Comex comes unglued from reality [updated]

Over the past few weeks, I’ve been quietly watching Comex metal prices plummet and not freaking out in the slightest, because the Comex is a fractional receipt market, and can be manipulated.  Many people buy and sell gold futures contracts on Comex and do not actually take physical delivery of the metal.  Thus, Comex can sell receipts for metals they don’t even possess, at a lower price (aka “naked short selling”)  in order to drive the price down termporarily,  knowing hoping that not everyone will demand physical delivery of the metal at once.  Naked short selling is a form of market manipulation that can enable insider trading.

Realmarketprice.com scrapes Ebay and other sources for market data and generates charts.  As you can see in the silver chart, the price of physical 1 oz coins on Ebay is fairly stable while the Comex begins to decline around the 21st.   The ratio of Comex to physical is an interesting number to consider, especially when it it remains stablefor a  while, goes down, then remains stable at the lower price.  What probably happened here is they sold a whole bunch of silver contracts for silver that doesn’t exist, at a lower price, and that drove the price down.  Problem is they’re selling paper and calling it silver.

In the chart below, note that the divergence of physical and Comex gold is less pronounced than with silver but has still increased over the past 1-2 weeks.  Due to a large amount of real metals being traded on the Comex, it does influence the market greatly but go ahead and try to get phsyical delivery of Comex gold now.  The lead time will probably be quite long, if it’s even possible.  They would more likely have a policy to say “We’ll just pay you our [fake] spot value in dollars for your contract, but due to availability you’ll have to wait a few months for delivery,”  and most Comex receipt holders will accept the currency for their contract.

If the receipts outnumber the physical gold 100:1, then what happens when everyone realizes this and starts asking for delivery of the physical gold?  Comex is supposed to be a futures market for a commodity, but they’ve created receipts for gold that doesn’t exist (or hasn’t been extracted and refined yet).  This is fraud, in my humble opinion, and needs to end.

Reinstate Glass-Steagall now

This is one of the key steps toward fixing our fraudulent banking system. Since the 1930s, Glass-Steagall protected our savings and retirement accounts from being invested in speculative high-risk markets like sub-prime mortgages and derivatives.  When the Clinton Administration and the banker lobbyists got rid of it in the ’90s, that opened the gates of hell and now the fraudsters are multiplying their wealth out of control thru fractional lending and bailouts.

This is an exciting opportunity for us to take back some control over our economy.  Please support this bill any way you can.

Current List of Congressional Signers to HR1489 from LaRouche PAC

TSHTF:2014

I’m going out on a limb and making a financial projection.  Sometime in 2014, if this trend continues, an ounce of gold will cost infinity US Dollars. Obviously this inflationary debt-money creation is not sustainable, as we know by looking at recent examples of hyperinflation like Weimar Republic, Argentina, and Zimbabwe.  If people wake up to the scam, there could be a break point prior to 2014, a rush on metals, bank runs, and an attempt by the US Government to confiscate citizens’ gold as they did in the 1930s, so this trend may not hold… but look at the curve:

This nearly perfect curve represents debt feedback in the system, in the form of existing debt requiring more and more debt-money to be created, in order to pay back interest.  How can interest be paid on loans for which the principal was created out of thin air, except if new money is created elsewhere within the system?

The only way to avoid total dollar collapse is for Congress to nationalize the “Federal” “Reserve” cartel which has perpetrated this ponzi scheme on the US taxpayer.   We need to adopt a non-fractional, non-debt based currency, and put our dollars in valuable assets such as land, water and food production, energy independence, gold and silver, self-defense, and other real assets which will be valuable in a metal and barter system.

How loans and mortgages by banks are fraud

Revolution Not

Widespread Silver Bar Shortages

If everyone demanded physical delivery of silver, we’d be looking at $500/oz.  If hyper-inflation hits, the sky is the limit, $5,000, $10,000, who knows, but they will still buy the same amount of goods and services they buy now.  Saving metal coins is not a way to get rich. It will only preserve existing wealth while currency is devalued.

coinupdate.com

By Patrick A. Heller on November 18th, 2010
Categories: Featured Articles, Gold and Silver Commentary, Precious Metals

As of today, there are no longer any regular wholesale supplies of the 1 ounce through 100 ounce silver rounds and bars available for immediate delivery.  It may be possible to locate incidental quantities of some product, but most wholesalers are now promising two to four weeks delivery to allow time for the silver to be fabricated.

As a result of the shortages, premiums have started to rise.  So far, the increases have been modest, on the order of 0.5-2%.  However, if the shortage grows, expect to see further and larger premium increases in the coming weeks.  We could see a repeat of the late 2008 gold and silver buying frenzy, where product availability got as slow as 1-4 months after payment.

Read more…

The Secret of Oz

The Secret of Oz is a new documentary video from the creator of “The Money Masters.”   Basically one of the main premises of the film is that as long as the government or some other good guy controls the issuance of currency, and it’s issued debt-free, the money system will benefit the public and not just the elite.   I don’t entirely disagree with the idea that a fiat system *could* work for us, but in practice the power to issue currency has repeatedly fallen back into the hands of the bankers.  Even if we allow them to issue something as simple as gold or silver receipts, bankers will inevitably turn it into a fractional reserve system and defraud the depositors, concentrating wealth for themselves. So I’m surprised they are so quick to dismiss gold. 

Rich people do already hold most of the gold, yes.   But they also control the government printing presses, and it’s a lot easier to inflate paper (or numbers in a database) than it is to prevent people from digging more gold out of the ground.  Private companies can will continue to mine gold, somewhere.   Metals markets are international.  For thousands of years, humans have been able to spend a gold coin anywhere in the world.  Metals already are the world currency. Fiat currencies come and go but gold holds intrinsic value.

Now as for the rich hoarding it, I would argue that inflatable, easy-to-manipulate fiat money systems have enabled the bankers to obtain a disproportionate share of real assets, such as metals and property, using their 100:1 fractional reserve leverage and inflationary money creation thru loans. Are you aware that in the ’30s the US government actually confiscated gold in the name of saving everyone from the banker-engineered great depression?

If we went to a metal and barter economy, commerce could be less centralized yet more global. Even gold and silver certificates present the opportunity for fraudsters to create a fractional reserve system which is in essence a ponzi scheme. While metal bullion is not fraud-proof (recall recent tungsten bars plated with gold) it’s significantly more difficult to manipulate on a large scale.

• A big pile of gold doesn’t do you much good unless you spend it into the economy.
• It’s difficult for bankers and governments to maniuplate the worldwide flow of gold out of the ground, due to market competition.
• It can’t be counterfeited with current technology

We don’t actually need a currency “backed” by anything.  All we need are land, food, water, protection, and some metals and other raw materials to trade for goods and services. I want no part of this casino gambling.

The international banking elite control the issuance of currency. They are not going to give up that position without a bloody fight. BUT… gold and silver exist already in the free market. We can dig more of it out of the ground, while bankers, government, and whoever has control over the issuance of currency can “row” the fiat economy with ease. “Power corrupts, absolute power corrupts absolutely.” One thing corrupt officials can’t do, however is create gold or silver out of thin air. They can flood the market, but they’ll be losing their own wealth in the process. And no, the bankers don’t control all the gold. Actually I believe the Vatican is the single largest owner of gold in the world. Better brush up on your Hail Marys.

Maybe someday we’ll find a way to enforce strict control over a fiat paper currency, and permanently protect ourselves from corrupt hands massaging all the wealth out of the economy by means of inflation and deflation. Until this technology exists, metals are the next best thing.

“It’s not what backs our money, it’s who controls the quantity.” Makes sense.  And the quantity of gold is a lot harder to manipulate than the quantity of fiat paper or zeros in a database.
The new human rights movement

Although I honestly think in the current environment gold and silver are the most fraud-resistant form of money, there is one big problem with it – the environmental cost of mining. We need to find sustainable methods to mine gold that don’t involve cyanide. But when you weigh the downside of living in this banker-take-all system, it becomes apparent which the lesser of 2 evils is.

Thank you for reading, and may your chains rest lightly.

Who wants to be a millionaire?

From BSC

Central banks start to abandon the U.S. dollar – From the Wallstreet Blogs, Fortune, CNN

“Just last week, America’s debt lept $166 billion in a single day. That one-day run-up is greater than the entire U.S. annual deficit in 2007. And Americans, the world’s consumers, continue much of the behavior that helped the U.S savings rate drop so low.

The dollar has been in free-fall since 2007.

Last year, both China and Russia have questioned why the dollar should be the world’s reserve currency.  (Naturally, they were advocating for the ruble and yuan).

A new report from Morgan Stanley analyst Emma Lawson confirms what many had suspected: the dollar is firmly on its way to losing its status as the reserve currency of the world.

And just last week, the United Nations released a report concluding that the dollar should no longer be the world’s reserve currency because it is not stable enough. The dollar is down 5% over the past month, and even currency traders don’t see it as a safe haven any more.

There is certainly an element of economic competitiveness in those statements from foreign bodies and governments, but at the same time, Americans houldn’t be surprised that, in these touchy times, central banks want more of a measure of security than the dollar can afford right now – particularly when we’re running up an enormous deficit through the costs of stimulus programs and two simultaneous wars.”

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The US Dollar is losing reserve currency status because it is being over inflated to near worthless proportions, by being printed with wreckless abandon by PRIVATE CORPORATE BANKS.

If we do not take back the power to issue our own currency, as provided by the US Constitution, we will never escape the DEBT SLAVERY that occurs by allowing private central banks to loan us our own money at interest!  This currency black hole creates inflation and loss of value because every dollar “borrowed” comes with debt attached, and in order to pay the interest on the first dollar we have to borrow more dollars, again with more interest!  These bankers have run this same scam in other, less sophisticated countries.  Now they’re running it here.

These are real images of devalued, inflated currencies from the last 60 years.  Some so worthless that the people use them as wallpaper or simply throw them away.  Imagine a loaf of bread costing 200 billion dollars!  Thats what they pay in Zimbabwe.

DON’T BE A SUCKER!

Two excellent videos about economics, fiat currency, and fractional lending

The Money Masters – How International Bankers Gained Control of America

Money As Debt