Showing posts with label gold manipulation. Show all posts
Showing posts with label gold manipulation. Show all posts

10 May 2023

Stocks and Precious Metals Charts - Currency Wars

 

"We looked into the abyss if the gold price rose further.  A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.  Therefore at any price, at any cost, the central banks had to quell the gold price, manage it.  It was very difficult to get the gold price under control but we have now succeeded.  The US Fed was very active in getting the gold price down.  So was the U.K."

Edward 'Steady Eddie' George, Governor Bank of England 1993-2003, from Reg Howe v. BIS, JPM et al.

"The general hypothesis I have put forward over a period of time at this café is that with the spike in the price of gold up to $1900, the central banks of the West became greatly concerned, and opted for a lower price, and a more orderly rise.   And so the price of gold was smacked down into a trading range between $1540 and $1780 through the various price and market operations of some central and bullion banks in what we can think of as a gold pool.

As you may recall, the great sea change was that central banks turned from being net sellers to net buyers of gold, slowly over a ten year period from 2000-2010 approximately.   This change of policy was not uniform, but driven largely from the emerging and re-emerging nations.  It ought not to surprise us.  No fiat currency has survived for so long in historical terms, and even fewer as the world's reserve currency, unless backed by an unassailable empire.  They will fall to Triffin's Dilemma, and the decay of power to self-serving and short-sighted corruption.

Forces similar to those that are working against the EU monetary union, without a comprehensive political union, are working against the dollar global reserve currency, on a much larger and slower paced scale.  This is why a global currency issued and controlled by one central entity tends to presume (and aspire to) a one world governance, or at least a cohesive governance of a rather large piece of it. It is not incidental to their financial goals.

The gold pool can rehypothecate and leverage physical gold by multiples into paper, and outright create it with naked short selling.  And they can sell this paper in bulk at whatever they wish in the markets which they control.  And they can use positional advantage and their media to bully boy anyone who dares to question this into silence.  But they cannot print gold bullion and deliver it to Asia (et al.), which quite frankly does not care what they say.

In general this is what is referred to at the divergence between the paper and physical gold markets.   It is what happens when 'semi-official' forces endeavor to set an artificially low price in a market that involves some physical commodity which is in a somewhat limited supply.   It tends to become more limited as a result.

But the supply of paper gold is not limited in the short term, especially where things like position limits and leverage are given the wink and a nod behind a wall of opaque obfuscation.  

So this is why I think things will unravel in a manner similar to the London Gold Pool's operation which sought to set and maintain an artificially low price.   How exactly this will unravel is a matter of much conjecture.  I doubt it will break at the source of the paper gold, given the power the insiders have over the rules and information there.  Rather, there is more likely to be a strain at some physical delivery source that will cause the current pool to back up the price higher to some more sustainable level.  What that will be I cannot say.

What is driving this current dynamic is what is called the 'currency war,' which is shorthand for a difference of opinion amongst the world powers over the existing global currency trade regime."

Jesse, 22 January 2014

“Crime, once exposed, has no refuge but in audacity.”

Tacitus

"Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."

Alan Greenspan, Congressional Testimony, July 24, 1998

Paper gold is a derivative, an often non-collateralized claim that may not be available from a counterparty in the present moment.  In the NY-London markets gold is estimated to be traded at a leverage of over 100 to 1, with the individual paper chits called gold having a very ephemeral attachment to any underlying physical bullion, bearing a significant burden of unallocated risk.

As noted fund manager Kyle Bass observed, 'The [gold] exchange is a fractional reserve exchange, and they think that price will solve everything.'

By its very nature a fiat currency is a projection of political and economic force.  And as it expands beyond reasonable bounds, confidence and volition may waver, and force and fraud and compulsion will increase.

False flags of war can be economic policy (too often a euphemism for greed and lust for power) as well as diplomacy by other means.

Sometimes when things are happening that don't seem to make sense, it may be a lack of a general understanding of the bigger picture, the players and the issues and motivations behind the scenes, that is the cause of our confusion.

And often normal, hard-working human beings are not able to fully comprehend the sort of petty vanity and greed that motivates the hubris of prominent servants of the darkness of the world.

Stocks were rallying for whatever rationale this morning after a fairly predictable consumer price dataset this morning.

The Dollar plunged on the news as you can see from the first chart below.

Sometimes looking at things cross markets is the only way to see what is happening.

Producer price index tomorrow.

There are geopolitical flash points are the world, any of which could provoke a serious exogenous event effect on the world financial markets.

Some of this may be by intent.  But most often it can be explained by pride, greed, and lack of foresight, which are often close companions in human political arenas and worldly affairs.

For we wrestle not against flesh and blood alone, but against principalities and powers, and the rulers of darkness of this world, and wickedness in high places.

Recklessly wicked and destructive things, which the normal human being finds it almost inconceivable to consider.

Have a pleasant evening.



15 September 2022

Stocks and Precious Metals Charts - Our Lady of Sorrows - Quad Witch Expiration Tomorrow

 

"The child’s father and mother were amazed at what was said about him; and Simeon blessed them and said to Mary his mother, 'Behold, this child is destined for the fall and rise of many in Israel, and to be a sign that will be opposed, and a sword will pierce your own soul, so that the thoughts of many hearts may be revealed.”

Luke 2:33-35


"When Jesus saw his mother, and the disciple whom he loved standing near, he said, 'Woman, behold, your son.'  Then he said to his disciple, 'Behold, your mother.'  And from that moment the disciple took her into his home."

John 19:26-27


"When they had seen him, they spread the word concerning what had been told them about this child, and all who heard it were amazed at what the shepherds said to them.  And Mary treasured up all these things, and pondered them in her heart."

Luke 2:17-19


"And a great sign appeared in heaven: a woman clothed in the sun, with the moon under her feet and a crown of twelve stars on her head."

Revelation 12:1


“Simon, Simon, behold, Satan demanded to sift all of you like wheat.  But I have prayed that your own faith may not fail.  And once you have returned to faith, you must strengthen your brothers.”

Luke 22:31-32

The Dollar and VIX chopped sideways and were essentially unchanged.

The spokesmodels were talking up 'King Dollar' with pom-poms flashing.  Sis boom bah.

Stocks declined quite a bit but came back from the selling pressure in the last half hour.

Gold and silver were slammed.

What a surprise.

Tomorrow must be a major stock option expiration and rebalancing, aka a 'quad witch.'

Lawless, with little to no consequences.

Fedex withdrew their 2023 earnings forecast in an early announcement after the bell and was knocked down 11%.  Ouch.

Have a pleasant evening.



03 August 2022

Stocks and Precious Metals Charts - La Belle Aurore - We'll Always Have Paris

 

"You might think that parking your money in a big bank like JP Morgan Chase would insulate you from fraud.  It’s just the opposite.  The big banks are the biggest perpetrators of financial fraud – fraud that affects millions of us, either directly or indirectly, on an ongoing basis.  While they are wrist slaps when properly scaled, you can see the list of 'settlements' made between the government and the big banks here.  These 'settlements,' the aftermath of Wall Street's near production of a second Great Depression, entailed not a single criminal indictment.  The top two repositories of banksters, based on the number of settlements, are Bank of America and JP Morgan Chase.

The banks engage in fraud for two reasons.  First, they profit from swindling the public.  Second, they can get away with it via a simple technique.  They buy off the regulators with promises of enormously lucrative jobs when they leave government service, and they buy off the politicians with huge direct and indirect campaign contributions."

Laurence Kotlikoff, When Banksters Buy Regulators and Prosecutors, Forbes, October 21, 2014


"It’s bad enough that two trial lawyers have written a book [cited above] comparing Dimon’s leadership of the bank to the Gambino crime family, and Bloomberg News spilling the secrets coming out of the Chicago precious metals trial, but now Dimon is likely to see new headlines linking his name to questionable payments to Tony Blair and unknown others."

Pam and Russ Martens, JPM Whistleblower Cites Payments to Tony Blair, Wall Street on Parade, August 3, 2022


“Berlin.  I used to love this old city.  But that was before it had caught sight of its own reflection and taken to wearing corsets laced so tight that it could hardly breathe.  I loved the easy, carefree philosophies, the cheap jazz, the vulgar cabarets and all of the other cultural excesses that characterized the Weimar years, and made Berlin seem like one of the most exciting cities in the world.”

Philip Kerr, Berlin Noir: March Violets


“We'll always have Paris.”

Howard Koch, screenwriter, Casablanca

 

Stocks were in risk on mode today, for whatever reason one wishes to imagine in order to rationalize its irrationality.

The Dollar was up marginally.

Gold and silver were hit lower again as is customary ahead of a non-farm payrolls report.

The amount of criminality and corruption in the US financial system should never be underestimated.

Why the American people allow themselves to be so easily distracted by divisive social controversies while being robbed blind by the kleptocracy is almost amazing.  

But there is historical precedent.  We know it, but we just cannot see it in ourselves, yet.

We are canning tomatoes tonight, and I did the blanching and peeling on eight quarts of San Marzanos.

Even with all the lack of rain, a proper drought in the past month, the garden is doing very well.

I have a huge pot of green beans that I am making 'West Virginia style.'  My wife's maternal grandmother was from there and she always called them that.    

Basically you fry bacon and saute an onion in a big pot and then steam the green beans down into them all, cooking out the liquid so that the beans are sauteed as well.   Its very good especially if you have more mature beans that are not suitable for steaming.  Try to pull off the strings before cooking.

My mind kept returning to Paris today.   The last time I was there was in 1992, when I was attending a graduate business seminar at ESSEC concerning the proposed European Union.  I think the slogan at the time was 'EU 92.'

The queen was tagging along on this trip and had a grand time, although she never went on a business trip again with me, as leaving the newly born young man with her parents was jarring for her.

Daisy gave the young man his first face licks today  He was beaming.

Have a pleasant evening.


12 January 2022

Stocks and Precious Metals Charts - Credibility Trap de Luxe - Are You Not Entertained?

 

"The central bank gold lending market, centered in London, is probably the most secretive financial market in the world, with very little known about its transactions and market structure.  The gold lending market’s opacity is further supported by regulators who protect the secrecy of the central banks, and mainstream financial news agencies whose editorial policies seem to forbid any market investigations, in-depth or otherwise.

It is in the gold lending market that the central banks of the world lend out their gold holdings to commercial bullion banks, where the physical gold is sold and shipped out, and where the central banks then claim to hold interest-earning ‘gold deposits’ with the bullion banks.  These gold-deposits (which are merely a claim on a bullion bank) then mostly roll over short-term, passed around indefinitely between the clubby LBMA cartel of bullion banks, in a totally opaque behind the scenes network. 

The physical gold bars lent out are long gone to Switzerland and the Far East, and the central banks then deceptively claim that they still hold the gold on their balance sheets when in fact all they have is a liability to the bullion banks.   In the middle of this market sits the Bank of England, offering gold custody and storage to other central banks (in the vaults under the Bank of England headquarters in London) and offering gold accounts to the bullion banks concerned." 

Ronan Manly, French central bank and JP Morgan team up to boost Gold Lending 

 

“If you shut up truth and bury it under the ground, it will but grow, and gather to itself such explosive power that the day it bursts through it will blow up everything in its way.” 

Émile Zola

 

"We looked into the abyss if the gold price rose further.  A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.   Therefore at any price, at any cost, the central banks had to quell the gold price, manage it.   It was very difficult to get the gold price under control but we have now succeeded.  The US Fed was very active in getting the gold price down.   So was the U.K." 

Sir Edward George, Governor Bank of England in conversation with Nicholas J. Morrell, of Lonmin Plc, 1999

 

"What is offensive is that they lie, and worship their own lying." 

Fyodor Dostoevsky, Crime and Punishment

 

The Dollar took a dive today, and lost its grip on the 94 handle.

Gold and silver rallied.

Stocks managed to edge higher in another volatile day.

The VIX dropped.

The mispricing of risk is profound.

Few people love the truth and are willing to serve it.  It has no place in their hearts.

They serve false gods, con men, and themselves, and live in fantasies of superior knowledge and power.

They may become a narcissist, or the banal follower of narcissists.

In any case they have no love in them, no way to love or be loved.

Pride and passionate distractions fill their silence and fragile emptiness.

And it seems that there is little we can do for them except to pray. 

Have a pleasant evening.


 


 


04 June 2021

Stocks and Precious Metals Charts - Jobs Lite - Markets Rebounding on Hopes for Continuing Fed Dovishness

 

The Jobs Report came in significantly weaker than expected, and certainly well short of the expansion implied by the ADP Report.

But the BLS reports are a funny old thing.

And so stocks and the Metals rebounded sharply, and the Dollar took a give back towards the 90 handle.

I really do not have a feel for the metals here, and am sticking with the sidelines for now.

They are attempting to break out, but are meeting some stubborn resistance.

It appears that JPM is in the middle of this.

Have a pleasant weekend.