Please excuse my recent absence...I have been on my Fall Vacation.
Suffice it to say there is little to comment on...other than the obvious: The Gold and Silver markets are a complete JOKE. They are rigged beyond any simple explanation. It is IMPERATIVE that our crooked bullion bankers and their masters at the US Federal Reserve not allow Gold and Silver to expose the truth about the collapsing global banking system.
In today's world of financial travesty, with regards to Gold and Silver, ...black is white and white is black. The more financial news fundamentally supports the prices of Gold and Silver, the more their prices rise, the more their price rises must be disrupted.
I have grown weary of the games the bankers are playing with paper representations of Gold and Silver. I have purposely chosen to ignore them and, like the Asians, have chosen to simply accumulate PHYSICAL metal as sales prices present themselves.
Any effort to trade this pathetic example of a free market is not only foolish and stupid, it aids and abets the enemy.
F*CK THE CRIMEX!
If you have been patiently waiting for the CFTC to pass "position limit" rules to end this phony paper manipulation of the Gold and Silver markets...get comfortable, NOTHING will be changing with regards to position limits anytime soon:
Its All in the Fine Print: CFTC Ruling Gives Exemptions for Prior Positions Established in Good Faith, Final Position Limits Won't Be Determined for 12 MONTHS!
Before everyone gets too excited over today's 3-2 CFTC vote in favor of position limits in commodities, we need to examine WHEN the shorts will be forced to comply with the new rules, the size of the new position limits implemented, as well as what loopholes might be available to the cartel in order to continue business as usual.
Those who have been skeptical of the CFTC should enjoy this as we examine the fine print of today's CFTC position limits regulations.
Exemptions to be given for prior positions without describing how or who qualifies for exemptions: Check.
No defined date for required compliance to short positions: Check. (60 days from the time the term "swap" is defined)
No defined position limits to allow easy identification of whether an entity is in excess of said limits: and CheckNon-spot month position limits will be implemented AFTER ONE YEAR OF OPEN INTEREST DATA!?! Nice work guys!
So what are your thoughts Blythe, sure not as bad as that could have gone, huh?
Establishment of speculative limits on Referenced Contracts will occur in two phases:
o Spot-month position limits. Spot-month limits will be effective sixty days after the term "swap" is further defined under the Dodd-Frank Act. The limits adopted at that time will be based on the spot-month position limit levels currently in place at DCMs. Thereafter, the spot-month limits will be adjusted biennially for agricultural contracts and annually for energy and metal contracts. These subsequent limits will be based on the Commission’s determination of deliverable supply (developed in consultation with DCMs).
o Non-spot-month position limits (i.e., limits applied to positions in all contract months combined or in a single contract month). For the nine "legacy" agricultural Referenced Contracts that currently are subject to Commission administered limits, the new non-spot-month limits will go into effect sixty days after the term "swap" is further defined under the Dodd-Frank Act. These limits will be set equal to the levels described in the final rulemaking. For all other Referenced Contracts (that currently are not subject to Commission administered limits), the limits will be made effective by Commission order after the Commission has received one year of open interest data on physical commodity cleared and uncleared swaps under the swaps large trader reporting rule. The non-spot-month limits will be adjusted biennially based on Referenced Contract open interest.
Spot-month position limit levels will be set generally at 25% of estimated deliverable supply. These spot-month limits will be applied separately for physical-delivery Referenced Contracts and cash-settled Referenced Contracts in the same commodity.
Non-spot-month position limits (i.e., limits applied to positions in all contract months combined or in a single contract month) will be set using the 10/2.5 percent formula: 10 percent of the contract’s first 25,000 of open interest and 2.5 percent thereafter. These limits will be reset biennially based on two years open interest data.
Open interest used in determining non-spot-month position limits will be the sum of futures open interest, cleared swaps open interest, and uncleared swaps open interest.
Exemptions for bona fide hedging transactions based on the Dodd-Frank Act’s new requirements for such transactions. These exemptions have been broadened to include certain anticipated merchandising transactions, royalties, and service contracts in the final rulemaking to reflect concerns by commercial firms.
Exemptions for positions that are established in good faith prior to the effective date of the initial limits established by the regulations.
Establishment of account aggregation standards consistent with the Commission’s current position limits aggregation policy, including the Commission’s long-standing independent account controller exemption.
A position visibility reporting regime to assist the Commission in its surveillance program.
Acceptable practices for DCMs and swap execution facilities for setting position limits for the 28 Referenced Contracts, as well as position limits or accountability rules in all other listed contracts, including excluded commodities.
Full CFTC Decision can be found here:
This is another example of abject failure by the CFTC to protect the US investing public from the crooked US banking system. Oh, I'm sorry...the CFTC is working with the banks to screw the public. Senator Bernie Sanders seems to believe so:
Senator Bernie Sanders to the CFTC: Exemptions to Position Limits Are Unacceptable
It is my understanding that your current proposal contains major loopholes to allow Goldman Sachs, Morgan Stanley, and other major financial institutions to receive bona-fide hedging exemptions so that they would not have to abide by the positions limit rule.
This is simply unacceptable and has got to change...
It is my understanding that under your current proposal, aggregate position limits would not go into effect until mid to late 2013 at the earliest to allow the CFTC to collect more data on the over the counter derivatives market.
Paper raids on metals just drive them east faster, Embry tells King World News
“We just had the PPI released today at .8%, that translates to roughly 10% inflation annually. This was a bit of a surprise because the mantra from the powers that be is that inflation is under control and if anything it’s moderating. The fact that gold was down so much in the wake of that release just shows the degree that they kick the gold market around in a counter-intuitive sense.
So much of this volatility has been created by this ridiculous paper trading on COMEX, I mean each time that this thing gets smashed, the premium on physical rises. So I think we are getting real close to this thing taking off.
You can only take a credit cycle so far. Once you reach the point where you can’t create credit productively you’ve got to stop. They (central planners) apparently have no intention of stopping. They seem to think that we can bail ourselves out by adding even more debt to a situation that is created by excessive debt that’s not serviceable. I just don’t think that’s going to work....
“What will happen if they continue to go down this road, which I believe they will, is we will head towards some form of hyperinflation. That is worse than a depression for the simple reason that it’s so corrosive to a society.
I mean a depression is horrible, but the fact is that 75% of the people are still working and at least there’s some sort of structure to the system. America made it through the depression in the 30’s, Zimbabwe is having a little more trouble coming through their hyperinflation.
The average German person [during the hyperinflation], he lost everything. In a depression you don’t lose everything. A certain segment of society does, but that’s the price that has to be paid for the excesses that went before.
The founder of Austrian Economics, Ludwig von Mises said, ‘You can either take the pain now and get it over with and start it up again or you can continue to kick the can down the road and what will result is a complete destruction of the currency system.’
I think this is a tragedy unfolding for us Westerners. I’m a Westerner, I grew up in North America and I love North America and what I see happening is tragic. The vast majority of our gold, which is real wealth, is going to be transported to the East before this is over.
These continued raids, these paper raids on gold that knock the price down, it just makes it that much easier for the Chinese to buy gold at a bargain price and they are doing it.”
From Ted Butler on the silver raid these past 2 days:
(courtesy ted Butler/Ed Steer)
I decided to steal another paragraph from silver analyst Ted Butler's weekly commentary on Saturday.
"Most disturbing of all of this deliberate day to day manhandling of the silver price, is that it is occurring under the constant watch of the regulators, both the criminal enterprise also known as the CME Group and the federal watchdog, the CFTC. Only they seem to be oblivious to what many can see with their own eyes. The regulators’ failure to perform their most basic mission should not, however, dissuade investors from owning silver. There has been a consistent effort by the commercials for more than a decade or two to discourage outside investors from buying silver. Despite this discouragement, owning silver has been among the very best of investments to own. Instead of fretting about the rotten daily price action, focus on why anyone would go to such lengths to make any investment look bad. The only plausible answer is because the commercials don’t want you to buy silver so that they can buy it in your place. That has been the long-term message from COT data. I wish we could snap our fingers and cause JPMorgan and the CME to cease and desist from their manipulative activities, but the most effective remedy is to do the opposite of what they intend you to do. Look to the real facts surrounding silver and not to the false-flag agenda of the crooked COMEX commercials."
Ignore the CRIMEX!!! Buy physical Gold and Silver, buy it now, buy it before it all disappears to Asia.
And now...back to my vacation. If anything, I urge everyone to take a vacation from the CRIMEX...
Suffice it to say there is little to comment on...other than the obvious: The Gold and Silver markets are a complete JOKE. They are rigged beyond any simple explanation. It is IMPERATIVE that our crooked bullion bankers and their masters at the US Federal Reserve not allow Gold and Silver to expose the truth about the collapsing global banking system.
In today's world of financial travesty, with regards to Gold and Silver, ...black is white and white is black. The more financial news fundamentally supports the prices of Gold and Silver, the more their prices rise, the more their price rises must be disrupted.
I have grown weary of the games the bankers are playing with paper representations of Gold and Silver. I have purposely chosen to ignore them and, like the Asians, have chosen to simply accumulate PHYSICAL metal as sales prices present themselves.
Any effort to trade this pathetic example of a free market is not only foolish and stupid, it aids and abets the enemy.
F*CK THE CRIMEX!
If you have been patiently waiting for the CFTC to pass "position limit" rules to end this phony paper manipulation of the Gold and Silver markets...get comfortable, NOTHING will be changing with regards to position limits anytime soon:
Its All in the Fine Print: CFTC Ruling Gives Exemptions for Prior Positions Established in Good Faith, Final Position Limits Won't Be Determined for 12 MONTHS!
Before everyone gets too excited over today's 3-2 CFTC vote in favor of position limits in commodities, we need to examine WHEN the shorts will be forced to comply with the new rules, the size of the new position limits implemented, as well as what loopholes might be available to the cartel in order to continue business as usual.
Those who have been skeptical of the CFTC should enjoy this as we examine the fine print of today's CFTC position limits regulations.
Exemptions to be given for prior positions without describing how or who qualifies for exemptions: Check.
No defined date for required compliance to short positions: Check. (60 days from the time the term "swap" is defined)
No defined position limits to allow easy identification of whether an entity is in excess of said limits: and CheckNon-spot month position limits will be implemented AFTER ONE YEAR OF OPEN INTEREST DATA!?! Nice work guys!
So what are your thoughts Blythe, sure not as bad as that could have gone, huh?
Establishment of speculative limits on Referenced Contracts will occur in two phases:
o Spot-month position limits. Spot-month limits will be effective sixty days after the term "swap" is further defined under the Dodd-Frank Act. The limits adopted at that time will be based on the spot-month position limit levels currently in place at DCMs. Thereafter, the spot-month limits will be adjusted biennially for agricultural contracts and annually for energy and metal contracts. These subsequent limits will be based on the Commission’s determination of deliverable supply (developed in consultation with DCMs).
o Non-spot-month position limits (i.e., limits applied to positions in all contract months combined or in a single contract month). For the nine "legacy" agricultural Referenced Contracts that currently are subject to Commission administered limits, the new non-spot-month limits will go into effect sixty days after the term "swap" is further defined under the Dodd-Frank Act. These limits will be set equal to the levels described in the final rulemaking. For all other Referenced Contracts (that currently are not subject to Commission administered limits), the limits will be made effective by Commission order after the Commission has received one year of open interest data on physical commodity cleared and uncleared swaps under the swaps large trader reporting rule. The non-spot-month limits will be adjusted biennially based on Referenced Contract open interest.
Spot-month position limit levels will be set generally at 25% of estimated deliverable supply. These spot-month limits will be applied separately for physical-delivery Referenced Contracts and cash-settled Referenced Contracts in the same commodity.
Non-spot-month position limits (i.e., limits applied to positions in all contract months combined or in a single contract month) will be set using the 10/2.5 percent formula: 10 percent of the contract’s first 25,000 of open interest and 2.5 percent thereafter. These limits will be reset biennially based on two years open interest data.
Open interest used in determining non-spot-month position limits will be the sum of futures open interest, cleared swaps open interest, and uncleared swaps open interest.
Exemptions for bona fide hedging transactions based on the Dodd-Frank Act’s new requirements for such transactions. These exemptions have been broadened to include certain anticipated merchandising transactions, royalties, and service contracts in the final rulemaking to reflect concerns by commercial firms.
Exemptions for positions that are established in good faith prior to the effective date of the initial limits established by the regulations.
Establishment of account aggregation standards consistent with the Commission’s current position limits aggregation policy, including the Commission’s long-standing independent account controller exemption.
A position visibility reporting regime to assist the Commission in its surveillance program.
Acceptable practices for DCMs and swap execution facilities for setting position limits for the 28 Referenced Contracts, as well as position limits or accountability rules in all other listed contracts, including excluded commodities.
Full CFTC Decision can be found here:
This is another example of abject failure by the CFTC to protect the US investing public from the crooked US banking system. Oh, I'm sorry...the CFTC is working with the banks to screw the public. Senator Bernie Sanders seems to believe so:
Senator Bernie Sanders to the CFTC: Exemptions to Position Limits Are Unacceptable
It is my understanding that your current proposal contains major loopholes to allow Goldman Sachs, Morgan Stanley, and other major financial institutions to receive bona-fide hedging exemptions so that they would not have to abide by the positions limit rule.
This is simply unacceptable and has got to change...
It is my understanding that under your current proposal, aggregate position limits would not go into effect until mid to late 2013 at the earliest to allow the CFTC to collect more data on the over the counter derivatives market.
Paper raids on metals just drive them east faster, Embry tells King World News
“We just had the PPI released today at .8%, that translates to roughly 10% inflation annually. This was a bit of a surprise because the mantra from the powers that be is that inflation is under control and if anything it’s moderating. The fact that gold was down so much in the wake of that release just shows the degree that they kick the gold market around in a counter-intuitive sense.
So much of this volatility has been created by this ridiculous paper trading on COMEX, I mean each time that this thing gets smashed, the premium on physical rises. So I think we are getting real close to this thing taking off.
You can only take a credit cycle so far. Once you reach the point where you can’t create credit productively you’ve got to stop. They (central planners) apparently have no intention of stopping. They seem to think that we can bail ourselves out by adding even more debt to a situation that is created by excessive debt that’s not serviceable. I just don’t think that’s going to work....
“What will happen if they continue to go down this road, which I believe they will, is we will head towards some form of hyperinflation. That is worse than a depression for the simple reason that it’s so corrosive to a society.
I mean a depression is horrible, but the fact is that 75% of the people are still working and at least there’s some sort of structure to the system. America made it through the depression in the 30’s, Zimbabwe is having a little more trouble coming through their hyperinflation.
The average German person [during the hyperinflation], he lost everything. In a depression you don’t lose everything. A certain segment of society does, but that’s the price that has to be paid for the excesses that went before.
The founder of Austrian Economics, Ludwig von Mises said, ‘You can either take the pain now and get it over with and start it up again or you can continue to kick the can down the road and what will result is a complete destruction of the currency system.’
I think this is a tragedy unfolding for us Westerners. I’m a Westerner, I grew up in North America and I love North America and what I see happening is tragic. The vast majority of our gold, which is real wealth, is going to be transported to the East before this is over.
These continued raids, these paper raids on gold that knock the price down, it just makes it that much easier for the Chinese to buy gold at a bargain price and they are doing it.”
From Ted Butler on the silver raid these past 2 days:
(courtesy ted Butler/Ed Steer)
I decided to steal another paragraph from silver analyst Ted Butler's weekly commentary on Saturday.
"Most disturbing of all of this deliberate day to day manhandling of the silver price, is that it is occurring under the constant watch of the regulators, both the criminal enterprise also known as the CME Group and the federal watchdog, the CFTC. Only they seem to be oblivious to what many can see with their own eyes. The regulators’ failure to perform their most basic mission should not, however, dissuade investors from owning silver. There has been a consistent effort by the commercials for more than a decade or two to discourage outside investors from buying silver. Despite this discouragement, owning silver has been among the very best of investments to own. Instead of fretting about the rotten daily price action, focus on why anyone would go to such lengths to make any investment look bad. The only plausible answer is because the commercials don’t want you to buy silver so that they can buy it in your place. That has been the long-term message from COT data. I wish we could snap our fingers and cause JPMorgan and the CME to cease and desist from their manipulative activities, but the most effective remedy is to do the opposite of what they intend you to do. Look to the real facts surrounding silver and not to the false-flag agenda of the crooked COMEX commercials."
Ignore the CRIMEX!!! Buy physical Gold and Silver, buy it now, buy it before it all disappears to Asia.
And now...back to my vacation. If anything, I urge everyone to take a vacation from the CRIMEX...
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LINKS TO THIS POST
THURSDAY, OCTOBER 13, 2011
...and we wonder why Gold and Silver are down
The U.S. dollar index erased early gains today and ended slightly lower as the euro reversed early losses and ended higher on easing tensions over European banks.
...and Gold and Silver are BOTH lower?
S&P downgrades Spain's debt rating on weak economy- AP
...and Gold and Silver are BOTH lower?
Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History- Zero Hedge
...and Gold and Silver are BOTH lower?
Fitch may downgrade BofA, Morgan Stanley, Goldman- AP
...and Gold and Silver are BOTH lower?
For how much longer must we endure this bullshit? The barometer of TRUTH must be set free!
Key regulator calls for limits on speculation in commodities markets
Exclusive: CFTC has votes to pass position limits
CFTC May Finish Curbs on Speculation Oct. 18, Gensler Says
SPECIAL REPORT: Position Limit Scenarios
By Bix Weir
The new Bank Participation Report for September has been posted and it looks like the top 3 or less US Banks that had offside silver short positions are closing in on being under the proposed position limit law just in the nick of time!
Here's the numbers
9/6/2011 = 23,859 net short
10/6/2011 = 14,388 net short.
http://www.cftc.gov/MarketReports/BankParticipationReports/index.htm
Basically, the top 3 or less banks were able to cover 9,471 short contracts by orchestrating the latest silver slam from $42/oz down near $28/oz. Many suspect the majority of this short position resides at JP Morgan. That may be but if this is split evenly between 3 banks they are now under 5,000 contracts each or quickly nearing the proposed position limit formula of around 4,500 contracts at the moment. The timing of this short position being congruent with the expected position limit proves beyond a doubt that the many delays in implementation of this rule were orchestrated to give the banksters time to cover.
JP Morgan Covered 36 Million Ounces of Naked Silver Shorts Since Sept 6th
From SilverDoctors
We have speculated previously that JP Morgan was attempting to extricate itself from its 120 Million ounce naked short silver position during silver's most recent sell-off.
The CFTC's October Bank Participation Report seems to substantiate this fact.
On September 6th, 4 large US banks held 24,584 short silver contracts, the equivalent of a 122,920,000 ounce short silver position.
The 4 large US banks' silver shorts had grown every month since silver's May smash-down, during which the same 4 banks had massively covered into the take-down and reduced their short position to 20,613 contracts.
The latest CFTC Bank Participation Report for October indicates that these same 4 large US banks (chiefly JP Morgan and HSBC) covered 7,177 silver shorts or 35,885,500 ounces during the September silver smash-down!
This means that effectively, JP Morgan and the other 3 major US banks (mostly JP Morgan) have reduced their naked silver shorts by approximately 29% during the latest PAPER FUTURES take-down.
At 17,407 contracts, the naked short COMEX futures position has now been reduced to 87,035,000 ounces- the smallest short position JP Morgan has held since it acquired Bear Stearns' silver shorts in 2008. While this leaves JP Morgan and the other shorts in a much better position than several weeks ago when they held over 122 million ounces short, obviously this is still nowhere near a respectable cap should the CFTC ever actually implement position limits mandated by the Frank-Dodd act.
...and we wonder why Gold and Silver are down...IT'S OBVIOUS WHY!!!!!
Source
...and Gold and Silver are BOTH lower?
S&P downgrades Spain's debt rating on weak economy- AP
...and Gold and Silver are BOTH lower?
Foreigners Dump $74 Billion In Treasurys In 6 Consecutive Weeks: Biggest Sequential Outflow In History- Zero Hedge
...and Gold and Silver are BOTH lower?
Fitch may downgrade BofA, Morgan Stanley, Goldman- AP
...and Gold and Silver are BOTH lower?
For how much longer must we endure this bullshit? The barometer of TRUTH must be set free!
Key regulator calls for limits on speculation in commodities markets
Exclusive: CFTC has votes to pass position limits
CFTC May Finish Curbs on Speculation Oct. 18, Gensler Says
SPECIAL REPORT: Position Limit Scenarios
By Bix Weir
The new Bank Participation Report for September has been posted and it looks like the top 3 or less US Banks that had offside silver short positions are closing in on being under the proposed position limit law just in the nick of time!
Here's the numbers
9/6/2011 = 23,859 net short
10/6/2011 = 14,388 net short.
http://www.cftc.gov/MarketReports/BankParticipationReports/index.htm
Basically, the top 3 or less banks were able to cover 9,471 short contracts by orchestrating the latest silver slam from $42/oz down near $28/oz. Many suspect the majority of this short position resides at JP Morgan. That may be but if this is split evenly between 3 banks they are now under 5,000 contracts each or quickly nearing the proposed position limit formula of around 4,500 contracts at the moment. The timing of this short position being congruent with the expected position limit proves beyond a doubt that the many delays in implementation of this rule were orchestrated to give the banksters time to cover.
JP Morgan Covered 36 Million Ounces of Naked Silver Shorts Since Sept 6th
From SilverDoctors
We have speculated previously that JP Morgan was attempting to extricate itself from its 120 Million ounce naked short silver position during silver's most recent sell-off.
The CFTC's October Bank Participation Report seems to substantiate this fact.
On September 6th, 4 large US banks held 24,584 short silver contracts, the equivalent of a 122,920,000 ounce short silver position.
The 4 large US banks' silver shorts had grown every month since silver's May smash-down, during which the same 4 banks had massively covered into the take-down and reduced their short position to 20,613 contracts.
The latest CFTC Bank Participation Report for October indicates that these same 4 large US banks (chiefly JP Morgan and HSBC) covered 7,177 silver shorts or 35,885,500 ounces during the September silver smash-down!
This means that effectively, JP Morgan and the other 3 major US banks (mostly JP Morgan) have reduced their naked silver shorts by approximately 29% during the latest PAPER FUTURES take-down.
At 17,407 contracts, the naked short COMEX futures position has now been reduced to 87,035,000 ounces- the smallest short position JP Morgan has held since it acquired Bear Stearns' silver shorts in 2008. While this leaves JP Morgan and the other shorts in a much better position than several weeks ago when they held over 122 million ounces short, obviously this is still nowhere near a respectable cap should the CFTC ever actually implement position limits mandated by the Frank-Dodd act.
...and we wonder why Gold and Silver are down...IT'S OBVIOUS WHY!!!!!
Source
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