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"The first rule of mainstream
financial journalism and, particularly, financial journalism about gold is never
to put a specific critical question about the monetary metal to any of the
primary participants in the gold market, central banks. That is, nearly all
gold market reporting is, by design, irrelevant distraction at best,
disinformation at worst."
-Chris Powell, Gold Anti
Trust Action Committee
That is, as long as it is taboo to make
specific and detailed mention of silver or gold price manipulation. It is as if
there is some underlying existential dilemma journalists face while dealing
with this issue. Talent is not everything. There is no lack of talent and
otherwise powerful voices.
It must be the effect of no skin in the
game. Journalists are underpaid relative to astro-physicists
turned algorithm traders. Therefore, it is safer to sell out to the devil and
enjoy the accolades and promotions, even at the expense of unearthing the
most important issues of our time.
What could be more important? What could
be more crucial to the functioning of civil society than issues of economics
and transparency in finance that trickles up to the courage of our leaders? A
million social issues wedged between social action
will cease to exist in a currency collapse. Instead, these emotions coalesce
into a tsunami that leaves a vacuum for the loudest and meanest voices to
fill.
Journalism had its roots in transmitting
the voice of the masses from the grass roots. The pen of liberty extended;
the fourth branch of government.
We note once again that the mainstream
(this time, The Economist) has published a piece focusing on manipulation
centered on London.
The fix is the poster child for an
outdated process, an oligarchical remnant, dominated by the largest players.
Why not go after the CME and CFTC? At
least they publish actual data.
All any respectable journalist would
need to do is contrast the trading structure in London with New York - a dive
one layer deeper, then mention the lopsided positions at COMEX - regardless
of who publishes the data - because it reveals all one needs to know.
Can you imagine a journalist coming
clean with the following?
"It has been known for years
that the largest traders in the silver futures markets, in the so called
commercial category, have maintained short market corners that would make the
Hunt Brothers blush with regard to the size of their attempted long.
Furthermore, even if these were hedged positions (they would be horrible for
the clients if they were, but they are not), the very existence of positions
this size violates the law because there is no possible way that a position
like this wouldn't be used to move the price at will for a profitable
arbitrage".
"Manipulation is in all
directions and must serve a wider scope of interest. The system can be gamed
from many directions."
GATA has broadcast the legal precedent;
Ted Butler has tirelessly chronicled the mechanism used. And the rise of HFT
has sealed the deal for the self-regulated, yet for profit exchanges.
Manipulation is just one more arbitrage
made legal and hugely profitable for pockets deep enough to position
themselves. Obviously, it also conveniently serves to indirectly support the
medium of exchange by pressuring and controlling the price of its
counterpart, the precious metals.
All in all, London is a safe place to
look and answer the drama - or create some drama of
its own.
Or it's probably more likely that we've
become too complex and over specialized, making it even easier to control
information.
Because price action makes market
commentary, the main event will surely be spun in the favor of the
mainstream. The big banks will profit simply because they are involved in
practically every derivative imaginable, including indirect ownership of the
liquidity and cash flow of the miners.
In this way, the financial journalists
(who missed it) will never lose. They will be rewarded for their lack of
credibility by suddenly connecting the dots - most likely by finding a
suitable or fashionable scapegoat.
Wouldn't it be something if they would
then juxtapose the conspiracy facts of market manipulation with revelations
regarding surveillance?
Are prices managed 24/7 like phone and
email conversations?
Prices are certainly monitored. And
‘monitor’ in this context is simply a euphemism for control, just
as QE is a euphemism for money printing. And surveillance is a euphemism for
the police state in which citizen equals criminal.
And monitoring prices is one thing. When
the monitoring authority has the ability, mechanism, and the trade structure
available to intervene, you can be sure that they will.
The bottom line is that the direction of
prices will move when those who control it decide to let it; whether it fits
with the narrative is a moot point. And sadly, the commentary and mainstream
publications will continue to fumble with only part of the truth in order to
purposely miss the big picture.
 
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