Many of us are still sorting through the data to try and figure out what happened, but there was always little doubt in my mind that the recent 'flash crash' in gold was anything but a calculated takedown.
They had been trying to work the price down in stairstep fashion for quite some time. But it just wasn't enough. The pressures were building, and something had to be done. A plan for a market operation was made, and then executed. The word was quietly spread so the important monied interestes would not make a fuss when the time came, as in the case of MF Global and Cyprus.
And then Goldman gave the signal with their 'short gold' call.
As I said at the time, I was not sure if this was done to try and avert some disaster, or to cover up some corruption. Or perhaps a bit of both.
There were rumours of a potential default situation at both the LBMA and the Comex. Well, one has to take those with a skeptical eye.
But here is a report that includes more data and it well worth reading.
It seems that the word has gone out to the media and the stories are being spun to protect the system. And the parrots dutifully pick up the chatter, without knowing why.
The story being spun on Bloomberg today, and which regrettably CFTC Commissioner Bart Chilton seemed to go ...