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Ed Zimmer
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Ed is a graduate of The School of the Ozarks (now known as College of the Ozarks) in Southwest Missouri. He spent 14 years in broadcast news in the Midwest covering, among other things, commodities. He is currently manager of a healthcare support facility doing over two million dollars a year in... More
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  • US Credit LImit Exceeded (What, you didn't hear about it?)
       Apparently the only thing the government has to worry about when it exceedes the statutory limit on it's debt, is keeping it out of the Main Stream Media.    US Government Debt exceeded the statutory limit on November 30th, reaching 12.113 trillion dollars and some change (measured at about 43 million plus dollars, but no one's counting anyway).   Since the limit was 12.101 trillion, it should have triggered a shutdown of government spending.   But Wait, There's more!

      The last time we got near the limit, there was a slew of news stories, virtually hour by hour coverage because the government was not going to continue to spend over the limit.    Democrats and Republicans were at each others throats trying to avert a shutdown.   Doom and Gloom were rampant!      This time around, NADA.    No coverage, no commentary, no acknowledgement that the limit had been passed.    Just discussions over reappointing Ben Bernake to continue to destruction of the dollar.     Sure, the debt total dropped the next day below the limit and life goes on as if it never happened.    The government check must have passed the credit limit exceeded notice in the mail.

    Why are we not hearing about the shutdown of the government?  Instead we hear about "repayment of TARP funds".     Of course it could just be that the Treasury Department has decided to ignore the congressional statutory limit and play with the books while keeping a low profile and hope that no one notices.

    Disclosure: Long GLD, SLV, physical metals, retirement accounts   

    Disclosure: Disclosure: Long GLD, SLV, Physical Metals, retirement accounts
    Dec 03 8:50 AM | Link | Comment!
  • Bah, Humdinger of a deficit!
    The government is pulling out all the stops to avoid reaching the debt ceiling limit until after Congress returns from the Thanksgiving weekend.    Treasury Secretary Timothy Geithner is obviously hoping that with Congressional Fat Cats sated with Turkey, the path of least resistance to raising the debt limit is assured.
    Since January 1st of this year, the Government has added to the overall deficit some 1.3 Trillion dollars according to the Treasury.   Of that amount 1.25 Trillion fell into the Debt Held by the Public category.   Only 60 billion, that’s right, billion with a “B” went into the Intragovernmental Holdings section.   To put it another way, the Government dumped the deficit on the backs of taxpayers.
    95% of the entire deficit added this year was dumped in the taxpayers lap.   That’s the same taxpayer that has seen millions of jobs lost (at a rate of more than 500,000 per month) and millions of those same job seekers go onto extended, extended, extended benefits to keep from having riots in the street as we approach Christmas.
    The Government is spending 100% of the money and taking only 5% of the blame, guess who get’s left holding the bag.
    The Value of the US Dollar meanwhile has fallen from around 85 in value to 75 in just 11 months. That’s a 12 percent drop in value in less than a year!    And Mort Zuckerman is worried about the Fed losing it’s autonomy and triggering a crisis in confidence in the dollar.   What does he call a 12% loss per year with the Fed at the helm?
    The markets are not reacting to profit and loss, trading volume is robotic and the money is headed for precious metals.      We keep pushing the crisis up the hill into the future, but the hill is getting steeper and we are getting progressively weaker.     The government has no ideas for solutions and not stomach to implement them.    The extend and pretend has worked so far, and until it doesn’t, they plan to continue the shell games until the lights go out.
    We raise the deficit ceiling at our own peril, it just prolongs the reckoning a few more months.    There is no telling what will be the triggering event, but this camel is staggering under its load and it can’t take much more.       We do live in a world wide economy and the world is saying that we have a massive problem that we are doing nothing about and they don’t want it either.
    Raising the debt is not the answer.   Cutting benefits, especially at Christmas is political suicide.   Guess which way the politicians are going to roll?     Christmas pudding anyone?

    Nov 25 11:15 AM | Link | Comment!
  • Follow the bouncing silver calls
    Small investors and large speculators decided in droves that the silver price was right for taking profits last week as they corrected their long positions by nearly 10,000 contracts.   They also eliminated short positions to the tune of another five thousand contracts.     Commercial speculators meanwhile added more than three thousand contracts long and cut two thousand from the short side, signaling their belief that there may be more upside than downside to the silver futures market.
    Such optimism however is tempered by the significantly large short position held by the Commercials which grew to 87.9% of all outstanding short positions in the COMEX futures.   That is the largest concentration of short contracts in the past year and a half (for which I have been tracking it) and represents more than 450 million ounces of silver or two thirds of the entire yearly world production of silver.
    Short positions held by the small and large speculators are at their lowest percentage since the summer of 08 when silver prices plummeted.    Prices then were about 18 dollars an ounce, silver was around 17.50 today.
    The small and large speculators getting out of the market could be signaling an expectation that the bubble in commodities is ripe, or they could be getting cold feet, remembering how badly they were burned in the summer of 08 when prices crashed from a high of $19.30 on July 15th to $13.00 just a month later.    Small speculators were especially hit hard and failed to liquidate fast enough to avoid serious losses.     Larger speculators did better, cutting nearly 7,000 long contracts in four weeks.
    If you are comfortable with your position in physicals, sit back and enjoy the ride.   If you don’t have some physical, you might want to take the chance and get some while you can.     If things repeat, you’ll get another chance to buy, but if they don’t, having a bit of silver will put you ahead of those who have none.

    Disclosures: Long GLD, SLV, Physical metals, retirement accounts
    Nov 09 4:27 PM | Link | Comment!
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  • Despite 25% Margin Increases, Silver still a buy. Paper is under $37 but completed auctions say $45-50 per ounce. Do the math
    May 5, 2011
  • Cross Contagion. Areas that are unexpected or little researched. Outcomes that are downplayed when they should have been emphasised
    Mar 17, 2011
  • Silver breached the $30 mark again today, expect margins to be raised in another lame attempt to stop the rise. Darn those specualtors! :)
    Feb 8, 2011
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