"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Tuesday, March 6, 2012

Huge Exodus out of RISK TRADES in Today's session

Hedge funds algorithm's are going beserk on the sell side today with the result that most of the commodity futures markets are getting slammed lower. There are very few exceptions to the selling with Soybeans, Cocoa and Natural Gas are the few commodities holding up.

The metals are getting hit particularly hard with both silver and gold violating downside support levels on the charts. As can be expected, gold is holding much better than silver in a risk aversion environment.

Once again the catalyst for all of this is the situation involving the Greek debt bailout plan. Markets are worried that things are not going as the central planners were hoping.


  1. Some one tell me, why I should still buy any gold or silver? Anyone?

  2. someone tell me why in the world i would still buy AAPL, the biggest bubble in history?.....or any stocks, after the 50% beatdown they took in '08-'09.

    and the dow is flat since 00'...while gold is up 700%
    with no end of this secular bear stock market in sight[2016 maybe?].......or any possible debt reduction by almost any nation in the developed world.

  3. Just look at any chart over 1 year old and that should tell you Steve. It is the best Money. Yes money. The central bankers and the bullion banks will "seperate" you from your savings and wealth if you keep it in dollars. So there you have it Mr. Steve, just look at any gold chart and compare it to any other asset over a 3 year period. In the last 3 years the market is 'devoid' of any real market based action as the central bankers and the bullion banks have decided to levy "financial repression" on all to those who do not bow. Well they can GTH, and I will continue to buy silver .999's straight on through. They lose when they are forced to print and trust me they will be forced to print, both in Europe and the US, or then again, they can face the massess when they charge the capitol, the white house, and the Federal Reserve Board headquarters.

  4. The instability and dislocations created by persistent overleverage, underinvestment, overregulation, mismanagement, malinvestment, malfeascence, fractional reserve usury, asset destruction and unreported financial positions, conditions and accounting are antithetical to the message of owning precious metals and other assets of recognized, real and serviceable value. No, insolvency, money laundering, asset seizure, bailout and stimulus induced illiquidity and negative equity are not alternatives either.
    The worth of PM's is measured in a constant standard and code of business and social conduct, that preempts crime, mismanagement and destructive business cycles. Why not insure your own personal, portable and private business from these travails. You may continue to contribute to the good life of all lives, and continue rather than destroy, the life of the universe.

  5. Steve,

    Where is the money coming from to fund ongoing US Government expenses, liabilities, etc etc?

    What happens to the value of fiat currency when central banks create money out of thin air?

    What happens to the value of commodities measured in fiat currency when such currency is devalued due to money printing?

    When you answer my questions, you will have answered your question.

  6. The productive output of goods and services and inventions and ideas society contributes to their own economy and welfare, is not measured by GDP. GDP should not have been so overweighted in government spending and other statistical distractions and distortions. Neither should it have excluded real world definitions and dynamics which threaten the status quo of statist, criminal, vested interests. Now such customs and hidden agendas maintain that a practical GDP and similar statistical standards oppose their deviant standard operating procedures and modus operandi.

  7. Somebody is going to cleanup as soon as they announce a deal. Everyone in PSI wants to get top $$$ and they know they got them by the balls.

    Expect a last minute deal to be announced. They have already gone "all in" on printing first and defaulting later (instead of the other way around). Too late to turn back. If PSI needs to be sweetened to get a deal, it will.

  8. Generally accepted accounting practices or procedures or processes, GAAP as it is known throughout the world, is no longer used by the large commercial, money center and investment banks which are supposed to provide proper clearing and investment services and a healthy, liquid lending environment to small businesses and individuals no less than large ones. How much longer can they pretend to be serving in this capacity, or act as the US Treasury Primary Dealers?

  9. Steve,

    There are two very good books on the Weimar currency collapse that you can read for free on the interweb "The Dying of Money" and "When Money Dies". Or, you could buy them.

    You will see that anyone who was occasionally long (that's right, long) Marks in the 1920 - 1923 period could have made a fortune, if they timed their purchases and sales correctly. OK, that is a big "if" but government intervention caused rises of the value of Marks of over 20% (when measured in Pounds Sterling, or USD, (or gelt) on several occasions.

    The safer bet was to be out of Marks entirely as they went to zero in a chaotic printing frenzy. Both books will reveal that very few, if any, Germans living through the collapse of their currency understood what was happening at the time.

  10. Everyone, my savings is in pm, don't plan on selling it. No money in the bank, except to live on. As far as the charts go, yes it is impressive, but, 3 smash downs since November is it... I am a subscriber to David Morgan, he states they are running out of ammunition and smiled when he said that in the interviewed I watched. Then why does it keep happening, the smash downs? I'm not going to buy any more pm, just don't see why, they will smash it again. And yes, the money that is printed out of thin air will come to haunt the US economy someday. The can is kicked down the road, I just pray for my kids. I will check into the books, I have read a lot, just tired of the smash downs, because I want to control, NO, I just want it to be FAIR, which it is not.

    Bottom line is the whole bloody mess is manipulated, the whole thing and who controls it... not I. I have but pennies compare to Chase, the Government and who ever else they are. I am a tiny fish in the ocean and its dark.

  11. nothing is fair.....maybe st. peter...

    gotta hang tough man, PM's strength wins out in the end, you know it will.

    if u can't handle the volitility don't look.

    gold breaks 2000 this year no doubt.

    back off on the chart time frame to monthly.

    this is a marathon not a sprint.

    we're all little fish here.

  12. ZH article on gold/silver volatility:



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