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Wednesday, October 31, 2018


“Government as Santa Claus … I want my free shit … Now!”

My favorite “crony capitalist” Uncle Warren [a/k/a Warren Buffet], once 
quipped, “when the tide goes out you get to see who’s swimming naked”. He’s 
right up there in the “vulture capital class” Hall of Fame. However, closely 
behind Uncle Warren, are the Ruskies & ChiComs … “cuz ain’t nobody better 
at lying, stealing, cheating, and ultimately getting what they want by “hook or 
crook”, than stone cold capitalists posing as Communists”.

What do the three [3] largest countries on Earth, which are China, India, & 
Russia, and which easily make up at least half the entire world’s population, 
have in common? … their love of gold as money. And while the rest of the 
idiotic world chased the latest & greatest NASDAQ story stock, pushing it to 
levels of pure lunacy [e.g., Tesla over $400 per share], what are these 3 
countries doing? … “that’s right, stacking more of the yellow stuff”.

Cuz the dirty little open secret is not very pretty … and that “open secret”, is 
that the U.S., at least financially, is nothing more than Venezuela with some 
credit left … “and the rate we’re going, with trillions of dollars of debt added 
every year as far as the eye can see, and that with supposedly fiscal conservatives 
in charge, should make everyone pause and ask, “WTF is going on here”? 
… sadly, though, it won’t … the “Free Shit Army” wants their stuff, and doesn’t 
give a fuck about anything else … Pols being Pols, they don’t want the pork 
barrel ride to be over anytime soon either”.

Armies are great … too bad they’re useless in a financial war. Both Russia & 
China are developing 1) financial tools, e.g., petro Yuan oil futures, 
2) payment systems outside U.S. hegemony, and replacing SWIFT with their 
own international system, and 3) they’re buying gold in record amounts, 
having the physical sent “home”, cuz IMHO, someday they want their 
currencies backed with gold. “And the cheaper they can buy physical, the 
happier they are … hell, it wouldn’t surprise me in the least, to find out the 
ChiComs are the world’s biggest “sell side” manipulators of COMEX gold 
futures … they push the price down via paper, then go buy the physical and have 
it sent “home” … cover, rinse & repeat as often as necessary … nice work if you 
can get it! … so what if you let the bullion banks make a few coin in the process, 
your objective is to buy physical CHEAP”! But as Uncle Warren has said,  
“when the tide rolls out …”, yes, and when it does, look the fuck out … “it’ll 
make the NDX100 rise over the last few years look like a blimp up”. And if the 
U.S. stock market is any guide, it looks like high tide was a few weeks ago, and 
the water is only starting to roll out.

What people all over the world know, that most in America don’t, is that gold 
cannot be corrupted … it can’t be cheated or inflated away by corrupt 
government, and has no third party counter risk … it simply is money. What 
the world has witnessed the last 6 years, is the largest transfer of wealth ever 
seen from West to East … and while the West digs a deeper financial hole 
through wholesale welfare schemes to garner votes, the East buys more & 
more physical … at some point, the scale tips … look the hell out when that 

I mentioned yesterday, the “tsunami” of debt by the U.S. … add to that the 
following chart, directly below.

click to enlarge

“Yes, I’m sure trillions upon trillions of new global debt will make things more 
stable & better for everyone … what could possibly go wrong? … as history tells 
us, the only way out of this clusterfark is massive inflation”.

Turning to today’s gold market … “exasperated longs puking … positioned 
retail specs lose, bullion banks win … again … so what else is new”? I would 
add, that since October 11th, you know, the day Turnkey forgot to feed the 
Gerbils and their MT4 platform failed and we couldn’t participate in the 
biggest range day in 2 ½ years, and the 8 minute buying frenzy that saw price 
go from 1236 to 1243 in a retail spec panic on October 26th, New York hasn’t 
seen ANY rallies of any significance … that’s 18 out of 20 days, not an 
insignificant sum of selling. Perhaps, with the arrival of the “Plunge 
Protection Team” [PPT] less than 48 hours ago in stocks during the last hour 
of trading, and now 100 handles higher in the SP500, gold longs have figured 
out, with elections looming and losses in tow, maybe it’s time to liquidate 
… seems plausible.

Again we see today an almost $9 range coming out of the Asian & early 
European session … and excuse me, if I’m sitting here wondering, “can New 
York do anything but chop around”? … cuz quite frankly, this trading action of 
late is pure bullshit … it’s almost as if, the bullion dealers are intentionally 
chopping up traders for their own benefit … NAH! … that’s tinfoil, conspiracy 
shit … they wouldn’t do that … would they”? So, the $64,000 question for today 
is, can New York move? … anywhere! … just frickin’ move!

Noon in New York, and outside of cleaning out some more long positions near 
the open, and basically becoming a second derivative of the SP500, again 
today, unless something dramatic happens in the P.M. afternoon which I 
doubt, we got another shit day of a tiny range, and erratic price action, and a 
market that can’t go anywhere when New York is open … “quite frankly, after 
the election Tuesday, this shit better change or I’ll trade Asia and tell New York 
to intercourse thineself … this is worse than effing pathetic”! Seems they got no 
problem putting in ranges and moving price in Asia … but let New York open, 
and it’s effing goodnight Irene, the dealers take over and this stuff can’t move 
to save its miserable life … simply terrible trading conditions in XAUUSD 
today, and the last 2 weeks.

Three algo buy signals today … PAMM down about $116.

One worked, two didn’t … and as is the case when gold turns, it’s vicious and 
it’s fast, and you got about ½ second to hit the button before it gets worse. In 
any event, it is what it is.

On a brighter note, the C2 options advisory did some more trades today, and 
has taken advantage of the pickup in gold volatility since the high around 1243 
… at today’s low, I sold some put premium, and got fantastic price on the fill 
… as those following the C2 advisory signals can see, in order to make money 
in options, you have to be 1) early, and 2) make positions work for you when it 
looks like the trade is complete dogshit, and there isn’t a person in the world 
that would do it … you do those 2 things, and you get seriously rich.

And, I might add, if you’re not signed up yet for C2 signals, details in 
 “Download Links” and ya get 3 FREE months, AND it’s only 60 cents a 
frickin’ day after that … “hell, even the dog is signed up”.

Onto tomorrow … I’m outta here … until tomorrow mi amigos. Onward & 

PAMM Spreadsheet directly below.

click to enlarge

Have a great day everybody!!






Tuesday, October 30, 2018


“What? … we like shiny things that appreciate in value!”

From a post last night on ZH, that some of you may have missed … “seems 
China is taking delivery of massive amounts of gold … see my shocked face”.  
The link directly below.

Now, it’s not my intention to rehash the entire article, but I do want to point 
out some things I think are extremely important and relevant, to the future 
price of gold; 1) at some point in the near future, probably a whole lot sooner 
rather than later, China will begin to control gold price, 2) the Western 
bullion banks are in “deep shit” and know it, 3) there is a “ONE WAY 
DIRECTION” physical gold is flowing, and it’s New York & London to 
Switzerland to China & India, and 4) that physical gold ain’t ever 
“EVAHHHH”! … coming back!

Currently, as we all know, the bullion banks that make up the LBMA 
[London Bullion Market Association], control the price of gold through paper 
markets like COMEX. Through their gold holdings, they lease gold to third 
parties and, of course, earn interest … “do the third parties that have gold 
deposited with the bullion banks KNOW their gold is being leased out for 
interest? … do they know the bullion banks simply have nothing but IOU’s in 
return? … finally, do they know if the gold is ever coming back, and if it doesn’t, 
how the fuck is the bullion bank gonna get my gold back to give back to me”!?

Good question Skippy, and it’s the reason fewer & fewer governments around 
the world trust New York or London to hold their physical gold, and instead 
have it shipped “home”. “Cuz when SHTF, and price goes vertical, these banks 
won’t be able to control price, or get their hands on physical at any price … and 
the very next thing that happens, is that everybody with gold on deposit says 
gimme my gold back NOW! … only it ain’t there … you got an IOU instead”.

If you’re the bullion bank, you got to be nervous here … cuz surveying the  
“lay of the land”, you got less and less of physical, and more and more of IOU’s 
at higher interest rates … how you’re gonna scramble to get physical someday 
is beyond me, especially in the hard to get 400 OZ. bars that are certified 
quadruple 9, i.e., 99.99% pure gold. “Why do you think that these physical bars 
around the globe … right now this very second, as you’re reading this … are 
commanding premiums to spot of $100 - $150 per OZ.? … EASY PEEZEE: Cuz 
the refiners can’t make them fast enough to meet demand, and/or can’t get their 
hands on physical to refine and certify the bars”!
The game right now, is that physical bars are going to Switzerland, then being 
melted down there and refined into certified 1 OZ. bars & in some cases 1 OZ. 
coins … from there, they are shipped by the refiner to India & China. EXIT 
QUESTION: “If you’re the bullion dealer that made the delivery, and used 
deposited gold that wasn’t yours, explain to me how the fuck you get the physical 
back anytime soon? … yea, me neither”! Cuz if price starts going skyward 
rather quickly, as it has done many times in the past, what’s your exit plan for 
the bullion bank?

NEWS FLASH! … that gold that got shipped to India & China ain’t ever 
coming back into Western hands … not at any price. Recently, in one of my 
blog posts, I asked the question, and it wasn’t rhetorical in nature; “WTF 
happens when billions of ordinary, middle class Chinese, who’ve been recently 
scammed in Chinese real estate, stocks that do nothing but go down, and a 
depreciating currency, suddenly figure out that gold is the only game in town, cuz 
it can’t be depreciated and has no third party counter risk”? To that, I’d add a 
few billion Indians … now whaddaya got?

“Answer: You got this guy times a few billion others”!

And now comes the uneasy moment when the COMEX is no longer the “price 
discovery” mechanism it once was, the bullion banks are busted into 
bankruptcy, and volatility and price movements in gold are gonna be “off the 
charts” … and the new owners of the game are gonna be the ChiComs … and 
“WHEN” not “IF”, the Yuan crude oil futures surpass the NYMEX in volume 
and open interest … “well, now it gets really interesting, cuz remember, profits in 
Yuan in the crude oil futures can be taken in gold bullion at the discretion of the 
account holder … somebody explain to me … exactly where do U.S. markets fit in 
here anymore, with declining global hegemony & a depreciating U.S. Dollar cuz 
there is no longer complete dominance of payment for oil in dollars anymore? 
… Bueller? … Bueller”?

So, what does it mean? … It means, at some point here real soon SHTF … and 
by analogy, as an “out of the blue” meltdown in stocks led to the “FANGS”  
getting “monkey hammered” in days, giving up gains it took months if not years 
to accumulate, the OPPOSITE is gonna happen in gold at some point … “all the 
gold market needs is a “CATALYST” to start the melt up in price … could it be the 
midterms in 1 week? Could it be a rapidly depreciating dollar cuz the FED 
reverses course? Could it be a further meltdown of stocks? Could it be the sudden 
insolvency of a bullion bank? Could it be sudden and rapid demand for 1 OZ. bars 
& 1 OZ coins, from the Chinese & Indians? … “yup to all of them and things 
nobody can foresee … that’s why they call them “Black Swans”, to borrow the 
phrase from Nick Taleb”.

Natch, it could start 10 minutes from now, or take another 10 years … I 
dunno, they don’t email me and let me know … point is, it’s gonna happen, 
and when it does, not only is the PAMM, but those in the C2 advisory signals, 
going to be perfectly positioned to take advantage … “right now, we’re sitting in 
the “eye” of the CAT5+ hurricane … you can see things aren’t right, that 
financially, this country is fucked beyond belief, and that the books of the U.S. 
are, to put it mildly, out of fucking control like a drunk going down a mountain 
road at 100 MPH in a Ferrari… trillion dollar deficits as far as the eye can see, 
and if the Libtards get back in power? … OMG, the floodgates of money printing 
& QE will be mind boggling”! Of course, the ChiComs & others don’t want to 
pay a higher price for bullion … they’d prefer to pick it up, “on the cheap”, so 
the “great game” continues with the bullion banks versus the rest of the world. 
In the end, though, we all know who wins and who loses “bigly & yuge”!

Turning to today’s gold market … “well, that escalated quickly to the downside, 
didn’t it? … seems the “Chuckleheads” in Asia & early European traders are 
puking … why should it be a surprise? …  you think they can’t see the same 
charts I put up yesterday, with 10/11 days highs getting shoved where the sun 
don’t shine”? 

Meanwhile, over in FX land, USDCNH keeps quietly threatening 7.0000 
“you know, the “line in the sand” for said ChiComs, that we’ve been told 
repeatedly by the “smartest people in the room”, will be vigorously defended at 
all costs by the regime”? Yes, reminds me of the old EURCHF “line in the sand” 
at 1.20, that got wiped out in seconds when they changed their mind cuz they 
didn’t like throwing money away … EXIT QUESTIONS: “If we can take their 
word, then why is the USDCNH still above 6.9700, threatening today 6.9800, and 
refusing to go lower? … If I didn’t know better, I’d think the market was calling 
their bluff? … What does the market know that we don’t”? [HINT: “Wake up 
some morning real soon and find out”!] USDCNH has been higher seven [7] 
months in a row … around March 1, 2018 it was trading at 6.2400 … take an 
approximate 10% depreciation since then, and you find the rate about where it 
is now … “oh wait, doesn’t that wipe out most of the tariffs President Trump 
levied, cuz the currency is cheaper”? … Oh, it’s good to be a gansta!

Starting at the open here in New York [7AM EST.], and gold has an $10+ range 
to the downside … can 1220 get “taken out”? Will USDCNH continue 
northward towards 7.0000, which on the surface is bearish for gold, but lately 
the ChiComs have let the peg go? … was yesterday a short term bottom in 
stocks, that got saved by the “Plunge Protection Team” [PPT] in the last hour, 
and will we see the gold versus SP500 inverse correlation fall apart at the 
seams? We’re about to find out.

Almost Noon in New York, and again we see bullshit trading, with no range 
… volume is better, but since 7AM, almost 5 hours ago, all we got is a measly $5 
buck range tip-to-tip, with most of the time in a $2 - $3 range … “this is 
bullshit at its best, but I understand why it is so … nobody really wants to go out 
on a hook until they see what the SP500 is gonna do come the P.M. … guess 
wrong, and you’re toast”! Again, spikes up/down that go nowhere, then 
minutes on end of boredom, until the next SP500 panic attack, and gold 
traders react … it is what it is, but unless you wanna scalp for 30 -50 cents, 
and then get blitzed by a $1 move against you that eats up 2 or 3 of your gains, 
what the hell is there to do but watch and show discipline & patience?

OK, there’s the day … can’t even get $3.50 bucks in 6 hours … 9AM - 3PM, 
and it’s nothing but a bucket of shit … again … won’t rally, won’t break 
… just sits and teases, while the bullion dealers try and get suckers to buy or 
sell support/resistance breakouts, so they can fade them … bottom line, 
though, is simply the “Great bullion Wall of Selling” is very much still intact.

No PAMM trades today.

“Seriously, what am I supposed to do when the largest rally all day is about 
$1.50 - $1.75, and that’s if you caught it perfectly … intraday volatility so low, I 
need an electron microscope to find it”. Like I said, all we can do is wait and 
show patience & discipline, cuz anything else and you just give money away 
for nothing, and that’s defined as “stupid shit”.

Onto tomorrow, we’ll see what happens … I’m outta here … until tomorrow 
mi amigos … Onward & Upward!!

PAMM Spreadsheet directly below [in old format].

click to enlarge

 Have a great day everybody!!