in for good?  When a critical mass sees it the way most on this site do.

Its coming...and the Shalls work has just begun.

Fri, 07/15/2011 - 15:53 | 1460654 bigwavedave
bigwavedave's picture

Long Yen

Fri, 07/15/2011 - 15:53 | 1460655 Sandy15
Sandy15's picture

So this news makes the market go up????  Who else is levitating the markets?

Fri, 07/15/2011 - 16:09 | 1460747 andybev01
andybev01's picture

*bigwavedave's avater...*

Fri, 07/15/2011 - 15:53 | 1460657 JW n FL
Fri, 07/15/2011 - 15:56 | 1460669 SheepDog-One
SheepDog-One's picture

Go attack someone else JW, dont call me the clueless one when Ive been on here a couple years saying there is no difference.

Fri, 07/15/2011 - 16:00 | 1460691 JW n FL
JW n FL's picture

do you have a great amount of guilt? becuase you seem to be carrying an abnormal amount of energy around with you, with regard to be one of God's Chosen.. it is ok, you are the Chosen.. be at peace with yourself.


here.. dig this.. it is where I am..


thank the man up above for this!

Fri, 07/15/2011 - 16:02 | 1460698 SheepDog-One
SheepDog-One's picture

Fuck off!

Fri, 07/15/2011 - 16:05 | 1460726 JW n FL
JW n FL's picture

why are you so angry.. embrace who you are man.. its kool, we are all one here!

Fri, 07/15/2011 - 15:54 | 1460660 francis_sawyer
francis_sawyer's picture

Well.. It was fun while it lasted...

Fri, 07/15/2011 - 15:55 | 1460663 Sudden Debt
Sudden Debt's picture





Why should anybody ever worry anymore? All is  well in lalaland!

Let's go look for a happyhour place!


Fri, 07/15/2011 - 15:56 | 1460667 ebworthen
ebworthen's picture


Someone has done a pretty good fluff job on the markets in the last hour of trading, unless it was short covering.

Happy no debt ceiling deal buy gold and silver Friday boys and girls!


Fri, 07/15/2011 - 15:57 | 1460671 What_Me_Worry
What_Me_Worry's picture

Actually paying down debt would be extraordinary.  Any other action should be considered ordinary.

Fri, 07/15/2011 - 15:58 | 1460679 Sudden Debt
Sudden Debt's picture

If America defaults....

Will the new owner get to rename the place?


If I would own it... I would call it...







Fri, 07/15/2011 - 15:59 | 1460686 Dick Darlington
Dick Darlington's picture

Let's just call it Treasury Island to honor Timmah the Tiny, smallest thing on planet earth.

Fri, 07/15/2011 - 16:13 | 1460712 Sudden Debt
Sudden Debt's picture





The natives over there will never be able to remember that name....

Fri, 07/15/2011 - 16:02 | 1460704 bigwavedave
bigwavedave's picture


Fri, 07/15/2011 - 16:13 | 1460758 andybev01
andybev01's picture

Umm...can someone superimpose Sudden Debt and bigwavedave's avatars for me?

I'd be most grateful...

Fri, 07/15/2011 - 16:32 | 1460825 Uncle Remus
Uncle Remus's picture

I hear big kettle drums.

Fri, 07/15/2011 - 21:01 | 1461397 mt paul
mt paul's picture



Fri, 07/15/2011 - 15:58 | 1460680 jmcadg
jmcadg's picture

How much is in the facility? Can't be much if it only lasts 2 weeks! Which makes me wonder how much is needed to manipulate stock, bond and FX markets?????

Fri, 07/15/2011 - 15:59 | 1460685 SheepDog-One
SheepDog-One's picture

A whole lot. Theyve already used $120 billion out of govt worker pension funds to keep the Hindenberg aloft since the end of QE. Probably double that at least.

Fri, 07/15/2011 - 17:44 | 1461024 Iam_Silverman
Iam_Silverman's picture

"to keep the Hindenberg aloft"

Uh oh... Another Hindenberg Cross on the horizon?

Fri, 07/15/2011 - 15:59 | 1460687 RobotTrader
RobotTrader's picture

Nice V-Bottom in ES, EUR, AUD, CAD today.

Like I said, no chance of a major stock selloff when gold is this strong.

Fri, 07/15/2011 - 16:03 | 1460694 SheepDog-One
SheepDog-One's picture

LOL, Robo calls the 'V bottom' on half a day of trading on all currencies, youll be faded big time when you see gold at $1,750 and the DOW at 7,000. General Jim sends his regards.

Fri, 07/15/2011 - 16:02 | 1460706 JW n FL
JW n FL's picture



How about those training wheels? LULZ!!


the only wheels where the training wheels! Gravity is next!

if you want to discuss it, be angry at the apple!

or maybe an ode to a grasshopper? have you seen my grasshopper? never mind he's a mouth not a grasshopper!

Fri, 07/15/2011 - 16:06 | 1460716 SheepDog-One
SheepDog-One's picture

Momofader, the ultimate dumb money indicator.

Fri, 07/15/2011 - 16:04 | 1460718 the not so migh...
the not so mighty maximiza's picture

(boing , boing) 


Is that the sound of US goverment paychecks bouncing?

Fri, 07/15/2011 - 16:34 | 1460833 slewie the pi-rat
slewie the pi-rat's picture

from Gold Seeker Weekly Wrap-Up: Gold and Silver Gain Over 3% and 6% on the Week

and it probably wont copy as a chart, but...




On Week





















JSE Gold








































Fri, 07/15/2011 - 17:58 | 1461057 JW n FL
JW n FL's picture

I am a silver Lover.. but I have to say that my Gold is doing really well this week.. I am seeing the potential for a nice lil run! trading back into some more silver and flip flopping back and forth..



Fri, 07/15/2011 - 18:11 | 1461078 Transitory Disi...
Transitory Disinflation's picture

What would happen if the USA were to sell off their gold reserves?

(Please no "there is no gold" answers...unless you know something :) )

Fri, 07/15/2011 - 17:46 | 1461028 Iam_Silverman
Iam_Silverman's picture

"Like I said, no chance of a major stock selloff when gold is this strong."

Could you explain the mechanism behind this position?  I find it interesting, but I can't seem to wrap my Mr. Mainstreet brain around it.

I come here to learn.

Fri, 07/15/2011 - 16:01 | 1460695 carbonmutant
carbonmutant's picture

Putting the administration on a diet....

Sat, 07/16/2011 - 07:22 | 1461862 fredquimby
fredquimby's picture

or on a hunger strike

Fri, 07/15/2011 - 16:01 | 1460697 JLee2027
JLee2027's picture

Does this include the Gold and Silver markets???

Fri, 07/15/2011 - 16:05 | 1460724 Gold Man-Sacks
Gold Man-Sacks's picture

The Plunge Protection Team does NOT support gold and silver.  They'd like nothing better than to tank the metals.

Fri, 07/15/2011 - 16:07 | 1460738 SheepDog-One
SheepDog-One's picture

Good luck to them 'tanking gold and silver', theyve already tried that and are out of bullets. 

Fri, 07/15/2011 - 17:17 | 1460967 j0nx
j0nx's picture

Agreed. Even on the dips nobody holding physical is selling their metal. I know I'm sure not. All they do is cause people to buy more at cheaper prices and then drive the price back up. I fucking hate $4+ over spot but it is what it is and it's here to stay. I still think for where we're headed ammo is the better buy. I'm splitting my disposable income between the two for now. Fuck gold. Too hot to handle for me and too many people with their crosshairs on it when SHTF.

Fri, 07/15/2011 - 23:09 | 1461576 aces and eights
aces and eights's picture

Look for sales to save on premiums. I picked up some odd-weight silver coins at my local shop for 25 cents over spot this week. And just yesterday, APMEX was selling 5 oz silver bars for 99 cents over spot.

Sat, 07/16/2011 - 11:31 | 1462021 Bastiat
Bastiat's picture

Tulving for fast free delivery and generally best prices if you are doing enough size (500 oz min for silver).

Fri, 07/15/2011 - 16:16 | 1460771 tarsubil
tarsubil's picture

Does not support. Does short? Still no spidey sense though. I must be missing something.

Fri, 07/15/2011 - 16:16 | 1460772 Bay of Pigs
Bay of Pigs's picture

Pretty sure he means taking away the PPT money used to suppress the metals (real price discovery).


Fri, 07/15/2011 - 16:23 | 1460793 treemagnet
treemagnet's picture

I heard of this "price discovery" you speak of.....long ago my Dad would speak of it, softly, with a tear in his eyes....(!)

Fri, 07/15/2011 - 16:02 | 1460700 the not so migh...
the not so mighty maximiza's picture

Come on CIA guys work for free!!  Where is your patriotism spookies?


Fri, 07/15/2011 - 16:12 | 1460752 augie
augie's picture

Like most "American's" it stops when the checks stop. 

Fri, 07/15/2011 - 16:04 | 1460717 Gold Man-Sacks
Gold Man-Sacks's picture

Look out below!!!

Fri, 07/15/2011 - 16:07 | 1460739 slewie the pi-rat
slewie the pi-rat's picture

LOL!  like the morgue won't run a tab!

Fri, 07/15/2011 - 18:02 | 1461063 JW n FL
JW n FL's picture

Remember when they sold the Enron sign? I want the JP Morgan sign! LULZ!!

Fri, 07/15/2011 - 16:13 | 1460751 RobotTrader
RobotTrader's picture

We turned around for the 3rd time at the 21-day EMA.

On top of that massive fear TICKS the last 3 days, yesterday we closed with a 5-day ARMS of over 11, with a panic -1525 TICK and today we printed several ticks around -1200.

Those usually lead to an "automatic rally" signal.

RRC, SWN, NBR, ATI, CHK are all breakout buys if you are not long right now.,ati,swn,chk,nbr|C

Fri, 07/15/2011 - 16:14 | 1460763 augie
augie's picture

I'm sorry i ever cursed you Robo, I have come to value seeing the other side of the argument. I still don't agree, but context is always appreciated. 

Fri, 07/15/2011 - 16:15 | 1460770 Ray Elliott
Ray Elliott's picture

Good question.  If this means they stop bankrolling JP Morgan's short silver sales, silver will end up somewhere north of Jupiter by the end of next week. 

Fri, 07/15/2011 - 16:19 | 1460785 JLee2027
JLee2027's picture


I'm wondering if I should buy more NOW

Fri, 07/15/2011 - 16:26 | 1460802 treemagnet
treemagnet's picture

Turbo cashless.  Couldn't happen to a nicer dick.

Fri, 07/15/2011 - 16:27 | 1460807 bigdawg
bigdawg's picture

You'd think they'd stop the ESF before they plundered retirement funds...this being the "Final Extraordinary Measure", I guess it just shows us what their priorities are.

Fri, 07/15/2011 - 17:13 | 1460956 Quinvarius
Quinvarius's picture


Fri, 07/15/2011 - 16:28 | 1460811 Uncle Remus
Uncle Remus's picture

I knew you'd be surprised.

Fri, 07/15/2011 - 16:31 | 1460822 Idiot Savant
Idiot Savant's picture

Perhaps they'll fund the ESF with SDRs, via the IMF?

Fri, 07/15/2011 - 17:49 | 1461034 Iam_Silverman
Iam_Silverman's picture

"Perhaps they'll fund the ESF with SDRs, via the IMF?"

Yes.  But not the CIA, INS, or the WTF.  At least not at first.

Fri, 07/15/2011 - 16:35 | 1460838 kevinearick
kevinearick's picture

The Binary Economy

So, how a ponzi pyramid collapses depends upon its design. It could leave a small pyramid on the side, one in the middle, many, or completely implode in on itself. An economy depends upon intelligent kids as the integral factor, because they have the energy required to travel the event horizon continuously, and the global HR system is designed to immobilize the global population as objects of the divide and conquer pyramid, locking out its own future, and leaving the entire mortgage industry in the bad bank of GSEs. The stronger the black hole, the farther away the event horizon. The electron is a multi-tasker, building platforms, to seemingly appear in many places in many forms simultaneously. Stop the electron and the system implodes.

All goes merrily along so long as the tax maximization function within the infinite monetization function increases revenue. Unfortunately for government, the gap, an aggregate of community gaps, is too big, so the global tax base may only fall. All trade-offs result in less revenue because the avalanche of boomers retiring to get their entitlements has begun, there are few kids capable of working at an economic profit, and the make-work economy only produces jobs at an economic loss regardless, because central planning chooses winners and losers, constantly changing the rules to ensure the outcome of shorting the middle class. Extending the Japanese model to America has run its course already, and America, the hub of the global economy, has nowhere to turn and get the next bigger influx to keep the ponzi going.

In a binary world, time to collapse is accelerated by systematically eliminating all the resistors to resistance, down the stack to family law, until there are only two possibilities, a fusion/fission reactor or economic chaos followed by economic renewal (Florence). The administrator’s conclusion comes from living inside the bubble and assumes the planet itself will not pop it. From the perspective of the universe, which nets out relativity, all results are the same. Your investment algorithm shouldn’t care either. Do you think Paul Volcker is losing any sleep at night over the economy?

From the practical middle class perspective, do want to transform all that excess capacity in the bad bank to drive a productive economic outcome, by resetting the gap, or do you want to let the planet do it for you, opening Pandora’s box if necessary? Constituted as a straight stack, maximizing the layers of divide and conquer, Congress is dependent on the planet. Albeit a hash table, the Court may only change pointers below the top of the stack on the margin. And the President only has discretionary authority to pay others off to look the other way.

For those with mobility, the price of property is relative; it nets out. For those who bought a house to raise their children, the price nets out. Only for those who willingly participated in the RE ponzi, to drive the entitlement promises in a closed loop, the majority, fear real estate price deflation, which may be employed to inflate productivity, if the relay is re-connected. All crises are self-imposed, by those who see profit in procrastination, right up until they don’t.

At this point, making a decision from inside the bubble is a bad decision, but a decision will be made in any case, because a binary algebraic reduction system ensures the outcome, in accelerating time.

Electrons cannot cut a deal with Caesar, so they are permanently in transition. Set up your community accordingly. You cannot know what you need from either the nucleus or the middle class, but if you set your gap correctly, which is measurable only at the community level, you will get the exact number of electrons needed. A resistor to resistors is honest to self. All others are lost in a sea of lies, built for the purpose. Those bonded electrons have to get the energy to remain in place from somewhere.

Now they have children standing on the corner holding up their going out of business signs, “thinking” that they can just change the name of the system ….again.

Fri, 07/15/2011 - 22:55 | 1461548 AmCockerSpaniel
AmCockerSpaniel's picture

I liked that, only hope I correctly understood what I think you meant.

Fri, 07/15/2011 - 16:39 | 1460856 magpie
magpie's picture

So how will America's future forex warchest look like ? Yuan can't buy yuan, i am told...

Fri, 07/15/2011 - 16:48 | 1460887 Raymond Reason
Raymond Reason's picture

Evil incarnate put on a diet?  My God, this really is an act of desperation.  The EFS?  This is the cattle prod of mass destruction, the sacred cow of control freaks, the favorite toy of the masters.  Say it ain't so, Tim, say it ain't so. 

Fri, 07/15/2011 - 16:48 | 1460888 johngaltfla
johngaltfla's picture

Turn out the lights, the party is over. -Dandy Don Meredith

Fri, 07/15/2011 - 17:21 | 1460979 Calculated_Risk
Calculated_Risk's picture



truth can

be used as

a foundation for

a mountain of lies,

 and if we dig down deep

enough in the mountain of lies,

 and bring out that truth, to set it

on top of the mountain of lies; the entire

mountain of lies will crumble under the weight of

that one truth, and there is nothing more devastating to a

structure of lies than the revelation of the truth upon which

the structure of lies was built, because the shock waves of

the revelation of the truth reverberate, and continue to

reverberate throughout the Earth for generations to

follow, awakening even those

people who had no

desire to be


to the


Sat, 07/16/2011 - 07:31 | 1461868 Spirit Of Truth
Spirit Of Truth's picture


Fri, 07/15/2011 - 17:26 | 1460988 Bansters-in-my-...
Bansters-in-my- feces's picture

I hear that the Exchange Stabilization Fund...has Lots of gold....too...

The Most Corrupt Goverment in the WORLD....

Fri, 07/15/2011 - 17:30 | 1460995 Bansters-in-my-...
Bansters-in-my- feces's picture

What this means is that FX vol will likely hit unseen levels in the next several weeks as the Treasury's manipulative ways are strongly curtailed.

You mean CORRUPT,Illegal WAYS...

There ,fixed it for ya.

Fri, 07/15/2011 - 17:33 | 1460998 Bansters-in-my-...
Bansters-in-my- feces's picture


Short of Market Manipulation Fund...

Crooked Fuck-Wads...!!!

Fri, 07/15/2011 - 17:37 | 1461003 Bansters-in-my-...
Bansters-in-my- feces's picture

Whats wrong.....Got no money...Big Boy....???

What a fucking joke of a goverment.

Fri, 07/15/2011 - 21:04 | 1461401 mt paul
mt paul's picture

no peas


Fri, 07/15/2011 - 17:54 | 1461047 oldmanagain
oldmanagain's picture

We may get to see if Tyler's econ collapse is as painless as he thinks.

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