As a reminder, next Tuesday the 28th is an option expiration on the Comex in the precious metals.
The set up in the market is interesting. I wonder who, net-net, is really holding the big physical short underpinning that inverted pyramid of paper?
Qui est le trompeur trompé?
"A baited banker thus desponds,
From his own hand foresees his fall,
They have his soul, who have his bonds;
'Tis like the writing on the wall...
"When other hands the scales shall hold,
And they, in men's and angels' sight
Produced with all their bills and gold,
"Weigh'd in the balance and found light!"
Jonathan Swift, The Run on the Bankers
"He who sells what isn't his'n
Must buy it back, or go to prison."
Each market operation to keep the precious metal prices lower sends more bullion out of the hands of the western Banks and into stronger hands in the East.
Why would they do this? What is their game plan?
There isn't one. They are just trying to 'muddle through.'
They are doing what they have been doing, and hoping for something to happen before they run out of fuel, and crash and burn.
Or better yet, abandon the plane and passengers, take all the cash they can carry, and bail.
Bernanke's QE remarks sparked a flight to the metals and short covering as the silver shorts temporarily lost control of the trade. There will be QE of many sorts, as far as the eye can see.
This was quickly met by renewed waves of ruthless selling by the Anglo-American financial cartel.
Silver has since returned to its pre-rally price of 22.75.
The suppression of gold was even more brutal with a plunge on selling, and a gap lower, even on the one minute chart.
The premiums for real metals continue to be high compared to the paper prices set in London and New York.
Gold and silver are flowing from West to East. With each purchase, the Banks are being stripped of their bullion.
They can keep this up, until the people, in their increasing confusion and misery, finally realize that the emperor has no clothes. And then comes change, and one would hope, reform. A generation forgets, and the next remembers and relearns the lessons from the past.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
This is what happens when an artificial tyranny finally falls. First it is the actions of individuals, then a movement, and finally a swiftly moving avalanche.
Freedom is not an objective or a prize to be won and kept at last; freedom is a way of life, a continuing commitment to truth, and to equal justice for all.
Revolutions decay into tyrannies, and over slow time are renewed again. The human spirit is resilient, as long as at least one person can stand for the truth and with peaceful but determined resolve say, 'You may own the world, but you don't own me.'
“Stand up for what you believe, even if you are standing alone.”
Bernanke's words have inflamed the equity market, and driven a flight to the much suppressed metals as the shorts lost control of the market.
I still believe that stagflation is the most likely forecast, but the world is getting a stronger whiff of pure monetary inflation from the central banks, despite the best efforts of the financiers and their apparatchiks to suppress it.
Stagflation is a weird kind of beast. I remember when economists said that it was not possible, until reality showed them differently. And then it was possible because of an exogenous shock, caused by the oil boycott and cartel. And now they may recognize it as the result of policy errors in support of the one percent and their financial cartel.
These are frightened, desperate men who are trapped in a web of their own lies. They see no way out, and so will continue on doing the same things, over and over, until something breaks. And then will come the deluge.
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