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Special thanks to 24hourgold. This interactive chart can be viewed here.
I wonder how much of this silver being sold is leased out from unallocated accounts and holdings in ETFs.
How unfortunate for the silver shorts that the bankers lack a ready supply of bullion from the central banks. Most national stores of silver in the west have already been depleted.
Gold bullion, however, is still available from those central banks who lease their gold to the bullion banks, where it is then sold into the private market, and is afterward carried on the national accounts as bookkeeping entries.
This scheme has been promoted by some of the TBTF banks for many years as a means of providing a steady income for the central bankers and their Treasuries on their 'idle resources.' Lease us your gold, and we will pay you a percent or two for it in paper.
What Mubarak and other dictators in history past have done using cargo planes, trucks and trains, the western bankers may have done over a period of time using computer entries and their cronies in the central banks: plundering the national treasuries of Europe, quietly and over time. And it was not stored in salt mines and lake bottoms, but sold in plain sight.
Won't the people be surprised if they find how much of their gold is gone, and how it was used to deceive them while their other assets were stolen using phony paper. Do you think there will be reparations made, and justice done?
They will most likely try to ignore it and dismiss it, claim that it is not needed and we are better off without it. And then they will buy it back, but at what prices? And what so called patriots will be their willing stooges and accomplices in theft, again.
Watch how they weave their arguments over the misappropriated social trust funds and pensions, bank bailouts, and subsidies to the corporations and monied interests to see what their methods will be. This debt is sovereign, a matter of national interest if not sacred honor, and so must be paid whatever the cost. But that debt to those people, well, the money is gone, so too bad for them. Sacrifices must be made, and we will choose who makes them based not on the law or justice, but on the principles of crony capitalism, which are always for private benefit of the few.
What a scandal! And irony indeed if this banking fraud is exposed not by the virtuous West, but by China and the BRICs, and their unwillingness to go along with the scheme.
But this could not be true. Banks do not do this. It would be like their presenting forged documents, concealing evidence, and committing blatant perjury to take people's homes in their very own courts!
But this is merely rhetorical speculation and conspiracy theory of course, because the theft could never pass undisclosed with all the independent audits, transparency, oversight, and accountability in the central banking system. Surely the people have a good account of the amount, number, and quality of every bar that they own from an impeccable source which they control. Uh, there have been no such audits or accountability, the system is necessarily opaque? Oh. We are shocked, shocked, that the gold is gone and the private banks cannot replace it. The smartest minds told us it was a good plan, an excellent idea. The US pressured us to do it to support the dollar. How could we have known that people would demand these barbarous relics again. Do they not understand monetary theory? They are to be ridiculed1
And now all that is left is running the bluff, and playing for time, looking for an opportunity to deflect the issue to something, someone else.
The Gartman Letter, understandably pleased with yesterday's very abrupt sell decision, suggests gold will retreat to the uptrend line at $1,340-$1350:
“…sometime in the course of the next two or three weeks…We'll be buyers there.”
Gartman changes his stance often enough to function as a decent contrary indicator for a fade, unlike Nadler from Kitco who seems almost always wrong and therefore useless for anything but a coat rack.
This is a conventional view from Dennis. Gold and silver have run high and into resistance. He could be right. He seems to occasionally signal from the hedge funds as to certain intentions floating about. They will need a break in the drumbeat of townspeople carry pitchforks and torches however.
The action in the equity markets today was not constructive to a bullish view, but not decidedly bearish yet either.
Lets see how the geopolitical situation plays out in the Middle East, and particularly in Libya and parts east of there, especially the Sinai peninsula.
I took most of my trades from yesterday off the table, covering the index shorts especially financials, and selling many of the miners picked up on the dips. Kept a little of both with a bias to bullion over miners, although I did dabble in miners enough to take a stock short forward as a hedge.
Blythe, I'm trying to help, but its time to 'fess up, and give it up.
Stick to sugar, sugar. When you are on the wrong side, silver hurts.
“Hypocrisy in anything whatever may deceive the cleverest and most penetrating man, but the least wide-awake of children recognizes it, and is revolted by it, however ingeniously it may be disguised.”
Leo Nikolaevich Tolstoy
I cannot quite settle this in my mind. Has fraud and hypocrisy become so prevalent because the people have devolved into idiots, or because the financial powers, their media, and corporate and government supporters have become so emboldened, and brazen, and will continue to do even moreso until the common people, so often slow to action, finally decide what to do?
I can hardly watch the US financial television channels on the internet anymore, as the deception and hypocrisy is becoming almost fantastic, disorienting. These are educated people, and they seem to be willing to say almost anything no matter how ridiculous it might be.
The Fed is monetizing debt, colloquially known as 'printing money.'
At this point you either understand this or you do not, and if not it is probably because you will not to do so.
But it is the reality we have, and presents fairly volatile conditions for the world financial system. And the limit to the monetization are the value of the US bonds, and the American dollar which are notes of zero duration.
The monetization cannot revitalize the economy because most of the problems that led to the financial crisis remain as they were. The government of both parties is caught in a credibility trap, and under obligations to the monied interests for campaign funds and compromised by past favors granted.
Adding liquidity and stimulus at this point is like pouring enormous quantities of gasoline into a car that has just been towed out of a ditch, with four flat tires, a seized transmission, and a crushed radiator, and saying, "We'll be back on the road anytime now once we fill 'er up." And austerity is like making the passengers get out and push. The Congress, who failed to properly maintain the vehicle by taking kickbacks from dishonest mechanics, the Banks, sits in the front seat eating doughnuts, urging the middle class to stop whining and push harder. And Bernanke is bouncing up and down on his seat saying 'vrooom, vrooom,' and the corporate media and economists marvel at his accomplishments. It is less a recovery than a tragedy.
The Fed has tried this twice now. First in response to the Asian/Russian currency crisis and Y2k panic, with the resulting tech bubble. And then in response to the tech bubble collapse and 911, with the resulting housing bubble and a bloated and virulently fraudulent financial sector. And we expect the result to be different this time because....?
All that is required is a stray spark, and you will see the results. If you enjoyed the Russian currency crisis, you will love the US currency crisis. Just be sure to wear sunglasses and watch from a distance, and higher ground. Unfortunately the taxis in this area only take hard currencies.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustained recovery. And reform does not mean selectively defaulting, a nice form of stealing, from the old and the weak.
Bloomberg
Fed Treasury Purchases `Monetizing Debt,' May Spur Inflation, Hoenig Says
By Steve Matthews and Caroline Salas
Mar 2, 2011 9:56 AM ET
Federal Reserve Bank of Kansas City President Thomas Hoenig said the central bank is “monetizing debt” with its purchases of U.S. Treasuries, a program that he says may spur inflation.
“Yes, we are monetizing debt,” Hoenig said today in a speech in New York. “You buy bonds and you monetize debt. Right now, a lot of that is going into excess reserves so it is not having an immediate effect on inflation. It will initiate inflationary impulses. It takes time.”
Hoenig, the lone dissenter from every Fed meeting last year, warned that the central bank’s near-zero interest rates and record monetary stimulus could lead to asset price bubbles and increase inflation in a few years. He voted against the Fed’s plan to purchase $600 billion in U.S. Treasury securities through June during the final two meetings of 2010.
Hoenig told the Council on Foreign Relations the Fed needs to explain how it plans to reduce its record $2.54 trillion balance sheet. While he would avoid “shock therapy” of selling assets all at once, “we want to begin to show how we will withdraw that.”
Policy makers were divided over whether further evidence of a strengthening recovery would warrant slowing or reducing the $600 billion of purchases, according to minutes of their January meeting...."
