Wednesday, September 28, 2011

Down The Drain: Pulling The Plug On A Failed Fiat Financial System

What I'd like to say about the blatant manipulation of the Precious Markets following the US Federal Reserve's announcement of their inept "Operation Twist" last Wednesday cannot be posted here.  It would be unprofessional, and quite frankly vulgar.  Suffice it to say:

If you had any doubt what-so-ever that the United States of America is about to go down the toilet, abandon those doubts immediately.  What we have witnessed over the past five trading days in the Precious Metals is all the proof you need that the complete destruction of life as we have known it in "the richest nation on earth" is about to forever end. 

When the price of REAL MONEY crumbles, as it has in a global environment of obvious fiat financial failure, the jig is finally up.  Or should I say, "the rig" is finally up.  Folks, the global financial system, with the US Dollar as it's reserve currency, is kaput! 

Globally, the price of REAL MONEY is rising with a in the USA, "fake" REAL MONEY, aka CRIMEX Gold and Silver paper derivatives, are falling like stones in the ocean consumed by imminent fiat financial failure.

As the pathetic banks in the USA and London sell their "claims on REAL MONEY", Asians are standing in line to buy their beloved Precious Metals at STEEP PREMIUM PRICES:

Vietnam gold today stood at a premium of $83.45 to world gold of $1,642.60 (Tuesday $95.96/$1,633.15).

Shanghai gold closed at a premium of $11.87 to world gold of $1,658.05 (Tuesday $9.17/$1,652.30).

Western investors are very distraught, especially if they cling to their charts.  This "fear factor" will no doubt lead to selling on strength – and the criminal CRIMEX shorts are well supplied with ammunition with which to press their current market advantage.  A great deal of physical Precious Metal is likely to change hands in the immediate future as the Eastern buyers take advantage of the pathetic and foolish West.

Ray Charles could see what is going on here as the wealth of the West is transferred to the East courtesy of the criminal CRIMEX bankers and their puppet masters at the Fed, desperate to defend their now quadriplegic fiat financial system.  Now completely paralyzed, the global fiat financial system is on life support, all that is left is for the plug to be mercifully pulled.

Bob Chapman, The International Forecaster
The takedown of gold and silver markets over the past two weeks signified a new milestone in corruption, brazenness, arrogance and it reveals the level of evil control behind our government. This past week, in just one week, saw gold fall almost $200 and silver about $10.00. We have been involved in gold and silver for 53 years and the only event that comes close to this was October 19, 1987, when we witnessed the Bank of England sell down gold $100.00 under the orders of the Fed and the US Treasury, which borrowed the gold from the IMF. That was illegal, but that means little to the Illuminists who do as they please. Today thanks to Ronald Reagan we have the “President’s Working Group on Financial Markets,” which has legitimatized corruption to conform to the Keynesian model of corporatist fascism. After the close on Friday we were informed, that the CME, which controls the Comex, had raised margin requirements on gold by 21%, silver 16% and in copper by 18%. In retrospect it is obvious that many banking insiders and traders knew early in the week that this momentous psychological warfare was going to be unleashed on these markets. Your government definitely rigged these markets. Today in America and many other places as well, crime pays. What has been done to investors over this past week is not only a crime, but also a disgrace to all Americans.

Let us now look at the flipside. All is not lost, because there is a limit to the damage that can be done. The paper attack on gold was concentrated and accomplished by using futures, options and derivatives. Thus far there is no evidence of any major sales of gold or silver. This in the past has generated very short terms of suppression. The fundamentals have not changed one bit and if anything they are stronger than ever. The world is in the midst of financial collapse. It could take a few months to fall or several years. We do not have a presence behind the scenes, but we do know history and we know what these criminals are up too and what the end game is and that is world government. We have to back into time sequence. That has thus far been enough to help us to make excellent calls. The call this time is we are approaching another bottom. A bottom that probably won’t be seen again. Major buyers of gold and silver have to be waiting with open arms for such a great opportunity to purchase both metals at bargain basement prices. There are sovereigns who are loaded with US dollars, who have been waiting for just such an opportunity to sell them into a strong dollar market to purchase inexpensive gold and silver. Today’s market is totally different than the gold and silver markets of just two years ago. Big players are big buyers. Prior to that the opposite was true as sovereigns were sellers year after year, and both were transferred from weak to stronger hands. The monetary and fiscal situations in Europe, the UK and US are in a shambles. The privately owned Federal Reserve, the Bank of England and the European central bank have all lost credibility. Just look at the reception “Operation Twist” received – bonds rose and the stock market was hit by a typhoon. The Fed has lost its credibility in the investment arena worldwide, because of forced compromise to existing problems. The fed simply didn’t have the guts to implement a QE 3. If the Fed is not quickly forthcoming with a new plan the Dow could fall thousands of points. The damage to gold and silver is already in the history books and the turn back up is already taking place. No matter what the powers that be do they cannot for any period of time control gold and silver prices. There are too many buyers who want to dump fiat currencies. Under the circumstances the Twist was the wrong choice at the wrong time. Financial professionals worldwide believe it is a joke. They see the lack of proper action, the activation for events for more damaging then those of 2008 and if something doesn’t happen this week markets and economies are doomed. The elitists knew this and that is why they attacked gold, silver and commodities. This was so investors would think it was a general overall retreat not a reflection of Fed incompetence. Their fall had nothing to do with reality and everything to do with smoke and mirrors. This should not surprise anyone. It has been used over and over again by the gold and silver suppression cartel.

Is it "just a coincidence" that the CFTC "delayed" their vote on position limits just days before this blantant criminal assault on the Precious Metals?

CFTC Provided Temporary "Reporting Relief" for Commodities 4 Days Prior to Beginning of Cartel Silver Raid
From Silver Doctors
4 trading days prior to the beginning of the massive silver raid that took silver down 43% in 3 days for what appears to be the purpose of "solving" JP Morgan's 120 Million ounce naked short silver problem, the CFTC issued a public statement providing temporary relief from reporting requirements on physical commodities for large swaps traders.

Just why exactly did these large commodities traders urgently need to be provided temporary relief from reporting requirements?

CFTC’s Division of Market Oversight Provides Temporary Relief from Large Swaps Trader Reporting for Physical Commodities
Washington, DC – The Commodity Futures Trading Commission’s (Commission’s) Division of Market Oversight (Division) today issued a letter providing temporary relief from the requirements of the Commission’s regulations regarding large trader reporting of physical commodity swaps (§§20.3 and 20.4). Because this is the first time that swaps data is being collected, this temporary relief is intended to provide sufficient time to enable both the industry and the Commission to develop and refine systems and processes that will be able to report these complex transactions.

On July 22, 2011, the Commission published large trader reporting rules for physical commodity swaps and swaptions. The rules require daily reports from clearing organizations, clearing members and swap dealers, and become effective on September 20, 2011. The letter issued today provides temporary relief from reporting, as long as parties are making a good faith attempt to comply with the reporting requirements, until November 21, 2011, for cleared swaps, and January 20, 2012, for uncleared swaps. Upon the conclusion of applicable relief periods, such reporting parties must become fully compliant.

This would appear, on the surface, to be the CFTC giving cover to the criminal CRIMEX bankers to assault the Precious Metals markets in any manner they saw fit, and the CFTC would turn a blind eye to their "activity".

Is JP Morgan Attempting to Extricate Themselves From Short Silver Position Prior to Oct 4th CFTC Meeting?
From Silver Doctors
IF the CFTC are in fact preparing to finally adhere to Frank-Dodd legislation, and enforce strict position limits in silver, JP Morgan would be in a world of hurt (we're talking chapter 7 bankruptcy) had they had to cover their naked short positions at silver prices anywhere near where silver had been trading for all of 2011.

I guess JP Morgan needs two more weeks to work out that problem:

CFTC Pushes Back Position Limits Meeting from Oct 4th to Oct 18th
WASHINGTON—The Commodity Futures Trading Commission has postponed for a second time a vote on new limits to speculation in commodity markets.

The vote, which now won't take place until at least the CFTC's next scheduled meeting on Oct. 18, comes amid much debate about what constitutes excessive speculation and whether speculation is to blame for the high prices in commodity markets.

Congress gave the CFTC expanded powers in last year's Dodd-Frank financial-regulatory law to impose limits on traders' speculative positions in commodity markets with a deadline of January.

The CFTC put forward a proposal in January for position limits on 28 commodities and received 13,000 comments.

The commission also canceled a meeting on position limits scheduled for Sept. 22. CFTC Chairman Gary Gensler has said in the past that he wanted to the five-member commission to vote on the new rule in late September or early October.

The meeting delays along with staff complaints to the CFTC's inspector general about personnel issues suggest the agency is still divided over the measures.

Commissioner Bart Chilton, a supporter of position limits, said he was troubled by the slow pace of implementation. "These limits were supposed to be in place earlier this year," he said in a statement.

I seriously doubt we see a vote on position limits by the CFTC until JP Morgan clears their book, and gives the CFTC the "OK" to proceed with a vote.

From James McShirley on the GATA page at :

Well, here you have it. Yesterday, on the big rally, the gold open interest fell a hefty 16,675 contracts to 464,514, which represents shortcovering by The Gold Cartel forces after they wiped out so many unsuspecting specs, many of whom couldn’t take it anymore. This is nothing more than orchestrated fraud.

The silver market open interest went down just as much in a relative sense. It fell a whopping 4560 contracts to 102,014, which is an open interest of collapsing proportions, more reminiscent of silver around $5 per ounce, not at these levels. The silver open interest high in 2008 was around 178,000 contracts, with a price of silver $10 lower than it is at present.

Surely JP Morgan was in there below $30 buying up all they could, laughing all the way to the bank. Love our fair and free markets!

Yep, it sure looks to me like the CFTC provided cover for JP Morgan and their den of CRIMEX thieves to run roughshod over the Precious Metals markets in an effort to extricate themselves from their plethora of naked, and illegal short positions.

There is no hope for America when this is what is occurring "behind the scenes" as the US Dollar reserve currency fiat financial system collapses...

Ranting Andy: Math 101
September 28, 2011
RANTING ANDY – And the charade goes on….but for how long?

Just a week ago, stock markets were plummeting and Precious Metals soaring due to expectations of plunging economic activity and imminent sovereign debt defaults. The Fed had just revealed that the Emperor truly has no clothes, and hope for a positive Euro debt solution (as if there is one) was rapidly dying.

Then something incredible happened.

The Cartel initiated OPERATION PM ANNIHILATION, making a mockery of whatever shred of reality still remained in the gold and silver markets, and stock markets rocketed upwards. Actually, only the WESTERN stock markets surged, quite ironic given that their balance sheets are dramatically worse than their counterparts in the EAST. Even more ironic is the fact that leading the charge were the very EUROPEAN BANKS closest to extinction. Can you say “dead cat bounce?”

Read More

Why You Should Brave the Gold Market Selloff
By Eric Fry
In the September 19 issue of Barron’s, an interviewer asked James Grant, editor of Grant’s Interest Rate Observer, whether the gold market was in a bubble. Grant replied:

“A bubble is a bull market in which the user of the word ‘bubble’ has not fully participated. You can think of gold as a stock that went from 2 5/8 to 18 in a dozen years. I’m not sure that’s a bubble… What I do think is gold is simply the reciprocal of the world’s faith in the institution of managed currencies. It is one divided by T, where T stands for trust. And trust is a shrinking number and will continue to shrink. Therefore, I am bullish on gold.”


After the Fall: How Far Can Gold and Silver Climb?
By Jeff
The current correction may not be over, and we can count on further pullbacks along the way. But the data here suggest the upside in gold and silver is much bigger than any short-term gyration — or any worry that may accompany it.

I don't know about ya'll, but the past week has been exhausting.  Until the dust settles in this Precious Metals conflagration of TRUTH AND REAL MONEY vs FAKE Real Money and DECEIT, I intend to rest.  See you here next week.  Accept this gift of cheaper REAL MONEY from the fools on Wall Street with an open check book.

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