It couldn’t be more obvious. Someone or some group is manipulating the gold (and silver) market in an effort to keep gold below the new “line in the sand” at $1,775 (and Silver at $35). Jim Sinclair said yesterday:
There were three body blocks today at cash gold $1775. Some political party does not want a run to $1900 plus going into the election. With this clear intention to hold the line, $1775 gains significance as a manipulator’s line in the sand. Gold and the euro are holding hands in the same direction.
Ted Butler, Ed Steer and Bix Weir are certain it’s JP Morgan. Butler says:
In percentage terms…and on a net basis…the ‘Big 4′ are short 37.1% of the Comex futures market in gold…and the ’5 through 8′ are short another 13.2 percentage points. Add it all up, and the ‘Big 8′ are short 50.3% of the entire Comex futures market…almost as bad as their collective short position in silver, which is 54.7 million ounces. How obscene and grotesque can you get?
Through all of this…the regulators and your precious metal companies…see nothing, say nothing…and do nothing!
Trader David R laughs and says it’s the Mega-Hedge Funds and the Algos.
Richard Russell says, “It should be remembered that what we are seeing is no normal Fed manipulation of the market.” Russell has finally come around to admit that the markets are manipulated. He also points out that if Romney were to win the election, he would can Bernanke, so Ben is doing whatever it takes to help Obama win a second term.
According to Occam’s Razor, “Other things being equal, a simpler explanation is better than a more complex one.” Which of the above viewpoints best fits Occam’s Razor? I think I’ll go along with Jim Sinclair and lay the blame at the feet of the Federal Reserve and the US Treasury. That still leaves room for the JP Morgan gang, since JP Morgan is the “government’s bank” and it only makes sense that they would be involved in carrying out their policies.
The most critical thing for the Fed and Treasury to control is the perception that the U.S. dollar is a “safe” store of value. How else can we expect to sell over one trillion dollars worth of bonds every year to fund our deficit? How else can we expect the Chinese and all of the other foreign banks and treasuries to hold dollar-denominated bonds?
There are already massive pressures building against the dollar. China, India, Russia and a host of other countries have signed contracts to trade with each other in their own currencies and gold and bypass the dollar. Gold is at or very close to all-time highs in the Rupee and the Euro and is signaling that it is a safer and smarter alternative to the dollar. If gold were allowed to cruise past $2,000, the pressure on the dollar would intensify and that would be bad news for Obama and the Democrats, especially with the election less than a month away. Kill the messenger! Stop gold from rising and signaling that inflation is roaring.
Hey, if they stoop to falsifying the latest employment numbers, and yesterday there were several articles in this newsletter that discussed it, why wouldn’t they also sit on the precious metals price? Of course they would.
In today’s full newsletter, there is an excellent essay by Paul Craig Roberts, writing for The Trends Journal, that lays bare the government’s manipulations. (Paul Craig Roberts is an American economist and a columnist for Creators Syndicate. He served as an Assistant Secretary of the Treasury in the Reagan Administration earning fame as a co-founder of Reaganomics.) It is a very small step from manipulating financial numbers and statistics to manipulating the price of gold and silver to further the “illusion” that the dollar is strong and inflation is at bay.
Once the markets decide that inflation is a threat, interest rates will rise and that is when the music stops in our game of financial musical chairs. It will happen soon enough, but TPTB will do everything necessary to see that it is after the election.
So, my vote for the most likely candidate in the gold and silver manipulation conversation is – our current administration via the Treasury, the Fed with help from their banker, JP Morgan.
Don’t miss The Trends Journal’s Fourth Quarter Report. It is long – some 48 pages, and it’s really good. Along with John Williams Shadowstats, The Trends Journal is a publication that I urge all of our readers to subscribe to. These two publications will set you straight when it comes to honest reporting on the economy, inflation, employment and in the case of Gerald Celente’s The Trends Journal, the next four years, which will be very difficult. In fact, Celente expects a World War and a Hyperinflationary Great Depression. So, I suggest that you sit down, have a stiff drink or two and read ALL of his latest forecasts. They make a lot of sense to me and his track record is outstanding.
And while you’re at it, be sure and read Rick Ackerman’s essay A Dark Vision of Things to Come. It is even direr than Celente’s.