-Jim Sinclair
On May 11 I suggested the ECB would use US Dollar swaps to defend the Euro and squeeze the speculators betting against the European Common Currency. Has this squeeze begun, and for how long can it last?
Currency interventions are almost always unsuccessful in the long wrong. Their impact is generally short and swift, and ONLY buy some time for the currency being defended. Expect the same from this Euro intervention. Unless other nations like Japan, China, and Russia resort to buying the Euro to prop it up can this squeeze gain any traction beyond the short term. They would all have to sell Dollars and buy Euros to have an impact. I can only imagine the line forming to dump Dollar at these prices.
Now let's take a close look at the past couple of days in the Gold market. Recall we expected Gold to drop initially with any drop in the Dollar as the pressure on the Euro was lifted. This certainly has occurred. However, the blatant criminal activity on the CRIMEX that has accompanied the descent in Gold has been not only OBVIOUS, but absolutely absurd.
Below is a chart of Gold for the past three weeks representing the height of the Euro Debt Crisis. Overlayed on this chart in red is the price of the Euro relative to the US Dollar. Clearly, Gold has risen steadily as the Euro has fallen from 1.34. That is until May 14 when the Euro collapsed below 1.25. Strangely, Gold began to fall as the Euro completely fell apart. Why? [The cross hairs on the chart mark this "turning point". Please click on chart to enlarge.]
I don't have an answer, only speculation. My first guess is that the Gold cartel was determined to silence the "canary in the Gold mine" as a continued rapid rise in Gold not only would send the wrong "psychological message" to the public, but it would wipe out a number of the bullion banks hugely short bullion they never owned.
My second guess is that Gold was being sold with other commodities as the Dollar continued to run higher and computer trading algorithms set in motion a dumping of all "commodities" as indexes were rebalanced to compensate for the rising Dollar. [Even though the rising Dollar represented no "value", just a mirror reaction to a crumbling Euro.]
These speculations are both plausible, and we have seen these scenarios many times when Gold threatened to break it's leash and run wild. But how do we explain/understand Gold's performance the past two days in particular?
First, let us note on the chart, Gold relative to the Euro at the time this chart was drawn at 7:30PM est. The Euro is trading at the exact same price now as it was on May 14 at 2AM est., 1.2518. The price of Gold however is significantly lower. On May 14, Gold was trading at 1239.78 vs 1.2518 Euro. And now on May 20, Gold is trading at 1183.60 vs 1.2518 Euro. Gold is trading $56.18 lower today, and the Euro relative to the US Dollar is exactly the same?
Yep, it's right there on the chart, pure, unadulterated price suppression by your US Government backed Gold suppression cabal at the CRIMEX. It's so obvious it all but reaches up off the chart and chokes you. Crime in broad daylight. I would imagine CFTC Chairman Gensler sees nothing, as he is blind as a stump when it comes to the CRIMEX.
To add a little icing on the cake, and broaden the crime being committed, we must take note of the price of Gold calls in the coming May 25th June Gold Options Expiration. This is the real reason the CRIMEX goons are hammering the price of Gold. They have sold far more Gold that they do not own, to cover the demand as the Euro Debt Crisis accelerated, than they could ever hope to deliver if called.
Harvey Organ offered these Gold call position numbers and commentary on his blog Harvey Organ's - The Daily Gold:
In the option department for gold contracts, it is a disaster zone for our cartel members;
In case you hadn't checked yet, the June Options Expiration is coming up next Tuesday, May 25:
price calls
1100 7,105
1150 4,976
1200 18,103 - W-O-W !
1250 4,781
1300 5,306
1400 6,227
1800 5,814 - W-o-w again: at +1800+ !
PLUS +another+ 18,000 (or so, aggregated) from 1155 to 1195.
That sets up a task for the Cartel to take gold down to 1150 if they want to neutralize some 41,000 potential calls for delivery. Alternatively: if they fail, perhaps the melt-up will finally start. High stakes...
This is the reason for gold's relentless hits by our cartel members are they desperately try and shake the gold bugs from taking delivery.
This is very ominous indeed.
http://harveyorgan.blogspot.com/2010/05/may-182010-commentary.html
This is blatant THEFT. There is no other word for it. The Gold cartel willingly sold futures contracts to buyers with no Gold backing them up.
This in and of itself is a crime in any part of society. It's as if I walked up to you on the street as you admired a Lamborghini, and offered to sell it to you because I thought you liked it, but I DON'T OWN THE CAR OR EVEN KNOW THE OWNER. It is against the law to sell something you don't own in probably EVERY corner of the World. It's called FRAUD...except on Wall Street.
Now that the price has risen by as much as $100 an ounce, and these contract holders can now purchase a 100 ounce bar of Gold at a $100 an ounce discount, the Crimex goons are not happy. They want to take their Gold bars they don't own, AND YOUR PROFITS and go home. What a great business!
Can you imagine the losses these goons face if Gold were to close at expiration OVER $1250 an ounce and every one of these contracts stood for delivery? Not only would they have to go into the market and buy the Gold to make delivery, but they'd be paying upwards of $100 an ounce more for it than they "sold" it for when they opened the contract. With the "physical" Gold market tightening by the day, their buying to cover their illegal short would only drive the price of Gold higher [or it should in a real market].
This is why there is a $56 disconnect in the price of Gold vs the Euro this evening. With options expiration looming, and the cartel facing losses in the BILLIONS, a raid on the price of Gold that flies in the face of global financial events today only makes sense in the context of the crime that has been, and is being, committed.
The CFTC is supposed to prevent this sort of market manipulation and theft. It is their JOB to protect investors. What about investors that bet on a rising Gold price, were correct, and now have to watch their profits being stolen from them because the seller can't/won't deliver on his contract with the buyer? We are all witness to this crime. How many times in the past 10 years have we been witness to this crime? How can this government of ours demand justice for terrorists, and ignore justice for investors being terrorized by a criminal Gold cabal operating on Wall Street?
If you need any more proof that there is next to no Gold available in quantity for sale in the world today, look no further than this weeks action at the CRIMEX. Take advantage of these discount prices an snap up any bullion you can find. An explosion in the price of Gold is just up ahead.
Another observation I made today that is a bit befuddling, but understandable when put in the context of the looming June Gold Options Expiration, is Golds reaction to the losses in the equity markets the past three days.
On May 6, the DOW was down almost 1000 points before closing down 347 points on the day. On May 6, in reaction to this carnage in the equities markets, Gold closed up $33 on the day. TODAY, the DOW closed down 376 points, and Gold LOST $14? Say what? Yes, that is a bit odd isn't it? Particularly when you consider todays "shocking" INCREASE in new jobless claims. The difference is easily explained...there was no Gold options expiration looming on May 6.
F***ing CRIMINAL! What more can you say? That's simple...BUY!
Shock increase in US unemployment
Alexandra Frean, US Business Correspondent, Times Online
New claims for unemployment benefit in the US rose unexpectedly last week, leading to fears that the job market could prove one of the biggest barriers to economic recovery.
The US Labor Department said that new jobless claims rose to 471,000 for the week ending May 15, an increase of 25,000 from the previous week’s revised figure of 446,000 and the largest rise in three months.
The four-week moving average of claims was 453,500, an increase of 3,000 from the previous week’s unrevised average of 450,500.
The rise broke a four week run of weekly declines in initial claims and confounded economists polled by Thomson Reuters who had been expecting a slight drop in initial claims to 440,000.
The figures further highlight the fragility of the economic recovery as unemployment, currently running at 9.9 per cent, remains one of the biggest obstacles to a sustained domestic recovery.
Dan Greenhaus, chief economic strategist with the New York research firm Miller Tabak & Co, said that the level of jobless claims was higher than anticipated, given the length of time of the recovery.
“We remain concerned about income growth and stabilisation in the pace of equity market appreciation, both of which are likely to slow the pace of consumption in the coming quarters,” he said.
Ian Shepherdson, chief US economist, described the latest jobless figures as “horrible”.
As the Labor Department said there were no special factors lifting claims, “we are left with the uncomfortable possibility that the trend in claims has not only stopped falling, but may be turning higher”, he said.
http://business.timesonline.co.uk/tol/business/economics/article7132164.ece
THERE IS NO RECOVERY, it all a bald faced lie, and today's claims number is proof. I have not believed for one minute that there was, or has been a recovery. I a very short time I am going to relish the Oracle Of Orwell eating these words: "We avoided a second Great Depression." The again may they did avoid a second Great Depression, only to walk smack into The GREATER Depression. America has been lied to, and boy is she getting pissed!
The Pitchfork Primaries: Will Washington Get the Message?
By David Von Drehle
The kelly green golf course, the limpid lap pool, the khaki slacks and crisp sundresses all seemed to murmur Establishment, but unhappiness is so widespread this year that revolutions are stirring in the strangest places. At a country club in Bowling Green, Ky., a handsome ophthalmologist named Rand Paul lobbed another missile Tuesday night toward the battered fortress of Washington's elite. "I have a message, a message from the Tea Party," Paul announced after crushing the old guard's favored candidate for his state's Republican Senate nomination. "A message that is loud and clear and does not mince words: We have come to take our government back."
Before the votes were counted May 18 in Kentucky, Pennsylvania and Arkansas, a few jaded members of the capital's insider clique — the Permanent Party — still sniffed that they'd heard all this before. In 1994, in 1980, in 1966. Someone's always coming to take the government back. Ho-hum.
But no one was yawning the morning after, as the insistent notes of rebellion throbbed on the hollow drum of official power. The natives are restless. Americans of all persuasions at last agree on something. It is a message to their leaders that starts with F and ends with u.
http://www.time.com/time/politics/article/0,8599,1990574,00.html
The German Government Has Had Enough
Courtesy of Karl Denninger at The Market Ticker
If you thought the German government was going to be a lapdog for Sarcozy, or worse, was going to fellate Brussels and the ECB, you got a rude shock today.
It appears that the German Government has just plain had enough of the crap that the banksters have tried to pull, and has decided to do what Barack Obama should have done in early 2009.That is:
No more naked credit crap, especially against sovereigns but not only against sovereigns. No insurable interest, no CDS - period.
Naked shorting will now be actually stopped in 10 leading financial institutions.
Germany has had it with naked shorting of Gold, and specifically noted bank manipulation of gold prices via naked shorts beyond intent or ability to deliver.
Germany has also said that they're not going to permit Euro derivatives that are not a "bonafide" FX hedge. That is, no more naked bets on Euro movements either.
Hedge funds are going to be regulated, position size limits mandated and enforced, reporting enhanced and a transaction tax is coming.
It's about damn time.Oh, and it appears that instead of telling all the banksters what they were going to do and "getting permission" first, or even discussing it with other governments, the German Government did what all governments should do - make up your mind and then do it without giving a good damn whether the banksters or other governments like it - and without giving them input into the decision or notice that it's coming.
The bid rigging, the game-playing and the rest are all a bunch of crap. I've been hollering about this now for more than three years and yet our governmentspends it's time fellating the bankers and their dogs instead of enforcing the law.It is illegal to defraud people.It is illegal to rig markets, including the massive bid-rigging that I wrote about this morning, the Jefferson County Alabama scam and dozens if not hundreds more - all committed, it is alleged (and in some cases proved) by the major banks.It is illegal to short stocks with no intention or ability to deliver.And it is illegal to bribe government officials, no matter how you accomplish it.These are not "isolated incidents" or even a pattern of conduct - as the bid-rigging report this morning makes clear ripping people off has become an institutionalized practice and policy throughout the entire banking system.Many said that the Germans were not "really" arm-twisted by Sarcozy and the French Banking interests a week or so back. I think we can put that to rest here and now, as it's pretty clear that the truth is something else entirely.
Now Barack, about your willingness to get up off your knees and kick these banksters in the nuts?Better late than never.
http://www.themarketguardian.com/2010/05/the-german-government-has-had-enough/
I just learned that my US Senator, Kay Hagan [D-NC] voted against the Vitter Amendment in the Senate to Audit the Fed. I'd like to share the letter I sent to her in regard to her failure to uphold her oath of office:
Senator Hagan,
It came to my attention today that you chose to vote against the Vitter Amendment to audit the Federal Reserve. How unfortunate for America.
As a Senator in the US Government you have taken an oath of office to uphold and protect the US Constitution. By voting against the Vitter Amendment you stand derelict in your duties as a US Senator and in direct conflict with the wishes of the overwhelming majority of the public, not to mention 2/3 of US Congressman that support Congresman Ron Paul's seperate audit the Fed bill.
The US Federal Reserve by itself is an unconstitutional entity. Nowhere in the Constitution are there provisions for a "private central bank" to control the money supply of the United States. In fact, the Constitution is clear in demanding that ALL of the nation's money is to be backed by Gold and Silver. The Federal Reserve notes we pretend are money today are nothing more than colored pieces of paper representing US Government DEBT, and it's promise to repay.
By voting no you show your support for an un-Constitutional Federal Reserve shaded in secrecy. The agency will be allowed to continue printing money at will without Congressional oversight, distribute the money to its friends and withhold it from its enemies, and do so at the whims of a very small group of people. This is so very dangerous it simply baffles me any Senator could vote against. But like Ron Paul says - the government could not spend money at will (i.e. get re-elected) or fight oil wars or run up the deficit if it was not for the ability of the Federal Reserve to print un-Constitutional money.
As America falls further into the sink-hole of her $13 TRILLION and growing DEBT, you can look in the mirror each morning and see someone who supports the destruction of her Country. Your no vote on the Vitter Amendment means a continuation of fiat American currency. It means a continuation of members of Congress to disavow their oaths of office to uphold the Constitution and hard money (based on gold and silver). Therefore, it will lead to devaluation of the U.S. dollar, higher inflation, a currency crisis, and a huge runup in gold prices.
Your no vote on the Vitter Amendment vote is a sad indication of what is ahead for America - a loss of sovereignty, and a devaluation of our currency. Keep your head stuck in the sand, in time you will be held accountable for your inaction on this crucial issue of auditing the US Federal Reserve...the real root of all the financial ills in America [and the World] today.
God Bless Anerica,
-greg maurer
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