Silver blasts off rising to $40.60. Continues in access market to $40.93

Harvey Organ, Saturday, April 9 2011

Silver blasts off rising to $40.60. Continues in access market to $40.93

 

Guest Post: Guess Who's Almost Out Of Silver

Submitted by Tyler Durden on 04/08/2011 12:11 -0400

According to Jamie Dimon, he did America a favor when he agreed to take bailout money from taxpayers (and we didn’t even have the decency to thank him). Last week ,we learned that the JP Morgan CEO likes his catastrophe’s predictable, but as Mick Jagger once observed, “You can’t always get what you want.” So in case you’re wondering who might be stupid enough to buy silver at $40, chances are extremely high it’s going to be the guys who sold at $15, $20, $25, 30, 31, 32, 33….. On April 6, Bloomberg reported Comex Silver Stockpiles as of April 5, and if you scroll down through the report, you’ll notice that JP Morgan has enough silver to fill, wait for it, 6 contracts. Yep 30,844 troy ounces, that’s all.

 

This Is What Currency Failure Looks Like

Submitted by Tyler Durden on 04/08/2011 16:44 -0400

Somewhere, someone is furiously drafting the impeachment proceedings for Chairsatan Bernankebub and TurboTaxTinyTim.

 

 

 

 

 

 

Presenting The Administration's Spin On The Dying Dollar

Submitted by Tyler Durden on 04/08/2011 16:57 -0400

Wondering what chart is in the memo that expert Fed reporter Steve Liesman just may have received with instructions to spin (literally) for public consumption? Wonder no more.

 

 

 

 

 

On Silver's Exponential Price Feedback Loop

Submitted by Tyler Durden on 04/08/2011 15:42 -0400

And as if silver bulls needed some more good news, here is a report from the Morgan Stanley metals desk...

 

 

 

Paul Tustain: Gold Is Sending A Signal That The Monetary System Is In Grave Danger

Submitted by Tyler Durden on 04/08/2011 14:27 -0400

"When a country's public debt exceeds 90% of GDP, that is the magic number. You get to 90%, there is no way back, and that is the number that the U.S. is going through pretty much as we speak. It is also the number which the UK has gone through; all of the PIGS are going through it, as well. They are all going past the 90% debt to GDP ratio. Obviously, Japan is miles past it already. It's up to 200%+. There does not appear, in the historical analysis, to be any great likelihood of getting back from that level of debt safely. There is this strong evidence that above 90% debt to GDP, you will experience either a cataclysmic default or some form of very serious inflation." So observes Paul Tustain, gold market analyst and founder of BullionVault. In his view, gold serves as a beacon who's price is currently signalling the monetary system is in grave danger. He and Chris Martenson discuss the primary factors driving the price of gold and smart strategies for investors looking to build or maintain their holdings of the metal.

 

 

 

"I Print Therefore I Am" - The Fed Justifies Its Existence, Fails

Submitted by Tyler Durden on 04/08/2011 13:47 -0400

In an brief two paragraph blurb on its brand spanking new blog Liberty Street Economic, a post by "Blog Author" (one wonders if the New York Fed is as cheap in providing its bloggers with a blogging facilities as it is when "giving" the POMO interns Bloomberg terminals), the FRBNY provides a trite if enjoyable summary of the thinking that prompted the creation of the Fed, courtesy of one F.A. Vanderlip, president of Citibank, which apparently was as insolvent back in 1907 as it is now. The premise: the Fed is the cause of monetary stability and the prevention of "disorderly retreats or advances." That's actually supremely ironic because as John Lohman points out the main trade off, namely the 2,313% increase in CPI, ended up shafting the market to an even bigger crash in 2008 than the panic of 1907. But at least in the interim 101 years the Fed's overlords from Wall Street, managed to steal over 98% of the wealth of Americans in the form of shadow currency devaluation better known as inflation. So who cares about facts when that 5th private Polynesian island for Jamie Dimon has been fully paid for and all three underground cellars are stocked with gold...

IMF Announces Receipt Of Bail Out Request From Portugal: "First We Take Your Money Gringos..."

Submitted by Tyler Durden on 04/08/2011 15:10 -0400

Two weeks ago, we when we disclosed the most recent expansion in the IMF's funding with the announcement of the activation of a "Special Funding Pool" we predicted:  "Bottom line: there is a new threat to the international monetary system which means Europe May 2010 redux is imminent. US taxpayers: our condolences." Alas, as tends to happen in these cases, we were right. The IMF, whose number one source of funding is you, dear US taxpayer, has just received a bailout request from Portugal.




And finally... the latest from the worlds hemorrhoid...soros...

Soros Speaks

Submitted by Tyler Durden on 04/08/2011 17:31 -0400

Unlike the last time a bunch of men gathered at Bretton Woods to determine the monetary fate of the world and set the stage for globalization, this time around the prevailing activity was a casting call for the role of the new Emperor Palpatine. Yet despite that (or maybe because of) George Soros appeared in full Open Society regalia and spoke to Bloomberg TV about how importing foreign asset collateral (also known as exporting debt) through "globalization" is still the name of the game. And obviously while the Hungarian billionaire would not disuss the true purpose for his presence in Bretton Woods, he did have some words of caution for China bulls: "while the big banks under direct central control are in fact refusing to lend, there is a shadow banking system that is growing out of control. There is a real danger there of wage price inflation because prices have gone up, particularly real estate prices have gone up because there was a real estate boom." But to those concerned about the key issue at play, namely the future of the reserve monetary system, some could interpret the following statement by Soros, as a tacit agreement that the end of the dollar is fast approaching: "cautionary words for the dollar: "There's a big question whether the U.S. dollar should be the main reserve currency and in fact it no longer is because it maybe accounts for two-thirds of the monetary reserves. The euro is an alternative and there's a lot of diversification into other currencies and even more into commodities. Not only gold, but actually oil is now an asset class for investors. That has put some upward pressure on the commodities." Of course what actually is decided in B-W will be made clear over the next year or so, once the decision makers have already placed their bets accordingly and pull the rug from under the market.