Written by Jeff Nielson Thursday, 26 September 2013 12:43
When the world’s largest commodity futures “regulator” releases the results of a five-year probe; one expects to see a detailed, thorough, and well-reasoned analysis. What we see instead is a pathetic exercise in pseudo-logic – which could have been written in its entirety in a single afternoon. “Shallow” cannot begin to describe the lack of depth in this probe.
Indeed, one would not even attempt such a vacuous non-response to the question/issue of silver manipulation unless they were absolutely certain that their findings would not be questioned in the slightest – as poking holes in this drivel is proverbial “child’s play.” Thus in releasing such a farcical probe, this directly implies a totally corrupt (Corporate) media – one which only parrots, never questions.
Fortunately the CFTC has been kind of enough to place all of its pseudo-reasoning in bullet-point form, saving readers precious minutes of their lives which they would have otherwise wasted in going through its drivel line-by-line in order to expose this Big Lie. This makes the task of analysis simple: list these bogus arguments, expose the gigantic, unstated assumption (and omitted facts) upon which these “reasons” are based – and then translate them back into the Real World.
1) Silver cash and futures prices have risen dramatically between 2005 and 2007, with silver outperforming the gold, platinum and palladium markets, suggesting that silver futures prices are not depressed relative to other metals prices.
2) NYMEX silver futures prices tend to track closely the price of physical silver.
3) Concentration levels for the top four short futures traders in the silver market are comparable to those observed in the gold and copper futures markets, and generally are lower than the levels seen in the platinum and palladium futures markets.
4) The composition of the traders comprising the top four short futures traders, in terms of net positions, change over time. These traders represent a diverse group, and their futures positions are driven by an even more diverse group of customers.
5) There is no observable relationship between short-futures-trader concentration levels and silver prices.
6) There is a slightly positive relationship between the total net position of the large short futures traders and silver prices; this suggests that larger short futures positions are associated with higher, not lower prices.
All of this report is totally and completely predicated upon one, single assumption, with the exception of arguments (2), (3) and (4), which (because of their specific nature) are also based upon separate, false assumptions and missing facts.
The huge assumption upon which the entire CFTC report rests is that the silver market was “normal” at the time it commenced its sham-analysis, a market with supply and demand in balance, and prices in equilibrium. We know that this is an assumption in all of the CFTC’s reasoning, because never once does it attempt to address how its analysis would differ if one did not assume a market in perfect balance.
In fact, at the time the CFTC commenced its examination of the silver market; the silver market represented the most-tortured, perverted commodity market in the history of human commerce: prices near multi-century lows, inventories totally collapsed, near-complete genocide in the silver mining industry.
These fundamentals are so extreme that no “regulator” could possibly fail to be aware of them. Indeed, the CFTC deliberately, cynically chose the absolute lowest point of this multi-century silver trough as the “norm” upon which it bases its entire pseudo-analysis.
Written by Jeff Nielson Monday, 23 September 2013 12:12
Life (these days) as a precious metals commentator is a study in exasperation. Fundamentals mean nothing. What passes for “mainstream analysis” ranges from the merely inane to the totally insane. Financial crime in the sector – officially sanctioned – is rampant.
A particular point of frustration is attempting to dissect the current scenario. Extreme (illegal) price-suppression of precious metals has led to out-of-control demand for bullion in Asia, the near-total destruction of the supply-chain (mining), and (inevitably accompanying that) the decimation of physical inventories of bullion.
As has been explained in several, previous commentaries; the only mechanism for healing these raped markets and re-building the supply chain is higher prices, much higher prices. And it is now very clear that the Banksters will never allow another significant rally in this sector; at least not while they still maintain control of precious metals prices via their paper-fraud markets.
While the divergent Voices within this sector are rarely unanimous about anything; there is consensus here: the current situation “cannot last” for any length of time. However, while this Road to Bullion Default (or Decoupling) appears counter-productive – if not self-destructive – from most perspectives; there is one anomaly which stands in contrast to this.
North American bullion demand (and bullion ownership) has been pushed down into a trough, arguably the lowest trough since right before/during the Crash of ’08. And here, perhaps, we see “method in the madness” of the One Bank.
What if the Banksters simply no longer care what happens in bullion markets next year? All they are concerned about is one variable: minimizing the amount of North American capital (i.e. wealth) stored safely in physical bullion today, in order to maximize the amount of North American wealth being stored in paper today.
Framing the parameters in that manner, a clear strategy emerges: preparations for One (last) Big Steal. The fleecing-to-end-all-fleecings for the flocks of oblivious Western Sheep.
Having herded all this capital into easy-to-steal paper form; we now see the Shepherds pulling out their Shears. As noted in previous commentaries; preparations for another (staged) “crash” couldn’t be more obvious – in both Canada and the United States. Except this time we have “bail ins”: the potential for infinite/unlimited stealing of paper assets.
The fact that B.S. Bernanke, the Boy Who Cried Exit Strategy failed to “pull the trigger” (yet again) on reducing U.S. money-printing – and detonating the crippled U.S. economy – suggests that the Banksters lack the courage to “crash” the U.S. economy (and other Western economies) through blatant, overt action. Rather, the crash and subsequent Shearing will be caused by, and blamed on some exogenous (staged) event.
The one thing we can be certain of is that some sort of “crash event” is inevitable, and coming in the near future. Obviously the One Bank did not go to all the trouble of staging its Cyprus Theft, getting all its Minions in media and government to declare it “a precedent”, inventing “bail-in” frameworks for most (all?) Western economies, and then herding as much of that capital as possible into paper form not to steal it.
With complete certainty that a Big Steal is on the way for most (all?) Western economies, and with it impossible to predict (i.e. guess) what sort of pretext will be used to “justify” all of the stealing-to-come; all this leaves us is trying to narrow down when this crime will take place, and what will be the consequences in the aftermath.