Notes From The Sales Desk: "All Glory Is Fleeting"

Tyler Durden's picture

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SumSUN's picture

Bought 2 silver eagles yesterday :)

SGS's picture

FUCK THAT! Let'em PRINT!  Better for us conspiracy silver addicts...!

kito's picture

correct me if im wrong, but doesnt debt destruction create a deflationary environment, which would lead to the freefall of our gold and silver holdings?

SeverinSlade's picture

Unless the entire currency system fails due to being 100 percent fiat.

That's the way it's going to play out.  The world will lose total confidence in paper money.  It's a mathematical certainty at this point.

theotheri's picture

>>Only precious metals will escape this imbalance accumulation led madness.<<

 

Not even close.  PM's have run up to heaven so fast that they will come crashing back to earth right along with the US $. 

 

The Fed is not just trying to save the banks- they're trying to save all the US manfucaturers, ie massive employers, by making their domestic products more competitive.  So while we may bemoan the higher cost of superior imported cars, swiss chocolate, Samsung TV and German appliances, it is ultimately better for the USA for if it's population buys local goods and services.  

Not everything revolves around the banks, sorry to disappoint you Tyler Hedgehog.  Just because Wall Street fired your ass doesn't mean the whole system is corrupt. 

 

Gold is headed back below $1000/oz people.  You've been warned...

data_monkey's picture

Gold is headed back below $1000/oz people. You've been warned...

SWEET!

nope-1004's picture

I've been warned?  By who?  A white collar criminal?

Hmmm.... let's see.  JPY intervention, check.  CHF intervention, check.  GBP intervention, check.  USD intervention, check.  That leaves.... what?  Canada?  China?  Brazil?  Russia?  Get real.

I say we all sell our PM's and buy buttons.  We've been warned.  Buy buttons ppl..... there is going to be a button ETF out soon, symbol YBW.  Came from a Yellow-Bellied-Wallstreeter claiming You've-Been-Warned.

Fool.

 

candyman's picture

My dad lived in the woods for years during the war and lived on buttons. My grandmother melted the gold they had into buttons and sewed them into their clothing. When they needed money they ripped them off. Cash couldn't buy a month old potato.

fdisk's picture

It is sweet, if you'll still have your job and money to buy it.
Usually when everything collapse people spending time in their
bathrooms trowing up 24/7, no time to think about GOLD..

NoTTD's picture

If it does, I'll still be up 300%.  How'd your equities do over the last ten years?  Buy, buy, buy!!

Au_Ag_CuPbCu's picture

Gold will never see the $1,000 light of day again...ever.

eisley79's picture

sure it will :D, just not in federal reserve notes...;)

d00daa's picture

and you just got your longs torched today, didn't you?  don't expect to see your monkey ass around here for a while.

ps - gold is approaching 1800 again....  fantastic call.

nmewn's picture

"Gold is headed back below $1000/oz people.  You've been warned..."

So you're sayin we really do have a chance of paying off a 17 trillion dollar debt with only 58% paying anything toward it?

Excellent!...can the other 42% just put it on their EBT card?

topcallingtroll's picture

Ad hominem is uncalled for here.

That is one purpose of anonymity, so that we focus on the message and not the messenger. I dont care if one of the Tylers sucked dicks in a Turkish prison, or if he is a convicted child molester. I focus on the argument.

If this is the same tyler who earlier claimed that qe3 was going to lead to hyperinflation and that markets arent reflective of current available information then he has become more widely read himself. Tyler isnt perfect. Hehe..Me and Smailes battled them all by saying the end of qe3 was priced in before it ended, while the populist Tyler argued that qe3 would lead to hyperinflation and later that the end of qe3 would lead to rising rates. I dont care which Tyler got fired. I dont care which one got in trouble with the SEC. Right or wrong it is the argument that is important not any attempt to deflect the argument with ad hominem attacks.

theotheri's picture

Tyler Hedgehog is a collective gold monkey pusher attempting to shove the overbought gold trade down the throats of the unsuspecting dimwits that frequent this site.  Sorry suckers, your hedge is being trimmed royally but the real safe haven- the mighty US DOLLAR.

And for the record, my holdings are about 95% prime real estate, unlevered, and 5% cash.  You can torch my total equity holdings today and my great grandchildren wouldn't notice.

 

 

depression's picture

Extend and Pretend 3.0

This isn't even close to over.

Fear not, keep accumulating.

Yamaha's picture

Me, I have not had this much fun since my dog died in 1989!

GenX Investor's picture

Yes, deflation is what is really occurring, with a simultaneous moderate run up in commodities due to money hungry traders. But ultimately the Fed is pushing on a string.  There are certain inconvenient truths, such as all debts must be repaid one way or another, incentives matter, and there is no such thing as a free lunch.

Absalon's picture

 "There are certain inconvenient truths, such as all debts must be repaid one way or another"

 

The inconveniet truth is that debts do not have to be repaid and the public will murder a thousand creditors before it lets ten million debtors starve in the streets.

 

People on here keep posting as though societies will destroy themselves for the sake of paying off a minority who are holding debt instruments - that is not going to happen.

topcallingtroll's picture

You dont know enough yet to post.

All debts are repaid one way or another. Either the creditor loses his money when the borrower doesnt pay, or the debtor pays his debt off.

No one here has ever believed that all debts will be repaid soley by the borrower. Many debts are going to be paid by the creditor as he loses his money to the borrower. Debt cancellation is debt repayment by the creditor.

You look like a fool absalon if you dont understand the language used by financial and economic types who hang out here. Please read more and dont post stuff that shows you do not understand what it means to say "all debt will be repaid one way or another."

There are two ways debt is resolved, by creditor losing money or debtor paying off loan.

eisley79's picture

"Debt cancellation is debt repayment by the creditor."

lol, not its not, thats like saying two gay people living in a commited relationship to the exclusion of all others is "marriage". 

Just cause you call it by a word doesnt make it so... Writing off debt, is WRITING OFF DEBT.

Also, they debtors, if they control the money of their debt, can change the value of the currency, slowly, or very quickly (repeg).  Repaying a debt in a new currency with a new made up value, is again not the same as actually repaying a debt.

Though you did sort your self out by the end "There are two ways debt is resolved".

All debts are resolved, but not all debts are repaid.

topcallingtroll's picture

I agree with you, but we all knew what he meant. Informally it is expressed debt is repaid one way or another.

Inflating the money supply is writing off debt in real terms, velocity remaining constant. The creditor "pays" even in that situation.

EscapeKey's picture

Yep, as Bernanke has repeatedly warned, we're living through deflation - which is why he recently took the opportunity to tell us that the inflation (which doesn't exist) is now on its way down.

But of course that's not questionable at all. Ben seems to be able to tell one lie after another, and never get called on it by the MSM.

Yamaha's picture

I'm really sorry.....know body takes a girl serious. I want you to know that I DO....want to get laid?

EscapeKey's picture

Google "Anna Chapman".

Whalley World's picture

Deflation is gold positive, look back to the Great Depression where gold went from $20 to $35.

Look up Exters inverted debt pyramid, and see what comes out on top, er on bottom in this inverted case.

GeneH3's picture

Gold went up in 1933 because the price was driven up by the U.S. Treasury and it's proxies. The $2.8 billion profit booked from confiscation at $20/ounce and compensation at $35 was used as seed money for the newly created Exchange Stabilization Fund (unauditable to this day). Deflation is in fact gold positive nevertheless -- relative to goods. It will buy more. That does not necessarily mean it will be priced higher in fiat. But who cares about fiat anyway. If gold is money, why place an undefined medium of exchange (fiat), which can easily distort value, between gold (money) and goods? Fiat should be, if anything, not something considered a thing of value, but only a fleeting convenience for exchanging gold money for goods. That convenience was not necessary between 1879 and 1933 as gold money was directly exchangeable for goods and the paper stuff was superfluous. The clowns in Washington and Wall Street have so screwed up the system of value and so brainwashed J6P that too most people in the U.S. understand financial value only in terms of the paper that the Fed prints with abandon.

HitTheFan's picture

You are correct that debt destruction creates a deflationary environment. However, gold will not necessarily fall, but silver probably would.

But, debt destruction is unlikely, as the Fed/US Gov will keep buying up any and all bad debts to 'save the system'. Eventually leading to the destruction of the system via hyperinflation.

jekyll island's picture

Cash is king in a deflationary environment.  PMs will go down but will hold value relative to falling prices and will lead the charge on the upside recovery.  It's too risky to divest of PMs anticipating deflation.   The government will do anything to avoid it and print FRN$, so we will probably have deflation in some sectors (housing) and inflation in others (food, energy) and eventual hyperinflation.  PMs are the best protection against hyperinflation, and they will do OK in a deflationary environment.  Best case scenario is to have some cash to hedge against deflation and continue to hold PMs for insurance against fiat currency destruction.  

Cole Younger's picture

"Cash is king in a deflationary environment." I agree however, I don't think the fed will allow a deflationary enviroment for to long.

FreedomGuy's picture

Excellent question, Kito! Hyperinflation is also a form of wealth and money destruction. It is the form favored by 100% of debtor nations because all debt is erased in the process. When you can print a 100 trillion dollar note like Zimbabwe you can pay your national debt and fully fund all social programs with a single piece of paper.

This is when gold and silver return to real money status. Actually bottles of whiskey and other things will become a sort of money too. This is when the PM savers win and the fiat money insurance policy you bought when you bought your PMs pays off...big! And you are alive to collect! How much it buys depends on how bad things are but it will be big as none is in circulation.

I would also say that even in a deflationary environment PMs can do well in the sense they still have good purchasing power. A one ounce eagle could still buy a lot in the Great Depression before confiscation. In a deflationary environment all goods and service drop in price too. Your mining stocks might take a beating but you should still be ok.

Inibo E. Exibo's picture

I'm kind of hoping it gets below 30 long enough for me to write a really big check.

BrocilyBeef's picture

I doubt it. When do you see your chance?

Prometheus418's picture

That's assuming you can.

I'm not going to go on about a shortage, as I'm not convinced there is one yet- but I do know one thing for sure... when the price goes up, the coin dealers seem to have a half decent selection, but when the dips roll through, they seem to be either closed or stocking no-name 90% rounds now.

Can't say I blame them really, but what it tells me is that the guys whose livelihoods depend on trading PMs all day, every day, are convinced that the price is not breaking out to the downside for long, if at all.  If I were to see ASEs in the case near spot after a $5/oz drop, I might start to get worried- but as long as it's oddball sterling comemmorative coins selling at a premium, that's telling me that the guy who has spent decades watching this market is betting he can sell the good stuff later for an even higher price.  

Of course, if you're willing to pay a premium on AMPEX or the like, you should have no problem.  Slim pickings seem to be for the big contract buyers or the face-to-face physical buyers.

Also, as kind of an oddball addendum- got an e-mail from eBay a couple of days ago informing me that my couple hundred dollars in "eBay bucks" could not be used in the bullion center.  Kind of irritated me, as I earned 'em there. 

FreedomGuy's picture

It may go back to $50 while you wait. Seems like the neighborhood of $40 is the baseline value now. It sells at a nice low markup at least...like 99 cents over spot at times.

Duffminster's picture

Good move.  Hold em. 

 

The price of gold is proportional to the net outstanding global sovereign and private debt levels. If the economy has a significant downside contraction then tax revenues will drop like a rock and debt levels will sky rocket

GeneMarchbanks's picture

White Flags all around! Just write a couple of sentences including words like "chaos" "disaster" "mass impoverishment" "NWO" is all that is needed.

Bring the pain...

Oracle of Kypseli's picture

Sad but necessary. We need a rebirth, a reboot. we need a fresh start. No way we can continue that way. We need to pulverize politicians and banksters so that our children can have a better future.

Let's just do it. 

LooseLee's picture

....as well as the traitors (e.g. traders) and so-called investors who worship at the altar of the Fed demanding a crony capitalist fascist/socialist stimulus or bailout. Until we can weed out these bulltard wards of the state (corporations included) and allow the weak to fail as they should have years ago, our children and grandchildren will be saddled with the debts of a wreckless elite that have brought about this fragmentation of society. Unless and until a truly free economy based on capitalist principle and founded on the rule of law is established, there can be no real prosperity in the world and our offspring will continue to slave for TPTB. Unfortunately the Moneychanger in Chief, Ben Bernamke, has no 'soul' (and I speak not of the Christian dogma here) and will continue to placate the dregs of society with his monetary policies that will eventually collapse the world economy...

espirit's picture

There's always a market somewhere, even if it's a black market.

GottaBKiddn's picture

No blow-ups without a Fema Camp for all Banksters.

lynnybee's picture

 pulverize politicians and banksters so that our children can have a better future.     .....   yup.    that's the correct answer & i'm finally ready mentally for it ...... bring it on .    

hunglow's picture

Enjoy the suck.