empty-vault

Close to 20 million ounces have been removed from the “customer” accounts since February, held in vaults operated by banks like JP Morgan, Scotia and HSBC.  Yet, at the same time, the paper silver futures open interest has soared to near all-time highs. At the beginning of January, there were approximately 132k contracts of silver open interest.  As of yesterday, the amount was over 173,000 – close to an all-time high.
To put this in perspective, 173k contracts represents 865 million ounces of silver.  Compare this to the 66.7 million ounces reported by the banks to be in their “registered” vault account (registered = the silver available to be delivered).
In other words,  there’s 7.65x more paper silver that has been sold to investors/speculators than there is physical silver available to be delivered.
This is a Ponzi scheme that only the upper managements at Enron, JP Morgan and Madoff & Co. + the Secretary of the U.S. Treasury could appreciate.
No wonder investors holding their silver at the Comex are taking it OUT of the Comex.

QE taper

It is widely expected that the Federal Reserve is going to announce the end of quantitative easing this week. 
Will this represent a major turning point for the stock market? 
As you will see below, since 2008 stocks have risen dramatically throughout every stage of quantitative easing. 
But when the various phases of quantitative easing have ended, stocks have always responded by declining substantially. 
The only thing that caused stocks to eventually start rising again was a new round of quantitative easing. 
Most Americans don’t even understand what derivatives are, but when the next great financial crisis strikes we are going to be hearing a whole lot about them.
The big banks have transformed Wall Street into the biggest casino in the history of the planet, and there is no way that this is going to end well.
A great collapse is coming.  It is just a matter of time.

HarveyOrgan1

Gold & silver were whacked by the cartel in the access market today as Janet Yellen and the Fed announced QE will end at the end of the month. 
Expect gold and silver to be under the weather for the remainder of the week.
Let’s head immediately to see the major data points for today:

GATA

The last two months have brought confirmation that, as we long have suspected, GATA has outlined only a small part of the surreptitious market manipulation being undertaken by central banks — that this manipulation is actually comprehensive, that it covers nearly every major market in the world.

freefall

The indicators which reflect the rotting core of economy are the price of oil and the 10 yr Treasury yield.   The 10yr yield is falling because it’s the only “safe” place to park cash that offers some yield.  Note how the yield is dropping despite the ending of QE bond buying.   And oil is a function of supply and demand.
The price of oil similarly collapsed in 2008 just ahead of the financial and economic collapse that occurred that year.
A collapse that was diverted by the onset of an eventual $4 trillion in QE stimulus and taxpayer-funded Government spending.

The truth is, real inflation has infected everything households need to buy and deflation will soon hit every asset sector that has been pumped up to the sky again by Fed stimulus.

goose

The behavior of financial markets these days is frankly divorced from reality, with value-investing banished.
Our dysfunctional markets have become little more than the essential prerequisite, as Louis XIV’s finance minister Colbert might have said, to plucking the goose for the largest amount of feathers with the minimum of hissing.

Source: Banzai7

What we saw in 2008 was a massive containment. The mainstream was taken by surprise. I remember watching it all finally unfold, thinking that this was it. Playing out exactly as expected.
The most obvious bubble, housing, was imploding. But something happened that felt strange. The real punishment.
The event that should have ended housing as a financial asset never came.
In the process they have reduced the standard of living for 90% of Americans.
Fed policy tools guarantee that everyone is so inured to their system that when they implode the whole thing to rubble next, no one will have any choice but to be under their centralized world total control system.

Or so THEY think anyway.

scan

Many commentators, including myself, have been sounding the alarm for many years that only a short-sighted society filled with fearful imbeciles would ever grant government tyrannical powers in the name of fighting an overhyped, outside enemy. As has happened countless times in world history, once these powers are granted they are always eventually used against the domestic population. Sometimes it is used to crackdown on dissent, but sometimes it’s used just to earn money and shake down the domestic plebs.   It appears the British Broadcasting Corportation (BBC) in Great Britain is now using it simply to collect tax.

clip_image001_thumb10

I expect that gold could stay under some pressure this week, until Friday’s US Employment Situation report is released, at about 8:30 AM on Friday.
If gold were to trade in the $1219 area, that would be a rough 50% retracement of the $1183 – $1255 rally.
Such pullbacks are perfectly normal after decent rallies.  The overall picture remains a healthy one.
Chinese demand is starting to rise again and Indian demand is superb. Gold is well-supported here, and investor fear is unwarranted. 

china bank run

In this excellent interview with SGTReport, Alasdair Macleod discusses the latest banker “suicides” which have all of the hallmarks of intelligence agency ‘wet work’.
Alasdair also explains how China could easily have acquired 20,000 tons of gold in recent decades – and as SRS Rocco recently pointed out, an additional 10,000 tons of gold in just the last three years!
Full MUST LISTEN interview is below: