Author: gork

Thank You Jamie Dimon for Illegally Smashing the Gold Price Again   [Copy link] 中文

Rank: 6Rank: 6

Post time 2013-7-27 00:02:57 |Display all floors
This post was edited by gork at 2013-7-27 05:45

Gold, which rose for 12 consecutive years, slipped into a bear market in April and has dropped 21 percent this year in New York. Goldcorp’s average realized price in the quarter was $1,358 an ounce, compared with an average of $1,417 an ounce on the Comex in New York.
. . .
Goldcorp sold about half of the gold and silver in the quarter in June, when gold prices fell to a 34-month low.

- Goldcorp Takes $1.96 Billion Writedown After Price Slump

Yes, like the smashdowns at the quietest periods which are guaranteed to get the worst prices, Goldcorp deliberately dumped as much as they could at the rock bottom price, just as crooked miners such as Goldcorp sold forward in the 1990s to keep prices low, calling them a "hedge" but which, instead of hedging potential losses,  cost tens of billions to unwind as the scam failed and they're doing the same again now.

If the banksters are recipients of the cheap gold, they can confidently short the market until the miners go bankrupt and/or the gold supply dries up. By creating "volatility" in the gold price, they hope to herd the sheeple out of gold. Professional poker players, allegedly, never bluff, but then they probably never back themselves into a corner either. Herding out of gold is necessary as it protects against the hyperinflation. Reserve requirements are only just being RAISED to 3% from ZERO, resulting in apparent criticism from the UK's Vince Cable, calling the BoE "capital taliban". This ridiculously small reserve would mean the UK's M4 exploding to £15.6trn, ten times GDP or 1,000% inflation, when the banksters start lending to the limit as they are prone to doing. With Mark Carney being used for nothing other than to take the blame for this hyperinflation, his big achievement is to put a woman's face on a bank note.

Instead of selling forward, the proper way to hedge would be with options and instead of producing losses will produce gains: “Australian dollar denominated put and forward sale contracts became increasingly in-the-money during the second quarter,” said Matthew Piggott, analyst at Thomson Reuters GFMS.
. . .
Although most miners would rather not hedge, banks have required smaller producers to enter into hedging contracts as part of a lending or project finance agreement.

- Gold hedges reward Australian miners

With the price of gold now below production costs, any miner who "hedges" is a shill for the banksters.

As a result it makes absolutely no sense strategically for the banksters to be net-long in gold and net-short in silver – the two bets cancel each other out.
- No One Wants Paper-Called-Gold

Not true! If they short silver and go long gold, it makes silver look more attractive and the suckers will abitrage buying gold from abroad and swapping for silver in the US.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-7-27 01:01:54 |Display all floors
This post was edited by gork at 2013-7-27 05:43

If the banksters are recipients of the cheap gold supplied by miners selling forward and calling it a "hedge", they can confidently short the market until the miners go bankrupt and/or the gold supply dries up. By creating "volatility" in the gold price, they hope to herd the sheeple out of gold. Professional poker players, allegedly, never bluff, but then they probably never back themselves into a corner either. Herding out of gold is necessary as it protects against the hyperinflation. Reserve requirements are only just being RAISED to 3% from ZERO, resulting in apparent criticism from the UK's Vince Cable, calling the BoE "capital taliban". This ridiculously small reserve would mean the UK's M4 exploding to £15.6trn, ten times GDP and about 1,000% inflation, when the banksters start lending to the limit as they are prone to doing. With Mark Carney being used for nothing other than to take the blame for this hyperinflation, his big achievement is to put a woman's face on a bank note.

Instead of selling forward, the proper way to hedge would be with options and instead of producing losses will produce gains: “Australian dollar denominated put and forward sale contracts became increasingly in-the-money during the second quarter,” said Matthew Piggott, analyst at Thomson Reuters GFMS.
. . .
Although most miners would rather not hedge, banks have required smaller producers to enter into hedging contracts as part of a lending or project finance agreement.

- Gold hedges reward Australian miners

With the price of gold now below production costs, any miner who "hedges" is a shill for the banksters.

As a result it makes absolutely no sense strategically for the banksters to be net-long in gold and net-short in silver – the two bets cancel each other out.
- No One Wants Paper-Called-Gold

Not true! If they short silver and go long gold, it makes silver look more attractive and the suckers will abitrage buying gold from abroad and swapping for silver in the US.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-5 15:54:50 |Display all floors
Only half of the amerikan sheeple handed in their gold in 1933. With gold once again legalised in 1974, there was a flood of scrap sold onto the market similar to recent years. So the suckers (who know the price of everything and the value of nothing) sold their gold at what was then a record price until it almost halved to $100 an ounce. But gold then spiked to $850 an ounce. Volcker raised overnight interest rates to 21% in 1979 and was able to restrain gold for the remainder of the century. But the level of debt means that option is not available and that gold should rise FAR MORE than it did in the stagflation of the 1970s.

Not only are the debts even HUGER this time around but they're running out of gold again and have already tried every trick in the book. The ETFs are obviously heavily re-hypothecated, the CME has repeatedly raised margins, JP Morgan has thieved the assets of MF Global and PFG Best whilst closing the positions of gold traders and the flagrantly illegal smashdown in April, whilst all the propaganda rags parrot the pathetic BS to confuse, obfuscate and misdirect the sheeple.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-10 14:32:55 |Display all floors
Instead of “taking its foot off the gas pedal”, to use chairman Ben Bernanke’s metaphor, the Fed may in fact still be adding extra stimulus – even if it looks and sounds as if it is doing the opposite.
- Federal Reserve to continue mortgage market support

Yes, risk-on/risk-off has now been replaced by taper-on/taper-off. This shift in policy was announced by the unelected ruler of the US, Jamie Dimon, when he said that tapering would result in greater volatility. The volatility is intended to shake the gold bugs out of the gold tree and provide profits for the banksters. Whether tapering is still on or not is anybody's guess as B.S. Bernanke has probably lost track too. You're also supposed to suspend disbelief regardless of B.S. Bernanke's suggestion that taper-on might be followed by untapering and that the 6.5% unemployment rate he's promised to maintain, in order to restrain wages might be lowered to 6%, though that too may be off. After all, it's not called QE infini-3 and QE4Ever for nothing and the two poodles, the UK and Japan, have announced QE will continue for at least another few years in order to re-assure the bond vigilantes. The UK propaganda rags have declared that Carney's hyperinflation policy is to the benefit of the sheeple unlike the more hawkish King; the exact opposite of the truth.

B.S. Bernanke's promise to restore the FED balance sheet to "normal" levels is also being broken:
Mr Bernanke said Fed officials no longer planned to sell any of the $1.25tn of MBS already on its balance sheet, and would instead let them run down naturally over many years.

Gosh! What a suprise! B.S. Bernanke has announced he will do the only thing he CAN do, which is to allow the bonds to mature. Otherwise, dumping such ginormous amounts of bonds would lead to a massive spike in interest rates and bring forward the guaranteed implosion of the US economy, the most ridiculous farce in all of history so far. As Marc Faber says, QE wil run to QE99 and it will last DECADES.

The other thing to note is that B.S. Bernanke is the latest to resign. Normally, this should lead to worries about the economy. Instead, the propaganda is focusing on his replacement; either inflationist, Janet Yellen, or inflationist, Larry Summers. So full steam ahead for the hyperinflation.

Meanwhile, you're supposed to believe that the risk/reward curve is following the GOFO rate in going negative: He noted that the cost to bet against gold, by shorting, has increased recently. That suggests that speculators are becoming less convinced that gold is headed lower.
- Gold: Time to buy now?, 16Jul2013, Krappy News Network

GOFO rates have more than doubled in just the last few days and still negative: "More on JPM Hoarding Gold"
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-19 13:59:00 |Display all floors
This post was edited by gork at 2013-8-19 14:09

The State of Play
- Herding the Sheeple Out of Gold

As Paul Craig Roberts has said, the reason they're herding the sheeple out of gold is because they know it will rocket higher.

In 1971, Nixon defaulted on gold payment under the Bretton Woods gold-exchange standard. Inevitably, the price of gold rocketed from $35 an ounce to $200. But in 1933, when the amerikan sheeple's rights were violated with the confiscation of gold, they were only allowed to hold a maximum of $100 worth of gold with a DAILY penalty of $50,000 for exercising their civil rights in the amerikan prison state. Only about half of the sheeple actually handed in their gold for confiscation however.

So in 1974, the sheeple were once again allowed to hold gold. But instead of buying, the suckers sold the, now legalised, gold. These were the suckers who knew the price of everything and the value of nothing. In other words, they couldn't see past their noses to the coming high inflation of the stagflationary 1970s. After all, $200 an ounce was then an all time record high.

Central bankers can't control where the money goes when they print. If share prices are pumped up, then someone will sell shares and buy gold and today they're hyper-inflating the monetary base in the UK, Japan and US by 40% EVERY YEAR! Despite the taper-on-off-on-off-on-off and now on again and the BoE pretending it's discussing extension of the £375bn QE, Japan has already committed to at least another year of QE. So either the Yen falls off the cliff as the US and UK taper or they both continue with QE as well.

Companies understand that this Greater Depression is being imposed in order to restrain inflation from becoming a hyperinflationary run on the dollar (gold bugs seem to be banned from using this phrase and instead refer to a "run on gold" meaning a run TO gold). The Companies have no choice but to hoard cash even as they know that the high rate of inflation will erode the value. So, many are either paying dividends unjustified by the profit levels or are buying back their own shares in order to maintain their price (with the arbitrage between stocks and shares being the Reverse Yield Gap). Whilst one sixth of Amerikans are on food stamps, David Kamoron has cut funding to local authorities which, in turn, have cut funding for food-banks. The very poorest are also being taxed for spare rooms, even though they have no alternative and the spare rooms are nothing more than another room to heat in the Winter. Yes, Kamoron is a major-league ***hole whose inherited wealth comes from slavery and banksterism because he's too stupid to earn an honest wage and can't even account for his own daughter when leaving a pub; a major-league security breach. The UK also has the "do not resuscitate" policy to kill off the elderly and the Liverpool Kill Pathway. It seems Harold Shipman's only crime was to rob his patients whilst killing them off.

Then, as now, the gold price slumped for two years from $200 to $100 in 1976. But with all the money printing, gold hit $850 in January 1980. This was a one day spike and only Volcker raising overnight interest rates to 21% in 1979 enticed the suckers out of gold and into a guaranteed (well guaranteed by the banksters) return on US Treasuries. Today, the debt levels are far too high and defrauding pensioners with the ERISA law requires that US Treasuries offer zero interest rates for the next twenty years at least.

So the 18 month long, slow fall in the gold price is intended to herd the sheeple out of gold. But what seems to have thrown a spanner into the works was a massive jump in gold imports to China in March. This appears to have triggered the smashdown in April after Jamie Dimon told his clients not to dump gold but to actually short it. JP Morgan seems to have just about run out of gold and is begging HSBC and ScotiaMocatta for supplies. The gold could be used in settlement of claims or could be stocking up for a final dump on the market in order to escape a short-squeeze. Reports of John Paulson and George Soros dumping gold ETF shares omits the fact that they're buying alternatives. Paulson also claims that he has less need to hedge; suggesting he's trying to give misdirection as he buys into gold swaps.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-21 03:33:33 |Display all floors
Quite why Help-to-Buy needs to be available on houses worth £600,000 – more than double the national average of around £250,000 – is not clear.
- As the economy gathers speed, Help to Buy is starting to look excessive

It's obvious!

To devalue the debt, all prices have to rise. Bonds are in a bubble with the ZIRP. Shares are in a bubble because the low interest rates plus the Greater Depression means all the spare cash is used in share buybacks and the Reverse Yield Gap means high prices can be justified. Oil prices have risen tenfold since 1999. With the monetary base being hyperinflated at a 40% annual rate to fuel this currency debasement. The stagflation of the 1970s was when the UK decimalised; timed for the year after the "Nixon Shock". This was supposed to hoodwink the slug-brained into not noticing the inflation.

So the property bubble that has already burst is now being re-inflated. Whilst housing benefits are reduced and the goons & thugs award themselves a 10% pay rise via a pseudo-independent commission and courtesy of the taxsucker, the UK gangster government uses the cash for Help2Buy subsidised loans for houses and the Funding4Lending is used for mortgages. The reason it extends to pricier houses is because it's about increasing inflation and not about helping the poor. After all, the poorest of all are now being told to drop dead by David Kamoron. Like the stagflation of the 1970s, when gold went from £35 to $850 (including the one-day spike an average rate of 70% per annum), wages are supposed to stay low, whilst inflation robs  you and prices of everything skyrocket. These gangsters don't know how to create wealth and only know how to thieve as they have done throughout their entire history. Today, the debts are even higher so the rise in the gold price should be much more than the 24 fold increase in the 1970s, especially as high interest rates are simply not possible. On the downside, ETFs have diverted much of the demand for gold to paper-gold.
Compounding is the magic ingredient.

Use magic tools Report

Rank: 6Rank: 6

Post time 2013-8-23 18:27:12 |Display all floors
“In theory, QE3 was meant to target unemployment and the labor market. I’m not really sure there has been substantial improvement in the labor market, but they seem to want to end the program.”
- Fed Burned Once Over Taper Now Twice Shy Approaching QE3 Change

This is all about liquidity. Japan and China have dumped record amounts of treasuries: Japan and China alone dumped $40 billion that month (of a total $66 billion sold by foreigners that month).
- The Fed Cannot Possibly "Exit" Without The Market Crumbling

We learned a few days ago that in June they sold a record $40.8 billion of (U.S.) Treasuries, and that was an all-time record going back to 1977.
- This Will Create Panic, Crush The Fed & Send Gold Soaring

By dumping treasuries, they're soaking up dollars; dollars that have fled the shares and bond market, with 10Y yields hitting almost 3%. Other asset classes, housing and commodities, are also being bid up. Gold and silver are restrained as are other FX rates.

Remember, the White House is predicting "only" $759bn in borrowing this fiscal year, down from last year's $1,086bn and the first sub-trillion deficit since 2008.

A September taper, that all the propaganda rags are touting, will probably be due to B.S. Bernanke soiling his pants at the prospect of a run on the dollar. He hopes to un-taper as soon as he can and ZIRP will be here for at least the next twenty years.
Compounding is the magic ingredient.

Use magic tools Report

You can't reply post until you log in Log in | register

BACK TO THE TOP
Contact us:Tel: (86)010-84883548, Email: blog@chinadaily.com.cn
Blog announcement:| We reserve the right, and you authorize us, to use content, including words, photos and videos, which you provide to our blog
platform, for non-profit purposes on China Daily media, comprising newspaper, website, iPad and other social media accounts.