Mark McHugh

Four Things

In Open Thread on Thursday, June 23, 2011 at 9:02 pm

1)  I’m not dead –  or depressed or anything bad.  I’ve been busy as hell, and for now, I’m just going to leave it at that.   I am astounded at the number of people who continue to stop by the blog, day after day, to see if I’ve written anything new.  Thanks, but………Where the #$% were you guys when I was actually writing?

No matter.  YOU LIKE ME!!

(OK, maybe you don’t like me.  Maybe I annoy you so much that you just can’t resist the temptation to agitate yourself.  Maybe you just can’t find anything you want to read.  I can relate, but you can’t stop me from getting all misty about what I perceive to be undying support).

Now onto a couple of important things that I’m not seeing reported anywhere.


That’s right, the Morgue itself is on a buying spree – not it’s “customers”.  In case you’ve forgotten, when JP trades for its own account, they tend not to make mistakes.

Of the 5,968 contracts settled so far, they’ve taken 4775  (80%).  Follow the fun here:

3) Banks to Taxpayers: “YOU’LL GET NOTHING AND LIKE IT!”

Few things drove up my blood pressure like the appointment of taxpayer charity case General Electric’s CEO, Jeff Immelt, to the Federal Reserve Bank of New York’s “Class B” Board of Directors.  Class B directors are elected by member banks to represent the public.  Apparently bankers have a keen sense of irony.  Why else would they elect the CEO of a zombie-dinosaur-parasite to represent us?

On March 9, 2011, Jeffy resigned from the NY Fed BOD…..and nobody noticed.  Not me, and not the Fed, who announced his departure April 28 (seven weeks later).  The public is now represented by an empty chair where Jeffy used to be, and I’ll be the first to admit that that is an improvement, but not exactly what I had in mind.

For those of you keeping count, the banker’s now have elected TWO empty seats to represent the public.

I’m hereby throwing my hat in the ring.

And speaking of irony, the reason Immelt left the BOD was because he was offered a job for which he was even more unqualified: Chairman of the President’s Council on Jobs and Competitiveness.   This is now becoming a black hole of irony from which escape is impossible.  The vacant seat at the NY Fed will most likely be the only job Jeffy creates.  In his tenure as GE’s CEO, Immelt has created negative 24,000 American jobs.

To review Obama’s choices:  1) He picked the single person most responsible for the Madoff fraud to chair the SEC (Mary Schapiro).  2) He has now picked the CEO of a company that has $1.6 million in debt per employee, pays no federal taxes (sorry Jeff, fines don’t count) and who has lost more American jobs than anyone else in the last ten years to advise on jobs and competitiveness.  He now only needs to appoint Jamie Dimon Treasury Secretary to complete the triple crown of ultimate head-up-your-assery. 

4) JPM has vanished from the silver market.

Speaking of Jamie and all this other wierdness, I find it interesting that JPM (house account) has not delivered or taken delivery of a single silver contract in all of May and so far in June.  They delivered only eight contracts in April, and since then, nada, zilch, zippo, the goose egg….

Yes I know I published a piece entitled Guess Who’s Almost Out of Silver? on April 8, but I still find their absence very eery.  I guess I thought we’d be tapping the strategic silver reserve…..oh wait, we did that for sixty years.  This should be interesting.

5) Bonus Things (a silver lining).

  • Registered silver continues to disappear from the COMEX.  Track it here.
  • Physical silver continues to disappear from the SLV warehouses as well.  You can track it here (shares outstanding * .975 = ounces in trust).
  • Despite all the “silver crash” hype.  Silver is up 13.7% YTD vs. 2.4% for the S&P 500.  Of course, the nominal gain in stocks gets swallowed up by the 4.4% drop in the dollar (and then some). 

from Finviz:

Remember this:  All roads lead to global currency devaluation.  There simply is no “Plan B.”  Don’t get confused.

  1. The prodding pays off… you didn’t have to go all Sally Field on us though.

  2. Haha,

    It’s just funny how things work out. When I was writing a lot, the blog had no audience to speak of. Now that I simply don’t have the time to compose, people stop by regularly.

    The fact that some people are interested in what I write makes me happy beyond words. I can’t deny or ignore that.

    Sally seemed like the best expression of that.

  3. I recently followed a link from Dollar to your Why Silver Is Still The Best Revenge. I don’t know why it took me so long to find you. And yeah, I’ve been checking in daily to see what you would say next. You rock McHugh. I hope you will make time to write something for us stackers from time to time.

  4. Thanks WC,

    The stacker meme doesn’t really change, so a lot of what I’ve done is tell the same story from different angles. I don’t want to become a broken record, or a barker. Either you get it, or you don’t.

    But from time to time, PM bugs should remind themselves of what they really are – the best investors on the planet over the last 10 years. All the bashers wish they had those returns.

    And I really meant what I said about “don’t get confused…..” Maybe Greece can default and the world can survive, but at some point defaults will hit critical mass and EVERYBODY knows that. Stopping defaults is easy – you just print more money AND THAT IS EXACTLY WHAT THEY WILL DO!!!!! At some point people will realize that they’re are accepting confetti as payment. Stackers are already two steps ahead….

    So much of the PM commentary out there is written by what I call papersilverbugs. They see silver as a vehicle to get paper money. You gotta just shake your head…..

  5. For the past 200 years it has been pretty easy to spend the paper stuff.

  6. I followed a link off of…. when you had the silver is the best revenge article linked off of it. I about snorted coffee out of my nose at work when I started going into your archives and found the Sesame Street guide…. that was hilarious. Sad, but funny. Forwarded that to a few people I know. Glad to see you write again, and it’ll take a while to catch back up on your whole stack of postings.

  7. Thanks Andrew,

    I always hope that people will go through the archives. I know I don’t write a whole lot, but most of what I have writen is original content, not riffing off someone else’s work.

    My favorite piece has always been “Giant Leaps,” which has yet to get 1,000 reads. Hope you’ll find the time to check it out (warning: it’s long)

  8. Welcome back, I had about given up on you, LOL.

  9. I was wondering where you were. A Chinese friend of mine was on a gold-trading website, so I asked her where they keep the physical gold. She had no idea. When I was at the most famous jewelry, jade, and precious metals store in Beijing (Caibai), they were completely out of anything below 500 grams of silver, and had no idea when they would get anything new in. The physical price was about 10% above the “online” price. It reminded me of your SLV post.

    Why don’t you have a contact page?

  10. Because if I did, people would contact me…..

    Just kidding (sort of). There are sooo many spammers in the blogosphere, you guys just don’t know. NOT having contact info on the blog keeps them a little at bay.

    I contact anyone who asks, as long as they don’t strike me as dangerous.

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