China gold

The pattern of central bank covering the debt is clear. The lesson is that central banks can apply paper patches to the failed banks, and buy more time, then repeat the process on the next failed bank event. No limit to their bank patches seems to be in force.   The banker cabal can continue endlessly since their patches are based on paper solutions, fiat paper money spew, and they control the paper output. They are the masters of the House of Paper.
The paper mache solutions can continue in a seemingly endless manner, but not in the Gold market.
The intervention and suppression in the Gold market is finite.   It requires Gold bullion, the physical ingot bars, in order to execute the perpetuated interference and alteration to this financial niche market.
The manipulation is finite, and it is coming to an end.
When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.

Pisani gold gld

Another 2 tonnes of gold was removed from the GLD trust yesterday.  The last time the reported amount of gold in GLD was this low was November 18, 2008.   The price of gold was $738.
Despite the fact that the price of gold is up about 2% YTD, 6% of GLD’s reported amount of gold has been removed by the bullion banks.
I predicted in 2009 in a report I wrote about GLD’s legal structure that GLD would eventually suffer the same fate as Enron.   In fact, our entire is system is one giant Enron/Madoff Ponzi scheme.

To compound the removal of the “visible” physical stock of gold from our western system, nearly 10 tonnes of gold was removed from JP Morgan’s Comex gold vault:

EmptyVault

As the increasingly volatile stock markets bounced back higher today,  JP Morgan experienced one of the largest withdrawals of gold from its inventories this year.  In just one day, a stunning 321,500 oz of gold (10 metric tons) were removed from JP Morgan’s Eligible inventories:

The-Pilgrims-Image-1

GOLD HAS NO USEFUL PURPOSE TO SERVE IN THE POCKETS OF THE PEOPLE—Pilgrims Society member Alan Sproul, president of Federal Reserve Bank of New York, addressing the anti-precious metals American Bankers association meeting in San Francisco.

crash collapse

The Fed will continue to be the buyer of last resort until the population and culture wake up to “bank holidays, runs and/or “bail ins”.
Grandma Yellen won’t let you starve.
It seems the next downturn in equities, housing, and bonds is meant to bring the masses under the big circus tent of control once and for all.
Fire breaks out in a crowded theater, once heralded as the safest place to be.
But all the exits are closing, except for one.  And then it closes too.

Everyone burns.

HarveyOrgan1

Today, we had a huge withdrawal in inventory at the GLD. of 2.1 tonnes.
On the 22nd the LBMA stated that they will no longer publish GOFO rates.

It looks to me like these rates are now fully manipulated. 

home run

The dollar institution is much larger than the Fed, the Treasury or the entire basket of FOREX that derives relative values of backless currencies.
The silver price is a fulcrum for a mass of derivatives.  The heart of all trading is basic price discovery. Once the bid/ask is out there, few question it.
Whatever happens after that becomes commentary.  This is why something so blatantly obvious as HFT can go on for years. How does the institution come apart?  The repo-generated, freeze.

copper

According to the financial media, the global economy is supposedly rolling over causing a glut of inventories producing a deflation in the prices of many commodities If this is the case… someone should tell that to King of base metals… Copper.
Something doesn’t seem to be making sense in the copper market as the price continues to decline, so are the level of global copper inventories.  You would think the opposite would be the case, but we must remember in the new Financial Paradigm — Paper assets such as Derivatives, Stocks and Bonds are KING, while Gold-Silver and commodities are GARBAGE.
If we look at the chart below, we can see a very interesting trend taking place in global copper inventories.  Not only are we are near record lows, we are down to less than five days worth of copper inventories:

fog

PM Fund Manager Dave Kranzler  stopped by to weigh in on the ebola outbreak. We discuss the possibility of ebola being an October surprise, the reality of the number of deaths vs the reaction of the people along with the reaction from the government.
We then move into a dissuasion of the current housing collapse and how the “massaged” numbers coming from government do not add up. Dave shares his knowledge regarding what is happening behind the scenes and the actual truth of the matter.
We then turn our attention to the gold and silver markets.
Since Dave’s crystal ball is in the shop–permanently–we have to rely on manipulated data and what is happening in the physical market.