20 April 2015

Gold Daily and Silver Weekly Charts - Overreach, the Graveyard of Empires

"This empire, unlike any other in the history of the world, has been built primarily through economic manipulation, through cheating, through fraud, through seducing people into our way of life, through the economic hit men."

John Perkins

‘Whatever happens, the [1997 Asian currency] crisis probably signaled the beginning of the end of the American empire and a shift to a tripolar world in which the United States, Europe, and East Asia simultaneously share power and compete for it.’

Chalmers Johnson, Blowback, 2004

In addition to the tripolar arrangement noted by Chalmers Johnson above, Russia will occupy a pivotal role between Asia and Europe, as well as the Mideast.  This is why I have previously identified the likelihood of three to four regional spheres of influence if or when the push for a one world government under the dollar and the central banks falters.
The bucket shop has been fairly quiet, at least in terms of physical activity.
There were some ounces of gold claimed as 'delivered' last Friday as noted on the report below. 
But other than that the warehouses remain quiet, with little gold flowing in or out, and silver being 'pushed around the plate.'
Someone corrected me to day saying that the Comex was never intended as a physical market, but as 'a means to manipulate prices.' 
I will take some issue with that.  The intent of the futures markets were not to manipulate prices.  They may have become that, but it is not in their original or even stated intent.  I do not see many mission statements for the CME and their minders at the CFTC admitting that our intent is to manipulate the prices of real goods in the world.
It is important to keep some account of what is intended, and what is a deficiency and a corruption. 
There can be a place for a futures market.  It has very specific hedging and risk spreading functions to perform for those who wish to use and sell particular commodities.   They facilitate the price discovery mechanism of the real markets.
But when the price discovery mechanism gives way to raw speculation, and the purposes of a market give way to the predations of powerful speculates who neither make nor utilize that thing productively, then the price discovery mechanism becomes broken, and the consequences for real work markets begin to build, and with time, can become almost exponential.
That we have allowed our markets to become broken does not mean that this is their proper function by any stretch of our modern narcissism that sees what we are as the epitome of all human progress and development.
Have a pleasant evening.