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Gold And Silver Update: This Is What A Global Fiat Bailout Looks Like On One Chart

Tyler Durden's picture


Presented without comment - except to say the 11% rise in Silver since Friday (and 16.7% rise since last Thursday's lows) is the highest 4-day move since 7/18/11 and is over 2 standard deviations on a long-run mean.

Gold is up 8.5% from the Thursday lows of last week and the USD (measured by DXY) is 1.6% weaker this week.

Chart: Bloomberg


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Thu, 10/27/2011 - 12:06 | 1817486 yabyum
yabyum's picture

Silver is on a tear, it is REAL money.

Thu, 10/27/2011 - 12:13 | 1817518 Pladizow
Pladizow's picture

"A choice must be made between the natural stability of gold and the honesty and intelligence of the members of government,....I advise you, as long as the capitalist system lasts, vote for gold." - George Benard Shaw.

Thu, 10/27/2011 - 12:16 | 1817530 nope-1004
nope-1004's picture

Too bad Haines isn't alive, he'd be calling this another bubble.


Thu, 10/27/2011 - 12:17 | 1817535 CPL
CPL's picture

We'll be at $100+ WTI oil tommorrow.


Then it gets interesting.

Thu, 10/27/2011 - 12:55 | 1817709 trav7777
trav7777's picture

gold actually down in AUD and BRL terms....dollar is getting fucking SMOKED today.

Where are the deflationists?

Thu, 10/27/2011 - 13:17 | 1817812 The Swedish Chef
The Swedish Chef's picture

Busy selling assets.

Thu, 10/27/2011 - 13:35 | 1817885 Pladizow
Pladizow's picture

In quest of a meatball?

Thu, 10/27/2011 - 23:09 | 1819719 nohweh
nohweh's picture

She's got something up her sleeve.

Thu, 10/27/2011 - 13:42 | 1817922 Triggernometry
Triggernometry's picture

Let me guess- "it only costs $5 to pull out of the ground"

Sorry Trav, I still can't let that one go

Thu, 10/27/2011 - 14:31 | 1818112 The Big Ching-aso
The Big Ching-aso's picture

No kidding?   I thought it was $6.

Thu, 10/27/2011 - 14:43 | 1818157 Troll Magnet
Troll Magnet's picture

Must be deflation or something.

Thu, 10/27/2011 - 15:00 | 1818238 trav7777
trav7777's picture

?  I wasn't the one who said that.

Thu, 10/27/2011 - 17:30 | 1818774 mick
mick's picture

Mathman, AKA Methman gets honours for that.  Trav's more of a eugenics guy.

Thu, 10/27/2011 - 14:11 | 1817963 akak
akak's picture

Where are the deflationists?

I suspect that, one by one, they are jumping in despair off the edge of their flat earth, as their laughable theories and/or pro-Establishment disinformation is discredited again and again by real-world events.

"Deflation", in the contemporary fiat monetary world, is nothing but a threat in search of a reality.

Thu, 10/27/2011 - 16:18 | 1818562 Bay of Pigs
Bay of Pigs's picture

Hey akak,

Come on over to Turd's site sometime. You would fit in nicely around there.

Thu, 10/27/2011 - 16:35 | 1818618 akak
akak's picture

Hey BoP, nice to see you again!  Sorry meeting up in Hawaii didn't work out earlier this year (never made it to Maui, just the Big Island once again).

I have considered joining Turd's community, just not sure if I have the requisite technical background to fit in there.  Nothing against his site at all, I'm just a bit intimidated by many of the posts, and posters, there (as I was initially here on ZH almost two years ago ---- today, to be honest, not so much).

Thu, 10/27/2011 - 17:04 | 1818709 Bay of Pigs
Bay of Pigs's picture

There a fellow over there named ivars talking up his deflation theory and creating all kinds of chaos on the main board. I swear he was here at ZH last spring and got run off. Do you remember him?

Peace and Aloha to you...

Thu, 10/27/2011 - 17:20 | 1818741 akak
akak's picture

You know, that name does ring a bell, but it may be only because I have in fact seen his posts over on Turd's site recently --- not sure if I remember him from here on ZeroHedge.  Can't say that I have closely followed his posts on TF's Metals Report, but doesn't he predict the eventual hyperinflation and/or collapse of the US dollar as well?  That would seem to not fit in with the usual deflationists' outlook.  His posts, to the extent that I read them, did not seem particularly trollish, just very TA-obsessed if anything.

I am not saying that one cannot make the deflationary argument in good faith, but my suspicions are that many of those who do try to make that case, both here and elsewhere, are disinformation agents for TPTB, trying to steer the herd from the REAL threat (i.e., guarantee) of fiat currency depreciation and collapse.  But those who are making the deflationary argument in all honesty and in good faith are, in my estimation, woefully misguided, and clearly and demonstrably ignorant of monetary history and the lessons that it teaches about overindebted governments and their fiat currencies.

Thu, 10/27/2011 - 19:16 | 1819067 Bay of Pigs
Bay of Pigs's picture

I know he's here now, I just thought he was here last spring as well. I can't find any history of him back then, but I remember that name from before. 

Thu, 10/27/2011 - 12:21 | 1817564 pupton
pupton's picture

Red for requesting Haines resurrection, Green for getting his assinine perspective right.

Thu, 10/27/2011 - 12:43 | 1817656 GetZeeGold
GetZeeGold's picture


He got to take all his fiat with him......St Peter looks at him and brought paper with you?



Thu, 10/27/2011 - 13:38 | 1817903 Ponzi Unit
Ponzi Unit's picture

Let's show a little respect for the deceased. Mark Haynes was a fine shill, a remarkably effective round-heeled whore for the MSM, a consummate bully and sell-side cheerleader. We will not see his like again. Okay, hats on.

Thu, 10/27/2011 - 16:03 | 1818499 CompassionateFascist
CompassionateFascist's picture

Dorothy Parker (Jewess) upon hearing that Cal Coolidge had died: "How could they tell?".

Thu, 10/27/2011 - 12:56 | 1817687 SRSrocco
SRSrocco's picture


I wondered why the commercials added over 63,000 short positions against the dollar over the past month.  It was the same reason why they liquidated enough commerical shorts to have the lowest NET SHORT POSITION in silver going back to 2003.  We are just beginning to see some fireworks in GOLD and SILVER.

The Commercials knew this was coming and the big bullion banks prepared for the US DOLLAR slaughter as well as the big move up in commodities, gold and silver.  The question we must ask, will this trend continue?  Or will we have some sanity back in the markets after lunch?  Many times in the past when there is a huge run up like this, during the latter part of the day we see a downtrend. 

In reality, it doesn't matter.  ENRON, BEAR STEARNS, LEHMAN BROTHERS and a whole slew of others saw their stock price plummet in the end.  Those who were using Technical Analysis to show how good of a stock these were when they were pushing to new highs before the PONZI FUEL ran out, failed miserably.  The opposite will be true for GOLD and SILVER. 

The big move higher towards $50 this year in silver was not a SPIKE or a BUBBLE but a move towards its true value.  Both gold and silver have been HELD LOWER like a balloon 100 feet below the water line.  Enron, Bear and Lehman were kept higher by the TA NOOSE, which finally killed the stock in the end.

So here we have to wait and be patient for the balloon to be released pushing the price of silver towards $100-$200.  When we finally see this sort of price in silver those NITWITS and GADFLIES who have been calling for gold or silver in a bubble will get more coverage on CNBC and FOX business.

Thu, 10/27/2011 - 12:58 | 1817723 pupton
pupton's picture

Good post.  I think we should start charting gold and silver in terms of how many oz one $1 FRN can purchase.  So instead of a chart headed upward toward infinity (which must necessarily break $50 to acheive) we would look at a chart showing the deminishing purchasing power of the USD.  It would be slumping downward.  After all, that is truly what we are talking about here.  The dollar is dying a slow death.  It's air is being let out of its bubble, not a bubble in silver being filled up with air.

Thu, 10/27/2011 - 14:03 | 1818018 nuinut
Thu, 10/27/2011 - 14:22 | 1818087 kridkrid
kridkrid's picture

Thanks for that. 

Thu, 10/27/2011 - 14:58 | 1818228 seek
seek's picture

This is actually how I track a goodly-sized chunk of my personal finances, converting things to/from miligrams of gold or silver.

For reference, 17.83 mg of gold buys a dollar today, and 884 mg of silver does the same.

Ten years ago, it took 89 mg of gold and 6220 mg of silver.

So yes, dollars are much cheaper to buy today.

Thu, 10/27/2011 - 13:37 | 1817894 rosiescenario
rosiescenario's picture

"Both gold and silver have been HELD LOWER like a balloon 100 feet below the water line"


Like that analogy....when you are down 100 feet and exhale a small bubble it begins expanding and accelerating as it races to the it ascends and the surrounding pressure drops it gets bigger meaning that the lifting forces become greater as its displacement grows. Anyone who has used a lift bag knows what I is the visualization.

Thu, 10/27/2011 - 19:37 | 1819140 GoinFawr
GoinFawr's picture

To boot, the lift bag is full of helium.

Thu, 10/27/2011 - 12:43 | 1817655 vast-dom
vast-dom's picture

Silver $48

Thu, 10/27/2011 - 15:31 | 1817938 Ag Tex
Ag Tex's picture

Before December?

Thu, 10/27/2011 - 13:02 | 1817738 The Big Ching-aso
The Big Ching-aso's picture

The IMF = The Dollar.    Who's gonna bail out Europe?

Why Super Ben of course.



Thu, 10/27/2011 - 18:50 | 1818978 StychoKiller
StychoKiller's picture

What, you don't believe in Sovereign Man?

"Normally, I'm not a praying man, but if you're up there somewhere, PLEASE save me, Superman!" -- Homer Simpson


Thu, 10/27/2011 - 13:23 | 1817836 TeamDepends
TeamDepends's picture

When Black Friday comes.....

Thu, 10/27/2011 - 13:40 | 1817912 Ponzi Unit
Ponzi Unit's picture

Steely Dan?

Thu, 10/27/2011 - 14:21 | 1818080 nohweh
nohweh's picture

I'll collect everything I'm owed,

And before my friends find out I'll be on the road

Thu, 10/27/2011 - 14:50 | 1818194 TeamDepends
TeamDepends's picture

Oh YEAH!!!

Thu, 10/27/2011 - 14:41 | 1818146 thunderchief
thunderchief's picture

I do not think silver is on a tear yet.  It just has no resistence to the low forties, as the last take down was a drive by take down. 

A gap down for no reason will at some point lead to a gap back up.  Silver needs to fill the gap to 42 where it had steady buying al the way up. 

It was a fake takedown, just as in late April, and that leads to a gap back up to reality.  We will see what silver does when it goes back to 42 range..  I say a gap up to 50.

Thu, 10/27/2011 - 14:59 | 1818235 Balmyone
Balmyone's picture

Get your physical now.  Solving debt with more debt is a fool's game.  Thankfully there is a way out.  Physical silver and gold.  I just can't wait to see what happens when China's property market bubble finally crashes.  As you all know, property prices declined for the first time in recent memory last month.

FYI - 1 oz PAMP gold bars at $24 over spot at Gainesville Coins.


Thu, 10/27/2011 - 12:07 | 1817487 Gubbmint Cheese
Gubbmint Cheese's picture

this market is f**ked.


Thu, 10/27/2011 - 12:11 | 1817510 GeneMarchbanks
GeneMarchbanks's picture

Bond market, you mean, of course...

Thu, 10/27/2011 - 12:44 | 1817660 GetZeeGold
GetZeeGold's picture


Only auto or sovereign nations.....the rest is all good.....

Thu, 10/27/2011 - 12:07 | 1817488 yabyum
yabyum's picture

Gold too!

Thu, 10/27/2011 - 12:13 | 1817515 GeneMarchbanks
GeneMarchbanks's picture

Kings money.

Thu, 10/27/2011 - 12:09 | 1817496 Quintus
Quintus's picture

Just about everything other than bonds and the dollar is going through the roof.  


Thu, 10/27/2011 - 12:17 | 1817539 qussl3
qussl3's picture

EUR/CHF is down too.

Something is up.

Thu, 10/27/2011 - 12:37 | 1817627 Rynak
Rynak's picture

Leaked? Did you miss the M1 and M2 supply stats?

Then again, i don't know what to make of this recent move. After all, its all paper prices, and we know who are the major paper dealers..... prices crash out of nowhere, prices spike out of nowhere..... *shrugs*

Thu, 10/27/2011 - 12:47 | 1817670 Quintus
Quintus's picture

The monetary base data have been out there for quite a while now, I can't believe that people only started looking at them today.

Thu, 10/27/2011 - 12:50 | 1817682 Rynak
Rynak's picture

Well, then there are 3 options left:

1. It actually is a reaction to a leaked printing plan (you know who gets the info first - umm, the same who own the printing presses)

2. Short covering rally ...... perhaps precisely the shorts that a few weeks ago helped to crash prices?

3. Throw your hands in the air and just call "This market is fucked!"

Thu, 10/27/2011 - 12:59 | 1817730 Uber Vandal
Uber Vandal's picture

I would love to see the results of voting on this one.

I am torn between #1 and #3, more leaning to #3.

Thu, 10/27/2011 - 13:08 | 1817770 narapoiddyslexia
narapoiddyslexia's picture

Maybe its just that everything is relative. If Europe is seen to be getting its fiscal shit together, attention will revert to the disaster that is the American debt. The dollar looks pretty tattered if the Euro is saved. 

Thu, 10/27/2011 - 13:11 | 1817787 Quintus
Quintus's picture

Given that every market everywhere is going up, I doubt that short covering is the answer.  Unless more or less everyone was short more or less everything until recently.

In truth, I doubt that Ben is going to surprise us all with a sudden massive LSAP programme either.  Although it is often pointed out that it would need to be a 'Surprise' to have much real effect.

I think most likely this is good old 'Irrational Exhuberance' turbocharged by mindless Momo driven Algo trading.


Thu, 10/27/2011 - 13:16 | 1817809 earleflorida
earleflorida's picture

m3 is the story line

sorry for private-eye's only

Thu, 10/27/2011 - 13:39 | 1817908 rosiescenario
rosiescenario's picture

....and the answer is: all of the above

Thu, 10/27/2011 - 13:43 | 1817934 Ponzi Unit
Ponzi Unit's picture

How 'bout investors, funds, and CB's are sensing Europe is an insoluble clusterfuck and maybe it's time to hedge with AU and AG. 1-2% participation rate from pension funds, for example, puts PMs on the moon.

Thu, 10/27/2011 - 15:52 | 1818426 Rynak
Rynak's picture

Sorry, but this guy typing this post, does not believe anymore, that paper prices *for now* move based on what is sane, or fundamentals.

He also doesn't believe, that CBs and investors with a clue, buy GLD. They buy physical, or pay someone to store physical for them, or they buy PHYS.... but not GLD. GLD is for gambling and propaganda, not for investing.... and it is GLD prices you see in those stats, nothing else.

The most optimistic guess i would hazard, is that GLD prices are just moving up in lockstep up with other stuff.... but this recent move, IMO is NOT anything that has to do with investing in gold (that does not mean, that demand in gold therefore is low - it quite probably is high anyways... but not because of what you see in the above stats).

So, it is not demand in gold that i'm questioning - i'm questioning that the above stats have anything at all to do with the real demand.

Thu, 10/27/2011 - 13:08 | 1817764 Snidley Whipsnae
Snidley Whipsnae's picture

I doubt a formal announcement of more QE now... Oil would move up even faster along with all other commodities. Once oil goes above 90 bucks US economy slows waaaay down, or slows faster, or slows more or however one prefers.

Looks like a lot of saps have bought into the 'European Rescue' working and figure all is well in Euroland. Attention turned to US economy, banks, Dollar.


Print Ben Print!

Got PMs?

Thu, 10/27/2011 - 12:08 | 1817497 Fiat Toilet Paper
Fiat Toilet Paper's picture

Shine metal shine!!!!!

Thu, 10/27/2011 - 13:44 | 1817936 Ponzi Unit
Ponzi Unit's picture

nice avatar, FTP.

Thu, 10/27/2011 - 12:09 | 1817498 spartan117
spartan117's picture

At this rate, the USDX will hit my target of 74 by tonight.  Anyone seen Graham Summers?

Thu, 10/27/2011 - 12:14 | 1817520 EL INDIO
EL INDIO's picture

Shit man, I thought it was bottoming yesterday then we get this whopping jump in the Euro !

But you know what, I’m not disposing of my dollars yet not until Bernanke starts printing again.

You hear that Benny (and whoever is above you), you want the dollar to be weak without doing your job ?

Fuck you, you can’t squeeze me I’m not short the Euro, I don’t participate in your shit markets, I only got cash and Gold,

Thu, 10/27/2011 - 12:16 | 1817537 JohnG
JohnG's picture

Have a look see at EUR/JPY.  Noda is shitting his pants about now.

Thu, 10/27/2011 - 12:40 | 1817637 bnbdnb
bnbdnb's picture

Poor Japan.

Thu, 10/27/2011 - 16:02 | 1818494 pasttense
pasttense's picture

Only cash and Gold? You should diversify--buy some silver.

Thu, 10/27/2011 - 18:55 | 1818994 StychoKiller
StychoKiller's picture

I understand that Pt and Pd also have some intrinsic value -- oh, and Pb & Cu!

Thu, 10/27/2011 - 12:28 | 1817594 tsx500
tsx500's picture

coincidentally i just saw him at my local Target , loading up on underwear

Thu, 10/27/2011 - 12:10 | 1817505 Mike2756
Mike2756's picture

Silver is hitting the 40 dma and the downtrend line here (dec contract), would expect some sort of pullback.

Thu, 10/27/2011 - 12:16 | 1817532 Long-John-Silver
Long-John-Silver's picture

Greek Banks are in the mist of a run as people exchange fiat cash for physical Gold and Silver. You can toss your paper charts in the fireplace for heat.

Thu, 10/27/2011 - 12:20 | 1817552 Mike2756
Mike2756's picture

Are they? They usually go for the mattress.

Thu, 10/27/2011 - 12:39 | 1817635 Long-John-Silver
Long-John-Silver's picture
Greek Bank Run Getting Serious – Citizens Queue Up in Greek Banks
Thu, 10/27/2011 - 13:49 | 1817957 Ponzi Unit
Ponzi Unit's picture

Silver pullback? Maybe, Mike2756, but did you notice how it sliced through that serious resistance at 33.65-33.85? That's an important feature of the price action. I'd say we are not in Kansas anymore, but one can certainly expect volatility. In other words, 40-day moving average is somewhat arbitrary in this climate.

Thu, 10/27/2011 - 12:13 | 1817506 silver500
silver500's picture

Looks like America has somehow now moved back into first place in the contradictory race to the bottom

Thu, 10/27/2011 - 13:04 | 1817749 afdestruction
afdestruction's picture

Schiff's been saying for a while that he thinks the Dollar will die before the Euro.

Thu, 10/27/2011 - 14:10 | 1818015 akak
akak's picture

I like Peter Schiff, but I think that analysis is simplistic and erroneous.  Both the dollar and the euro are for all practical purposes so closely intertwined in this insane debt-ridden world that the death of one is going to mean the almost automatic death of the other.  Think of two mountain climbers roped together --- does it REALLY matter which one is lower on the rope, when both of them are falling together?

The Thelma dollar and the Louise euro are both going for the same ride (with the yen and the pound locked in the trunk).

Thu, 10/27/2011 - 15:07 | 1818263 Alienated Serf
Alienated Serf's picture

another classic from AKAK

Thu, 10/27/2011 - 12:11 | 1817509 Manthong
Manthong's picture

Margin hikes to 100% for an orderly market and transfer to reality, please.

Thu, 10/27/2011 - 12:13 | 1817511 LawsofPhysics
LawsofPhysics's picture

Yep, then I buy more.  Perhaps I should wait and see how that phone call went with China first.

Thu, 10/27/2011 - 12:12 | 1817513 Long-John-Silver
Long-John-Silver's picture

When will the CME take margins to 100%? Bwahhhhhhhhhhhhh!

Thu, 10/27/2011 - 12:29 | 1817521 lolmao500
lolmao500's picture


Now we're talking.

I'm getting word (via Twitter) that the Oakland branch of "Occupy Wall Street" has finally done what I recommended as the only course of peaceful action that will matter:

They have called for a GENERAL STRIKE November 2nd.

Why will a General Strike work?

Simple: It attacks the government in a lawful, peaceful manner in the one way they cannot counteract: It cuts off their funding!

You can't tax what doesn't happen, basically.  This is the people's way to peacefully withdraw consent to being governed.

You buy nothing, you perform no work, you do nothing that is taxable.

The implicit threat is that you cut the legs out from under the government's ability to fund itself.

So here's the deal folks: Do you have a pair of clankers or are you still sporting mouse-sized nerfs?

Yeah, I know, participating in a General Strike means personal sacrifice.  Heh, that's how it is when you make choices.  There are costs.  Nothing's free, including doing nothing.  Four years of constructive consent has not brought you continued prosperity.  It has not brought the economy out of the slump and employment has not returned.  It has done nothing for you, and everything for the scammers and fraudusters on Wall Street and in DC.

Four years into this and there's been no end to the fraud.  No admission of what happened and who was responsible.  No change.  No honesty.  No truth.  And no prosecutions of any materiality.  Yeah, I know, they are going after one former board member now.  That's nice.

Freedom ain't free.

Thu, 10/27/2011 - 12:44 | 1817662 tarsubil
tarsubil's picture

That is like holding your breath to get rid of worms.

Thu, 10/27/2011 - 12:54 | 1817704 pupton
pupton's picture

That sounds like the kind of crap the unions, communists, nazis and anarchists would pull over in Europe.  We're not them, nor do we wish to be.  Have fun with your day off.

Thu, 10/27/2011 - 13:34 | 1817883 BailoutBandit
BailoutBandit's picture

Enjoy your weekend, brought to you by unions you fucking prick.

Thu, 10/27/2011 - 17:06 | 1818710 buyingsterling
buyingsterling's picture

What do unions give the rest of us? A chance to pay jacked up prices for overpriced (price fixed) labor? GM assembly workers were getting paid $120000+ in total compensation. That's for jobs approximately half a billion Chinese workers are capable of doing. Or did you mean the rape-the-taxpayer-and-future-generations govt. union 'workers'? They (almost to a man) know they don't work as hard as private sector employees, but make much more, thanks to collusion with their partners in government. They KNOW they've been raping the rest of us for years!

Thu, 10/27/2011 - 17:46 | 1818809 GoinFawr
GoinFawr's picture

What an utter load of ignorant piffle.

Thu, 10/27/2011 - 13:35 | 1817890 kridkrid
kridkrid's picture

4 nice boogey men you have assembled there (both in your mind and in your post).  You know they have been placed there (in your mind) for you as a means of control, right?

Fri, 10/28/2011 - 06:56 | 1820147 swissbene
swissbene's picture

what dude.  opting out for a day is a characteristic of union/communist/nazi/anarchist europeans?  hmm i like their (curuiosly irreconcilable) style.

who is 'we' that you represent.

day off what?  consumption?  important corporate job? ... how silly ... no 'we' must consume and slave thoughtlessly every day.  this is the established norm and to do otherwise would be radical and also ignorant.  could you imagine a reality that lacked daily consumption and wage earning, even if only for a day?  absurd, perish the thought.

you sound like a scared animal blurting out thoughtless propoganda.  i sympathize with you but think for yourself.  it's surreal - they're not real - put them in their places

Thu, 10/27/2011 - 13:09 | 1817772 XitSam
XitSam's picture

Remember not to eat. Because any food you buy before the strike is still taxed.

Thu, 10/27/2011 - 13:38 | 1817900 lemonobrien
lemonobrien's picture

they don't tax food in california

Thu, 10/27/2011 - 17:50 | 1818765 GoinFawr
GoinFawr's picture

So you're taking it a step further and calling for a national hunger strike?

Now that would attract some attention... and, should the strike action last for a few weeks, improve the overall physical condition of most of the US.

Hey, you're in good co. Lots of cultures see fasting as a path to enlightenment; and it sure looks like you could use a good dose.

Fri, 10/28/2011 - 07:05 | 1820155 swissbene
swissbene's picture

i assume you are joking but good idea -- i am in.  a good opportunity contemplate and practice discipline.

Thu, 10/27/2011 - 13:43 | 1817933 rosiescenario
rosiescenario's picture

" perform no work, you do nothing that is taxable" we do the Greek thing??? Apparently it has worked for them.....

Thu, 10/27/2011 - 13:53 | 1817980 Ponzi Unit
Ponzi Unit's picture

The strike is a good idea, and not particularly painful since you can easily shop in Berkeley.

Friend in Toronto said the cops there at #occupy Toronto have psyched out the demos by being very polite, helpful, even encouraging camping.

Killing 'em with kindness. Friend said Toronto authorities learned from the G20 dust-up.

Thu, 10/27/2011 - 18:54 | 1818993 UP Forester
UP Forester's picture

I guess the next "growth industry" is going to be agent provacateurs.  Seems too many Occupy protests are showing up, and not enough APs to get everything whipped into a frenzy....

Thu, 10/27/2011 - 15:03 | 1818250 trav7777
trav7777's picture

Douchinger doesn't have a job

Thu, 10/27/2011 - 19:06 | 1819030 akak
akak's picture

But he did stay at a Holiday Inn last night.

(And summarily tried to ban every member of the staff who did not instantly kowtow to his every whim and demand.)

Thu, 10/27/2011 - 16:13 | 1818543 CompassionateFascist
CompassionateFascist's picture

So the Generals are going on strike. Who cares. I, personally, have been on strike for years and in so many ways. No one has noticed yet.

Thu, 10/27/2011 - 12:15 | 1817526 monopoly
monopoly's picture

Miners lagging a bit today. But no complaints. Any shorts left on the planet?

Thu, 10/27/2011 - 12:25 | 1817578 Mike2756
Mike2756's picture

It almost looks like the fakeout back in August, weak volume today.

Thu, 10/27/2011 - 12:30 | 1817603 kito
kito's picture

me. just bought more DOG today. its been about two weeks andim getting absolutely hammered but I WILL NOT CONCEDE TO A CHARADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Thu, 10/27/2011 - 12:45 | 1817664 tickhound
tickhound's picture

Kito... You've been consistent.  I admire your noble commitment against the fraud.

But, DOG, cash, and no gold and silver, partner?  You need to hedge somewhere.  The USD will not be the big winner all said and done.


Thu, 10/27/2011 - 13:00 | 1817737 kito
kito's picture

i used to feel that way, but im in the deflation camp now. i do think as more and more debt gets written off, it will more than offset any printing.

Thu, 10/27/2011 - 13:47 | 1817952 tickhound
tickhound's picture

Well good luck.  Remember though, I said "hedge."  I didn't say marry the bitch.

Thu, 10/27/2011 - 14:20 | 1818077 kito
kito's picture

quite frankly, i was shocked gold took off today. makes no sense to me. billions wiped away, no catastrophic trigger, no printing by ecb (as of yet) and gold up up up. bizarre.

Thu, 10/27/2011 - 15:17 | 1818308 tickhound
tickhound's picture

Look at this way.  Would you buy a bond at near zero yield if you thought you could lose?  You're buying the 'back stop.'  These bond holders are made whole one way or another.  If they weren't, or if there was fear that they weren't, we'd see the massive flight.

Instead it's the I HAVE ABSOLUTELY NO FUCKING FEAR NOW trade... the GLOBAL put.  Were the bondholders ever really at risk?

We'll see how the bullshit plays out, and for how long.



Thu, 10/27/2011 - 15:20 | 1818322 trav7777
trav7777's picture

printing will be occurring that you can't see.

Thu, 10/27/2011 - 15:47 | 1818399 akak
akak's picture

Screw the piddly-ass helicopter of lore --- it's the new and improved B(ernanke)-(QE)2(+) stealth bomber!  With radically advanced non-transparent, anti-truth reflective coatings for maximum surreptitious market penetration, and an extra-wide cargo hold for all that paper, not to mention a full arsenal of non-traditional, (Nelson) bunker-busting anti-PM bombs.  And the name on the side of the nose?  "My Lord Keynes".

Thu, 10/27/2011 - 16:13 | 1818544 pasttense
pasttense's picture

The trends for both gold and silver don't make any sense to me either:

I would assume that if people thought the economy was going to be great they would buy stocks and sell gold and silver.

On the other hand if people thought the economy was going to crash and burn they would sell stocks and buy gold and silver.

Instead they seem to  go in the same direction--both up or both down.

Thu, 10/27/2011 - 16:22 | 1818571 tickhound
tickhound's picture

All other 'fundamentals' aside, stocks and metals are priced in dollars.

Thu, 10/27/2011 - 16:21 | 1818569 Mike2756
Mike2756's picture

Gold barely budged, up a whole $20? Definitely early, rolled out of some tbt calls and into aapl and amzn puts.

Thu, 10/27/2011 - 18:07 | 1818874 GoinFawr
GoinFawr's picture

@ kito, ol' philosophical question:

If a quadrillion trees fall in the forest to produce fiat currency and nobody sees, does Ben have to make a sound?

Thu, 10/27/2011 - 14:16 | 1818050 akak
akak's picture

The Fiat Tsunami: coming soon to a deflation camp near you!


(In case you hadn't noticed, the waves are already starting to lap at the edges of your tent.)

Thu, 10/27/2011 - 13:50 | 1817968 rosiescenario
rosiescenario's picture miner I own is up 28% since Oct. 24 vs metal of about 12%.....

Thu, 10/27/2011 - 19:05 | 1818885 GoinFawr
GoinFawr's picture


Thu, 10/27/2011 - 12:15 | 1817527 goldnguns
goldnguns's picture

I told my blonde bombshell unit that I was 16.7% smarter than I was last Thursday.  She replied with "wish you were 16.7% longer".  Sigh.  Guess I'll go play with my shiny metal thingies.

Thu, 10/27/2011 - 12:27 | 1817590 pupton
pupton's picture

She's a quick one.

Your silver will never throw your inadequacies in your face like that.  Nor will it up and leave you and take the kids, or sue you for half your shit.  Ahhh, silver is quite the temptress...

Tell your recepticle unit that if Ag keeps going you can buy her tits that are 16% bigger and 16 years younger, plus a can of STFU.  ;)

Thu, 10/27/2011 - 12:53 | 1817699 Bastiat
Bastiat's picture

LOL!  Thanks for the chuckle!

Thu, 10/27/2011 - 12:46 | 1817665 bnbdnb
bnbdnb's picture

Maybe you should broaden your base too.

Thu, 10/27/2011 - 15:27 | 1818348 trav7777
trav7777's picture

tell her u wish she were 16.7% younger.  Women are very vulnerable to emotional attacks against their age, looks, or anything related to desirability/marketability.

Thu, 10/27/2011 - 12:15 | 1817529 Pants McPants
Pants McPants's picture

It's too bad gold and silver are backed only by confidence.  I know this because an attractive TV anchor told me so.


Thu, 10/27/2011 - 12:23 | 1817568 SheepDog-One
SheepDog-One's picture

And she really wasnt all that attractive, pretty avg Betty.

Thu, 10/27/2011 - 12:35 | 1817620 Pants McPants
Pants McPants's picture

True.  As a general rule I believe the more attactive the anchor the less substance to the news.

Not that MSM is worth watching for anything other than comedy value, that is.

Thu, 10/27/2011 - 12:46 | 1817666 Long-John-Silver
Long-John-Silver's picture

She has not gone through Surgical Enhancement yet, she even retains her real hair colour. What you're looking at is normal.

The moment she gets signed up for a lead talking head position she gets surgery and hair changes. You would never recognize her even with before and after pictures. 

Thu, 10/27/2011 - 12:54 | 1817706 GoinFawr
Thu, 10/27/2011 - 12:58 | 1817727 oddjob
oddjob's picture

For Calgary, she was WAY above average.

Thu, 10/27/2011 - 12:51 | 1817634 GoinFawr
GoinFawr's picture

However disingenuous it may have been, I agree totally with her assessment: all/any money is really only backed by confidence.

The massive difference is that PM's are backed by confidence that stems from someone already having completed the large amount of work necessary to produce them. Whereas fiat is backed by the confidence that a gov't will behave in a fiscally responsible manner, won't add an infinite number of zeroes to its paper supply, and has the power to force the masses to continue to use its 'paper promises that someone has done/will do some work at some point, honest'.

Well, it looks like that's two down; one to go.

Thu, 10/27/2011 - 14:14 | 1817988 TrulyBelieving
TrulyBelieving's picture

In someone else's words, "Gold is the transmission of wealth through time. It gets it's value from the past. Paper notes derive its value from the future, in the form of debt, borrowing from labor not yet performed."

Thu, 10/27/2011 - 19:45 | 1819147 cranky-old-geezer
cranky-old-geezer's picture



It's too bad gold and silver are backed only by confidence.  I know this because an attractive TV anchor told me so.

She's right.

But it's about 5,000 years of confidence.

It's confidence with no counterparty risk.

It's confidence more of it can't be printed on a printing press or created with a few keystrokes.

I wonder if she can say that about uncle Ben's paper currency.

Thu, 10/27/2011 - 12:16 | 1817534 shokdee
shokdee's picture

I sold silver paper for money, now I sell paper money for silver (that is over 2 standard deviations on a long-running meme).

Thu, 10/27/2011 - 12:21 | 1817562 s2man
s2man's picture

LOL.  Me too.

Thu, 10/27/2011 - 12:47 | 1817671 tarsubil
tarsubil's picture

I've been trying to get my dad to do this but he just won't listen.

Thu, 10/27/2011 - 12:17 | 1817541 SheepDog-One
SheepDog-One's picture

I expect the illusion that 'Europe is saved' will be shattered by something well before Fridays close, or even today. 

Just heard Mackey saying that 'Europe has just bought itself 2 years free and clear'...huh whats that? Theres no 2 year pole vaults here, its day to day.

Thu, 10/27/2011 - 13:54 | 1817992 rosiescenario
rosiescenario's picture

....just as soon as GS gets itself positioned on the other side of the boat....has anyone charted the frequency of risk on / risk the amplitude and frequency increasing????

Thu, 10/27/2011 - 13:58 | 1818004 Ponzi Unit
Ponzi Unit's picture

2 years free and clear? 


This from Roy Scheider in JAWS:

Thu, 10/27/2011 - 12:17 | 1817544 steve from virginia
steve from virginia's picture

You need a broader time frame than just a few days. The EU central bank has to lay off its lending exposure and it is going to have a lot of problems doing so. After all, there is no 'European Treasury' upon which to do so.

This isn't going to emerge in the next day or so. When it does it will become 'velly interesting'.

Gold has plenty of reasons to increase in price. Silver, who knows?


EU 'leadership' is engaged in confusing the issue and hoping some growth will arrive with the next train ... before the next summit meeting. They are all truly at the end of the gangplank.

Thu, 10/27/2011 - 12:19 | 1817550 UTICA CLUB XX PURE

It's gonna get pretty ugly in the next few years.

I mean "PRETTY" more than "ugly" [ if your holdin silver! ]



Thu, 10/27/2011 - 12:23 | 1817555 LouisDega
LouisDega's picture

I think Tom Obrien should look again at the $$. Its looking very sick. 

Thu, 10/27/2011 - 12:21 | 1817558 tekhneek
tekhneek's picture

Fantastic. Short it like it's a bad habit if it beats $45 in the next 2 weeks.

Thu, 10/27/2011 - 13:47 | 1817950 kloot
kloot's picture

or maybe even today. do you regret your post on the break out article tyler posted two days ago?

Thu, 10/27/2011 - 12:22 | 1817566 melanie
melanie's picture

Just published in dutch online newspaper. 
Overview of exposure to Greece debt by European banks:  
France 51.3 B USD 
Germany 33.5 B USD 
UK 12.6 B USD 
Portugal 10.1 B USD 
The Netherlands 4 B USD 
Italy 3.8 B USD 
Austria 3.1 B USD 
Belgium 1.6 B USD

Thu, 10/27/2011 - 12:23 | 1817570 Börjesson
Börjesson's picture

Gold has hardly risen at all, when valued in EUR or JPY. It's the dollar that is down.

Thu, 10/27/2011 - 13:30 | 1817863 monkeys.pick.bottoms
monkeys.pick.bottoms's picture

the dollar is still the least ugly horse. in fact I have a few dollars to hedge my local European currency. I'm guessing it's still a bit of a deal for PMs to be rising in dollar terms.

Thu, 10/27/2011 - 13:55 | 1817994 Börjesson
Börjesson's picture

When the eurozone situation unhinges again (in a couple of weeks or so, maybe?) everybody's going to run to the dollar, as they always do in times of collywobbles. Then the dollar will regain what it's recently lost to the euro, and then some. If gold in dollars manages to stay steady through that, then we euro goldies can also get a share of what the dollar goldies are feeling today. On the other hand, chances are that gold will go right down again when that happens. Or rather - gold is the stable baseline, it's all the currencies that are always flapping about.

Thu, 10/27/2011 - 14:30 | 1818102 akak
akak's picture

I have to laugh when mindless shills for the financial status-quo constantly repeat the inane line that "the dollar is up against the euro", or "the euro is up against the dollar", when in fact no fiat currency EVER moves up in true value (i.e., purchasing power) --- they just ratchet downward against each other at different and ever-changing rates.

To use my favorite analogy, if your sinking ship starts taking on water even faster than my similarly sinking ship, thereby sinking lower relative to my own, does that mean that my sinking ship is therefore somehow rising out of the water?

Thu, 10/27/2011 - 12:24 | 1817574 ricocyb13
ricocyb13's picture

Germany stock market increased 5% today. what is going on???

Thu, 10/27/2011 - 12:26 | 1817583 SwimmininNawlins
SwimmininNawlins's picture

Optimistic that Germany will announce they are withdrawing from the EU maybe?

Thu, 10/27/2011 - 12:54 | 1817703 reload
reload's picture

People buying German Equities in exchange for Euros - the game is up, Markets are not in rally mode because Europe has a plan to fix its problems. They are in rally mode because the cuirrent plan is a joke, and the endgame is printing.

Printing=German savers sacrificed to save German banks & Industry. Industry will benefit from printing - in the short term anyway. Holding cash while there are decent German Stocks to buy.......not looking too smart.

Disclaimer: Stopped out of recent shorts today.


Thu, 10/27/2011 - 12:27 | 1817588 Village Smithy
Village Smithy's picture

I have to say that I am shocked at the pop in the equity markets. I really thought that this bullshit solution was baked in already. Having said that maybe I was right and this is just a positioning thing. For every purchase someone is selling or shorting.

Thu, 10/27/2011 - 12:35 | 1817618 Long-John-Silver
Long-John-Silver's picture

It's just a side effect of swallowing a Hopium pill.

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