Ruh Roh Raggy! Small Banks Got Their Hands on LTRO Cash = I N F L A T I O N ! ? !

Does Anyone See This Emergency As An Emergency, Or Is A Half Trillion Euro Pay Day Loan Bullish? |Reggie Middleton

“The astonishing number this time is the number of banks participating, which signals that a lot more small banks looked for the money and it is likely they will pass it on to the economy,”

Mark your calendar: March 9

Mark your calendar: March 9

Written by 
February 28, 2012 at 14:16 GMT 

That’s the date that investors must reply to the Greek bond swap, according to FinMin Venizelos.

Whoever proposes exit from the euro proposes catastrophe, Venizelos proclaims before parliament.

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Keeping the Good Doctor Hunter S Thompson's Meme Alive

Been slacking on my duties to keeping the Good Doctor's flame alive, so for a little kickstart I offer the following image:



For those of you who are of age - you are certainly free to enjoy this image in its full context here.  The Doctor would certainly approve.

Two Predictions Guaranteed to Come True

Ben Davies: Greece Is Just A Preview Of What's Coming For The Rest Of Us | ZeroHedge

The one thing we can be confident of is that at some point, these losses will be taken. The market will eventually force it. And the second thing we can predict is: we don't know what will happen when they are. There is so much complexity in the counterparty exposure to Greece debt - as well as the much larger derivative exposure tied to this debt - that anything between "not much" and "worldwide financial conflagration" could be possible. And that's just Greece...

Liquidity Trap!

IceCap Asset Management: Tug Of War | ZeroHedge

Here we are in 2012, and the World’s four main central banks (USA, Britain, Europe and Japan) continue to print gobs of money. Will the outcome be 1922 Germany or 1990 Japan? An important point to understand is whether the printed money actually flows through to the economy. In the 1922 German case – yes, it definitely did. The printed money circulated in the economy causing the German Mark to plummet against other currencies which resulted in extreme inflation. Today, trillions of Dollars, Yen, Euros and Pounds are being printed – yet this new money is certainly not being distributed into the economy. Instead, big banks everywhere are hoarding the newly minted cash for a rainy day. In economic parlance, this is referred to as a “liquidity trap” meaning there is plenty of cash available, however the cash remains trapped and is not being used. This makes today’s situation, perilously closer to the Japanese experience.
Chart 1 ... shows the amount of money not being distributed into the economy by the very big American banks. Once this money is eventually released (via loans) into the economy, the cost of things could rise very quickly – similar to 1922 Germany.
The bottom line is as follows – the combination of the bursting of property prices and the refusal of the big banks to write-off the corresponding bad debt is resulting in a big wave of deflation. We expect this to continue. Yet, we also are mindful enough to know that pockets of inflation will occur in various countries and within various industries. The real threat of hyper inflation will occur when a major currency collapses. Any country that leaves the Eurozone will undoubtedly see extreme inflation during their transition years. Outside of the Euro-zone, Britain remains at risk due to it being a key center of global finance and at risk should the World’s super-size banks implode once again.

Chart Porn: Elliot Wave on Gold's Possible Future

I enjoy breasts - but a 1.35 Million Dollar Bra?

Diamond Demand Grows in China | Live Stock Trading News | Equities, Forex, Gold, Silver and Oil Trading

The bra can be yours if you have a heart to shell out 10 million Yuan ($1,355,000). It is packed with 2,500 diamonds that weighs more than 100 carats.

Recession Rebound Mechanics 101 - Inventory vs. Interest Rate vs. Severe Overall Credit Market Damage

Banks and the US Economy | Live Stock Trading News | Equities, Forex, Gold, Silver and Oil Trading

Note: rebounds from inventory recessions are sharp and strong. Recoveries from interest rate-induced recessions, such as those of the early 1980′s, are also relatively rapid. The same is true from recessions caused by consumer spending or trade swings.
However, he damage to the credit markets and credit creation takes a long time to fix. It takes time for banks to repair damaged balance sheets and to write off bad loans.

The Turd "Buying with Both Hands" if we see $1680 and $31.50

Gold Charts. Silver Charts. Too Many To Count. | TF Metals Report

So, taking all of this into consideration: What appears to be an ongoing bounce/rally in The Pig. The hard cap maintained by The Cartels for almost 3 weeks at $1750 and $34. The dramatically increased Cartel net short position of the past 2 CoT reports. A 1-month silver lease rate at -0.36%. The immediate hammering of the PMs right at the Comex opening bell today. We've got to expect more downside to come. Again, in the end, this is all perfectly fine. Gold rallied 15% from late December to late January. You would expect it to give about 1/3 of that back in a small "correction". This gives us a target near $1680. Silver rallied almost 30% over the same time period. A similar 1/3 giveback would take silver back to $31.50 or so. When either or both of those levels are reached, I'm buying with both hands.

Correlations: Dollar Index Strength More Punchy than Weakness but the Correlation is Important for Short Term Traders

Gold Charts. Silver Charts. Too Many To Count. | TF Metals Report

I realize that, year-over-year, the Dollar Index is flat while the metals are up considerably. However, in the day-to-day trade, movements in the POSX are very significant. Why? Because the only market participants left post-MFG are The Cartels and The WOPRs. Everyone knows that weakness in the POSX causes WOPR to buy. However, strength in the POSX is even worse. WOPR sells and the Pig strength encourages The Cartel to punch the gas, too, giving POSX strength twice the impact as POSX weakness.

QE Infinity thus Dollar Reserve Demise thus Gold Fully Valued beginning now, completing in 2015 ~ Jim Sinclair

Jim's Key Points:

Greece's default will not be declared a default by ISDA - thus QE infinity guaranteed - because it sets the precedent for no one else "officially" defaulting going forward.  The only way this can occur is infinite money printing.

He puts the beginning of the End of the Dollar at 'Any minute now' - and the fully devalued (and de facto full fiat pricing of gold, thereby) of the US dollar reserve system at sometime around 2015.

He declares unequivocally that Gold will not crash like it did in 1980.  Here's the article on his blog:

The Terminal Beginning Of The Western Financial World

The Terminal Beginning Of The Western Financial World

Jesse's Cafe Americain - S&P500 Deflated by Gold

Monday should be a shit show ~ SilverGoldSilver

More paper shorting, whats new - SilverGoldSilver

Like I said about a month ago anyone thinking that this will end, it will not till the game is over and the world is in chaos or we have a new monetary system backed with PM's.  Till then, expect the metals to be 300-500% under their real paper value.   Have a great weekend.  Monday should be a shit show.

I do not feel that there need be a valid correlation between the metals and the dollar from this point forward ~ Jesse's Café Américain

Jesse's Café Américain

I do not feel that there need be a valid correlation between the metals and the dollar from this point forward.

Long Term Dollar Chart

The Historical Case for Medieval Silver Prices Today

PLATINUM!!!

Juncker: The possibility of a sovereign default by Greece cannot be ruled out

ZeroHedge | On a long enough timeline the survival rate for everyone drops to zero

"The possibility of a sovereign default by Greece cannot be ruled out, Jean-Claude Juncker, head of the Eurogroup of finance ministers from the single currency zone, said in a German magazine on Saturday." Translation: A Greek default on that €14.5 billion bond maturity D-day of March 20, is now inevitable. In an advance copy of comments to news weekly Der Spiegel, Jean-Claude Juncker was quoted as saying Greece could no longer expect solidarity from other euro zone members if it cannot implement reforms it has agreed. "If we were to establish that everything has gone wrong in Greece, there would be no new programme, and that would mean that in March they have to declare bankruptcy," he said. So after years of delaying the inevitable sovereign Lehman weekend, it is finally here. As a reminder, when Lehman filed, everyone, at least those in charge, thought the fall out could be contained. It couldn't, and the Fed had to step in with roughly $30 trillion in backstops, guarantees, and asset purchases. The same will happen this time.

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