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Tim Geithner Added To List Of Gold Bugs' Best Friends

Tyler Durden's picture


Yesterday we asked rhetorically if Ben Bernanke has become the gold bug's best friend courtesy of his FOMC announcement which led to a surge in gold, and a kneejerk whimper in stocks, which has now been completely wiped out courtesy of a subpar GDP number. Today we note that it is not only the Fed, but the US Treasury, and specifically the ravenous Mr. Geithner, who just got a green light to issue another $1.2 trillion in debt, and bring total debt to $16.4 trillion, which would still be 107% of today's GDP (which we don't see growing much if at all over the next year), that can be added to the list of best Goldbug friends. As the chart below demonstrates quite vividly, in addition to global and local monetary expansion, the price of gold tends to correlate quite well with the US debt ceiling. Which means that per yesterday's Senate 52-44 vote authorizing Timmy to go hog wild (which in turn means that Bernanke will have to step in and monetize much of this new debt issuance), the price of gold just got a green light for at least $250 in upside - the implied price just got raised to $1960. Of course, anyone who thinks the US will stop issuing debt there needs a brain MRI stat. Thank you Senate. And thank you Timmy. And, of course, thank you Ben.


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Fri, 01/27/2012 - 10:44 | 2102363 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

No, thank me.  And us USA tax slaves.

Fri, 01/27/2012 - 10:54 | 2102406 Al Huxley
Al Huxley's picture

Relax, NOBODY's ever going to pay off all this debt. Of course, the downside is everything's going to get WAY more expensive.

Fri, 01/27/2012 - 11:51 | 2102586 Buckaroo Banzai
Buckaroo Banzai's picture

Sixty comments in, and I have to be the one to say it?? C'mon guys.


Fri, 01/27/2012 - 12:18 | 2102669 TruthInSunshine
TruthInSunshine's picture

Break it again, TIMMMMAY!

Barofsky had talked openly, and nearly literally, about serious crimes that Geithner may have committed regarding the AIG bailout (which was a bailout of of Goldman, JP Morgan, and many other best friends of the NYC branch of The Fed, in reality), not to mention his interference regarding his orders to wind up Citigroup (which never happened due to his interference), or a complete lack of willingness to initiate any aerious investigation of Goldman or John Paulson regarding the Abacus/Timberwolf/Hudson scam.

And what happened since that time?  The sound of crickets chirping.

It's funny how the media and TPTB work in conjunction to bury the worst deeds of the criminal class.

Enter the way-back-when machine:

Geithner In the Crosshairs? Criminal Charges on Table for AIG
  • April 28, 2010

Neil Barofsky, The Special Inspector General for TARP oversight, better known as SIGTARP, says criminal or civil charges are still on the table in the AIG cover-up, according to a long profile at Bloomberg.

In the eye-opening piece, Barofsky talks about how he got a crappy basement office in the Treasury building and likens its foul smell to relations between the Treasury department and himself.

Since Barofsky's job is to watch over TARP funds and how they're used, it should come as no surprise that when $700 billion is on the line, funds are bound to be misappropriated.

So what's the essence of Barofsky's beef? A few things:

  • * "Barofsky's most recent broadside came on April 20, when a SIGTARP report labeled a housing-loan modification program funded with $50 billion of TARP money as ineffectual."
  • * He has also criticized Tim Geithner in reports for his handling of the AIG bailout back when he was Chair of the NY Fed.
  • * Mortgage deals involving CDOs similar to the ABACUS deal.
  • * How both Obama and Bush handled the financial crisis.


So now the SEC and Barofsky are working together to comb over the details and review whether or not filing charges is appropriate, according to Bloomberg: Geithner better have one eye over his shoulder.

Fri, 01/27/2012 - 14:19 | 2103195 Bicycle Repairman
Bicycle Repairman's picture

There you go with that 'law' stuff again.

Fri, 01/27/2012 - 12:03 | 2102627 VegasRage
VegasRage's picture

Now, now, now look at the bright side. This is a solution for helping everyone who is upsidedown in their house, they'll be able to pay off their loans with a couple months worth of work. Everyone should then able to afford the $10,000 carton of milk and $12,000 for a dozen eggs. Now that's winning! We could have gotten here faster if only Robert Mugabe could have been our president.

Fri, 01/27/2012 - 10:44 | 2102369 tocointhephrase
tocointhephrase's picture

The future is bright, the future is Silver and Gold

Fri, 01/27/2012 - 10:56 | 2102414 Thomas
Thomas's picture

The gold bull is part coming off a bottom, part inflation, and part blowing off a top. I suspect we may have dealt with the correction off the bottom, are tracking inflation, and will eventually get some ill-gotten gains that will require an exit strategy.

Gold bug since 1999.

Fri, 01/27/2012 - 11:06 | 2102441 s2man
s2man's picture

Well put, Thomas.  A flight to safety will certainly bring us more than just inflation tracking.  Now, if only we could conjure up a good financial crisis to cause that flight. 

But alas, TPTB have everything under control and will never let that happen...

Fri, 01/27/2012 - 11:58 | 2102616 DosZap
DosZap's picture


I suspect we may have dealt with the correction off the bottom, are tracking inflation, and will eventually get some ill-gotten gains that will require an exit strategy.

I agree, but we are a long ways from that event, and at what price?,AND,when you decide your exit strategy, where are you going to invest your gains?.

Until there is a SOLID vehicle for exiting into, I see no way to exit.

Fri, 01/27/2012 - 12:49 | 2102744 n8dawg84
n8dawg84's picture

Why not Real Estate?  Either housing properties, rental properties, or farm land?  Personally, I think farm land might be best because you can live more self-sufficiently.  Although, I've never worked on a farm and I'm sure it's hard work...

Fri, 01/27/2012 - 13:25 | 2102880 Beam Me Up Scotty
Beam Me Up Scotty's picture

Farm land might be ok, if you are going to live on it, and use it.  But be prepared for your property taxes to sky rocket too.  They can tax you right off of your property if they choose to do so.  You can bury your gold though.

As for real estate for an investment?  Same problem, property taxes.  And if you have a nice lake cabin?  Good luck kicking out the squatters who will inevitably invade it, if they SHTF.

Fri, 01/27/2012 - 13:58 | 2103039 n8dawg84
n8dawg84's picture

Thanks for your response.  In regards to to property taxes, who taxes you on the property?  Is it a federal, state, or municipality tax?  Would it be possible to pay the taxes early?  For example, I use gold/silver to buy the property from the bank who owns it.  Couldn't I then take more gold/silver to the appropiate level of government and pay the property tax for 15 years?  I don't own any property so I'm not sure of how the system works yet...

Sun, 01/29/2012 - 15:03 | 2107640 Papasmurf
Papasmurf's picture

It's easy work.  You plant pop-tarts in the spring, harvest them in the fall.

Fri, 01/27/2012 - 14:44 | 2103290 Random_Robert
Random_Robert's picture

You are thinking about it wrong... you are not making ANY capital gains in Gold and Silver. All you are doing is preserving the PERSONAL value of your savings.

The correct sentiment is to be willing to trade G/S for ANYTHING that you value more than G/S at that particular moment in time.

In today's world - would you trade an ounce of Gold for a $1900 flat panel TV that will be worthless in 3 years?.... I wouldn't.

But if/when the day comes that the Gold market is going hog-wild and people are offering you a 2 year old, 30 foot yacht in exchange for the equivalent value of a couple ounces, and you really want a 30 foot yacht, then what will your answer be?

If the G/S market goes stratepheric and the time comes where the personal value of your G/S has so much purchasing power that it is actually making you nervous then believe me, there will be an asset class somewhere that will be sooo undervalued that no one else will even touch it (my guess is that it will be common equities).... and that will be when/where to make that speculative move.

Fri, 01/27/2012 - 13:58 | 2103043 Spigot
Spigot's picture

Beat ya by 2 years, bud (1997).

I am seeing 1750, 1800 and 1900 as resistance levels that WILL get drubbed. We may be seeing an inflection point here where the sovereign crisii gigg the rate of change to the next (higher level) than what we've been seeing between 2009 and late 2011.

The 6 mo, 1 yr and 5 yr charts show we have broken to the upside once again. ZIRP and Trillion dollar deficits keep being bumped out 1-2 years at a time, allowing freedom for the price to move significantly higher.

Other nations and power blocks are building systems of trade which allow them to avoid use of the US$ in trade, and as that occurs more of those "trade dollars" will be free to bid on the remaining trade flows, hence price increases IMO.

Mon, 01/30/2012 - 20:49 | 2111380 skully1969
skully1969's picture

I'm jealous...I only started in 06.

Gold was about 600...

Fri, 01/27/2012 - 14:21 | 2103209 Bicycle Repairman
Bicycle Repairman's picture

The bull is also driven by the possibility that PMs are re-monetized.  And there's your exit strategy.  Do exactly nothing.

Fri, 01/27/2012 - 10:59 | 2102422 Cash_is_Trash
Cash_is_Trash's picture

As posted below:

Remember - gold does not go up. This is a dollar event.

This printing will result in widespread economic and societal collapse, bitchez.

Fri, 01/27/2012 - 11:19 | 2102487 HoofHearted
HoofHearted's picture

to coin...and I hope that coin is some sort of 90%, whether silver or gold...

the future is bright in the physical silver and gold. Let's not let any of our fellow ZHers get MFed, even if it happened to our allies Gerald Celente and Turd Ferguson. My wife just saw the credit card bills from all the junk silver and the gold coins I bought over the last month of the beatdown. When she saw US$80,000 on the CCs, even at 0% interest for now, she freaked. Then I showed her the vault with even more of the precious. No longer buying here, but I would welcome another drop back to the 1500s and mid 20s so that I could finish everything off...

Too bad I took all that stuff on a boating trip with me to get it some fresh air. Damn accidents! 

Fri, 01/27/2012 - 11:37 | 2102548 Backspin
Backspin's picture

no kidding.  And I can never remember exactly where I was on those boating trips.  All those lakes and rivers that all look alike.... oh, well.

Fri, 01/27/2012 - 13:28 | 2102892 Beam Me Up Scotty
Beam Me Up Scotty's picture

I bet you will start to remember when that starving rat in a cage is strapped to your face.....

Fri, 01/27/2012 - 12:52 | 2102748 tocointhephrase
tocointhephrase's picture

100% physical metal, 100% all in 99% pure. I cant deal with the extra weight on my back ;)

Fri, 01/27/2012 - 13:04 | 2102791 malek
malek's picture

Call me crazy, but I will never go fully into anything, including gold.
50% physical is my absolute limit.

Sun, 01/29/2012 - 15:05 | 2107648 Papasmurf
Papasmurf's picture

You're ass-et is half safe.

Fri, 01/27/2012 - 13:02 | 2102781 Badabing
Badabing's picture


I give you credit “pun intended” you got some steel balls, $80,000 on credit cards.

Now go into personal bankruptcy I triple double dare you!

Sat, 01/28/2012 - 14:10 | 2105640 Inibo E. Exibo
Inibo E. Exibo's picture

"even if it happened to our allies Gerald Celente and Turd Ferguson"

Turd did a few trades and got his money back, plus a little. 

Fri, 01/27/2012 - 15:06 | 2103380 Oleander
Oleander's picture

I am now seeing a lot of ads for diamond investment. Are TPTB trying to trick us w/ these baubles? 

Fri, 01/27/2012 - 10:45 | 2102374 GeneMarchbanks
GeneMarchbanks's picture

Golden arrow is looking up. Options behind us I see no way to oppose this viewpoint.

Fri, 01/27/2012 - 10:49 | 2102390 Snidley Whipsnae
Snidley Whipsnae's picture

Big spikes up in gold/silver on GDP announcement... click on desired commodity to see price chart...

Fri, 01/27/2012 - 10:46 | 2102376 Cognitive Dissonance
Cognitive Dissonance's picture

In this case there is a correlation and causation connection between US Treasury debt and the price of Gold.

PMs are your friend........friendo.

Fri, 01/27/2012 - 10:51 | 2102395 Snidley Whipsnae
Snidley Whipsnae's picture

I wonder where Johnny Bravo was digging up silver for $5 per oz? And... why isn't Million Dollar Bonus commenting on the GDP news?

Just wonderin'...

Fri, 01/27/2012 - 11:08 | 2102452 EvlTheCat
EvlTheCat's picture

Hammy and MBD were fudge packing in an earlier article. I am sure they are sleeping it off.

Fri, 01/27/2012 - 11:03 | 2102432 Mr Kurtz
Mr Kurtz's picture

I have a new found respect for 1958 quarters!

Fri, 01/27/2012 - 10:47 | 2102380 BLOTTO
BLOTTO's picture

They won't admit it openly - but the Illuminati love gold too - gauranteed.

Thats part in why us good folks who are stacking - WILL do well...

Fri, 01/27/2012 - 11:10 | 2102437 BLOTTO
BLOTTO's picture

I think this is a simple - but powerful question to answer:

Does the illuminati and those big Royal banking elite/houses of Europe - like Gold?

My answer is a big YES.

IMO, if they didnt like it... i THINK we would have some problems with our theory. 'Us' - who are stacking - are definitely on to something.

Its sorta like we are riding on the back of the beast with our stack of Gold and Silver - but for a good-righteous cause! Its not like we have any other choice damn it.

We just need to know when to jump off...way down the road...

Fri, 01/27/2012 - 14:26 | 2103223 Bicycle Repairman
Bicycle Repairman's picture

I agree.  This strategy only succeeds, if it's in best interest of TPTB.

Fri, 01/27/2012 - 10:46 | 2102381 ag3nt0rang3
ag3nt0rang3's picture

Might I ask silvers implied price?

Fri, 01/27/2012 - 12:11 | 2102654 tekhneek
tekhneek's picture


Fri, 01/27/2012 - 10:47 | 2102384 tocointhephrase
tocointhephrase's picture

Somewwwwwwwwwwwwwwhere oooover the rainbow

Fri, 01/27/2012 - 10:52 | 2102398 Bay of Pigs
Bay of Pigs's picture

Here is braddah Iz for you on Happy Aloha Friday....

Fri, 01/27/2012 - 10:47 | 2102387 mushioov
mushioov's picture

Does anyone here think of gold price as a "crystal ball to the future" as to where prices of commodities in relation will eventually be? Like almost exactly?

I think it has been fairly accurate so far.

Fri, 01/27/2012 - 10:58 | 2102419 francis_sawyer
francis_sawyer's picture

My "crystal ball" sees food shortages as this continues to escalate...

Time to top off the granaries...

Fri, 01/27/2012 - 11:40 | 2102560 Backspin
Backspin's picture

I hear you.  It's exciting to see the gold price go up, but there's a scary side to it as well.

If you are a trader, of course it's nice to jump out with a profit.  But if you are buying PM for what is essentially insurance, then consider that the holder of an insurance policy doesn't necessarily like the circumstances that cause him to file a claim.

Fri, 01/27/2012 - 10:50 | 2102391 Dr. Engali
Dr. Engali's picture

The only thing that scares me about a chart like that is....I've never seen one run up like that, that didn't fall in on itself.

Fri, 01/27/2012 - 10:53 | 2102403 SheepDog-One
SheepDog-One's picture

Then again, gold isnt even near as high as it should be with all the increase in debt and money printing fests.

Fri, 01/27/2012 - 10:55 | 2102410 Vaga222
Vaga222's picture

Think of it in relation the dollar, all currencies go to 0 eventually, this means that Gold can go to an infinite value in terms of USD and never crash back down. Compare gold to other commodities and you may not see such a steep curve.

Fri, 01/27/2012 - 10:58 | 2102416 BLOTTO
BLOTTO's picture

Dr. E,

I understand that feeling too...i think everyone does no matter how bullish they are...

However, i think it is fair to also say - 'I/we have never seen a world financial crisis AS bad as this either' - and thats only 1 of the many MAJOR problems.

In other words - its all relevant to the situation?

Fri, 01/27/2012 - 11:04 | 2102434 Dr. Engali
Dr. Engali's picture


 'I/we have never seen a world financial crisis AS bad as this either'

I agree. I'm not certain why I got junked. My comment was on the chart. Usually when I see a run up like that it falls in on itself. I'm a buyer of physical but something has to give on that chart. Either the dollar debt collapses and gold is no longer denominated in dollars or gold collapses. My guess is on the dollar debt collapes.

Fri, 01/27/2012 - 11:19 | 2102482 mayhem_korner
mayhem_korner's picture



There really isn't any need to guess.  There really aren't two things represented on the chart.  The green line is the debt ceiling being raised, and the gold line is the resultant debasement of the currency.

The gold price is like the sun - it's stationary and everything around it is moving.  But the world still thinks of gold as if the earth (dollar) is the stationary thing and speculates as to what's causing the sun (gold price) to rise and fall.

My point is that your "either" isn't applicable.  These things are going to move together, save for the manipulation that will persist 'til the end.

But the REAL question is what would cause the green line to "fall on itself"?  There are only two avenues that get you there: default or austerity.  Austerity has been proven to be politically impossible and at this point beyond the realm of being mathematically tenable.  Outright default is a also a non-starter.  So why would the pattern revert?

Fri, 01/27/2012 - 11:40 | 2102559 Dr. Engali
Dr. Engali's picture

I don't get why my either or doesn't apply. I know that gold is stationary,One ounce of gold that bought you a nice suit in 1971 will still buy you a nice suit today, but that same dollar amount from 1971 will buy you a nice tie. If the debt dollar collapses then gold will no longer be denominated in dollars, which is the outcome I see, Freegold. I don't see gold collapsing, in dollar pricing unless we get some extra ordinary growth to absorb the excess dollars and debt. But that is unlikely to happen unless we discover some grand new form of energy. Either way we are screwed.

Sun, 01/29/2012 - 15:25 | 2107713 Papasmurf
Papasmurf's picture

Nothing is stationary.  Everything is in relationship to need and scarcity.  When food and water is scarce compared with gold or currency, gold or currency buying power of these will decline. 

Fri, 01/27/2012 - 11:42 | 2102566 Dr. Engali
Dr. Engali's picture

Point taken. Thank you.

Fri, 01/27/2012 - 11:58 | 2102615 BLOTTO
BLOTTO's picture

Hear, hear!

Good comments/points made by all...


Fri, 01/27/2012 - 15:25 | 2103467 Raging Debate
Raging Debate's picture

Second the motion Blotto.

Fri, 01/27/2012 - 12:27 | 2102696 tarsubil
tarsubil's picture

Is there a chart that plots the ratio over that time period? Looks like it is 10:1 in most spots but hard to tell when it gets steep.

Fri, 01/27/2012 - 12:49 | 2102743 unununium
unununium's picture

Time to get all logarithmic with it.

Sun, 01/29/2012 - 15:26 | 2107717 Papasmurf
Papasmurf's picture

It should be on a log scale because money is power.

Fri, 01/27/2012 - 13:07 | 2102804 malek
malek's picture

You're confusing cause and effect.

Look at charts of devaluating currencies - did any of those bounce back up with a vengeance?

Fri, 01/27/2012 - 14:28 | 2103235 Bicycle Repairman
Bicycle Repairman's picture

Don't think of it as a continuum.  There will be a discrete event.  A re-set.

Fri, 01/27/2012 - 10:51 | 2102396 SheepDog-One
SheepDog-One's picture

I'm perfectly happy sticking in PM's while others insist FED paper is where its at. Equity/bond markets are now irrelevant, dead to me.

Fri, 01/27/2012 - 11:09 | 2102456 s2man
s2man's picture

I know I am not as good as MDB, but I'll give it a shot;

SD1, you are unpatriotic.  You should be in stocks and bonds to support our great country and help it grow and prosper.  The people with no faith are what is hurting our economy.  Buy, buy, buy!  Grow, grow, grow!

How'd I do?

Fri, 01/27/2012 - 11:22 | 2102497 SheepDog-One
SheepDog-One's picture

Take our paper....PLEASE!

Fri, 01/27/2012 - 10:51 | 2102397 Gadocat99
Gadocat99's picture

Remember - gold does not go up. This is a dollar event.

Fri, 01/27/2012 - 11:53 | 2102598 DosZap
DosZap's picture


Remember - gold does not go up. This is a dollar event.

I disagree, this a worldwide CURRENCY event.

The dollar price for Pm's just affects people who use IT for exchange, more and more are not.And their prices for PM's are going up also in their fiat.

Fri, 01/27/2012 - 12:19 | 2102681 tekhneek
tekhneek's picture

Nope. Chuck Testa.

A Chuck Norris Fact comes to mind:

"When Chuck Norris (gold) does pushups he isn't lifting himself (it) up, he's pushing the earth (dollar) down."

Fri, 01/27/2012 - 14:31 | 2103240 Bicycle Repairman
Bicycle Repairman's picture

Don't agree.  During the "Gold is a barbaric relic" phase gold was undervalued relative to everything.  That is still being worked out.

Fri, 01/27/2012 - 10:52 | 2102399 lizzy36
lizzy36's picture

You know who else is a Gold Bugs best friend? Ray Dalio. Yes that Ray, from the worlds largest hedgefund, Bridgewater (up 23% in 2011).

This year, Bridgewater is bullish on gold as a hedge against inflation. The managers are said to believe that governments will need to print more money to help reduce mounting sovereign debt, which could hurt the dollar but help gold. Bridgewater is also betting against the Australian dollar and several emerging-market currencies

Fri, 01/27/2012 - 11:00 | 2102425 GeneMarchbanks
GeneMarchbanks's picture

AUD down while gold up?

Makes little sense unless that housing slump turns into a crash. So they're thinking crash time...

Fri, 01/27/2012 - 11:04 | 2102435 Snidley Whipsnae
Snidley Whipsnae's picture

Dalio is very smart and can control his ego enough to hire smart people to help his fund... He hires people smarter than himself, which most managers egos would not allow.

Really great managers in all fields have demonstrated this ability.

Carnegi in steel, Ford in autos, and Edison in many fields... come to mind. Carnegi was the first to pay his general manager a million dollars per year... when most people were making less than forty bucks a week. But, these guys were really productive, good to their employees (comparitively) and came up with cost cutting ideas continuously... as opposite to most in the FIRE sector as possible.

What have the bankers created? A huge hair ball!

Fri, 01/27/2012 - 11:46 | 2102574 Backspin
Backspin's picture

"governments will need to print more money to help reduce mounting sovereign debt"


But money is borrowed into existence, not printed.  That of course, presents a problem.  Their "printing" money always involves increasing the debt, at least as long as they are doing it through bond purchases.  So their attempts to deal with the debt will just cause it to grow, and grow, and grow.

Y equals e to the x... 

Fri, 01/27/2012 - 10:52 | 2102402 fuu
fuu's picture


Fri, 01/27/2012 - 10:54 | 2102408 Corn1945
Corn1945's picture

Do you have a silver/debt chart?

Fri, 01/27/2012 - 11:12 | 2102463 s2man
s2man's picture




Pick your ratio

Fri, 01/27/2012 - 10:54 | 2102409 Magnum
Magnum's picture


You might be placing too much importance on US statements in the movement of world gold prices.  Last few days was Chinese New Year, millions of people celebrate that holiday by purchasing gold.  Maybe more this year than usual.  There is also the prospect of everyone becoming Iran's gold bitch, if they decide to require payment for oil in physical gold.


Fri, 01/27/2012 - 11:27 | 2102520 mayhem_korner
mayhem_korner's picture

You might be placing too much importance on US statements in the movement of world gold prices.  Last few days was Chinese New Year, millions of people celebrate that holiday by purchasing gold.  Maybe more this year than usual.

The "maybe more than usual" is the relevant piece.  If it's typical that the Chinese buy gold during New Year, then the fact that they did so this year is irrelevant to prices because it's expected.  But if they bought more, then you need to focus on the reason for the variance. 

You defeated your own argument, bub.

Fri, 01/27/2012 - 12:25 | 2102693 tekhneek
tekhneek's picture

Dude, they (the Chinese government) added 102 tonnes of gold to their reserves in November alone.

Eric Sprott:

“So it’s obviously going to increase the demand for gold and we have seen some data that China has been a rather large buyer of gold.  People will consider it a currency and it has to necessitate more buying.  You know, Eric, I think one of the really interesting things that happened was the imports of gold into China, from Hong Kong, which always were less than 20 tons a month, all of the sudden, beginning about 5 months ago, went 20 (tons), 30, 40, 80 and in November 102 tons.  102 tons is a staggering number.

The world mines, excluding China, less than 200 tons a month.  China cannot continue to buy 102 tons and not have the price escalate dramatically.

What their citizens buy is laughable by anyones standard compared to what India and Russia jointly consume on a monthly basis.

Fri, 01/27/2012 - 12:38 | 2102716 ParkAveFlasher
ParkAveFlasher's picture

I would imagine that the suppliers to retail dealers - which would feed your gift-giver market - buy in advance of the calendar page flipping over.

Fri, 01/27/2012 - 10:55 | 2102411 fonzannoon
fonzannoon's picture

Financials rallying. Makes total sense. sarc/insane

Fri, 01/27/2012 - 10:57 | 2102417 Crispy
Crispy's picture

Timmy and Benji are long PMs....

Fri, 01/27/2012 - 10:59 | 2102423 Nachdenken
Nachdenken's picture

Underfunded and underperforming funds will increase their portfolio content for gold. Volatility skimming will trade the whiplsaw for the next months.  Despite this 600 USD range in volatility gold remains a necessary component of any investment strategy.  Just get physical.

Fri, 01/27/2012 - 11:01 | 2102428 f16hoser
f16hoser's picture

Add Silver to that list too! Timmy, you go girl! YIPEEEEEE

Fri, 01/27/2012 - 11:36 | 2102547 GeneMarchbanks
GeneMarchbanks's picture

Endeavor with-holding supply:

What if the miners start doing this en mass? or just 30% of them do?

Fri, 01/27/2012 - 11:04 | 2102433 scrappy
scrappy's picture

Blotto is correct and Gattocat99 is also correct.

Here are some articles for you to consider.

This simplifies my point.

Some people talk about how the money commodity is infinitely divisible. 

OK, so in the real world “we set a price” or the “free market” sets one, and at that moment, those who hold gold / silver, are in the catbird seat. Now when we need to divide it further for the sake of money supply – velocity, those who want – need it, get less. 

 How is that even remotely fair? 

What kind of society would that lead to?

Answer – Neofuedalism.

It is deflationary.

You are better than this ZHers.




Fri, 01/27/2012 - 11:06 | 2102439 Tense INDIAN
Tense INDIAN's picture

SnP should go up to 1345 next week by friday ...because I expect the Nifty to go to around 5288......heres the DEFTY chart...DEFTY is the NIFTY in terms of DOLLAR.....

Fri, 01/27/2012 - 11:11 | 2102461 mushioov
mushioov's picture

? Soon... soon ?...

Fri, 01/27/2012 - 11:15 | 2102470 EBR MOD 0
EBR MOD 0's picture

I am in with SD1 I will just keep stacking bitchez

Fri, 01/27/2012 - 11:16 | 2102471 CoconutPete
CoconutPete's picture

Bullion, bullets, and booze

All you need in the NWO

Fri, 01/27/2012 - 23:19 | 2104823 StychoKiller
StychoKiller's picture

Umm, beans (and Broads?)

Fri, 01/27/2012 - 11:24 | 2102508 scrappy
scrappy's picture

Time to expand our economic knowledge as to how we got here and where we need to go in a world of finite resources and environmental crisis.



Fri, 01/27/2012 - 11:27 | 2102517 roccman
roccman's picture

we are in overshoot - likely 400 times over the bar

there is no happy chapter in "designing" our way to little house on the prarie


Fri, 01/27/2012 - 11:25 | 2102510 roccman
roccman's picture

where the fuck is Bill "was broke when gold was $200 and gold won't top $1700"?

you know the moron - deer eating popcorn avatar.

Fri, 01/27/2012 - 14:34 | 2103250 Bicycle Repairman
Bicycle Repairman's picture

Road kill.

Fri, 01/27/2012 - 14:11 | 2102534 falak pema
falak pema's picture

If TG is now a gold bug it means he knows he will most likely be out of the NWO uber clique, in view of next post-election govt. lineup of usual hot shots and used up, burnt out, rejected Oligarchs.  He has to prepare his own golden parachute; and damn the inevitable melt down post-election time. Its all planned to implode from 01/2013 on, so get your parachute ready; preferably in gold, if you've lost the hot spot on "fiat to infinity" team. There will be only a limited number of seats available on Apollo 18; when it blasts off to the moon to avoid financial armageddon in 2013. Either you're in or you're out, there aint no fukking about; whoever may be your family's Don. TG knows the score, he'll be consigilere no more; to capi di capo.

Fri, 01/27/2012 - 11:35 | 2102542 mayhem_korner
mayhem_korner's picture



CNBC has posted its write-up as to why gold is down today.  Problem is, that it's gone green (as of this post).  But it's the epitome of the reality-disreality spread to see it in black and white.  And the schmucks do it all the time.


Fri, 01/27/2012 - 11:41 | 2102564 scrappy
scrappy's picture

I do not see any top down "solutions" until - if we get the money out of our politics.

Here is an interesting bottom up idea, there are many others.

To me, things are point to distributed solutions, not centralized, kind of like the Internet itself, nodes.


Fri, 01/27/2012 - 12:04 | 2102631 Libertarian777
Libertarian777's picture

The Ellen 'lets-replace-FRNs-run-by-Bernake-with-greenbacks-run-by-Turbo-Timmy' Brown?


Please explain to me HOW having a centralised TREASURY run currency is ANY DIFFERENT from a centrally run FEDERAL RESERVE run currency.

And no distractions of interest on debt being mathematically impossible to pay yada yada yada.

In fact if you read the constitution it states that Congress has the power to COIN money. There is NO power granted to congress to PRINT money (bills of credit).

To COIN back then, as now, literally means to physically make coins of certified weight and purity. THAT is money, and that is the ONLY role the Treasury would have as far as controlling money goes, they would be certifying weights, purity and measures of coins so issued.

Fri, 01/27/2012 - 12:10 | 2102648 Libertarian777
Libertarian777's picture

see my point..

"The purpose of “money” is to tally the value of goods and services traded, facilitating commerce between buyers and sellers"

Uhnn.. No its not. Money is a commodity like any other. It is exchanged for goods and services.

Money at any point in time is NOT the sum total of all value produced in an economy (neither is GDP for that matter, but that's another argument). By taking this approach it means that there is a CENTRAL committee / person who can tally at any point in time the entire economy and thus know how much 'money' must exist. This goes completely against individual choice and free markets. The 'mathematical fallacy' of not having enough money to pay back interest is a lie. It neglects the fact that an economy is constantly changing. It also neglects the behavioural aspects of an economy.

There is no 'debate'. Gary North deconstructed Ellen Brown (and Gertrude Coogan) piece by piece.


Fri, 01/27/2012 - 12:06 | 2102635 Wakanda
Wakanda's picture

"Thank you Senate. And thank you Timmy. And, of course, thank you Ben."

Say it with feeling TD!

Fri, 01/27/2012 - 12:10 | 2102650 Newsboy
Newsboy's picture

Gold up on subzero-real interest and monetary dilution >>> Until Gold down on global crash part 2 contraction...

Fri, 01/27/2012 - 12:25 | 2102694 rosiescenario
rosiescenario's picture

"Thank you Senate. And thank you Timmy. And, of course, thank you Ben."


........and, lest we forget, "Thank you Greenie for pioneering the printing and putting Ben in his position."

Fri, 01/27/2012 - 12:45 | 2102737 scrappy
scrappy's picture

From your Gary North link.

"False-flag infiltrators are remnants of a left-wing American political movement of the late 19th century: the Greenbackers, named after the green currency issued by the North during the Civil War. These paper bills were unbacked by gold. Consumer prices rose by 75%, 1861-65. The Greenbackers were opposed to the gold standard because it kept prices low. They wanted the government to inflate the currency, so that debtors could pay off their debts with cheap money."

The infiltrators were counterfeiters who inflated the money supply, check your history Libertarian777.

"The Greenbackers were without any political party after 1896. So, they switched strategies. They allied themselves with the anti-Federal Reserve movement. In the 1930s, the main voice was Father Charles Coughlin, an anti-Semitic radio preacher who was a Greenbacker. His outlook was clear. He was a leftist."

Father Coughlin was also very much opposed to socialism, communism, Marxism, and any other similar political ideology that put the power of the people into the hands of the government. He firmly believed that the best way to combat this flawed way of thinking was to implement policies of new social reform and overall equality. It was not only communism that Coughlin stood against, however; he was also a denouncer of Big Business and industrialism – what we know today as capitalism.

Concentrating the wealth in the hands of the few, though fiscally viable for the few, is detrimental to the many. Believing this wholeheartedly, Coughlin set out to put an end to the vicious cycle of greed which he blamed for the Great Depression, the dissolution of the American family, and war and hate mongering. By 1930, Coughlin had earned a reputation for being one of the country's foremost authorities on anti-communism, and was invited by Hamilton Fish to appear before the House of Representatives to investigate communist activities.

Coughlin, never one to shy away from a crowd, accepted the invitation and proceeded to criticize leftist groups in America. However, Coughlin also seized the opportunity and harshly criticized Henry Ford and other leading industrialists, citing that their greed was the downfall of a nation.

Sound familiar Libertarian777?

Anyway, I never heard of either of them and could care less, but adhominim attacks tend to get my suspicions up as to the integrity of a persons argument.

What matters is now. now it's your turn, refute this.

Fri, 01/27/2012 - 13:02 | 2102778 scrappy
scrappy's picture

Also Libertarian777 regarding your comment,

"In fact if you read the constitution it states that Congress has the power to COIN money. There is NO power granted to congress to PRINT money (bills of credit).

To COIN back then, as now, literally means to physically make coins of certified weight and purity. THAT is money, and that is the ONLY role the Treasury would have as far as controlling money goes, they would be certifying weights, purity and measures of coins so issued."

Sure, but it was over 200 years ago, the population was much smaller, and so the supply of gold and silver was adaquate at that time. 

But times change.

If you look at our history of booms and busts, especially in the 1800s, you will notice that the supply of gold and silver was not adaquate, and part of the reason the gold-silver debate subsided was that new discoveries addressed the supply issue at that time.

Fri, 01/27/2012 - 13:18 | 2102856 working class dog
working class dog's picture

Timothy Geithner will not return as Treasury Secretary because he will do his final good bye shot with free tax payer money to Greece and the other lunch bunch countries, who show up for lunch but always forget to bring their wallets.


After Timmah unloads a cool 300 billion of US taxpayer money into the crimminal organization called the IMF he will bow out.

I wonder how much of a kickback he is getting. Of course the co-opted cartel bullshit elected officals (NOT LEADERS!!) as doing thier part of the Cartel aggreement will on the surface complain while they smile and wind at Timmah, gotta love it!!

Fri, 01/27/2012 - 13:37 | 2102920 Xue
Xue's picture

Gold oz: 2263.65 Euro


Can someone explain this for me? or is it a bug? (same with GBP btw)

Fri, 01/27/2012 - 13:47 | 2102978 non_anon
non_anon's picture

turbo taxed again!

Fri, 01/27/2012 - 14:04 | 2103102 847328_3527
847328_3527's picture

Greenspan told Timmy long ago to load up on the barbaric relic and stash it under his bed next to his unopened TurboTax software.

Fri, 01/27/2012 - 19:48 | 2104299 covert
covert's picture

buy more gold and platinum.


Fri, 01/27/2012 - 21:56 | 2104606 Bill Shockley
Bill Shockley's picture

Hello everyone,

It's always appropriate to attempt civility, please try to understand my need to comment.

I believe you need to understand my need for inflation, not the type of inflation we arecurrently experiencing, I mean the absolute need for hyperinflation.

You see, those of us who have supported the civil society for the last 50 years are unfortunately in debt. There are many reasons for our debts, some outside our control, some self induced. The reasons are not important, but the reality and the enormity of our debt needs to be accepted. You also need to understand that we are not stupid. As a matter of fact we are the educated result of the public system that used to function in the USA. Seen in our demographic we are baby boomers, by profession we are the public sector employees, nurses, police and teachers that have kept the lid on things in our country.

 Please noticeI have not included the professional military and upper eschilon federal employees. I also exclude the financial class and the corporate swarm.  I do include union and non union hourly workers and everyone in the service industries.

So, pleas accept that many are broke or getting there fast or we have our savings locked up in our 401K's. This is about to change because we are leaving the system because of our age.

I live in the state of Wisconsin. Last winter we had 200 thousand people surrounding the state capitol in Madison. In the last 4 months we collected 500 thousand signatures to recall the governor.

And we are deer hunters, most of us have guns and bows.

It would be a wonderful idea if the state would give us each a wheelbarrow of money. I for one whould like to pay off my house. After that if the system crashes we will barter with whater we have including our bodies and our minds and we will rebuild our society as necessary. The job will be waiting for us and again we will respond.

Some of us have gold, some new cars, some 4 wheelersor bicycles, kayaks boats, tractors, cattle, chickens and pigs. You get the idea.

Do ou get the idea?

I am only pissed about two things. First the Packers got beat in the playoffs and second you poor fucks don't have the balls to use your own names.

For the record I live in Tomahawk, Wisconsin.My telephone nmber is email is My name is William Harvey Shockley lll. I am 66 years old and a RN.

I would also suggest that everyone should read Dicken's A tale of Two Cities and Orwell's 1984, then hord your gold if you want and who doesn't  have the want and need?

And please start making connections. FWIW I am in Panama and will be home on the 5th of Feb.

Things are a mess down here as inflation is going nuts but they have an Ace, the canal.

What's yours?



Fri, 01/27/2012 - 22:24 | 2104723 cristo
cristo's picture

you can't be that stupid has to give all this personnal info and the fact that you own gold and are away in panama .

Do NOT follow this link or you will be banned from the site!