A storm approaches like no other financial storm ever seen on the face of the earth.
A derivatives contagion capable of wiping out the entire financial system in an hour, is coming.
By SD Contributor Marshall Swing:
From the Land of Mindanao in the Philippines, I wish everyone who reads my weekly article great insight into where metal prices are going in the near and long term future as you are indeed zealous of the money earned by you and know that a storm approaches like no other financial storm ever seen on the face of the earth in any country.
Many say the bond markets and the derivatives market (who help insure the bonds market and further irresponsible casino betting in financial instruments that are often extremely difficult to quantify the risk to all parties is going to crash soon.
Indeed, it is VERY INTERESTING to read the 17th and 18th chapters of the Book of Revelation in the bible because it seems to forecast just such an event. Are these times upon us? Many think so…
Many say once the dominos of the derivatives start falling it is unstoppable and in the Revelation we are told things collapse in just one hour. 1 hour?
Is that possible?
Well, with computer networks all over the world and all the world’s counter-party risk joined together through instant electronic links, once a massive default is issued then every counter-party down the line could feel the repercussions virtually instantly.
Then, someone in this world has to come in and save the day 😉
That someone would most likely be the President of the United States offering his plan to stabilize the economic system but in a new way since the currency of the old system would no longer be backed by the faith of anyone in the world and no one would trust anyone to make financial doings until confidence between currencies was satisfied and international trading could resume.
It is indeed interesting that one Karen Hudes, a former senior lawyer for the IMF, told the world last year as a whistleblower the ways of the IMF and declared the banking establishment of the Catholic Church in Rome to be pulling the strings. She also declared the United States to be in possession of Yamashita’s gold stored in the Bank of Hawaii to the tune of 175,000 tons, which is greater than or about equal to the current estimates of all gold ever mined from the earth.
So, the President of the United States rushes in to save the day and the world loves him for it and the Congress of the U.S. changes the law about 2 terms and the President runs for and wins another term easily and the world falls deeply in love with the one who averted total financial chaos in the world and they follow after him (and worship him more than now)…
A very interesting week in the numbers from the metal’s futures trading on the Commodities’ Exchange in New York where the determination of the silver and gold prices are made through adding the values of total of longs and shorts together then dividing by the total number of longs and shorts.
For every long there must be a short to make a contract.
It IS a casino where the dominant players are banks who control the price and their partners that they invest their money. Sometimes banks have been known to bet against their customers 😉
In silver this past COT period, the large speculators are gambling mighty and added to their totals almost 6,000 additional short contracts while the commercials covered just over 4,000 shorts to reap some easily earned cash. Lot’s of cash!
We see in the disaggregated COT that the producer merchant bullion banks AND the swap dealers held a joint venture in the short covering cash reaping exercise. They probably met for lunch somewhere and whispered sweet insider trading nothings in each other’s ears as agreement to pursue financial success at the whim of the global elites.
One more thing to point out in the silver numbers is there was an addition of almost 5,000 new contracts to the open interest totals so SOMEBODY picked up almost 5,000 new longs to go with the almost 5,000 new shorts of the large specs BUT we do not see it revealed in the numbers exactly who picked up those longs but I will go ahead and make my guess it is the commercials who got the lion’s share of them but this Truth is covered up in the totals of the numbers as Truth sometimes hides in plain sight but in this case is seen through a glass darkly.
In gold, we see the large speculators loaded up the truck with shorts to the tune of almost 16,000 additional short contracts, in fact, in the disaggregated COT we see managed money with just under 20,000 new shorts!!
They are in total agreement with my predictions there will be a huge collapse in the metals prices within about a year or so and they are doubling down to take advantage of it. They are becoming the bedfellows of the bullion banks and the swap dealers as everyone is rushing about to grab as much easy cash as they can when the commodities collapse takes place and then position themselves going long to take advantage of extreme lows and easy cash at high prices in the stratosphere round about 3rd quarter 2015 and beyond that time.
This is in total agreement with what Martin Armstrong has been predicting for a huge market collapse in 2015.75 and as equities reach unprecedented highs metals will reach unprecedented lows because there is no fear in the world of fiat. Armstrong tells us because of unstableness around the world major capital is seeking safer havens back home in the West. What will happen in that the whole West will reap gains but as fear starts to spread in Europe all the major capital heads for the United States, the land of the free and home of the brave who made compacts with mother England hundreds of years ago then reneged on those contracts with the bloody war of revolution that cost many many hundreds of thousands of seemingly innocent young men their lives (needlessly) while the bankers reaped the rewards of a new empire. Curious how to 2 school ground adversaries are now the best of friends, isn’t it?
While the large gold speculators were gorging themselves at the SHORT TABLE the commercials were divesting themselves of shorts making fiat cash hand over fist. The small speculators were busy divesting of longs and shorts as they are divided somewhat and they cannot withstand a big short covering depression in the gold price so their longs have to come out of the game while others of them have figured out the game and reaped cash on the own short coverings by fairly similar numbers.
HOWEVER, unlike silver, the gold producer merchant was virtually silent in total numbers as their counterparts the swap dealers were the real short covering artists having learned their craft from their investment mentors the bullion banks.
Where is metal price headed this coming week?
Probably stagnant or slightly depressed as with the large speculators in full agreement with the swap dealers about where price is desired they are biding their time before they attempt to cash in on those shorts because the massive position of the swap dealers rules in gold and for quite some time now neither the bullion banks nor the swap dealers have shown any desire whatsoever to trip the speculators out of their shorts in order to make quick cash in an HFT long rally designed to remove competing shorts.
Sell in May and go away?
The smart paper players bought shorts in May but their ultimate fate is determined by the global elite unless they take their profits now before the collapse, but depression has a way of dulling the senses of those who are looking for an exit.
Until next week, and still in the Land of Mindanao under the watchful eye of Mt. Apo!
Stay thirsty to physical, my friends and buy now while it exists on the shelves of the SilverDoctors,
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