Oldtent Archives 2007 - 2008

Curious if you’ve been watching the TED spread lately - as its come down the past few months.   My understanding is that a wide TED spread is indicative of major concerns in the global financial markets - when the rate which the US govt pays to borrow in dollars for 3 months is considerably less then what banks have to pay — as traders sell eurodollars and buy t-bills.  You can see this rate widening on the above chart on 3 seperate instances when we had the most credit concerns (Aug, Dec and March).  The spread is still relatively high, I guess indicating that banks are still hoarding cash to a degree.  The reason I bring this up is that I would think the spread would currently be near all time highs considering the bank stocks are at or very near multi-year lows today.   Just curious if you see this as a positive for bank stocks or just some anomaly.

since I bought physical gold today—-after buying physical silver last week.  I just logged on and caught up on tonight’s post and am amazed at how many tenters are talking about going the physical route as well.  The way the metal and the stocks have diverged in the past few years has definitely made me think about Another’s writings—perhaps the gold stocks are never going to get in the race this time around.   I would never have believed this 5 years ago, my PF is down 50% and gold has about tripled.  Contradicts all logic to me.

South saskatchewan rivers meet.  On the edge of the boreal forest…

  Been reading this site for awhile, some very smart people here. I tend to be a little more optimistic and am just wondering if this isn’t sort of a last ditch effort to prop the dollar before there is trouble with the banks.

   Whatever happens in the next week or two, I seriously doubt we are looking below $800 in gold, $15 - $16 in silver. I’ve seen some chartwork that says the HUI could go below 300. I’ve seen that stuff posted here before, I think just before the HUI took off to 520, there was a prediction that the HUI could go to 370. Didn’t happen then and 300 won’t happen now. Pipe dream.

  Keep the faith.  Good things are coming.

They’re stealing our country right out from under us. They’re our own people, and every last one of them is a traitor.” … Senator Henry “Hank” Wishengrad

GO GATA!

If last night I was able to foresee today’s future and said:

*Oil would be up $3.
*The US trade deficit will surprisingly widen, which is dollar bearish.
*US interest rates will be little changed.

My guess is most Café members would predict gold would be higher.

Instead the dollar soars and gold is crushed.

A theme of mine for some time is that watching US officials, Wall Street pundits, and many on CNBC is like watching The Muppet Show. The puppeteer is pulling the strings behind the scenes and the Muppets deliver a bunch of jabberwocky … silly talk tailored for an audience of children. It is that Mickey Mouse. Today has to go down as one of their top rated shows and the Muppet Show had many outstanding ones.

The past few days the Orwellians have trotted out the stars of their Muppet show talking about the dollar, saying how vital a strong dollar is in the interest of the United States, and how they might intervene to get it that way, as in this comment again today:

PAULSON SAYS NEVER LIKES TO SAY NEVER ON U.S. DOLLAR INTERVENTION

In the process they assure the investment world the Fed is going to be vigilant in its inflation fight, inferring they would raise US interest rates if they had to. The inference is the raising of the rates would be supportive to the dollar, which it very well could be.

The problem with this particular Muppet show is that the scriptwriters took it from an old re-run. We have seen this performance before and that is all it is, a retread performance. Bernanke, Bush and Paulson are all show. It is a performance for rating purposes. Should the US really fight inflation, we will need to raise interest rates. The raising of our rates will decimate an already reeling housing market and the stock market as we go into our pivotal elections in November.

Meanwhile, this juvenile talk about intervening is appalling and disingenuous, since this is what they do EVERY DAY. Every stinkin’ day the market managers are in there influencing and taking markets in the direction they want them to go to foster the illusion, “Everything is fine.” Meanwhile, The Gold Cartel and PTT hit men trade on this insider information at the expense of the individual investor. In other words, the hit men know the script in advance.

So we are near the end of today’s Muppet’s presentation and they puppets are laughing up a storm, congratulating each other how well they are being received by their audience, as the price of gold is plummeting … which clearly shows the effectiveness of their dollar support/inflation fighting agenda.

The show is over and the Muppets go back stage and more laughter erupts. We can hear their jabber… “What a bunch of suckers … we don’t have do a darn thing but bomb the gold price and they believe our disingenuous drivel.” And that’s the way it is for now. It’s a real drag. Nothing else to do if you believe the GATA story and know what is coming.

  DO YOU BELIEVE THIS?

By The Associated Press

 ROCK HILL, S.C. - Authorities say seven people attending high school graduations in Rock Hill, South Carolina, are facing charges after police say they cheered while students’ names were being called.

Authorities say six people at Fort Mill High School’s graduation were charged Saturday and a seventh at the graduation for York Comprehensive High School was charged Friday with disorderly conduct.

Police say those arrested yelled after students’ names were called while diplomas were handed out.

A police spokesman says school officials request police patrols to prevent graduation disruptions that include standing, hollering and clapping.

He says those attending the commencements are told their behaviour can be prosecuted.

Rock Hill is about 110 kilometres north of Columbia, South Carolina.

…from Midas

The B guy bernake? too. Well Im figuring out how to put a regular push lawn mower togeather I bought today at HD buy myself, no gas, Im going green.

….Great Posts Everyone….we have a fine mix of gloom and doom and optamistic resolve….Everybody expressing themselves very eloquently today on a surprise miserable tuesday in the gold market…..

…..I am proud to be associated with so many fine gold minds from all over the planet….Viva La Goldtent

so if summer isn’t a good time for the PM’s, it might be a good time to buy physical instead.  When fire sales present themselves, it’s time to do the scoop.

….Nice to see you post Hammy !

…..How is Spring In Vienna ?

so how does a forward rate agreement work?

………from 1980 to 2001 Gold as you know was in a bear market….and I’m sure winter spring summer and fall were all weak seasons…..Now since 2001….they are all strong seasons…..go figure

………………you bought some Physical today !

……………..proof you are a True beleiver !

……………..you got a nice big discount too ….!

When you look back over 25 years.  Maybe it’s been good during the last 5 or 6 - but one could also argue reversion to the mean is soon likely.  Either way, I still found Grin’s chart quite insightful.