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Crude Crashes, Silver Slammed After Dollar Surge On More ECB Jawboning
Commodity pices are crumbling this morning as more jawboning of a "big cut" from The ECB has sparked further EUR weakness and thus USD strength (EURUSD 1.0740). WTI's morning bounce (after flash-crashing at the Asia open) has been erased and new lows are looming. Silver is back at a $14 handle and Gold is holding below $1100.
A consensus is forming at the European Central Bank to take the interest rate it charges banks to park money deeper into negative territory in December, four governing council members said..
And this happened...
Which triggered this...
Charts: Bloomberg
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Markets are so divorced from reality that only jawboning matters anymore.
With increasing world tensions, and increasing debt, gold, silver and oil should be rising.
8 AM and silver is crashing, yawn! 14.56 is the last fib level before a double bottom. I think it turns here. Betting on it. I expect about a month more of this with equities though. They need to raise rates and they will FORCE a series of new highs to try to change people's outlooks. Short term they have to tools to do it. Don't go short now.
Fire Sales are a wonderful thing. I am loading up with both hands, with both hands wearing asbestos gloves of course.
According to ZH, over 50% of Chinese commodity companies alone cannot make the interest payments on their outstanding debt. They will default on more than $30 trillion at some point, and soon. When they do there is no way central banks can print that much cash and get away with it. They will default, eventually, and when they do the first thing to happen is a bank holiday, then a bail in, then shutter the money funds so no one can get out, then a further bail in but this time a biggy, one which takes all remaining cash, and then, when even that pales into insignificance in the face of ever increasing amounts of defaulting debt, the banks will not collapse. They will revalue the only asset they have which has no monetary value upwards and remain solvent, and we will see gold revalue upwards by a couple of thousand percent, all in a weekend or so.
We will then move to a cashless society so that no one can sell a house unless it is to a hedge fund, so a market with fixed prices and no buyers.
And utopia will have arrived.
"They will default on more than $30 trillion at some point,"
And it's all thanks to the Chinese ability to build empty commodities warehouses and borrow money on the contents! WHOO HOOO!!! Hey! Why isn't the USA building empty commodities warehouses and filling them with non-existent commodities so we can borrow money on them?
I'm loading up on crude....physical of course
If you don't hold it, you don't own it. I personally have a tar pit in the corner of my yard!
I have a huge pile of dead animals in mine....how long could it take? Probably turn to oil before my silver goes up
Remember a bio-gas generator is EMP proof!
Gold was around 1000/oz in Jan 2008 before all this money printfest, with M-2 money supply at about 4.8T. Now M-2 is getting close to 13T and gold still around 1000 oz. Like it never happened. LALA desperation land folks. Markets always win out eventually over price controls.
What distortion are you possibly talking about? Perfectly logical to me. /S
China and Russia, your up to bat they are giving it to you for min 65% off sale..
Yes we will both take the usual 20-60 ton a month each. FOR 8 YEARS. You've been sold down a river folks. A river called Fraud.
I think London is sucking wind and leaning on their old stomping ground India for a new supply. Right now they are finishing off the last of Maduro's stack as this worm has sold out everything Chavez built up. Now Modi is trying to sell out his countrymen and get them to give up their gold for govt paper so they can continue the charade. The disgusting punks will probably try and raid the temples. If that don't start a revolt, nothing will. BURY IT DEEP INDIAN. I hope the Ganges starts having a lot of boating accidents.
Anyone see how comex is looking today? How's their paper to physical ratio looking?
running about 300:1
The gold in India is mostly held by the people. Its estimated to be about 20,000 tons. If these pricks manage to get ahold of that without a civil war then its over for a decade or two. The Brics should kick India the fuck out if they do that.
sorry to hijack this thread, but why did the tylers allow themselves to be scooped by drudge report? when the yuan is displayed in full color on drudge linking an adjoing article about the yuan being convertible to the swiss franc and zerohedge has yet to even acknowledge it, something is very wrong with the ZH editorial staff.
http://www.bloomberg.com/news/articles/2015-11-09/china-to-allow-direct-...
The COMEX huge over-subscribing looks pretty juicy.
Someone can make some big money if the COMEX is called on their Ponzi schemes.
So when does the next trident 2 or topol become multiples?
How in the hell does this fucked up system keep going? I have never seen such insane policies like I've seen since 2008, and still the system keeps moving along. The propaganda, bread and circuses, and drugging of America has been powerful, but one would think that eventually people would notice this madness.
50+ years of MSM mind programming, sports all year around, fuckbook, reality tv non stop. Yeah it's been a success.
I read your comment and it mirrors my thoughts exactly....Oh Well, looks like maybe Gold $950 may be a reality real fast and Silver around $11. I am just going to keep mindlessly stacking...I may pass away before I get to reap the benefits of me being a saver and stacking and stacking...
"Daddy, what is 'saving'?"
Next thing you know you get two grand a month in welfare, but you can't save a single cent and will have to spend it all or let it go poof at the end of the month. This is were we are going boys and it's not a nice place
Linked to a biometric implant that displays how many Marks you have. Get to nada and I'm afraid you're "zeroed out" . Oh I hope they blow everything up before we get to that stage.
Well, then it will be your children, or grandchildren, who will reap the benefits of your wisdom.
"Pops didn't give into the man".
Not a bad legacy to leave.
I'm in the same boat. I'm young, so (assuming I survive) will probably be alive to see this entire Ponzi scheme come crashing down, but if not, my kids will get a nice inheritance. Kinda funny, my 2 year old has more real money saved (and no debt) than the overwhelming majority of adults in the world. Every now and then I let him play with a couple 5 oz silver bars that are his, and kinda gently explain to him that it's his money he has saved. My goal isn't to have him sound like a tin foil wearing loon (like me) but just have him get a basic understanding of what real money is, and what it means to save for the future, as I believe that is literally one of the most important things to teach your kids. All the rest of my crazy person views he can figure out on his own or go his own way.
I also try to always pay for things with cash, so he understand what money is, rather than just swipe a card everywhere I go.
$11? Perhaps. Since the cost of production has been above the price realized (for several quarters now) I wonder who is going to end up with all the Silver mines? I'm stacking til the gunnels are loaded and the SS Minnow heads off for a 3 hour cruise.
Cost of production is only a couple dollars an oz. The vast majority of silver that's mined is a byproduct/coproduct of copper, tin, lead and zinc mining. There are only a couple significant "silver" only mines in the world.
And there's nothing saying that the price of silver can go below production costs. Only half of the annual mined silver goes to industry, the rest is just stacked. There's no shortage of silver.
Look at iron ore. 5 years ago it was $180/tonne, and now it's $45 a tonne, and around a third of iron ore mines aren't profitable, including almost all mines in China.
As for silver, when interest rates rise, I wouldn't be surprised at sub $10 silver.
Interest rates were at zero from 1937 to 1942
Correct. Most people don't even realize what's going on. If you talk bad about the economy you're labeled a doomer or a conspiracy theorist - the up up up narrative is starting to take hold into people's heads, they think it's normal for everything to inflate.
Eventually people will become the madness.
This is becoming epic, more drama and excitement than any football game or movie. As long as I have foot to eat, clean water, and a warm place to sleep, the attacks on PMs are just a continual source of intrigue and building drama. I'm sorry for those who go long on margin, this is really screwing you, but every time I look at my stack it is just as shiny.
I made a few 32oz canning jars of colloidal silver for the sickos in the house this weekend. 3 9-volt batteries stuck together, a couple alligator clips, a gallon of distilled water, and some silver wire. Served as a little science experiment and lesson on electronics for the kids. I love silver.
Ummm... don't waste silver as a topical antibiotic. Pure honey probably works better. (Buy locally where you know it's REAL raw unfiltered honey - that way you avoid that Chinese chemical crap.)
To whom it may concern, the 2025 commodities price outlook of the World Bank.
http://www.worldbank.org/content/dam/Worldbank/GEP/GEPcommodities/Price_...
Good thing some of us shorted oil at $48
9:40 am and oil is crahing....up! By 10c.
HEADLINE: Oil crashes higher on the usual BS.
You're buying ounces. Don't forget it. This is a gift.
-Argenta
Figures that silver would get slammed just as Morocco puts online the biggest solar farm on the planet. Solar could actually be a friend to silver in the next couple of years.
Yep, once I'm settled down somewhere I plan on running as much solar as I can afford. I would encourage everyone who is able to do the same. For one thing, it's a great insurance plan, and for another, all this global warming nonsense is going to make electricity a lot more expensive in the coming years.
You have to pay your debts, which means you need US dollars. The nice guys at the bank already gave you a deal with low low interest rates.
See, I'm thrilled because I'm young and missed out on the peak housing sell opportunity. It's a store of wealth, and at these prices, is quite a large store. It's gotten to the point where I think hard about that quick $15 fast food purchase. Would I spend a ounce of silver on this in 20 years? I don't think so. Trying to put aside 10 percent of income into silver.
An admirable goal. Just $200 a month could get you over 10 ounces, or 120 ounces in a year at these depressed prices. You're also keeping cash out of the bank and putting it in a vehicle that will stand regardless of what happens to the dollar.
-Argenta
Each Tomahawk missle contains a bit over 33#'s of Ag.Anyone trying to seize the Au from the Indian people better get ready for a serious ass kicking, that is collectively in the peoples DNA.
Estimated holding are over 22,000 tons, China also has IMO near that,or more.(they have a serious shell game going on their holdings.