Gold, Silver Surge

Tyler Durden's picture

Gold finger? Or did the market just get it through its greasy, vacuum-tubed head that the only option for the status quo cabal to preserve said status quo is to print, print, print? Or, perhaps this headline from the FT is finally getting some play: "Italian government on brink of collapse." Or, perhaps this one: "Eurozone crisis fund ‘may be weeks away’." Or, has the break out, predicted yesterday, commenced? Stay tuned to find out.

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GeneMarchbanks's picture

That always follows. A mere follow-up to the previous piece...

Pladizow's picture

"Like liberty, gold never stays where it is undervalued." - J.S. Morill - Speach to the US Senate - 1/28/1878

hedgeless_horseman's picture



Here is a great illustration of the US debt from a respondant on Kunstler's blog:

Barstiat | October 25, 2011 4:02 AM | Reply

Here is why S&P downgraded the US credit rating.

• U.S. Tax revenue: $2,170,000,000,000

• Fed budget: $3,820,000,000,000

• New debt: $ 1,650,000,000,000

• National debt: $14,271,000,000,000

• Recent budget cut: $ 38,500,000,000

Now let’s remove 8 zeros and pretend it’s a household budget.

• Annual family income: $21,700

• Money the family spent: $38,200

• New debt on the credit card: $16,500

• Outstanding balance on the credit card: $142,710

• Total budget cuts: $385

"I wish it were possible to obtain a single amendment to our Constitution - taking from the federal government their power of borrowing."
-Thomas Jefferson, 1798

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
-Napoleon Bonaparte, 1815

PS: This doesn't include all the Fannie Mae and Freddie Mac mortgages guaranteed by the Federal Government, nor the unfunded liabilities such as Medicare, nor Social Security, nor any state or municipal debt such as California or Harrisburg, PA.

PPS: If you have not read Kunstler's book, The Long Emergency, you should do so.

PPPS: If you have not read Griffin's book, The Creature from Jekyll Island : A Second Look at the Federal Reserve, you should do so.


GeneMarchbanks's picture

"When a government is dependent upon bankers for money, they and not the leaders of the government control the situation, since the hand that gives is above the hand that takes... Money has no motherland; financiers are without patriotism and without decency; their sole object is gain."
-Napoleon Bonaparte, 1815

He should know, with all the dealings with the Rothschild Bros.

Mark123's picture

I am beginning to think that little frenchman was not so bad after all. 

FreedomGuy's picture

Excellent post. The reason I read ZH.

JustObserving's picture

There are the unfunded liabilities of $116 trillion which everyone conveniently overlooks - they would have to be accounted for under GAAP.

Medicare will be bankrupt by 2017 if not sooner - so these liabilities are not so far beyond the event horizon that they can be ignored.

So you can add $1,160,000 to the credit card - with no payments due on that until 2017.

BTW, national debt now is $14.874 trillion today - bit higher than your  $14.27 trillion estimate.  But then $500 billion is just a rounding error when you deal with trillions.




Libertarian777's picture

yes, but according to GAAP when the US credit rating on those unfunded liabilities drops from AA+ to D the blow out on the credit spread will reduce the market value of the liability and thus it becomes REVENUE. WHOO WHOO.

Greece must be running a budget surplus according to GAAP now.

SilverIsKing's picture

I'm going to print this out, laminate it, and keep in my wallet.  The next time someone disagrees with me that the U.S. is fucked, I'll pull it out.  Thanks.

hedgeless_horseman's picture



The Creature from Jekyll Island : A Second Look at the Federal Reserve

Including the words, "...A Second Look..." in the title does not earn him a pass?  Nobody complains about Matthew, Luke, and John ripping off Mark.  I say, do whatever it takes to get the message out.

tarsubil's picture

Just got confirmation that Texas Precious Metals shipped my order. Just in time.

SilverIsKing's picture

I work for UPS.  What's that address again?


pupton's picture

Kitco has the answer:

"Comex gold futures have rallied to their daily highs on fresh safe-haven buying interest following news that a Euro zone finance ministers meeting scheduled for Wednesday has been canceled."

NotApplicable's picture

What, no bunga-bunga tomorrow?

FranSix's picture

Options expiry.

gringo28's picture

yeah, Klingon options circling Uranus......

FranSix's picture

You know what?  YOU'RE RIGHT.

If you don't have elevenses today, then you'll simply have to wait 'till tomorrow.

uranian's picture

my first thought, too, but it's tomorrow isn't it?

YesWeKahn's picture

It looks like that FED will print another 600 billion, this couples with the death of Euro, yupe, metals will raise.

PaperBear's picture

Is the start of gold/silver leaving this galaxy ?

monopoly's picture

Ok,where is Robot to tell us how stupid we are. :)

fuu's picture

I'm going to make a little silver statue of robotrader to keep on my desk.

LongBallsShortBrains's picture

Be careful to place it where the BULLshit spewing from it will not cause a mess.

fuu's picture

Gold just completed an extremely rare chart formation. The Loch Ness Monster Pop. This chart formation usually leads to more price movement.

cowdiddly's picture

"Loch Ness Monster pop" CLASSIC. +1700

Long-John-Silver's picture

Nexflix became falling timber yesterday and today the sawmill is turning it into tooth picks.

Infinite QE's picture

The key to understand RobotTrader is to understand that he is representative of all the low-level functionaries that were bounced out of financial jobs and became `traders'. They all read the same stuff, call the same 900 numbers, etc. To invest and profit from these people, the best thing is to buy leap puts on whatever they are buying, then sit back and collect. Working like clockwork! Who can forget RT's endless pumping of Netflix. Now obliterated.

akak's picture

Who can forget RT's endless pumping of Netflix. Now obliterated.

Not just obliterated --- blowtorched.

Along with the last shreds of RobotLemming's credibility here.


Hey RobotShitforbrains, when are you finally going to join your dear buddy leo quislingasskiss in ZeroHedge exile?

Chaffinch's picture

Robo's still hiding under his duvet trying not to think about Netflix

Strider52's picture

Robo is trying to get the dog to lick the peanut butter off his junk, but his junk is experiencing a margin call. 

firstdivision's picture

Lol!  Well someone needs to remind gold/silver that Ctl+p will happen when markets fall further and lollars harden more from here.  WTI is too high for Benzers to print.

Quintus's picture

Let's imagine Ben's thought process if, as is looking likely, the Euro banking system starts to collapse later this week, and contagion spreads to Wall St.

"Well", he thinks to himself "I guess I could print some cash to bail out JPM, Goldman, Citi, BAC etc. etc. and stop them going bust before the weekend, but I'm really worried about Joe six-pack and the pump price of his Gas, so I'd better not."

Yeah.  That's what he'll be thinking.

s2man's picture

+1.  That gave me a good belly laugh.

firstdivision's picture

which the dollar will harden, and WTI will fall; then printing will commence. 

Quintus's picture

The dollar will harden because the banking system is collapsing, including all the big money-centre banks?

Seems a bit.....unlikely.

ATM's picture

I don't think it is unlikely at all. As Europe struggles in it's death throes the money there will seek a home. There aren't many places big enough to absorb that cash that fast. The only exception is going to be the US.

The bump here is likely to be temporary until the fleeing rats figure out that we are just as fucked as Europe. The the money will go to the last place that is left - real stuff. And all that money flooding into such limited real assets is going to make prices go exponential.

So as a trade - US right now is probably a good bet, but certainly not long term. A broke countries paper is never a good place to store wealth.

Quintus's picture

With mobs of people outside shup-up banks up and down the country throwing rocks at the windows and demanding to get their money back, it would be a brave foreign investor that was, at the same time, clamoring to get their money into the US banking system.

I guess there maybe flows into US Treasuries, if people could figure out how to buy them when the primary dealers's staff were all busy carrying their possessions out of the building in cardboard boxes.

Chump's picture

You're ignoring the timeframe.

Quintus's picture

As we saw with Lehmans, contagion is more or less instant.  If Euro banks hit the rocks on Thursday, Wall St. will have a very, very bad Friday.

Chump's picture

...and the $ hopped on a rocket ship after Lehman, too.

GoinFawr's picture

Hey, just about anything's possible. Then again, "The ol' Gray Mare...".

trav7777's picture

yeah gold went up $80 in a day too.

There's not going to be a paper lockup this time around because the CBs are standing there ready to provide unlimited money.  Hell, the SNB is printing to maintain a EUR peg.