Flogging a dead horse - and other methods to keep the $US afloat, page 1

One of the principal ways to make your fiat currency look like it has strength is to depress the gold and silver prices.

Gold and silver are traditionally international currencies - this facet of their nature has been all but destroyed and obfuscated by the 'scum' (NWO). If they can keep gold and silver down, then the fiat currencies look good - and retain purchasing power - when you can print it for basically nothing, you want to maximize its power - especially when you are inflating it out of existence - people might get scared if they see gold and silver soaring like rockets.

Well, the gangsters are at it again, massive shorting in gold and silver today - are they are going to try and dig their way out of their short positions before Sept 30?

So, have the manipulators run out of physical metals to play their game? Only France of all central banks continues to lease or sell gold - all other central banks are now buying. China has a declared appetite for the yellow metal - cant remember the exact number 1,000 to 2,000 tonnes or more.

It looks like they are making a play at the limits and exemptions on gold and silver as well - I have an idea why, and it is NOT a positive outcome I don't think.

For many years, accusations that JPMorgan Chase, Citigroup, Bank of America and Goldman Sachs have wide open and huge, exposed short positions against gold and silver, have been made by groups like GATA and others. In the United States these four banks control over 90% of the derivatives market. They too will be subject to "substantial supervision and regulations," including conservative capital requirements and strong business conduct standards. U.S. Treasury Secretary Timothy Geithner is set to propose giving securities and futures regulators authority to police the over-the-counter derivatives market. Discussions on these regulations begin next week.

Mr. Geithner stated, “Our plan will help prevent market manipulation, fraud and other abuses by providing full information to regulators about activity in the OTC derivative markets.” The Securities and Exchange Commission, which oversees securities, and the Commodity Futures Trading Commission, which supervises futures markets, would have authority to impose recordkeeping and reporting requirements on the derivatives.

Source: news.goldseek.com...

Of course MR Geithner - we believe you! NOOOOOTTT! Who is in charge of the CFTC? Well, Mr. Gary Gensler! An ex-Goldmanite .. of course! He will be impartial and protect the honest investor - and defeat the nasty investment banks - like a white knight! Bah - rubbish. I will believe it when I see it - the gansters are in a deep hole with regard to gold and silver - pressure is on for them to get out.

When trading a commodity, it has a limited number of contracts that can be traded. The idea is that futures traders only get a limited amount of the market they can grab - so they can't control the price. Silver however, has very high limits - and the market is small - in effect is it easy to manipulate even with existing limits (6,000 contracts of 5,000 ounces).

Most commodities generally have a position limit which runs less than one percent of world annual production. ... But not in silver. ... silver is way out of line with all other commodities, ... silver’s accountability limit ranges from being 5.6 times larger than gold to being 64 times larger than crude oil, as a percent of world production.

Source: news.silverseek.com...

The kicker is EXEMPTIONS! Exemptions are extra contracts supposedly granted to investment institutions as a hedge - if they legitimately use the contracts for hedging purposes, and not speculation. Of course - the above mentioned banks all hold very large exemptions - between them they can push the gold and silver market around like you might a coffee cup on your desk.

"Revoking or limiting exemptions for speculators and strong federal position limits for speculation are the kind of actions we are all waiting for," Senator Byron Dorgan, a North Dakota Democrat who voted against Gensler's nomination, said in a statement today.

Its a nice dream - but with a Goldmanite at the helm - can we expect to see a positive change?

So what is the likely reason that limits and exemptions might be meddled with. Well, simply to make it easier for the gangsters to control the play - it is well within the limits of reason that the entire plan is to decrease limits, but INCREASE exemptions - handing over more power to the gangsters.

This means honest traders might find a cut from 6,000 silver contracts down to 1,000 for example - but the investment banks EXEMPTIONS might either stay the same, or be increased - meaning a net improvement in the ability of the investment bank fraudsters to control the metal prices.

The other possibility is this. The metal game is nearly over - they have run out of metal to push gold down, they only have paper - and they need to GET OUT OF THEIR NAKED SHORTS! I like to think of a mental image of naked bankers running down the road waving their shorts over their heads - with me chasing them with a shotgun, occasionally blasting one full of rock salt - thats got to smart.

How would this work - well, if they can cut the limits, but keep exemptions - then they can push the market down so fast than it can't rebound - on the way down stop losses, and margin calls kick in for the long positions - which they buy up to cancel their total short positions.

So they unload many of their short positions at prices they can break even or more likely profit from. The problem is, there are so many contracts it will take ages to pick them all up at a 1,000 limit - keeping the price depressed - while the gansters can start building a net long position.

Anyway - here is the latest action on the COMEX (London is real metal, falls never occur in London). From 9am to 11AM - 10% shaved off silver, thats a paper selling frenzy by the gangsters.

Our COT chart shows a big increase in Commercial short positions just over the week up to last Tuesday to levels that in the past have preceded major reactions in gold. While there is still a fair chance of gold making a run at its highs over the short-term, there is considered to be very little chance now of a breakout to new highs, and any such advance towards the highs would likely be accompanied by a further ballooning of Commercial short positions to an even more extreme level that would all but guarantee a heavy reaction.

Source: www.marketoracle.co.uk...

How the hell do I put images into my post? I want to post the charts from today - and not have them update?

[edit on 28-7-2009 by Amagnon]

[edit on 28-7-2009 by Amagnon]

[edit on 28-7-2009 by Amagnon]