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First Prints Are In: Risk On, Gold Off... At Least For A Few Minutes

Tyler Durden's picture




 

The first prints are in and the relief kneejerk is here, as much expected. ES prints +17 at 1306, USDJPY jumps, although the fade is already there, while the Franc is dripping lower although we expect the same fade to come to it soon. Obviously gold is off, by just about 1% to levels last seen... five days ago.  We wonder how long until the vacuum tubes realize that with the debt ceiling raise, Obama has just given Bernanke the green light to monetize up to $2.8 trillion in brand spanking new pieces of one-ply US debt. In other news, a Reuters blast just announced that a Senate vote on a debt deal is "highly unlikely" before Monday, confirming that the market will now have to price in what is effectively becoming TARP 2, with the same potential dire consequences to the market if it is wrong as it was last time around. Overall, we expect the computers to create their self-referential momentum buying sprees until such time as the big boys come in and start offloading the big blocks.

Gold:

USDJPY - retraced entire post kneejerk euphoria.

USDCHF:

 

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Sun, 07/31/2011 - 18:21 | 1510571 Cassandra Syndrome
Cassandra Syndrome's picture

So bailout deals / statist kool aid sponsored debt expansion announcements have half lives of just 10 minutes now? Quantum Mechanic financial system bitchez!

Sun, 07/31/2011 - 18:37 | 1510625 Stoploss
Stoploss's picture

Van Hollen just said neither side is ready to 'pull the trigger' on the debt deal.

Could wake up to limit down tomorrow, who knows. Weak hands will flee gold, that is to be expected and "transitory".

Sun, 07/31/2011 - 19:41 | 1510830 NewThor
NewThor's picture

Hey. Brother,

Did you know 'All about the Benjamins Bernanke' was reappointed and appointed by oba MABUS h?

NOSTRADAMUS WANTS ME

to remind u

Godspeed 

Sun, 07/31/2011 - 23:00 | 1511262 Michael
Michael's picture

The trajectory of the complete and total economic collapse of the USA shall not be abridged by spending cuts, thank God.

The rights of the international banking cartel and multinational corporations shall not be abridged, they are our rulers.

Thank God the complete and total economic collapse of the USA is staying right on course.

The end game of all this will eventually starve the beast with the greatest economic catastrophe in the history of the planet according to my very well thought out plan.

It'a a good plan, so don't fuck it up.

Mon, 08/01/2011 - 00:10 | 1511520 Kelley
Kelley's picture

That sounds about right. Got nothing to add or take away.

Sun, 07/31/2011 - 18:21 | 1510574 caerus
caerus's picture

fade the gap

Sun, 07/31/2011 - 18:57 | 1510693 WestVillageIdiot
WestVillageIdiot's picture

That's what she said.

Sun, 07/31/2011 - 19:02 | 1510715 caerus
caerus's picture

lol

Sun, 07/31/2011 - 19:46 | 1510838 NewThor
NewThor's picture

I still believe in moments of panic and chaos

and deflation

all categories will deflate

so we'd see a poof in everything for a bit

then some things would sky rocket

as others died

powder says wait, right right?

 

Sun, 07/31/2011 - 19:48 | 1510839 NewThor
NewThor's picture

go long

friends, family, food, gold,bullets, silver, toilet paper, beer and alcohol, chocolate


Sun, 07/31/2011 - 20:54 | 1511010 Prometheus418
Prometheus418's picture

Agreed, but would add coffee as well.

Mon, 08/01/2011 - 00:33 | 1511555 Ahmeexnal
Ahmeexnal's picture

milk and honey

 

Sun, 07/31/2011 - 18:22 | 1510576 Dr Hackenbush
Dr Hackenbush's picture

front running happening in real time 

Sun, 07/31/2011 - 18:47 | 1510657 WestVillageIdiot
WestVillageIdiot's picture

Just a couple months ago there was much lamenting that the end of QE2 would cause the stock market to go straight down.  QE2, at least the part we see, ended and stocks actually went up.  Every momo stock hit a new 52 week high in the past 2 weeks. 

Now we are expected to believe that a new debt target will lead to the stock market shooting straight up.  Who believes that?  It seems that the market loves to go against the expectations that are so strongly agreed upon by shills and sheep. 

I don't know if I would make a big bet on it but I am guessing that the stock market will be lower a month from now.  If I had to make a guess I would say about 5% lower by Labor Day.  There is just too much belief in imminent rally against the backdrop of a crumbling GDP.

Sun, 07/31/2011 - 18:22 | 1510577 Aductor
Aductor's picture

Thank you Brave Teleprompter for saving the Market by selling out your party and core ideals. Oh, sorry, you haven't got any except making that re-election.

Sun, 07/31/2011 - 18:57 | 1510689 WestVillageIdiot
WestVillageIdiot's picture

"Core ideals?"  And what pray tell could this man's core ideals be, other than a thirst for power and money?

Sun, 07/31/2011 - 19:02 | 1510717 Raskolnikoff
Raskolnikoff's picture

Seems like a whole lot of folk are fooled by skin color. LOL, a certain % of the populace are die-hard Obama voters for one reason only and it is just enough for him to do anything to them and us and they will overlook it for only that one cosmetic thing that binds them.

Sun, 07/31/2011 - 20:31 | 1510946 trav7777
trav7777's picture

YOUR RAYCISS

Sun, 07/31/2011 - 18:22 | 1510579 Mike2756
Mike2756's picture

Not good, not much of a dollar bump.

Sun, 07/31/2011 - 18:23 | 1510581 HungrySeagull
HungrySeagull's picture

Physical Gold or silver is not moving, I think people are trapped inside the spread and risk losing money on these falling values.

Sun, 07/31/2011 - 18:27 | 1510591 Mike2756
Mike2756's picture

Maybe they realize printing isn't the answer or that Ben can't print fast enough this time?

Sun, 07/31/2011 - 18:37 | 1510627 Prometheus418
Prometheus418's picture

Falling values?

Gold dropped 1% after making new record highs... and it's already gaining that back.  People need to stop making statements about the volitility of PMs based on the ticker.

Nothing against you personally, Seagull- just tired of people acting smug when the gain on my silver drops all the way from 30% to 28%, while their 401(k) accounts have gained 1% in the same time frame.

Sun, 07/31/2011 - 18:49 | 1510663 HungrySeagull
HungrySeagull's picture

I am sorry, I am not smug. I took some hits in silver while learning to trade last week.

I moved it all into Gold Bullion and waited over the weekend. Now I see if I can at least sell for a little bit of profit and get started.

Every little dip on the ticker is probably for the ones who trade paper.

 

My mindset was that this Nation gets downgraded or even default and there will be a rush into PM's

Sun, 07/31/2011 - 18:59 | 1510703 WestVillageIdiot
WestVillageIdiot's picture

Why are you "trading" silver?  What the hell do you think LULU, PCLN, NFLX, CMG are for? 

Sun, 07/31/2011 - 19:07 | 1510728 HungrySeagull
HungrySeagull's picture

Fuck that paper crap.

I move physical because they are very heavy and are nice to lift.

Sometimes a whale moves into the arena selling or buying 1000 coin of ASE. Fucking makes me excited where there is profit to be made.

One day I will be one of those whales.

Sun, 07/31/2011 - 20:38 | 1510962 kito
kito's picture

actually westvillage many of us are expecting to be "trading" silver shortly...for food, shelter, clothing, tools....

Sun, 07/31/2011 - 19:04 | 1510723 Prometheus418
Prometheus418's picture

Silver is a cruel mistress, but she sure is sexy.

If you stay clear of the paper trades, and avoid leverage, you'll do fine with either Au or Ag.  The whole trick is just buy what you can afford, and stack it up with all the previous purchases.  I bought all the way up to the $49 peak, and after the correction, and I'm still up handsomely.

Just don't let the SOB's shake you out, or they'll take your head off at the neck.  Considering what is at stake (PM V. Fiat) it's a game that is almost required to be dangerous.  Someone has to be left holding the bag, and I'm pretty sure they'd prefer it to be you or I.

I don't know that I'd sell the gold if I were you- my strategy has been to liquidate other assets as much as possible and move them to physical PMs.  Can't afford much gold at these prices, and it's kind of hard to get right now locally, so silver's my metal of choice.  Gold's a damn near perfect trade, though, and if I was in a different position, I think I'd choose it over the white metals.

Sun, 07/31/2011 - 18:30 | 1510582 Ghordius
Ghordius's picture

Synchronic, moronic, I need a Tonic.

Sun, 07/31/2011 - 20:33 | 1510947 snowball777
Sun, 07/31/2011 - 18:24 | 1510584 grunk
grunk's picture

Wasn't Little Timmy waiting until there was a debt deal before resigning?

That should be bullish for the market. Or at least mankind.

Sun, 07/31/2011 - 18:29 | 1510597 Long-John-Silver
Long-John-Silver's picture

What makes you think Timmy's replacement would be any better?

The same people that picked Timmy will pick Timmy's replacement.

Sun, 07/31/2011 - 18:31 | 1510604 knukles
knukles's picture

Timmah?  Somebody told me he left the NY Fed a while ago and that we haven't had a SecTreas since Paulson resigned. 
Have I misunderstood something?  

Sun, 07/31/2011 - 18:27 | 1510590 Long-John-Silver
Long-John-Silver's picture

This is transitory until the next crisis unfolds after the next Crisis Implication Team creates it.

Sun, 07/31/2011 - 18:29 | 1510594 takeaction
takeaction's picture

I just don't understand why we (Such a small handful of people on ZH and other small sites as opposed to the US populus) get it?  These elected representitives are supposed to be the top of the top.  Harvard, Berkeley, etc.  Many attorneys, PHD's, Degrees in Economics. They understand the game 100%, but yet they are the most corrupt pieces of shit in the world.  These people play the regular American public like a fiddle.  Scare the sheep, then herd them where they want them to go.  These people making the decisions already are rich.....is this just a power play to get a little boner since they can't get it up any other way?   My friends and family look at me like I am out of my mind when I start talking about anything that guides them away from the MSM, and when you start to talk economics....100% glazed eyes.  Sorry to ramble....just venting, here is the real question.  When does the train fall off the tracks?  Do we just continue at this snails pace printing and printing and going deeper into debt....for years and years and that is just the way it is? Or does it collpase fast and hard in 24 hours like this video.

http://www.youtube.com/watch?v=2N8gJSMoOJc

Sun, 07/31/2011 - 18:34 | 1510616 cswjr
cswjr's picture

Well, they don't call the "Japan is going to collapse any day now" trade "The Widowmaker" for nothing.  Clear differences, obviously, but still our closest comp.

Sun, 07/31/2011 - 18:35 | 1510619 Ghordius
Ghordius's picture

No, I had discussions here in ZH with people who really thought a deal would not be reached.

This "sudden collapse" meme is a Hollywood cash cow, nothing else.
1 or 2 years with 20% inflation before anything else can happen.

Sun, 07/31/2011 - 18:40 | 1510638 anynonmous
anynonmous's picture

(Such a small handful of people on ZH and other small sites as opposed to the US populus)

 

Perhaps relative to the US populus but ZH is a GIANT among financical sites and King of financial blogs.

Sun, 07/31/2011 - 19:17 | 1510774 Prometheus418
Prometheus418's picture

People generally don't get it because most cannot do math beyond a 6th grade level.  If you don't have a firm grasp of mathematics, almost to the point of being able to use it like a second language, economics is nearly impossible to grasp or understand.  

Given that set of circumstances, and the fact that people tend to stare at you like an alien when you bring the subject up, is it any wonder that most of the people involved start to get swollen heads and decide to just take as much as they can?  After all, they're re-enforced that they are doing the right thing by getting paid for it, and discouraged from educating others by recieving blank stares when they try.  Could happen to anyone here, and probably already has for many.  It works the same way in engineering, though in that case, there's not a huge pile of money to be harvested from the situation.

As to the second question, I have no idea.  Just keep prepping and stacking, because you know it's coming as sure as the sun will rise in the East tomorrow.  Might be tomorrow or ten years from now, but there's no avoiding the collapse.

Sun, 07/31/2011 - 20:05 | 1510875 takeaction
takeaction's picture

Appreciate your insight.  What a web we weave.  Appreciate everyone on this site.   I tried a test on my facebook.  I am 45 years old, and all of my friends on Facebook are relatively the same age (780 friends)....I posted several links to great economic insight videos like this one....Peter Schiff was Right...

http://www.youtube.com/watch?v=Z0YTY5TWtmU

.

Then I posted Ron Pauls new TV ad...

http://www.youtube.com/user/ronpaul?v=UUNIeOB0whI&feature=pyv

.

Then I posted "Wake Up Pranks" Video..

http://www.youtube.com/watch?v=P1bPWHQkD4E

.

Well...the comments came in (3 days later)

Peter Schiff           0

Ron Paul Ad          2         1 liked him and another said "Kook".

Wake Up Pranks   38

,

So there you have it.  Head in the sand.

 

Mon, 08/01/2011 - 00:16 | 1511533 StychoKiller
StychoKiller's picture

There are a lot of inverted logic equations in economic matters (Bond prices go DOWN when bond yields go UP, etc).  Most of the Ignorati can't even handle logic when it's straightforward!

Sun, 07/31/2011 - 20:11 | 1510884 RiverRoad
RiverRoad's picture

takeaction:  I'm with you there, but may I add that many of our elected reps are NOT the top of the top; just 2-bit puppets with the right friends like Obama himself, Harvard notwithstanding.  They go to DC to take care of the guys who bank rolled them pure and simple, the country be damned.  The folks asleep at the wheel right now will wake up when the car crashes.  And the train IS off the tracks!  The main stream media has been forced to pick up Tyler's thread at last; how GRATIFYING to watch them squirm addressing the train wreck all day today!  How fast this ends is anybody's guess, but something tells me the MARKETS will definitely finish what Nixon and the banksters started and most likely sooner rather than later.  And we're not that small a handful......Congress is glued to ZH all day....probably why they can't get anything accomplished.

Sun, 07/31/2011 - 21:36 | 1511163 knavechild
knavechild's picture

The programming of the matrix is thick and effective.  Data which conflicts with someone's construct of reality will usually short circut certain neurons and their brain seems to simply block the incoming data, lest it shut down their ability to deal with the situation.  Some people can deal with bad news better than others.  Some people take it constructively and act, and others (when forced to deal) simply go haywire and start running in circles like their hair is on fire. 

I've been trying to relay the seriousness of the situation of the situation for 2 years now with my wife's family, but cannot make any headway.  They just dismiss me as a conspiracy theorist and that I simply cannot know that much about economics since I am a 32 year old graphic designer.

I've known the system would collapse since 2009 when I married my wife. I was standing at the alter on a beautiful beach knowing what was coming.  It was even in my mind as I stood at the alter..."I'm living in a country that is about to enter hyperinflation at some point and collapse."  These types of thoughts will do a serious number on your psyche when you've been living a relatively prosperous life free of hardship for so many years.  However, I understood the reality of the situation, I didn't go into denial about it, and I took steps to protect myself, and even prosper financially.

A few evenings ago, the whole debt ceiling drama was on CNN, and I came into the room as my wife's family was gathered around the TV.  I saw it as a perfect opportunity to illustrate that what I have been warning about is actually starting to take place. I took the opportunity to speak to them for about 30 minutes about inflation, gold + silver, the MSM, fractional reserve, the exponential debt/credit system, etc, ad nauseum.  You guys know the routine. At the very least I wanted them to begin with a little gold protection.

During the course of the conversation they were nodding in agreement with me. At some point the CNN broadcast ended, and it was time for Grandma to watch Wheel of Fortune.  This offered a chance for the family to escape, and everyone just went off in their own direction to continue on with whatever business they normally carry on with (complaining about the dogs barking too much, arguing who's diet is working better, conversing about the best style of maternity jeans, on and on).

Nothing I had said has registered or gotten past their shields-up status whatesoever.  It was like trying to speak to a concrete slab.  The data goes in, but doesn't register at all.

Sadly, this is how the larger percentage of the populace operates.  What it comes down to is frequencies....people who operate on higher frequencies are able to assimilate and disseminate data that is valuable to their continued forward-looking existence. People who operate on lower frequencies do not have this ability at all.  People in the middle may have some semblance of the ability, but choose to go into denial mode.  The data is threatening to their reality and thus they would rather shut it out and enjoy the moment and deal with the crisis when it comes.  Unfortunately these people will be unprepared when the time comes and suffer greatly.  Such is life.

All you can do is hold fast to your understanding of the situation and methods to protect yourself, and just know deep down that you did your best to wake up those around you.

Life is about learning lessons, and many lessons will be learned in the next decade.

Mon, 08/01/2011 - 00:21 | 1511539 StychoKiller
StychoKiller's picture

Print this out and leave it where it can be found and read:

     After the Great Implosion, the following bad things are certain to happen:

1. The Stock Market(s) will drop to whatever level is necessary to halt
   trading (for days on end).

2. The prices for ALL commodities will double in less than a week.

3. Bond prices will also sink like a stone, while bond interest rates
   will try to go over 10%.

4. The prices per Toz of Gold and Silver will join commodities in heading
   to the stratosphere!

5. Before a month has passed, riots in ALL major cities will break out as
   soon as food runs out in ALL the supermarkets and cannot be found.

6. Gun stores will be broken into and will be picked clean or they will sell
   out their stock.

7. Gasoline and Diesel supplies will dry up in less than one month.

8. In less than one month, EVERY bank will have all available cash withdrawn.

9. After the number of rioting cities passes around a dozen, martial law
   will be declared, perhaps at the national level.

10. During the second month, ALL Govt employees will find that no one will
   cash their payroll checks, or direct deposit is no longer being performed.

11. All airline flights will be grounded, there won't be any fuel for them
   anyway.

12. Govt/Financial officials will engage in finger-pointing and scapegoating.
  (But no one important will even be accused, let alone go to jail!)

13. The Govt will begin rounding up starving citizens and taking them to
   internment camps before 3 months have passed.

14. Other World Govts will refuse to use the now-worthless FRN for trading.

15. At some point, FRNs will no longer be accepted in trade in the USA.

16. A large-scale so-called "terrorist" event might be initiated, justifying
   starting another war somewhere.

17. Some very prominent people will die under mysterious circumstances.

 

Once a few of these events occur, you WILL BE a Prophet in your own land!

 

Mon, 08/01/2011 - 02:58 | 1511758 Ghordius
Ghordius's picture

Sorry, don't agree. You are mixing a Deflation disaster with a Hyperinflation disaster, and shaking it with a pinch of Fascist Takeover.

This is a Hollywood script. It's your subconscious wishing for "An End, fast".

Mon, 08/01/2011 - 03:14 | 1511766 ZeroPower
ZeroPower's picture

Indeed,  the people operating on these lower frequencies are forever confined to being plebs. Your family-in-law no exception. The super higher frequency class will always always take advantage of this. You clearly have understood this by now .. question is are you capable of taking advantage (for the greater good, no less) of those lesser than you?

Sun, 07/31/2011 - 18:30 | 1510600 razorthin
razorthin's picture

In case you've been waiting for the shorting entry opportunity of a lifetime...

Sun, 07/31/2011 - 18:33 | 1510612 razorthin
razorthin's picture

"let me be clear..."  ON EQUITIES, not PMs.

Sun, 07/31/2011 - 19:05 | 1510726 WestVillageIdiot
WestVillageIdiot's picture

I would be careful on that one.  How many shorts the past two and a half years have been skinned alive?  Just when you think you have it figured out some jerk comes out with some ridiculous announcement and the next thing you know you are eating ramen and drinking Sam's Club cola for your Christmas dinner. 

Sun, 07/31/2011 - 19:29 | 1510800 razorthin
razorthin's picture

Yabut, perspective maintained despite any celebratory up-gap:

https://sites.google.com/site/dailyspyder/

Sun, 07/31/2011 - 18:36 | 1510611 FinalCollapse
FinalCollapse's picture

The first installment of the debt ceiling increase ($500B), will match the Tbill maturity wall in August (as per zerohedge prior article), and will not even be enough to repay the stolen federal pension funds. No QE3 here, at all. This will be less than the beast needs for four weeks. The other increases will be conditional, and probably enough to merely keep the beast going. The cuts will settle in. It doesn't look to me, that any stimulus/TARP is coming any time soon. If there is any TARP2 in books, the pitchforks will march on DC.

Sun, 07/31/2011 - 18:35 | 1510620 steveo
steveo's picture

As mentioned last week, this S&P500 aka /ES futures is (was) a very steep downchannel, went long Thursday, went longer Friday. 

 See my "Reluctant Long" post here

http://oahutrading.blogspot.com/2011/07/reluctant-long-keep-it-simple-at...

Nice start anyway.   Euro is not following up yet.  

US Debt "straw man" solution only confirms more printing to come.  That means fundamentally, USD down, Euro up.   However, the winds can quickly blow against the Euro, based on the fact they are living on a series of fault lines and holding hands.

http://oahutrading.blogspot.com/2011/07/new-moon-long-es-from-thursday-p...

Sun, 07/31/2011 - 18:41 | 1510626 Atomizer
Atomizer's picture

Oh my. Me ankles are shaking over the gold drop. Thanks Bernanke, we don't fear tradition. Please knock it down further so we can buy more. $700 will be a nice dip. Bring it on baldheaded fuck..

Sun, 07/31/2011 - 18:38 | 1510630 disabledvet
disabledvet's picture

still doesn't feel like 71's nifty fifty to me. I agree small caps do best in an inflation. Still-tech and nat gas have no pricing power nor have they for sometime. I say slow and steady wins this race.

Sun, 07/31/2011 - 18:57 | 1510691 razorthin
razorthin's picture

What's that you say about small caps?  Well take a looky here:

https://sites.google.com/site/dailyspyder/

Sun, 07/31/2011 - 18:39 | 1510633 Clint Liquor
Clint Liquor's picture

Harvard and Berkley are the problem.

To quote Will Rogers:

'If stupidity got us into this mess, why can't stupidity get us out of it?'

Sun, 07/31/2011 - 18:39 | 1510634 Clint Liquor
Clint Liquor's picture

double-click

Sun, 07/31/2011 - 18:46 | 1510649 John Law Lives
John Law Lives's picture

1. Raise the debt ceiling and kick the can down the road...

2. Print more money and devalue the currency...

3. Manufacture a rally in the stock market...

100% FUBAR!

Sun, 07/31/2011 - 19:51 | 1510846 Prometheus418
Prometheus418's picture

I'm reading "Dying of Money" on my other monitor, and Chapter 19, "Real Values" makes a good case for 2 and 3 above being the same thing.  

Well worth the read, so far. 

Sun, 07/31/2011 - 23:36 | 1511470 spdrdr
spdrdr's picture

Prom,

 

The further you get into the "Dying of Money", the more it goes off the rails.  Parsson is a huge fan of Milton Friedman, and is no fan of gold.  Even in chapter 42 - "Self-Defence", he devotes merely one paragraph to gold:

Gold, the international money, was a special case.  Throughout the eons of the world, gold had been the classic refuge of owners of property trying to defend it from economic slings and arrows.  But, like everything else in an inflation, gold was overvalued.  It was overvalued even before the inflation began.  Gold yields no income and costs money to store and handle.  It is not very useful.  If the American Federal Reserve System should no longer accept gold as international money and people in general should turn against gold for that purpose, its intrinsic value for industrial and commercial purposes could not have been more than a small fraction of its prevailing price.  Most of the value of gold lay in that people expected it to have value, and that value could last only as long as the expectation.  That expectation had endured over thousands of years, and it might endure forever.  Or it might not.  It was anybody’s gamble.

This is Parsson's only comment on gold.  However, his view on the monetary aspects of the inflation are excellent, and there is more than a simple common thread between Weimar, 1973 and today.  Of course, with the wisdom of hindsight, Volker's interest rates assault (which post-dated Parsson's book) could only be achieved when the USA was the world's largest creditor nation.  Now?

The comparisons are startling, and for that alone it is a good read.

 

Sun, 07/31/2011 - 18:48 | 1510654 dearth vader
dearth vader's picture

What's Ambrose rambling about tonight?

And yet, data from the St Louis Fed show that America’s M2 money supply grew at a 6.4pc annual rate in the second quarter, accelerating to 12.2pc in June. The compound annual rate of change has exceeded 40pc over recent weeks.
The broader M3 indicator (including large savings deposits) is growing at the optimal rate of around 5pc. It has been an uncannily accurate lead indicator at each twist and turn of our economic drama over the past five years, and is telling us now that the Fed’s kindling wood has at last begun to ignite the damp coals of the US financial system. There is no longer a 1930s liquidity trap. We can infer that the housing market may be nearing the end of its deep slump.

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/867357...

Wouldn't this be inflationary? Are these repatriated US$$ from Euro world?

Can somebody please explain?

Sun, 07/31/2011 - 18:55 | 1510682 Quintus
Quintus's picture

Dear old Ambrose has clearly been sampling the sherry too extensively this afternoon before sitting down to write this drivel. 

Either that or he's been instructed to write something positive (Or else) and this is the best he could come up with.

Sun, 07/31/2011 - 19:43 | 1510833 dearth vader
dearth vader's picture

Sherry? Hmmm... Nevertheless, leaving Ambrose's interpretation aside, where's this jump in M2 / M3 coming from?

Sun, 07/31/2011 - 20:58 | 1511023 Ned Zeppelin
Ned Zeppelin's picture

He's crazy - housing is in the toilet. He should get out more. 

Sun, 07/31/2011 - 18:47 | 1510655 nmewn
nmewn's picture

"We wonder how long until the vacuum tubes realize that with the debt ceiling raise, Obama has just given Bernanke the green light to monetize up to $2.8 trillion in brand spanking new pieces of one-ply US debt."

Fawtunately, ah keep mah single ply numbered for jest sech an emugency ;-)

Sun, 07/31/2011 - 19:30 | 1510804 WmMcK
WmMcK's picture

+1 for Foghorn Leghorn (feather) reference.

Sun, 07/31/2011 - 18:50 | 1510665 gnomon
gnomon's picture

One should wish to be overcome with revulsion every day for as long as one lives.

Because when this charade ends, the real crying starts.

Or one should wish for the putrid, stinking bandaid to be ripped off.

Because it is the right thing to do, the thing that will give us a bare chance of doing something better with our lives rather than living a ponzi lie with the very worst among us riding herd.

Most revolutions don't end well, (and it will take a revolution with the lockhold that the Banksters have on us).  We will most likely jump from the frying pan into the fire,  from the Czar's almost benign gulags to the killing fields of Cambodia.  

 

Sun, 07/31/2011 - 18:57 | 1510690 Atomizer
Atomizer's picture

When 9/11 happened, I knew we had a corrupt and fraudulent government. I have never stopped buying Gold and Silver since then.

Enjoy history.


http://www.youtube.com/watch?v=r1PqIgyJHSw

 

http://www.youtube.com/watch?v=Ccj10xIPkmw&feature=related

 

 

Sun, 07/31/2011 - 19:14 | 1510763 darkstar7646
darkstar7646's picture

Lots of good that will do you when the government confiscates it.

Sun, 07/31/2011 - 19:21 | 1510783 Prometheus418
Prometheus418's picture

They gotta find it while dodging lead, first.

Sun, 07/31/2011 - 20:46 | 1510990 Tejano
Tejano's picture

Can you say "outnumbered and outgunned"?

Sun, 07/31/2011 - 22:42 | 1511374 Prometheus418
Prometheus418's picture

Sure, I *can* say that- but I won't.

The one and only reason I am holding PMs is to ensure as best I can the survival of my family.  Were it not for that concern, I'd go sell off down at the coin shop tomorrow after work and do something more enjoyable with the money.

So, with that concern as the underlying reason for holding the metal, I'm sure that you can appreciate the fact that I would consider bending to confiscation equal to suicide by cop, with the only difference being slow death by starvation or quick death in a hail of bullets.  The latter would be far preferable to me, and might help others wake up- though by then I suspect that it would be far too late by that time.

At any rate, I suspect it's a moot point.  I'm a pretty miniscule target in the great scheme of things, and I might just die of shock if anyone actually ever knocked on the door looking for my relatively tiny stash of old silver coins- especially since most of them have numismatic, and not simply intrinsic value.  Might be a different story if I had a few monster boxes of ASEs instead of a bunch of nicely toned Morgans and Peace dollars.  Pretty hard to justify a raid on a nerdy coin collector.

Sun, 07/31/2011 - 19:41 | 1510827 Atomizer
Atomizer's picture

midnight gardening

Sun, 07/31/2011 - 21:10 | 1511074 nmewn
nmewn's picture

Deep sea fishing, snorkeling rivers & lakes, hiking...I'm really a nature lover ya know ;-)

Sun, 07/31/2011 - 21:16 | 1511118 XenoFrog
XenoFrog's picture

Good luck.

Sun, 07/31/2011 - 19:49 | 1510841 gwar5
gwar5's picture

.

Good on ya. You got in cheap in 2001.

Sun, 07/31/2011 - 19:00 | 1510704 caerus
caerus's picture

ES 1300...

Sun, 07/31/2011 - 19:01 | 1510711 oogs66
oogs66's picture

This rally will fade faster than the post Osama killing. At least then they could convince some college kids to drink free beer on the white house lawn

Sun, 07/31/2011 - 19:14 | 1510762 Infinite QE
Infinite QE's picture

T-10 minutes until Robot posts `gold is going to $250'

Sun, 07/31/2011 - 19:16 | 1510769 apberusdisvet
apberusdisvet's picture

Hmmm. The banksters were 100% sure that a compromise would be reached by now.  I'm sure that Blythe had her army with loaded short bullets the minute Asia opened.  Sure enough the avalanche came.  One problem, though:  THERE IS NO PHUKKIN AGREEMENT.  And guess what?  There may not be for a few days.  Horrors:  all that wasted ammunition.

Sun, 07/31/2011 - 19:28 | 1510797 sunny
sunny's picture

Stupid Question:  I have looked everywhere I can think of.  I cannot find a definition for the acronym ES other than "Expected shortfall" which does not make sense in context.  Please, someone, what does ES stand for?  Thanks,

sunny

Sun, 07/31/2011 - 19:32 | 1510809 caerus
caerus's picture

it's the CME Group's symbol for the S&P 500 futures contract

Sun, 07/31/2011 - 19:54 | 1510852 sunny
sunny's picture

Thank you.

sunny

Sun, 07/31/2011 - 19:56 | 1510856 caerus
caerus's picture

np

Sun, 07/31/2011 - 19:35 | 1510815 razorthin
razorthin's picture

I beg to differ.  "expected shortfall" makes perfect sense to this audience.

Sun, 07/31/2011 - 19:32 | 1510807 Ramboy
Ramboy's picture

option premiums the size of roseanne bar at her prime at the close Friday tells me the herd is short or hedged market neutral.  will hedge funds risk losing further ground against the s&P benchmark.  i doubt it.

Sun, 07/31/2011 - 19:41 | 1510826 caerus
caerus's picture

eerie stillness in the ES no? And now...Pablo Neruda


I like for you to be still
It is as though you are absent
And you hear me from far away
And my voice does not touch you
It seems as though your eyes had flown away
And it seems that a kiss had sealed your mouth
As all things are filled with my soul
You emerge from the things
Filled with my soul
You are like my soul
A butterfly of dream
And you are like the word: Melancholy

I like for you to be still
And you seem far away
It sounds as though you are lamenting
A butterfly cooing like a dove
And you hear me from far away
And my voice does not reach you
Let me come to be still in your silence
And let me talk to you with your silence
That is bright as a lamp
Simple, as a ring
You are like the night
With its stillness and constellations
Your silence is that of a star
As remote and candid

I like for you to be still
It is as though you are absent
Distant and full of sorrow
So you would've died
One word then, One smile is enough
And I'm happy;
Happy that it's not true

Sun, 07/31/2011 - 19:43 | 1510832 gwar5
gwar5's picture

.

 

 

Anytime government is free to spend it's bullish for gold. 

Just watched NBC doing a story about the debate and the Tea Party, saying the TP is holding things up on principle, not caring if they get re-elected, and were not listening to the lobby groups, etc., and I thought maybe, is NBC was doing a story on political integrity and how we needed more of that in D.C.?   Nope.

Of course not! They were painting the TP as the problem children for not going along with the status quo. Flashback: NBC and Brian Williams cheerleaded all the spending and record deficits for the last 3 years.

 

 

 

Sun, 07/31/2011 - 21:25 | 1511155 XenoFrog
XenoFrog's picture

+1 I was having a discussion with someone earlier who was predicting a PM whipe out this week. I said to him, "What has changed which will improve the strength of the dollar?" and, "Does raising the limit with only the vague promise of possible future cuts build or harm the value of a dollar."

 

yeah...

Sun, 07/31/2011 - 22:12 | 1511311 trav7777
trav7777's picture

then why the hell do all of you people continue to try to swim against the current?

Sun, 07/31/2011 - 20:08 | 1510880 monopoly
monopoly's picture

It is all beyond absurd. What an embarrassment this nation has become. How the hell are we ever going to pay back 16+ Trillion dollars. Will never happen. And gold dumps all of...

$11.00. Oh my God, I better sell it all. If miners take another dump Monday, my little truck going to be way heavy by the end of the trading day with more miner.s

Sun, 07/31/2011 - 20:16 | 1510892 BlackholeDivestment
BlackholeDivestment's picture

...is 2.8 trillion a lot? http://www.youtube.com/watch?v=AGlZwwtp92A

Sun, 07/31/2011 - 20:34 | 1510954 Tejano
Tejano's picture

Bought it. Show me another and I'll buy that too.

Sun, 07/31/2011 - 20:34 | 1510955 ffart
ffart's picture

At this point I think silver being +- 2% is just white noise.

Sun, 07/31/2011 - 21:18 | 1511126 XenoFrog
XenoFrog's picture

I don't even update my spreadsheet anymore unless it goes more than a dollar in either direction.

Sun, 07/31/2011 - 20:59 | 1511025 Ned Zeppelin
Ned Zeppelin's picture

I miss the old posting setup - this is too confusing.  Sorry. 

Sun, 07/31/2011 - 21:02 | 1511036 PulauHantu29
PulauHantu29's picture

Yes, looks like gold is doomed....might tumble back to $1,626....lol

Two things you can be 100% certain:

1. Bank CEOs will grab another record high year of Bonus Money;

and

2. gold will rise in reflection of the massive money supply expansion and printing to pay these Bonuses.

Sun, 07/31/2011 - 21:03 | 1511037 PulauHantu29
PulauHantu29's picture

oops.

Sun, 07/31/2011 - 21:16 | 1511117 Tedster
Tedster's picture

I take issue (as the economic system implodes in spectacular fashion) with a continuing ah, negative bias with respect to vacuum tubes in the original article.

As a matter of fact, in general they are quite rugged when used within their rated limits and are generally regarded as superior to transistors and integrated circuits for high fidelity music systems and music amplifiers.

That is all. Back to your regularly scheduled Kabuki Theatre.

Mon, 08/01/2011 - 04:12 | 1511794 Cult of Criminality
Cult of Criminality's picture

Tyler

I love ya man.Sometimes your articles just make me laugh quite loudly.

Thanks and cheers to ya

 

Mon, 08/01/2011 - 04:37 | 1511803 Cult of Criminality
Cult of Criminality's picture

Also see Silver needs to close a gap to the upside. A great day for a trade or two.

Mon, 08/01/2011 - 04:33 | 1511804 Hobbleknee
Hobbleknee's picture

A $10 dip in gold?  Is that it?  Is that all we're going to get?  Where's the big dip everyone was waiting for?

Mon, 08/01/2011 - 04:41 | 1511807 Cult of Criminality
Cult of Criminality's picture

They need a bit more media drama Hobbleknee

Mon, 08/01/2011 - 05:11 | 1511820 Hobbleknee
Hobbleknee's picture

Is that possible? The only thing missing was a heart attack on the house floor.

I want some major dippage now!

Mon, 08/01/2011 - 05:13 | 1511825 Cult of Criminality
Cult of Criminality's picture

LOL 

Mon, 08/01/2011 - 07:52 | 1511970 Bee1000
Bee1000's picture

Shortest gold correction ever.

Wed, 09/14/2011 - 04:15 | 1667232 chinawholesaler
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