According to the Bank of International Settlements, the world cannot handle another global crash – a crash that there is every reason to think is coming.
The silver paper futures open interest is now officially over a 1 billion ozs., most of which represents a naked short position in silver. Never in the history of the markets has any futures market been this extraordinarily disconnected from the amount of underlying physical commodity that is available to deliver against those contract open interest.
The only conclusion that can be drawn is that the Fed, Treasury and big banks are implementing the most extreme market manipulation exercise ever witnessed.
I shudder to think about what catastrophe is coming at us that they know about but we don’t – yet.
The reality of the situation is that not only is this contagion soon to reach America, there will be no stopping it when it does…
If the United States and China are supposed to be such “great friends”, why are both sides acting as if war is in our future?
Once our debt-fueled economy collapses, the Chinese won’t have too much use for us anymore. Instead, we will just be a barrier in the way of their goal of total global domination.
If you don’t think that the Chinese view us in this manner, just read some of the white papers produced by the Chinese government and the Chinese military. They do not consider us to be a “friend” at all. Rather, they consider us to be an enemy that must ultimately be vanquished.
I assume JP Morgan and the Fed are one and the same. There have been stories JPM has amassed 350 or more ounces of silver. We also know China/Russia/India have been huge buyers of gold. We now know JPM has increased their derivatives by over $3 trillion in just one quarter. It is obvious to me, they are the ones sitting on the paper prices of gold and silver. This would make sense for the Fed to attack the metals and thus support the dollar.
In fact, standard procedure in any war is to strengthen your currency while weakening your opponents. I believe the neocons know the bottom of our “gold barrel” is close at hand, they have decided to go ALL IN on price suppression.
Not surprisingly there is little official documentation on the recently launched Silk Road Gold Fund. However, the translation below provides an intriguing insight at what this Fund is about:
As we enter the second half of 2015, financial panic has gripped most of the globe.
We have entered uncharted territory, and what comes next is going to shock the world.
Something BIG, UGLY, and NASTY this way comes…
BlackRock Changes The Rules Of The Game Because Of An Outcome It Fears.
This is the signal that everyone should call up their mutual fund company, financial adviser or 401k administrator and get all of their the money out of any mutual fund. Larry Fink has done everyone invested in any mutual fund a favor: he’s unwittingly signaled that it’s time to get out – NOW.
I first wrote last August about the situation where huge open interest in the September contract dwarfed the available silver for delivery.
My speculation then as it is now, I believe somehow the bulk of the open interest in the nearby month is of Chinese origin.
Call it the Chinese “Kill Switch”:
It is highly probable that the crashing stocks of MBIA, AMBAC and AGO are the alarm bells of a black swan landing. And, of course, no one has been talking about them…. until today.
Although these firms are somewhat obscure and small compared to the size of the majority of financial companies, they are highly leveraged with massive off-balance-sheet liabilities for which they have zero hope of covering in the event of even relatively small bond defaults. In other words, these firms are the ones most likely to set off the next financial collapse triggered by their counterparty defaults.
While the world watches Greece’s economy approach the cliff-edge, and Europe’s banking elite employ more and more desperate accounting tricks to magically conjure Eurozone solvency – we would like to point our readers’ attention to Venezuela, which provides a useful illustration of what happens to all fiat currencies on a long enough timeframe.
The next great global financial collapse that so many are warning about is nearly upon us, and when it arrives derivatives are going to play a starring role.
For the PMs crowd, there are three simple choices available. For those unhappy where the price for gold and silver are trading, sell, get out. Take a loss and move on and quit complaining. Life is too short.
You can hold what you have and remember the reasons for buying and accumulating either metal, or both.
Attendant with the hold strategy is to keep on adding at these low prices, while recognizing that low can still go lower. The reasons for buying have not changed. In fact, they have gotten worse, and the ultimate outcome is a virtual guarantee that prices will go higher.
A supernova is a stellar explosion that is so bright it momentarily outshines the entire galaxy. The most massive supernovae are caused by stars which collapse under their own gravity, sending massive shockwaves radiating outwards into space. Any onlooker happening to see a supernova might be forgiven for thinking that these super-bright objects are the most awesome stars in the sky — but that bright spot is just an epic final burst of remaining energy.
At their brightest moment, we are actually witnessing stellar death.