How is this even legal? That's a serious question and I'd like a serious answer after the you read what is presented below.
Immediately following the short squeeze in mid-May that resulted in a 10% price move in just five days, the "Large Specs" in silver set out to rebuild (or were tricked into rebuilding) a massive naked short position in Comex silver. As you can see on the chart below, over the past five weeks, these Large Specs have added 41,806 gross naked short contracts to their accumulated position. This drove their total reported position up from 16,891 contracts on May 19 to last Tuesday's 58,697 and is the sole, primary reason for silver falling by $2 over the same time period.
Click through for the full post. Worth a read. It's mind blowing what is going on in silver on the Comex.
June 27 – (King World News) – Investors are obsessed over predicting the timing of the Fed’s first interest rate hike. Will the Fed raise the Fed funds rate in September, or wait until next year? But it is far more important to get a grasp on the pace of rate hikes. Will it be a one and done move, or does this mark the beginning of an incremental tightening cycle? Those of us who are not in the inner circle are forced to speculate….
This coming week could be very telling. China just ended a disastrous week and finished just whiskers away from entering bear market (-20%) territory http://www.zerohedge.com/news/2015-06-27/chinas-370-billion-margin-call. Credit markets all over the world are weakening and yields are rising. Greece will not make their June 30 payment(s) and probably go through a referendum to decide whether or not to flip their creditors the bird in a meaningless vote. In fact, Greece will probably "go boom" this week. Their banks and stock markets may not open Monday morning http://www.zerohedge.com/news/2015-06-27/greek-stock-market-may-not-open-monday-greek-officials-warn. Two days later, some sort of plan will need to be concocted to classify their bankruptcy as not a "DEFAULT", otherwise a $3 trillion fuse to a $1.4 quadrillion bomb will be lit! These and more will be very important "mid-term exams", any failure will bleed over into derivatives and become "final and terminal exams" with zero chance of a passing grade! ..
Money manager Michael Pento thinks the Greek debt crisis is small when you consider the enormously leveraged global economy. Pento contends, “That’s why I consider Greece as more of a distraction. It’s a small piece to the puzzle. You look at debt that extends all across the planet, every asset on the planet is in a bubble. China is in a bubble. Japan is in a bubble. Europe is in a bubble. The United States is in bubble. That’s not just stocks. It’s bonds. It’s real estate. It’s diamonds. It’s art. Look, China fell 7 ½ % overnight because every housewife and widow in China opened up a margin account, and now, they are wiped out. The market in China is down 18% in the last week alone, and it’s got a lot more to fall. Who is there to support that? This is where the rubber meets the road. Don’t worry because central banks have our backs. When has that been the case? A central bank can monetize unlimited amounts of debt and destroy the currency. It creates money out of thin air at infinitum without any consequences. When has that ever been the case? I am telling you right now, if the Federal Reserve doesn’t get off its ass and start raising interest rates, the free market is going to do it for them. That’s what is happening today. You see the 10-year Treasury is at 2.47% and rising. . . . You cannot continue to print unlimited amounts of money and have everything be quiescent. It is going to come back and bite investors in the butt shortly.”
Ronni Stoeferle and Mark Valek of Liechtenstein-based asset management company Incrementum AG’s hugely comprehensive annual treatise on gold and all the factors driving the gold market has just been released. As always it is entitled “In Gold We Trust”. This is always perhaps the best available source of information and statistics for gold followers and particularly for those who follow the Austrian School of Economics.
The 2015 edition of the report contains a wealth of insights for all types of investors. It takes a look at the big picture in the financial system, from the point of view of the unusual monetary policies. This is the ninth edition of the report. Below is the executive summary from the report, as well as a link to the report itself to be downloaded or read online:
After the barely averted implosion of the financial system in autumn of 2008, we are now in the seventh year of world-wide central bank experimentation. We have all become guinea pigs of an unprecedented attempt at re-inflation, the outcome of which remains uncertain. Questionable monetary policy ventures like quantitative easing and negative interest rates are a direct consequence of a systemic addiction to inflation.
There weren’t any surprises in the “final” GDP update for Q1. Going back to -0.2%, the same interpretations still apply, especially and including the inventory contribution. Economists and policymakers want to talk particularly about how Q1 is prone to “residual seasonality” but that is missing the bigger part of the problem. Whether Q1 was -0.2% or +2% doesn’t really matter, as what truly makes this a dangerous economic situation is that Q1 and all the prior quarters were not a steady +4%.
To listen to economists today is to suggest that such an expectation amounts to wishful thinking, and that such “normal” growth is no longer. That sentiment may apply, but only to the narrow manner in which orthodox economics can integrate real world factors. In other words, “they” accept that there is something wrong but cannot answer the relevant and primary question as to what that might be.
We have all from time to time tried to help others, friends and family, by pointing them toward reality. For our troubles and efforts we have been viewed as the "squirrely" guy/gal with a tinfoil hat who see’s everything as a conspiracy. We have lost friends and even had family cringe when holiday get togethers were planned because no one wants to be exposed to our "craziness". Worse than any disease or even leprosy, anyone spouting Austrian economics or even "common sense" (almost extinct today) has been shoved into the outcast corner by the mass delusional majority. Over the last few years, "theory after theory" has become fact after FACT after FACT! There can no longer be any question, conspiracy to delude and defraud has run rampant and is a day to day operation in the Western world.
Originally my thought was to write this piece about and around the perfect response, "but you do agree the government is bankrupt, right?". I say this because almost anyone (in the U.S.), no matter what age, sex, religion, race or financial status will generally agree with this. For those who don’t agree, it is better to leave well enough alone, this is a subset living in their own delusional world.
For those who do agree "the government is broke", they are broken down into basic subsets. ...
June 21 – (King World News) – Wall Street carnival barkers are relishing in the fantasy that the economy has finally achieved escape velocity. Therefore, they accept with alacrity that this is the primary reason why interest rates have started to rise. However, the fact still remains that for the first half of 2015 GDP growth will probably be less than 1%….
You have heard the phrase many times "it’s already in the market", meaning if "something" or some sort of event happens it is already factored in to prices. I was overseas last week, travelled much of the week and stayed in a hotel that had only two English speaking channels …one of which was CNBC. I cannot tell you how many talking heads were paraded forth whom all parroted the same pabulum, "a Greek default is already factored in the market". Really? REALLY?
For CNBC or any media outlet to downplay a Greek default is plain evil deceit at its core. We have looked at this many times and from many angles, Greece owes close to 350 billion euros and when the amount of written derivatives are included we are probably talking well over 3 trillion euros! Yes, the talking heads keep saying "much of the Greek debt is now off of the banks balance sheets and is now owned by the ECB itself". Does this make it any better? Or could it make the situation even worse because now a central bank has its balance sheet in peril and exposed?
The current situation is Greece is coming down to the wire, with Greece having less than 15 days to pay more than $1 billion in debt repayments to its international creditors. The prospect of a Greece default has led European leaders to prepare contingency plans and US officials saying their country should do the same. A major puzzle piece to the eurozone project, Greece, is on the precipice of becoming a poor country to the eurozone’s south.
Opinion in Greece is split. The Bank of Greece has given plenty of warning about the reality of default, while parliament’s speaker Zoe Konstantopoulou of the Syriza party published a report from the “Debt Truth Committee” saying that Greece’s debt is “odious” and should not be repaid:
By my reckoning, roughly 60% of the civilian work force is fully employed and 40% aremarginally employed or unemployed.
Officially, the unemployment rate in the U.S. is 5.6%, meaning 5.6% of the work force is temporarily out of a job and actively seeking another one. This low number reflects nearly full employment, as 3% to 4% of the work force is typically in the process of quitting/being laid off and finding another job. Typically, periods of nearly full employment are economically good times, as household income is bolstered and employers have to pay a bit more to hire workers when the labor market is tight.
But these do not feel like good times for most households, despite the low unemployment rate. Earnings are stagnant for 90% of the work force, and employers are only paying a competitive premium for workers in very select fields (programmers adept at Python and mobile user interfaces, etc.)
Bankoff: That’s a very interesting question, Koos, thanks for asking me. This is a very wide subject that could take us a whole night of discussion so I’ll keep it simple. The HFTs, or also called algos, are very popular recently and their influence of the markets is becoming
Increasingly strong. Basically, these are computer programs that operate at a very high frequency – they take a few hundred trades a second and thus create big sharp spikes or selloffs that usually happen so fast that no human brain can react to it. What they usually do is hunt for stops on both sides below support and above resistance. For this behavior of them, the traders observing the market have the impression that it is rigged or manipulated and they’re not far from the truth – they’re programmed to screw the traders. So if we talk about manipulation we should talk about algos.
Click through for the full interview and his answer on whether the gold market is manipulated or not.
“Gold has worked down from Alexander's time. When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory.”
Bernard M. Baruch
I thought this was interesting, particularly given the source of the interview at Bloomberg News.
It is short and so a little bit of a light touch perhaps, but a nice overview nonetheless.
One little point of fact I would raise is that the comparison of China M2 and the US M2 is not the whole story. Since China is not a particularly international currency their M2 is probably a significant subset of their overall issuance.
But in the case of the US, M2 does not account for 'eurodollars', which the Fed intentionally stopped tracking some years ago 'to save money' and thereby stopped issuing M3 figures. This is a significant factor for the world's reserve currency as you might imagine, and a glaring omission in the validityof the comparison.
A key factor would be their price peg mechanism vis a vis the dollar, and any redeemability features.
They must approach this carefully, because the Anglo-American Banks and Funds will be ...
Everything in this country is becoming Third World – nothing functions anymore. – Dr. Paul Craig Roberts, Shadow of Truth, in reference to the completely rigged financial markets and failed democracy in the United States
Based on the reaction tonight by the stock market futures to the EU/Greek situation – the S&P 500 futures are down 25 pts/1.2% – I would hazard the opinion that the zombies on CNBC were slighly off-base when they asserted last week that a Greek default was already “priced into the market.”
This idiocy displayed on CNBC is emblematic of the extreme degree to which propaganda has infected our media. But it also highlights the degree to which the American public has willingly turned a blind eye to the Orwellian fog that has completely enveloped our system.
A perfect example of a dysfunctional financial market is the Comex silver market.
I have never done anything like this before. Ever since I started The Economic Collapse Blog in late 2009, I have never issued any kind of “red alert” for any specific period of time. As an attorney, I was trained to be level-headed and to only come to conclusions that were warranted by the evidence. So this is not something that I am doing lightly. Based on information that I have received, things that I have been told, and thousands of hours of research that have gone into the publication of more than 1,300 articles about our ongoing economic collapse, I have come to the conclusion that a major financial collapse is imminent. Therefore, I am issuing a RED ALERT for the last six months of 2015.
To clarify, when I say “imminent” I do not mean that it will happen within the next 48 hours. And I am not saying that our problems will be “over” once we get to the end of 2015. In fact, I believe that the truth is that our problems will only be just beginning as we enter 2016. ...
Richard Russell: "Of everything I read there is one item that bothers me, it’s the newsletter by John Williams titled Shadow Government Statistics. But strangely, I never see him quoted. Here’s what he says in his latest mailing:
"Broad outlook is unchanged: economy remains in downturn. Dollar faces massive decline with ongoing implications for a hyperinflation crisis. The US economy remains in ongoing downturn, while the US dollar faces a massive decline, with implications for a meaningful upturn in inflation evolving into a great hyperinflationary crisis. Signs of systemic instability are increasing anew."
Williams' report is based on cutting through the government and Federal Reserve propaganda and giving us the real facts. Williams believes that the US never grew out of the great recession and is still in recession.
The question I ask is why nobody is quoting Williams on the economy ...
We are moving toward government by sheer force. This is the third and final stage of government as identified by Thomas Jefferson. Traditionally, government begins to lose power and as it does, it tightens the noose around the economy. FATCA is the classic example of the final stage – Government by Force. There is never the realization that the best means to govern the people is by reward the same as you train a dog or a fish to do tricks. If you train by force (punishment) you end up with the animal eating the trainer and in human terms that is civil unrest or revolution.
“Societies exist under three forms sufficiently distinguishable.
1)Without government, as among our Indians. 2)Under governments wherein the will of every one has a just influence, as is the case in England in a slight degree, and in our states in a great one. 3)Under governments of force: as is the case in all other monarchies and in most of the other republics.
After six years of creating an ocean of fiat money, it’s incredible, but now we learn that the US economy is again near recession. The Fed is intent on raising rates, but raising rates in a weak economy would almost guarantee trouble.
Thus the fed has backed itself into a corner. They misjudged the healthy instincts of the American people: the retail public has turned to saving and getting rid of debt. Meanwhile, stock valuations are part of the reality. What I’m afraid of, or what I foresee, is a huge crash followed by a relentless bear market.
Rick Rule: “Gold is already in a bull market in every currency except the U.S. dollar. The U.S. dollar hegemony is more due to the fact that there is a lack of fiat competition among other currencies then an underlying strength in the U.S. dollar. In that sense the gold market reminds me very much of the gold market that existed in 2000 – 2001….
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Edward Griffin, author of “The Creature from Jekyll Island,” says the global monetary system is out of control. Griffin contends, “There is nothing that can be done about it. This thing is a runaway machine. I would feel much better if these political figures would say hey, this is out of our control right now. We need a substantial change in the system. . . . We need more honesty. People have to stand up and say we are in for a tough time. There is no easy way out of this. We are in for a tough time. Hang on to your seatbelts. We are coming into the rapids now. We need that kind of honesty, but we are not getting it because most of these guys and gals in Washington are thinking well, it’s going to be bad, but at least I’m in a good spot. They are more worried about themselves and their families than they are worried about the nation.”
This is a great interview with Edward Griffin. Be sure you click through for the full thing and video.
The truth is, the Fed is in a bind. And it has been for much of the past seven years. Houdini would need help getting out of this straight jacket.
Here’s the predicament:
Despite historically low interest rates for a monumentally long period of time, the US economy is still growing — at best — only modestly. Even quantitative easing, the central bank’s bold and dangerous money-printing operation, couldn’t get the economy to kick into a higher gear.
The Fed could leave interest rates near zero forever, except that it is creating a massive amount of income dislocation. Americans who rely on income from their savings accounts — and have been getting none for a long time — have had to cut back. And this has hurt the economy.
By Greg Hunter’s USAWatchdog.com (Early Sunday Release)
Macroeconomist Gordon Long says elite bankers want and need negative interest rates. How do they get them? Long says, “We need a cashless society in order to get negative interest rates. We have had negative real interest rates for some time. That’s the whole premise of paying down the government debt by effectively debasing it. But we have run up against a wall, and we have run up against that wall. Clearly, quantitative easing isn’t working.”
John Embry, Senior Investment Strategist at Sprott Asset Management, says there is no doubt another financial calamity is coming. In fact, Embry says, “It’s unavoidable. It’s inevitable is the word I would use. There is no getting out of it. If you thought 2008 was bad, and I thought it was terrible, this time, there is no ammunition left. You can’t take interest rates any lower. All you can do is print even more money. That really didn’t work the last time. The safety nets are largely gone if we do run into something untoward, and it could be fairly soon. I don’t think there is really anything left to stave it off. I don’t think they will refuel the period from 2015 to 2020 like they did after 2008. I think it will be much uglier than that.”
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