Friday, September 30, 2011

Martin Armstrong on the 24 hour turn around/Bernanke QE3

"In the repo market you post securities, the next day you get cash for them and the next day you have to pay back the cash. So it’s a 24 hour market. Now if you have these time bombs that are rated AAA, and it has to be AAA paper to go into the repo market, and it blows up, you have 24 hours to come up with the cash."

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38 comments:

  1. silvergoldsilverSeptember 30, 2011 at 9:38 AM

    Short on XOM till it breaks $74 and through the MA

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  2. RichSeptember 30, 2011 at 10:04 AM

    Well... we know why she's not on CNBC.

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  3. Adam ChalmersSeptember 30, 2011 at 10:05 AM

    XOM already broke $74. Looks like the Bernank won't be printing anytime soon either.

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  4. Adam ChalmersSeptember 30, 2011 at 10:06 AM

    @Rich...

    I was thinking the same thing!! HAHAHAHA.

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  5. silvergoldsilverSeptember 30, 2011 at 10:10 AM

    I'll hold the XOM PUTS till buying above the MA occurs. Todays candle looks way out of place.

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  6. AnonymousSeptember 30, 2011 at 10:11 AM

    Great article in the UK Telegraph today by Ambrose Evans Pritchard.

    The Euro is toast.

    http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100012332/nein-nein-nein-and-the-death-of-eu-fiscal-union/

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  7. felixSeptember 30, 2011 at 11:13 AM

    I am beginning to find the colour red quite irritating.

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  8. unthought knownSeptember 30, 2011 at 11:47 AM

    ok..I am an idiot..how is ZSL at 16 bucks? silver is basically flat since jan 1 but ZSL was at 40.. how is ZSL down more than 50%?? thx..

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  9. GatorSeptember 30, 2011 at 12:16 PM

    that's how 2x leverage re-balanced daily works.

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  10. AnonymousSeptember 30, 2011 at 1:34 PM

    What is going on with the corn price ? Don't we have shortage ?

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  11. AnonymousSeptember 30, 2011 at 1:37 PM

    Old sheep here. I am happy that the Bernanke has instructed congress to get their act together. All is well.

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  12. ColinSeptember 30, 2011 at 1:56 PM

    funny how the USD has gained 23 cents on the franc and nearly a dime on Canadian dollar in last couple months or so. No manipulation there. Anyone see any signs outside of Mickey Dees where the usa is surging in employment. What a joke it all is. MIght be a long time to get our metals back, who the F knows?

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  13. LedbedderSeptember 30, 2011 at 2:07 PM

    coconutrumplus: No, just less of a carry over. Ask Mike S. if he ever pops in, he may "know"

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  14. malcolmSeptember 30, 2011 at 2:19 PM

    coconutrumplus said... ,

    Word is a margin increase at Comex!

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  15. malcolmSeptember 30, 2011 at 2:26 PM

    From over at ZH

    Carl LaFong's

    "It looks to me that the FED, through the CME and other exchanges, is trying to bring down commodity prices while the USD is getting a bounce so as to make it appear that inflation is low. Every margin hike that depresses prices, even in the short term and especially while the stock market is in "correction" mode, allows them to print a lower phony-baloney CPI number. This, in turn, will allow them to do QE3+ by pointing to the low inflations numbers and claiming that the inflation impact will be neglibile. Ben's no dummy....just horribly misguided."

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  16. JSeptember 30, 2011 at 2:45 PM

    @Colin
    @Colin

    11% gain in USDCAD means Gold is worth around $1700 CAD

    So the gold price correction in terms of CAD is muted compared to the price correction in USD.

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  17. JSeptember 30, 2011 at 2:50 PM

    @malcolm

    Maybe, but I think they try to manipulate commodity prices whether the dollar is high or low. Canada has long been raped by the US for its oil price, and this will continue until the Gateway pipeline is constructed and Canada can sell oil to Asia and demand Brent price instead of the manipulated WTI price.

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  18. JSeptember 30, 2011 at 2:53 PM

    Gotta love Martin. Even those who say they don't read him, do.

    I loved his essay this year about The Reason Rome Fell Was Because of Its Government Pensions...

    Speaking of rich public sector pensions (and big tax grabs in part to fund them), I hope those of you living in Ontario vote AGAINST that destructive idiot McGuinty next week! unless you are one of the parasites in the public sector.

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  19. MarkSeptember 30, 2011 at 2:59 PM

    Anyone noticing the Inverted hammer candlestick forming on in SLV weekly charts....anybody else can confirm this?

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  20. LedbedderSeptember 30, 2011 at 3:03 PM

    HUH?

    malcolm said...
    coconutrumplus said... ,

    Word is a margin increase at Comex!

    He asked about corn, not gold

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  21. malcolmSeptember 30, 2011 at 3:19 PM

    @ Ledbedder,
    LOL, same process, deflation manipulation prior to QE3

    Pure Speculation!

    "Back in April, when we first discussed the hike in daily corn trading limits from $0.30 to $0.40, we had some cynical observations, namely that "inviting not only more vol (read bottom line for the business) but more margin, the CME is exposing speculators to far greater impacts from margin hikes (and drops). Which of course means a far great capacity and ability to kill any commodity rally dead in its tracks." Well, there is no margin hike today (yet), although based on today's action we fully expect one. The reason, we are currently at today's down 40 cent limit, a price of $5.925 a bushel, the lowest since July 1, and by the looks of things it will get far worse: as the chart below demonstrates right now sellers outnumber buyers by a ratio of 2000 to 1. Expect this ratio to get even bigger once the CME hikes corn (and who knows what other commodity) margins as soon as today."

    http://www.zerohedge.com/news/corn-price-plunges-lowest-july-1-hits-revised-daily-limit-sellers-outnumber-buyers-2000-1

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  22. malcolmSeptember 30, 2011 at 3:21 PM

    Oh and it is harvest season.

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  23. Whiskey SixSeptember 30, 2011 at 3:57 PM

    Looks like our buddy Gensler will be speaking next week on 'Excessive Speculation and Compliance with the Dodd-Frank Act'

    EVENT: Other Event Oct. 6, 2011
    Testimony before the U.S. Senate Committee on Homeland Security and Governmental Affairs

    CFTC Chairman Gary Gensler to testify before the U.S. Senate Committee on Homeland Security and Governmental Affairs, Permanent Subcommittee on Investigations.

    When: Thursday, October 6, 2011, 9:30 a.m.

    Where: SD-342 Dirksen Senate Office Building, Washington, DC

    Topic: Excessive Speculation and Compliance with the Dodd-Frank Act

    http://www.cftc.gov/PressRoom/Events/opaevent_testimony100611

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  24. SRSroccoSeptember 30, 2011 at 4:03 PM

    This comment has been removed by the author.

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  25. SRSroccoSeptember 30, 2011 at 4:06 PM

    REPEAT: THIS IS NOT DEFLATION

    I realize when 95 people say that someone is stupid, then the person is stupid....even if he is not. Same thing with deflation. I am so sick of hearing that word....not because it is a true representation of what is occuring, but because the powers pulling the strings have done a great job BAMBOOZLING the public.

    The average price of silver has been up every year accept 2008, when we had the "BIG ORCHESTRATED TAKEDOWN". Only then did it fall maybe $.50 cents less than 2007. This does not DENOTE DEFLATION....this is computer rigging providing outrageous VOLATILITY.

    Today the average price of silver in 2011 is $36.20. The average price of silver in 2010 was $20.19. I would like to know from any of the bloggers in here:

    WHERE IN THE LIVING FOCKERS IS THE DEFLATION????

    I don't see deflation....WHY ON EARTH DO I HEAR AND READ THIS OVER AND OVER AND OVER AGAIN???

    You can't have DEFLATION with a Fiat currency that is about to DIE. The FED-GOVT-US TREASURY has to manipulate gold and silver to keep the faith in the DOLLAR.

    I would like to remind the readers here that if you held a US Continetial back in the late 1700's (Fiat money during the revolutionary war), by 1791 you got a lousy 1% of its FACE VALUE.

    WAS THAT DEFLATIONARY.....HELL FRICKEN NO...

    HAVE I MADE MYSELF CLEAR??

    I don't mean to be so DAMN BLUNT...but let the other MORONS out there believe this is deflation. You folks here are TOO DAMN SMART for that.

    GOT IT?

    Happy trading

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  26. The News UNITSeptember 30, 2011 at 4:12 PM

    King World News gives in:

    King World News Finally Reports Going Lower

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  27. SRSroccoSeptember 30, 2011 at 4:30 PM

    WEATHER UNIT....that's the best you got?

    Weldon is keeping his money in BANK OF AMERICA because he believes banks aren't going anywhere. If you think that sort of philosophy is good...by all means...follow the Titanic down.

    The so called WEALTH DESTRUCTION is in REAL ESTATE, STOCKs, BUSINESSES and ETC but it will not be in precious metals, goods and foods.

    In a hyperinflation you have ASSETS as I described above pop....and precious metals, food and goods hyperinflate.

    I get good laugh at the MORONS who push this sort of nonsense.

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  28. The News UNITSeptember 30, 2011 at 4:37 PM

    No I got better actually. Headlines keep changing. Check this out:
    Operation Twist Begins Monday

    Go easy on me. I'm just a novice at this. :-) ....developing...

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  29. RuiSeptember 30, 2011 at 4:43 PM

    Look at COT, 16k silver shorts and 52k Gold shorts were covered.

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  30. SRSroccoSeptember 30, 2011 at 4:44 PM

    This comment has been removed by the author.

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  31. The News UNITSeptember 30, 2011 at 4:45 PM

    Nothing would surprise me even to see SILVER at $40 on Monday and the DJIA crossing 12,000. I won't predict anything though...just watching...:-)...

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  32. bflowers1September 30, 2011 at 6:24 PM

    Hey weather Unit, why don't you take a Peek at the COT Report ! I believe Evey you might have to Admit it is VERY BULLISH SILVER !

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  33. SilverSatchelSeptember 30, 2011 at 6:36 PM

    Well, so much for my paycheck. Another 50 oz on the way! Thanks Blythe!!!

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  34. bflowers1September 30, 2011 at 6:47 PM

    Looks like Blythe is doing one hell of a lot of buying also !

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  35. CommodityworldnewsSeptember 30, 2011 at 6:55 PM

    This article says same thing i have been saying about the dollar, we are in the best shape for now compared to the other western and latin/asian smaller countries. we will use our military and economic weight if need be to destroy other currencies to benefit our own, as long as we can...

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  36. CommodityworldnewsSeptember 30, 2011 at 6:59 PM

    coconuterumplus, it was a great growing season for corn overall on average in the us, one of the best. and we had the most acres planted this year of corn ever. We are also entering a recession, as displayed by the copper price chart, and oil. (oil and corn are correlated also) I predicted the price moves in corn and wheat on my blog on my blog www.commodityworldnews.blogspot.com back in the middle of the summer. it is all common sense aruments.

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  37. Buckanear2September 30, 2011 at 10:45 PM

    @SRSrocco
    Your are correct. I am not a business major, but I did recently hear from Mike Maloney and others that Zero % interest rates can only be held at zero by Inflating the monetary supply. They cannot be willed down with good intention alone LOL. Per the FED M2 chart below, M2 (money supply) has recently spiked so the FED must be pumping money into the economy at an ever increasing rate (we won't now how/where for 2 years). With more dollars chasing fewer things the Prices must go up - this is the Effect of Inflation.
    http://research.stlouisfed.org/fred2/series/M2

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  38. dollarslideOctober 1, 2011 at 12:49 PM

    Ben Bernanke Confronted by WeAreChange

    http://www.youtube.com/watch?v=4AcpznV4RGY&feature=related

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