radge

This will be my first ever leveraged trade, I understand the risks but think I've a good change of making good money on it.

Is this totally crazy????

Hats off to the size of your cahones! With gold this volatile, I won't be touching anything leveraged with a bargepole.

Dollar buyers are like lambs to the slaughter

I'm afraid it's a 'Meh!' from me. Didn't fancy riding the drop from $1225 all the way to £850-$1,000. I agree the $ is pants, but for the moment I didn't fancy being trampled to death by the rushing flock of lambs.

Hopefully manage to get back into the safety of rather more Au than I had before I wimped out if I time it right.

That swine RB on HPC had to go and call the bottom of the dip!

Ah, perhaps this was the trigger in the Asian markets:

http://market-ticker.denninger.net/archive...valuations.html

Anyone found an explanation for the £10 toz rise overnight? I like sleeps like that!!

It's not your username that appears in the audit, it's the name they gave you. Mine is imagesnnnnn. Look on your profile and it'll tell you what you're listed as. You can change it but I wouldn't recommend making it your username - why give away 1/3rd of your login dx publicly?

Across the Curve

A daily bond market chronicle

TIPS

March 18th, 2009 3:43 pm

The breakeven spreads on 10 year and 30 year TIPS are exploding. That means they are predicting more inflation down the road. The breakeven spreads generally move glacially.

In both the 30 year sector and the 10 year sector they have moved about 11 basis points today.

That movement would be in line with the absolute cratering of the greenback as well as the huge move(upward) in price of gold.

Karl Denninger is not going to be a happy bunny!

Caution On Quantitative Easing (QE)

Be warned Ben....

The BOE executed their first "QE" operation today.

The "bid to cover" was an astonishing 7.35.

This means that for every bond purchased 7.35 were tendered, or made available by willing sellers.

Back in January I posted a Ticker in which I made clear what was likely to happen if Bernanke actually attempted to do (as opposed to threatening) QE:

Bernanke bluffed and the bond market called it. He cannot monetize several trillion in new issue plus the entirety of the 10 and 30 year bonds out there to stop a bond market sell-off. In addition, the market no longer believes him, as evidenced by today's price action. A serious bond-market sell-off will ramp the cost of all credit, including mortgages and commercial loans. If he tries to monetize the result will be current bondholders tendering into his buying, forcing him to essentially "consume" the entire float. That stunt will cause the dollar to implode and we wind up exactly like Iceland. Overnight. Ben knows this; ergo, he is screaming like a petulant child while the market laughs at him just like the market forced Paulson to do what he said he wouldn't with Fannie and Freddie. Bernanke had better shut the hell up before he precipitates a bond market dislocation; traders can and will try to force him to make good on the threat.

Ding. The BOE now has seen exactly what happens when you promise as a government to overpay for something - everyone hits your bid immediately!

This is a form of crack that the government cannot afford to loose into the market - as soon as the buying pressure is removed rates will start to rise again, forcing yet another purchase.

Ultimately The Fed winds up owning all of its own government's bonds, having destroyed the private capital market for sovereign debt (just as it has done for other securitized debt by threatening to overpay for those issues!)

The difference is that if this happens for sovereign debt then deficit spending becomes impossible on an instant basis; this would in turn force a nearly 75% contraction of government spending.

The outcome of this event would be the immediate destruction of Social Security, Medicare, half the military budget and half of all other government programs.

PS: Bernanke knows this, which is why it hasn't happened yet. Let's hope he continues to remember it, because the destruction of our government is very, very un-funny, and this would likely precipiate exactly that in a "vast and fast" form.

Nice wee buying opportunity setting up, you go for tea and the boogers queaze all over you!

Looking at the market depth on BV there's still a helluva lot of cash chasing gold. I certainly don't have the cahones to take profit now lest I am unable to climb back on board!

I don't think I've ever seen the BV Market Board so animated. Not tempted to sell anything though. I'm definitely in buy and hold camp for the moment.

Another indicator of the masses jumping aboard? The 3rd most popular article in the WSJ online today is What you need to know about gold.

The Great U.S. Treasury Bond Market Trap

Interesting last paragraph, bullish for gold from The Market Oracle.

Huge (£600/Kg) spreads opening up on BV as well. Looks like the 'haves' are intent on hanging on to it, sod what the spot price falls to!

I wonder if everyone is waiting for the announcement of the Lehman CDS auctions.

Is this a shoe-shine boy moment? At a tremendous session in a friend's pub in Tollcross, Edinburgh tonight. Exquisitely talented, but habitually penniless musician friend advised me to turn all my savings into Krugs because his trainee financial adviser brother had advised him to do the same!

You're right chris, probably more ignition than lift-off at the mo. Let's hope it doesn't fizzle out!

We have lift off! Gold going ballistic in GBP and USD now.

'Tis a hard one to call. The more details that emerge about the bailout the more Au positive it looks! BV PoG has recovered $100/Kg in last 20 mins.

Does the paucity of gold on offer in BV's NY vault mean the surge in demand is mainly in the USA?

Just as well I bought some more underpants! Can one become addicted to such orgasmic charts?

Excuse me, Gentlemen. I have just returned home from a most enjoyable session at Sandy Bell's, looked at the gold price chart and it appears I need to change my underpants.

I only hope the senior partner in the business I manage followed my advice @ 09:30 and paid our working capital out of our BoS acct to each individual partner pro-tem.

Steak & Kidney pud was a favourite of mine

Aah, Babies' Heads! Ambassador, you spoil us!

Top tip: If you're sharing your fallout shelter with a former member of the Parachut Regt, the correct answer to the following questions are:

Q: Shall I make an Airborne Stew? (the whole ration pack cooked up in a onener).

A: If you must, but only if you leave out the Rolos and the Spangles.

Q: May I use my racing spoon?

A: No! (unless you want to go hungry yourself).

Just add a laxative and you could live off them for years.

Yes, even reading the contents of this forum wouldn't be enough to counteract the effects of Buiscuits AB (Biscuits Arse Blocking for the uninitiated)!

To think gold has had it's fireworks display already is a bit like mistaking the sparklers in the crowd on guy Fawkes night as the main show!

We did "Ye cannae polish a turd" earlier (top marks to the man who found a way to do it!). Staying with aphorisms, hopefully the FED will learn that "Ye cannae fart against thunder." Presuming, of course, that we and the thousands of others who have been merrily buying up PMs are the thunder, not the farts!

As it happens, if he'd've just waited for about 15 years (Goldfinger was made in the mid-'60s), he would've seen his gold rise in value by a factor of about thirty times anyway!

Choose your next witticism carefully, Mr Jones. It may be your last.

(No, you weren't the only one watching Goldfinger last night)