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SSDD: Gold Soaring, Europe Plunging...Despite Short Selling Ban
Update: it begins - Fiat (FI.IM) and Exor (EXO.IM) are halted. Look for Intesa and Unicredit to follow any second.
It was fun while it lasted, or all about 6 days. Following the imposition of the continental short selling ban, Europe managed to prevent the now daily occurrence of halting trading in key financials... for almost a week. But not quite. We fully expect that UniCredit (down 5.3%), Intesa (down 4%) or Fiat (down 8%) wlil be halted any second, despite the fact that nobody is shorting them. All that was necessary for a return to the status quo, or for Europe to be open. Following news from the WSJ overnight that the Fed is "concerned" about European bank funding (a story which is such a glaring plant: why on earth would the Fed of all entities invite contagion by indicating that the funding pyramid, at whose base it itself is located courtesy of the unlimited FX swap lines), which in turn used data first broken by Zero Hedge yesterday namely that "In one sign of how European banks may be having trouble getting dollar funding, an unidentified European bank on Wednesday borrowed $500 million in one-week debt from the European Central Bank, according to ECB data. The bank paid a higher cost than what other banks would pay to borrow dollars from fellow lenders. It was the first time for that type of borrowing since Feb 23", has led to every index in Europe is plunging, and at last check US futures were down over 20 points. Why would use its traditional mouthpiece the WSJ to spread fear? Why QE3 of course. As we will never tire of repeating, the market has to fall another 20% for another easing episode to be feasible. And what better way for this to happen if you are Ben Bernanke? Why hit them where it really hurts - European bank stability of course. Oh yes, all of this has sent gold to just under all time record highs at $1810, pretty much as also expected.
Keep an eye open for headlines of an imminent FTSE MIB breakage, following the sequential halt of all Italian financial stocks as Europe now scrambles to come up with another even more harebrained idea as a last ditch protection for its insolvent capital markets.
We also expect another "emergency" meeting between Sarkozy and Merkel to be announced momentarily if the DAX plunge, fat fingered or not, continues.
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what's really strange is that most people in north america don't realise whats going on.
In between the tensile self-absorbed money lust of the "know what's going on" pile -- and the normal scrambling-inside-the-Jeuropean lie-web pseudo-society... 'tween those two, nobody's got the big picture.
While ya'll keep good track a yer massa's #s good right -- and it might tick up a few in your little numbers box -- are you suffering the responsibility heat of nurturing the un-knowing less powerful?
No -- just mock apocalyptic narcissism, scurrying after your money masters -- loving to hate them, and thus as bad as them, stuffing your pockets and scheming to filch tru der system.
You are pretty full of shit with your own "high and mighty" now ain't ya?
Boy I can tell how superior you are with your little Buddah buddy avatar.
Buddah hated Jews, didn't he? That's real enlightenment.
Fuck off loser.
Highly and Mightily Accurate, good sir.
All the enthooz here, seeming, for da truth -- well, only so long as it one a dem truthz dat makes my pig money sniffing self-ness able to go on.
Funny ain't that -- there do be truths that don't let you scum white fucks keep smilying to yer families.
Buddha didn't know any jews except the sanskrit variety. You have a thread to his history that is very interesting. Care to expand on it?
As for fucking its a shared occupation. So maybe you are professing a hidden urge which I completely approve whoever be the lucky loser, I mean winner!
looks like buddha wasnt the only one, perhaps you can discern some sort of vague pattern from this;
not to mention that it isnt taught at your juniversity. is your faculty 80% self chosenites like everywhere else?
109 Locations whence Jews have been Expelled since AD250Workoutwellforall... Would you have us all living under a bridge and taking vows of poverty?
You sound like a sore head typing at the public library...
If you fail to look out for number 1 you can bet your bippy no one else will... In fact, you cognizence of this fact is why you are here complaining about those of us who are...
If you don't make a few bucks, how can you help friends and family? You think the fucking gov is going to help when the help is really needed?
I would have everyone who jokes about high-level malfunction, which causes massive pain and death --- and then giddily drools about their stupid fucking horde and the metal form they keep it in -- I'd just have these fellas keep the LESS powerful first and foremost in their long-term planning and cognitive consideration.
Everybody who knows enough to buy Gold is intelligent enough to conceptualize the world in a solving framework.
It's the patheeeeetic money grubbing obsession that they got herded into (jobs and indoctrinating education) -- that tricked em stupid enough not to be able to delineate the harmful-deceitful elements of the ruling class ideology from their own lives.
Principle is indeed high and mighty. And I warmly greet the anger, which is but the inverse reflection of your unprinciple. (Talkin' bout the other fella, you're nicer = less committed to unprinciple)
Oh...I see... You have set for yourself the task of changing human nature...
Let me know how that works out...
Contrary to the Zero Zeitgeist -- cooperative, solving intelligence is human nature.
And, unfortunately, first-money-worrying sniggering is the #1 propaganda blanket function... i.e. passive, flat, worrying first about your money, is a successful business indoctrination operation running back to late 1930s National Association of Manufacturers.
Used to be solidarity -- that primitive naivete that is the human nature that fuels the ridicule here too.
Can't change that, no matter what --- same for all life.
Workingout...
So you are saying that human nature has already changed? And it morphed circa 1930?
"Used to be solidarity"...???
Perhaps you can link to some evidence of your claim?
I am not religious, but I will wager that Jesus would not agree with you!
No -- human nature -- i.e. necessary process functioning of sapiens central nervous systi -- it don't never change -- it just got knocked off kilter by the NAM in the run up to the big commie killings in the Great Patriotic War.
http://www.amazon.com/Selling-Free-Enterprise-Liberalism-Communication/d...
Sir, yes, sir. Would you like cream with that, sir!
Your presentation of self is a lie. A Buddah follower would not spew hatred based on race. In fact, he would not spew hatred. This is why I am writing you off as a troll. You, in fact, do not want it to work out well for all. Your logic is inconsistent.
Bye now. Roll up another character. I'm sure you will play again.
Is it the "Jeuropean" adjective that has ruffled you?
Do you deny that Jewish Zionists run the Federal Reserve and USA?
WOWFA, welcome. Refreshing points of view, indeed.
You will be deeply dis-liked by most here. Don't let it bother you. In all of your jumbled (or is it Jumbalaya) english, I hear you. Well.
ORI
Yer just dodging the Jew question with yer sweet talk. Fess up -- you're afraid!
You obviously fancy yourself as some type of poet, or prophet, I really don't care which, but could you please dispense with the thesaurus laden drivel and at least try to type a full sentence that expresses a cogent thought?
You can't possibly think in as disjointed fashion as you write. You can't even communicate your thoughts and you are schooling people here on what they should think?
I am serious and not just trying to cut you down. Reread what you wrote, you don't make any sense and it takes multiple rereads to piece together the jigsaw puzzle of your shattered sanity.
Stop doing drugs. Seriously, it is killing you. My guess is you are homeless, angry, and dangerous to yourself as well as others.
You obviously fancy me a poet and a prophet and homeless -- Buddha I guess.
I drool over my own words -- whence!? Denken ain't schriften.
If you have a straight question, I'll answer clearly. If you're going to poo-poo me to fight off my saintly octopus logic, well then, eat shit you fucking kike boot licking gold whore.
i would gladly give my stash away with giee should Thu, 08/18/2011 - 08:52
-- the moment where some human somewhere on this planet using a buddha avatar uses the language above to spread dhamma --
mark the moment of Peak Irony.
"Everybody who knows enough to buy Gold is intelligent enough to conceptualize the world in a solving framework."
That's right and we have. But TPTB won't act on our advice. Can you believe it?
I fart in your general direction.
Non sequitur is tacit reactionary ideological attack.
Ya'll will find that constructive, helpful, accurate, principled intelligence is a lot more fun that cleverly insulting people.
Yeah, make every sentence as complex as possible, sprinkle in some psychology, add a pinch of philosophy, and everyone will respect your intelligence ON ZEROHEDGE? You wouldn't notice because you are so busy looking in the mirror, but there are very intelligent people here who respect absolutely nothing but the truth. Your opinions have zero credibility now.
I read these comments in detail. Putting a "credibility" on an opinion -- ain't that supposed to be dumb around here? My sentences are gold with eternal infinite value.
"My sentences are gold with eternal infinite value."
A legend in your own mind!
Hey bud, just cause the world doesn't conform to your ideal doesn't mean you have the capability to change it... or even alter it's course one iota...
I will venture a guess... Living at home with mom and swallowed double your med script this am?
Every person permanently changes the world -- most people, sadly, can't do much more than filch some green to feed the youngin's -- and then there's there rich here, whose speech lives are precisely of the nature of their usurious oeconomy, 'cept they take interest on perceptions and cognitions.
I know -- it's complicated and beautiful -- gaze.
Yes, we have found that, but you apparently have yet to do so.
It's all willful ignorance, forget about 'waking people up' they want to sleep, let them, they will wakeup when the sky falls on their heads
Smug feigned knowing, finished with veiled play glee at mass death.
Such is the snickering imbecility for the in-on-it crowd 'roun here.
Troll, see what I mean. Hateful thing. See what I mean Buddah boy? Ya blew it.
Responsibility to evaluate sincerity and helpfulness of remarks is entirely on the responder. Amazingly, even resentful insincerity can be approached profitably -- cuz there's a human behind everything -- 10 billion of em by 2050: http://www.calgaryherald.com/technology/World+population+will+reach+bill...
Can't you find a web site where they will appreciate you for the great thinker that you obviously believe you are? Might I suggest one frequented by juveniles who don't know any better and won't notice your lack of command of the English language? I'm sure American Idol has a fan site.
Ya seez, fella -- dem udder wib sytes -- dey don't know nuthin bout finanz! Der-4 ... (ahem) ... for them, the economy is equivalent to God. I need you all conservative rich guys to get intelligent and principled. That's why I'm here.
"I need you all conservative rich guys to get intelligent and principled. That's why I'm here."
I wouldn't put myself into any of your boxes...
But will venture a guess that your batting average is ZERO...
I was addressing that specific group -- since these comments, while replied individually, are read universally. Everybody's got the opportunity to be smart -- it's just the rich, white, Gold bugs -- they got the security, therefore power, to actually do some good -- rather than watch the mold grow on their horde.
" it's just the rich, white, Gold bugs -- they got the security, therefore power, to actually do some good -- rather than watch the mold grow on their horde."
And, specifically, what 'good' do you have in mind?
Now you're talkin'!
Ain't nothing to it, really. Of course, I seem not to be able to tell others what good they need to do.
The trick is you have to live beyond your means on behalf of helping those with less power than you -- the opposite of living within your money limits to accumulate more.
If you want to lay out your assets, I could give you some ideas. But I really don't want to bother. I guess my specialty is accurate research and theory -- but, you are correct by implication, I offer no panacea at this point.
There's a way to see beyond all the world's money accumulating that ever's been done. Maaaybe somebody else could see it through what I write. I'd be pleasantly surprised.
There's lots of factors nobody's looking at -- and seeing the necessity towards solution is more complicated than anybody else apparently can see. Soo...
Don't intend to spin ya round like this -- but, good -- it's real simple, and yet people all befogged. I'm not willfully obscure. Yet, apparently, I can only indirectly describe, absent more specific questions, your answer.
I am still buying silver today, the gold to silver ratio being ridiculously high, my family and friends are STILL making fun of me.
It can go much higher. Like 100-1
Caution advised. Those making fun today will be robbing your house tommorrow. I recommend ZH and JSMIneset to my friends but I stop short of advising PM aquisition, for obvious reasons.
I would think 5.56 and 7.62mm might be more useful at this point.
Good, and add one to your hidey hole like Max kept the machete under his gas tank.
Patience is a virtue... Silver will move, right now silver is still absorbing and adjusting to the 6 margin hikes that hit to drive price down... Once investors/specs see an opportunity they will be back into silver... could be today, could be next month. Just my opinion, not investment advice.
Be right and sit tight... J Livermore
I agree and would add a word of caution to silver holders, you are likely not to feel any love until the end of this game.
The game of the central banks is to kick the can and slowly acquire gold, not silver. That means that they can hold the silver market down, but not the gold market. They will stop kicking the can at some point, and that is when silver will skyrocket. What will cause them to stop delaying and switch us to a new monetary system are three things:
1. Gold goes vertical
2. They lose control of silver and it breaks several big banks
3. Kicking the can is no longer practical due to plummeting currencies (slow debasement is good for them, fast debasement is bad), generalized panic, or uncontrollable unrest.
I call no joy for silver until the end of the can kicking period. Until then, the big banks are perfectly happy with the situation. I own some silver in addition to gold, and will not get shaken out just because it hasn't risen like gold. Its day is coming.
Habita, Habita
I just read the $500 borrow on two other sites and I
said to myself Zero hedge is 24 hours ahead of everyone.
Thank you!
My Edward Jones guy scoffed 3 years ago when I liquidated a small 401K and bought SAE's, a few GAE's and some Pamp bars.
We'll see who has the last laugh.
(Oh, and thanks Hugo)
YOU'RE WAY AHEAD OF THEM.
I gave up trying to tell my coworker that she is going to lose everything. She has some kid managing her money and he has her in a "diversified" position. I looked at it, it's all stocks. Diversified means to this "professional" spreading your money in US and foreign stocks. Too funny.
ZH ROCKS!
Whats $500 million between friends ?
How are European issues relevent to the US? How does that give justification for a QE3 launch?
If you were being sarcastic, I apologize for answering a rhetorical question. Our banks and their banks are tied to each other. When they fail we have to prop them up (inject heroin [QE3])so that we don't fail. Thing is the entire banking system is already insolvent. The trick is to try to hide the lie that is our economy or else the fragile system of distribution of goods collapses due to a lack of faith. So they make gestures trying to concoct stories we will believe. QE is a cheat to hide the truth that fractional reserve lending depends on a paradigm of infinite growth (printing must happen or else interest eats up all the available money, eventually).
Just bought more gold this morning. DAX was cratering early this morning. This is going to be interesting.
LOL Achmachat. I have been called crazy for years. I even warned my friends to get out of the market back in April and now they are crying the blues. Whats sad is they still think everything is ok and some of their investor friends tell them keep it there, you must invest long term. Hell I am not even a savy investor like some of you here. But historically I knew this was coming. Humans always repeat their mistakes, time and time again.
Mistake number one for most people:
There is no substitute for a sound education in market history. Also,
Better to be miss the bottom and tops then to try and eek out an additional 10% return.
And, better to be an ok trader in a great market and a great time frame than to be a great trader in the wrong market and wrong time frame. It never ceases to amaze me how people identify themselves as a day trader of stocks or a swing trader of commodites and don't move to the most advantageous markets.
Fiat 640/660 5yr CDS lol....up 80bp!
And also, Israel being bombed this morning.
??? Where did you get that from lol?
ORI
by the Mossad? Correction bus attack.
"Doctor!...the patient is in cardiac arrest!"
"More of that zappy thing nurse...and a dirty martini for me...stat!"
WOW just imagine what those banks are going to look like when short selling is allowed again can anyone say 0% short interest everything including the watercooler up for borrow, talk about an whole new excercise in laughter,so when does the ecb bring out the roflcopter?
The smell of paper deflating in the morning..
I suspect a busy day today, Tyler, but don't miss this one [now confirmed]:
http://www.theblaze.com/stories/ny-times-justice-dept-now-investigating-sp/
Fascist nation!
yeah all over cnbc....not one mention of document shredding...fuckers
They should not have angered Barry. That was unwise. Perhaps he is trying to save his campaign and repaint himself as the tireless punisher of Wall Street crime? That might even work.
Somewhat concerned about the H&S pattern on the HUI, similar topping pattern to 2008 high:
http://www.bullionbaron.com/2011/08/hui-forming-head-shoulders-pattern.html
Give us a close above 610!
Euro saved the dollar star. Or you don't have to be faster than the bear just faster than the other guy.
I would bet on the bear in any case. He is going to eat.
With what Chavez pulled yesterday and the French German bailout cocked up and the FED no longer in the PPT biz
What did you expect? Did you expect the big O to cancel his 10 day vacation?
Chavez is a small fish, immagine what would happen if Germany demanded it's 3000 tons back from London and New York
Funny you should ask, that they did and got nada!
http://remixxworld.blogspot.com/2009/06/germany-demands-its-physical-gold-back.html
This rumour is definitively false.
Bundesbank has never demanded any gold back and will never do.
All countries controlled by Usrael hase no interest in holding any physical gold positions.
Don’t be so naïve, did man land on the moon? Tungsten in FT Knox Gold? Who killed JFK?
Any story can be spun/debunked with false info. 2009 had a lot of stories on the web while as usal the MSM had a black out.
"The Germans have demanded that gold bullion held in US custodial accounts be returned to their owners, with physical gold shipped back to Germany. The Dubai bankers have demanded that gold bullion held in London custodial accounts be returned to their owners, with physical gold shipped back to the United Arab Emirates. They are following the hired German counsel."
http://news.goldseek.com/GoldenJackass/1243491300.php
If anyone doubts the return to a "gold standard" after this much manipulation of gold prices and purchasing by all central banks and government, this demand for repatriation of gold reserves should be the canary in the coal mine to wake up.
Runaway gold prices, lack of supply of physical, disruptions in the COMEX, and gold vendors closing up shop are additional signals the end is near.
You can ban short selling but not actual selling. Well, not yet anyway. Didn't they know that ?
Once again Europe will semi-stabilize as the greatest Ponzi stumbles. After that farcial downgrade and debt ceiling game, the fact that the US has not imploded means we have one (or more round) of this circus.
It's a trans Atlantic See Saw with Humpty Dumpty on one side and Pandora's Box on the other.
Bad news both ways.
ORI
http://aadivaahan.wordpress.com/2011/08/16/pre-cursor-2-and-currents/
The Euro is a competeing currency with all others... especially the dollar...
How does one get rid of competition?
Plant a bomb in the Euro structure in the guise of Greece... with help from Goldman Sucks...
GS helped Greece hid it's real debt with SIV type vehicles...
US Media plays up the fact that Greece is a financial basket case...
Greek bond spreads blow out...
US Media point out other PIIGS debt woes...
Voila...Euro member debt in extremis... Euro currency in extremis...Euro Union in extremis...
What we are watching is economic warfare... there are no rules except he who has the gold makes the rules...
What did Greenspan say about extremis?
Alan Greenspan on Gold
Alan Greenspan, the venerable Federal Reserve chairman. Speaking to the US Congress in 1999, he said: "Gold still represents the ultimate form of payment in the world. Fiat money, in extremis, is accepted by nobody. Gold is always accepted."
http://www.taxfreegold.co.uk/greenspan.html
Are we currently in World War III?
With shots being fired by QE?
Are markets a ruse?
An atom bomb fuse?
And how does one claim victory?
We've been keeping score with paper...
We're shifting to something more real...
Will you be able to buy a meal?
With what will I buy my next meal?
Will silver and gold make the deal?
If all markets crash
Will PMs be trash?
My wits are the only thing real!
Snidley,
I like almost all your comments, but can't agree with this conclusion. If this meltdown of the Euro were planned by the Fed, we wouldn't have spent $16 trillion US dollars to bail them out.
I can't see, after all the work they have done over the years to make world governance larger and more powerful, that the plan would be to break up the European Union and lessen the grip of TPTB. Together the Fed and the ECB control most of the wealth in the world, why throw that away?
Clearly the Fed and the ECB are conspiring with all the other central banks to kick the can and acquire gold. Whether they are also conspiring to screw China by the time this is all over is merely a guess on my part. The Chinese don't play ball with the TPTB, they tend to do their own thing. That is why they are going to get screwed. A new monetary system based on gold is coming, and the Fed and the ECB have no intention of letting the Chinese in on their action.
The Chinese know this, and they are not happy. They are buying up as much gold as they can and strongly pushing their citizens to buy gold, something all the other central banks have agreed to not do. In fact, they are actively discouraging us from buying gold.
Now where's that Wells Fargo private weath advisor who told me at a dinner party that gold was a lousy investment at $900?
Banks have lots zero's on their books but no cash for withdrawals of depositors. Get in the game, withdraw all you can in the next few days.
BINGO
Been there, done that, and continue to do it...
Buy PMs, starve the system, starve the fucking bankers! When the bankers starve we might revert to a real money system... we can hope, anyway.
Having some .223 is also a good idea. Whats the gold to brass ratio right now? Might be closer in the near future.
Hey Guys!!!!
looks like the Dark Knight is back to avenge all us real money folk! see the kitco spot gold chart and say hello to the batman!
when will he show up at the silver party?
A silver slug for the Chairsatan.
$500 Million is such a paltry number these days, hell even $500 billion seems to raise very few eyebrows; a trillion is getting passe - soon we'll be able to talk about real money:
http://www.google.com/search?q=zimbabwe+100+trillion+note&hl=en&client=f...
$500 million for a week still sounds pretty hefty to me. (At least for the moment...)
scrap brass is 1.70 a lb. loaded brass is peace of mind
How long before gold crosses platinum again? I'm guessing by 10am EST is not sooner
Nailed it
Yesterday before I left the house I hastily put a huge limit sell order on all my PHYS and then had seller's remorse when I saw the close. Then I logged on and saw that I entered my decimal point wrong on the order so it never went through.Ha. Ha. Thanks God! I Also checked the news wires this morning and saw the Justice Department opened up an investigation against S&P for it's role in the Lehman Collapse in "08." I'm sure it's not politically motivated from their truth telling down grade of our shit debt.
If you were running for re-election what is the one ploy that ensures a victory? Stab a few co-conspirators in the back and deny everything.
Is this another example of Roubini's "massive deflation?" I think deflationists view the global economy as some kind of fluid, dynamic, independant organism that reacts to some sort of "free market" principals rather than a controlled top down distribution system.
I view the global economic model as a top down distribution system that begins with the U.S. dollar. Since the dollar is the worlds reserve currency and the global economic model uses dollars, the dollars creators can and do influence the global economy.
I believe in the view that the world is ultimately powered by energy rather than money and I also believed that global net energy distribution has peaked in 2005. With the peaking of global net energy distribution capacity or, "capacity for growth", the global economic model suddenly becomes a zero sum game. Those at the top of the economic model pulling the levers and twisting the knobs of finance are forced to pick winners and losers.
The U.S. and China are at the top of the top down distribution system so the U.S. and China get first dibs on the worlds finite daily sustainable production of energy. Once the global economic model became a zero sum game, economics becomes more like something you would learn studying tactical warfare rather than something you would learn in an economics class.
Ding!!! Gentlemen, we have a winner of the big brain award. Nice work Deflator.
Most traders lose because they think it's a market, but it isn't.
Most economists lose because they think it's an economy, but it isn't.
Print out Deflator's comment and put it under your pillow. We are NOT going to get runaway hyperinflation that pushes the dollar to zero. Everything that is being done is being engineered and the engineers don't want to see their loans become worthless. Long before that happens, the central banks will switch us over to a new financial system. That system will involve gold. We are also not going to have deflation run its course and push up the value of the dollar and crush gold. That fantasy isn't what TPTB want either.
So the moral of the story is that economists are narcissistic academic egg heads that think the real world has to coincide with their theories. They cannot imagine that the economy is engineered, and the engineers can create inflation in the equities markets during a deflationary spiral, debase fiat, and acquire gold in anticipation of switching into a new system that leaves them in an even more powerful position.
Gold over $1810---Time to roll out another 20% margin hike- I can almost smell thefear in the air
Rotten Bastardz
A margin hike will help sustain gold on a realistic path... say 25% appreciation per yr...
More than that and we are headed for a spike/crash... Why would anyone want that?
I am physical PM and have been since 68... I say calm gold down to a trajectory that is sustainable... and I could care less if the paper players get skinned alive...
WSJ:
Thanks partly to the Federal Reserve's so-called quantitative-easing program, huge amounts of dollars have been sloshing around the financial system, and much of it has landed at international banks, according to weekly Fed reports on bank balance sheets.
remember? http://www.zerohedge.com/article/exclusive-feds-600-billion-stealth-bailout-foreign-banks-continues-expense-domestic-economy-
Yes, Virginia, stocks can go down without any short selling.