Discussion Jay Taylor and David Jensen on January 7, 2015
Topics
1) UK intends to criminalize manipulation of gold, silver, crude oil,
interest rate manipulation
http://www.thestreet.com/video/12892447/uk-to...e-election.html
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by definition, trading of virtual gold and virtual silver to
create large virtual positions of non-existent metal held on the LBMA
manipulates the gold and silver price
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institutions and sovereign investors have relied on the LBMA to
create gold and silver positions held through the LBMA
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creation of these non-existent gold and silver positions
creates supply to market of metal that does not exist and by definition
distorts the pricing of gold and silver
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unravelling of this leveraged structure will occur and will lead
to a market failure to deliver through the LBMA
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daily gross gold trade volume in target="_blank" November 2014 at the
LBMA is 207M oz. using LBMA's 10x net cleared volume vs daily gross trade
volume based upon the LBMA's market survey report: target="_blank" http://www.lbma.org.uk/assets/Loco_London_...ty_Surveyrv.pdf
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keep in mind that the LBMA asserts London trades 85% of
daily global gold trading volume & the LBMA has an implied open
interest of 400M to 600M oz of gold (much of which is not extant and can't be
delivered) - London appears to steer the world's physical gold price by
creating this non-existent virtual supply of gold
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the virtual market rig only works until the small fraction of
available metal is removed from the market thereby collapsing such a scheme
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Greenspan states that gold is a premier currency
stronger than all paper currencies
o
deflationary impact historically is that money (gold and
silver) buys more goods
·
economic models promoted by central banks of inflation creating
growth is snake-oil
o
central banks printing money to hide deflationary collapse
created by excess debt
o
need to manipulate the gold price to hide the ongoing deflationary
economic collapse due to removal of gold from the monetary system as John
Exter (Fed Board of Governors) predicted would occur leading to currency
failure and hyperinflation
2) Closer look at silver - is it the LBMA's greatest rig?
target="_blank"
http://www.lbma.org.uk/Clearing-Statistics
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silver is historically the daily monetary medium of exchange
for enterprise while gold was used for larger transactions
·
new daily silver fix provided in part by Reuters - a
traditional propaganda arm of UK Gov
o
why is UK government maintaining implied connection?
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daily net cleared volume 172.3 million oz. in November 2014
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using the LBMA's 10x gross trading volume vs net clearing
volume estimate, London trading 1.7 billion oz per day gross trading volume
o
using 2x multiplier, 3.4 billion oz. silver open interest at
the LBMA
o
using 3x multiplier, 5.1 billion oz. silver open interest at
the LBMA
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annual global silver supply (including 800M oz of mine supply)
is estimated at 1 billion oz.
·
global refined silver stockpiles are estimated at 1.2 billion
oz. of silver (including ETF holdings; no target="_blank"te: CPM
group estimates global silver stockpiles at 0.9 billion oz in 2014)
o
many ETF's have issued disclaimers that they cannot guarantee
metal held by sub-custodians
·
artificial supply of silver appears to be created at the LBMA
far exceeding global stockpiles of refined metal
·
it is a pain to take delivery of gold and silver but lifeboats
are also considered a pain by ships' captains because they are bulky and take
up deck space
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beware the salesmen saying "everyone needs gold - but
don't buy gold, buy paper&qu target="_blank"ot; http://video.cnbc.com/gallery/?video=3000342885
3) Currency 'Wars' - Not
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all fiat money regimes collapse in the end
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countries globally scrambling to keep economies functioning
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not so much currency wars as desperate monetary inflation to
address problems caused by monetary inflation
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similarly push by West for military conflict with Russia
through military coup in Ukraine with Oliver Stone now calling-out the
shameful behavior of the W target="_blank"est http://www.zerohedge.com/news/2015-01-0...heater-near-you
·
target="_blank"http://www.infowars.com/czech-presid...t-ukraine-coup/
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some (BRICS) moving to sound (gold) money to protect their
citizens
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Jim Rickards and Western governments pushing Special Drawing
Rights (SDRs) through the IMF as the next paper 'solution' to a problem
caused by paper money
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Since Paul Voelker spearheaded the untethering of the US Dollar
from gold in the 1970s, the monetary and economic distortions have increased
to the point of crisis today
