There has been some significant intraday commentary. I wished to highlight the portion of it that deals with the disposition of the metals markets.
There was a remarkable admission on a major US television network that the silver market is being manipulated.
And having thought about this for some time, afterwards I put forth a possible scenario about what comes next given the inevitability of some event on the exchange, given the severe imbalance of claims to legitimate supply, which are estimated at 40, 50, and even 100:1.
I can envision a holiday for the American silver exchange and the forced settlement of all paper bullion claims for a set price, much lower than what will follow next. This might include gold as well.
It is difficult for a manipulation scheme to come to any other end, given the length of time it has been in place and the size of the positions still being held by the untouchable Banks and Very Important People. I imagine they will blame some defunct scapegoat, like a Bear Stearns.
If you do not think that this is possible, read the description. It sounds very much like the sudden decline and fall of MF Global.
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