Gangsters and the Naked Gold Short

[georgephillip]

First a brief bio of the conservative who's making the charge of a criminal conspiracy to rig the gold and silver markets:

"Paul Craig Roberts (born April 3, 1939) is an American economist and a columnist for Creators Syndicate. He served as an Assistant Secretary of the Treasury in the Reagan Administration and was noted as a co-founder of Reaganomics.[1] He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. He has testified before congressional committees on 30 occasions on issues of economic policy."

This is where Robert's allegation begins:

"My explanation that the sudden appearance of an unprecedented 400 ton short sale of gold on the COMEX in April was a manipulation designed to protect the dollar from the Federal Reserve’s quantitative easing policy has found acceptance among gold investors and hedge fund managers.

"The sale was a naked short.

"The seller had no gold to sell.

"COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery. No one but the Federal Reserve could have placed such an order, and the order came from one of the Fed’s bullion banks, one of the entities 'too big to fail.'”

As one unschooled in the dismal science, my first question would be: is Roberts correct to call this particular sale a "naked short?" My second concerns his allegation that "only the Fed could have placed such an order?"

Gangster State America. ?Naked Short? in the Gold Market | Global Research

"Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?"

That's my big question.

 

[editec]

I share you concerns about this issue.

If one has access to unlimited FIAT dollars, one could easily (and really for not all that much money, either) repress the price of gold using NAKED Gold contracts.

This would be ESPECIALLY easy if one was using cutouts both as buyers, sellers AND the commodites brokers involved in these contracts, too.

What's a investor to do?

Other than preparing for swells coming from every possible direction (read: diversification) I see no rational approach to protecting one's wealth.


If my most parnoic fears are founded in reality, there is NO MARKET, that cannot be thus manipulated -- not stocks, not commodities, not bonds, not arbitraging currencies, either.

Outsider investors are at the mercy of INSIDERS, folks.

There really is no getting around that sad fact.

 

[CrusaderFrank]

A "Naked" Short means that you do not own the commodity you are selling, it's a bet that the price will decline and you will be able to buy the commodity at a lower price

 

[georgephillip]

A "Naked" Short means that you do not own the commodity you are selling, it's a bet that the price will decline and you will be able to buy the commodity at a lower price

In your opinion, is Roberts correct in describing this as a naked short?

 

[georgephillip]

I share you concerns about this issue.

If one has access to unlimited FIAT dollars, one could easily (and really for not all that much money, either) repress the price of gold using NAKED Gold contracts.

This would be ESPECIALLY easy if one was using cutouts both as buyers, sellers AND the commodites brokers involved in these contracts, too.

What's a investor to do?

Other than preparing for swells coming from every possible direction (read: diversification) I see no rational approach to protecting one's wealth.


If my most parnoic fears are founded in reality, there is NO MARKET, that cannot be thus manipulated -- not stocks, not commodities, not bonds, not arbitraging currencies, either.

Outsider investors are at the mercy of INSIDERS, folks.

There really is no getting around that sad fact.

And it would seem the insiders own the levers of government?

 

[CrusaderFrank]

A "Naked" Short means that you do not own the commodity you are selling, it's a bet that the price will decline and you will be able to buy the commodity at a lower price

In your opinion, is Roberts correct in describing this as a naked short?

Considering that only the governments of Germany or China own that much gold -- yes

It's an attempt to drive the price down

 

[georgephillip]

"Institutional investors who have bullion in their portfolio do not want the expense associated with storing it securely. Instead, they buy into Exchange Traded Funds (ETF) and hold their bullion in the form of a paper claim.

"The largest, the SPDR Gold Trust or GLD, trades on the New York Stock Exchange..."

"The price of bullion is not set in the physical market where individuals take delivery of bullion purchases. It is set in the paper futures market where short selling can drive down the price even if the demand for physical possession is rising.

"The paper gold market is also the market in which people speculate and leverage their positions, place stop-loss orders, and are subject to margin calls.

"When the enormous naked shorts hit the COMEX, stop-loss orders were triggered adding to the sales, and margin calls forced more sales.

"Investors who were not in on the manipulation lost a lot of money.

"The sales of GLD shares are accumulated by the banksters in 100,000 lots and presented to GLD for redemption in gold acquired at the driven down price.

"The short sale is leveraged by the stop-loss triggers and margin calls, and results in a profit for the banksters who placed the short sell order.

"The banksters then profit again as they sell the released gold into the physical market, especially in Asia, where demand has been stimulated by the sharp drop in bullion price and by the loss of confidence in fiat currency.

"Asian prices are usually at a higher premium above the spot prices in New York-London.

"Some readers have said 'don’t bet against the Federal Reserve; the manipulation can go on forever.' But can it?"

Gangster State America. ?Naked Short? in the Gold Market | Global Research

 

[Dugdale_Jukes]

First a brief bio of the conservative who's making the charge of a criminal conspiracy to rig the gold and silver markets:

"Paul Craig Roberts (born April 3, 1939) is an American economist and a columnist for Creators Syndicate. He served as an Assistant Secretary of the Treasury in the Reagan Administration and was noted as a co-founder of Reaganomics.[1] He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. He has testified before congressional committees on 30 occasions on issues of economic policy."

This is where Robert's allegation begins:

"My explanation that the sudden appearance of an unprecedented 400 ton short sale of gold on the COMEX in April was a manipulation designed to protect the dollar from the Federal Reserve’s quantitative easing policy has found acceptance among gold investors and hedge fund managers.

"The sale was a naked short.

"The seller had no gold to sell.

"COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery. No one but the Federal Reserve could have placed such an order, and the order came from one of the Fed’s bullion banks, one of the entities 'too big to fail.'”

As one unschooled in the dismal science, my first question would be: is Roberts correct to call this particular sale a "naked short?" My second concerns his allegation that "only the Fed could have placed such an order?"

Gangster State America. ?Naked Short? in the Gold Market | Global Research

"Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?"

That's my big question.

ANS: The corporations white trash worship in return for meager porridge.

Moving on to the larger point...

Naked short selling is NOT illegal.
It should be. Some may recall short selling against the bigs was suspended by Junebug's SEC in 2008.

While ReagaNUT free market bogusness was never more than a nutball fantod, naked short selling by the US government seems like the kind of market manipulation that should lead to an investigation every American with a clue could get behind.

Does anyone here believe chinless McConnell and/or his moron, Buttboy John, will appoint special prosecutors?

 

[georgephillip]

"Some readers have said “don’t bet against the Federal Reserve; the manipulation can go on forever.” But can it? As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes. In my opinion, these ETFs are like a fractional reserve banking system. The claims on gold exceed the amount of gold in the trusts. When the ETFs are looted of their gold by the banksters, the gold price will explode, as the claims on gold will greatly exceed the supply."

Do you see an impending financial collapse on the scale of 2008 or larger?

Gangster State America. ?Naked Short? in the Gold Market | Global Research

 

[Book of Jeremiah]

A "Naked" Short means that you do not own the commodity you are selling, it's a bet that the price will decline and you will be able to buy the commodity at a lower price

In your opinion, is Roberts correct in describing this as a naked short?

Considering that only the governments of Germany or China own that much gold -- yes

It's an attempt to drive the price down

Keep in mind Germany was told by US Gov. they cannot have their own Gold ( which is allegedly stored by Fed here ) for seven years. They must wait. Compare this to Chavez who took the physical gold and it is there in Venezuela now and you'll come away believing Chavez had more business sense then the Germans did.

 

[Book of Jeremiah]

"Some readers have said “don’t bet against the Federal Reserve; the manipulation can go on forever.” But can it? As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes. In my opinion, these ETFs are like a fractional reserve banking system. The claims on gold exceed the amount of gold in the trusts. When the ETFs are looted of their gold by the banksters, the gold price will explode, as the claims on gold will greatly exceed the supply."

Do you see an impending financial collapse on the scale of 2008 or larger?

Gangster State America. ?Naked Short? in the Gold Market | Global Research

Imo? Greater than our imaginations can fathom. ETF's ( electronic transfer funds ) are no more valuable today than a dollar would be when crash comes. ( worthless - look up Zimbabwe dollar for good example ) You want physical gold. Buy physical gold and silver and you'll be fine. Buy ETF's and you lose. About Comex, George, they have an out - while you cannot touch the gold you have bought for five years ( or whatever their conditions are ) if the gold is not available they can refund you with the paper money you originally bought it with.

 

[georgephillip]

In your opinion, is Roberts correct in describing this as a naked short?

Considering that only the governments of Germany or China own that much gold -- yes

It's an attempt to drive the price down

Keep in mind Germany was told by US Gov. they cannot have their own Gold ( which is allegedly stored by Fed here ) for seven years. They must wait. Compare this to Chavez who took the physical gold and it is there in Venezuela now and you'll come away believing Chavez had more business sense then the Germans did.

"The financial world was shocked this month (2/13) by a demand from Germany’s Bundesbank to repatriate a large portion of its gold reserves held abroad. By 2020, Germany wants 50% of its total gold reserves back in Frankfurt – including 300 tons from the Federal Reserve. The Bundesbank’s announcement comes just three months after the Fed refused to submit to an audit of its holdings on Germany’s behalf."

This is all news to me, Jeri.
I've had an intuition for years we are headed for a financial collapse that will focus our attentions the same way 911 did. Except this time the consequences will take the form of a "new normal" instead of a week without football in September.

U.S. Dollar Collapse: Where is Germany?s Gold? | Global Research

 

[Book of Jeremiah]

I share you concerns about this issue.

If one has access to unlimited FIAT dollars, one could easily (and really for not all that much money, either) repress the price of gold using NAKED Gold contracts.

This would be ESPECIALLY easy if one was using cutouts both as buyers, sellers AND the commodites brokers involved in these contracts, too.

What's a investor to do?

Other than preparing for swells coming from every possible direction (read: diversification) I see no rational approach to protecting one's wealth.


If my most parnoic fears are founded in reality, there is NO MARKET, that cannot be thus manipulated -- not stocks, not commodities, not bonds, not arbitraging currencies, either.

Outsider investors are at the mercy of INSIDERS, folks.

There really is no getting around that sad fact.

George Soros dumped all of his ETF Gold a year or two ago because I remember the news story on it. He then turned around and bought gold mines on the continent of Africa.

 

[Book of Jeremiah]

Considering that only the governments of Germany or China own that much gold -- yes

It's an attempt to drive the price down

Keep in mind Germany was told by US Gov. they cannot have their own Gold ( which is allegedly stored by Fed here ) for seven years. They must wait. Compare this to Chavez who took the physical gold and it is there in Venezuela now and you'll come away believing Chavez had more business sense then the Germans did.

"The financial world was shocked this month (2/13) by a demand from Germany’s Bundesbank to repatriate a large portion of its gold reserves held abroad. By 2020, Germany wants 50% of its total gold reserves back in Frankfurt – including 300 tons from the Federal Reserve. The Bundesbank’s announcement comes just three months after the Fed refused to submit to an audit of its holdings on Germany’s behalf."

This is all news to me, Jeri.
I've had an intuition for years we are headed for a financial collapse that will focus our attentions the same way 911 did. Except this time the consequences will take the form of a "new normal" instead of a week without football in September.

U.S. Dollar Collapse: Where is Germany?s Gold? | Global Research

Oh, thanks for tell me that. I am glad I mentioned it again here, George. I posted a similar thread a few weeks ago. Editec was right on the money in his analysis ( I don't agree with EdwardBelefante blogger pov however ) and we had an interesting talk about it. G5000 was a part of that discussion I believe. ( another brilliant cerebral type on this board )

Anyhow, the other guy here on this thread mentioned two nations who had were the wealthiest in Gold and I had a comment about the other nation and forgot who he mentioned! Oh! China ( duh to me ) okay another news story you may not have heard ( because they kept it under the radar ) was China deciding to move away from dollar backing and went ahead and signed on with Australia to back their money. That was huge, no one caught it, I asked here and not a person knew. It was a historical moment in that the american dollar was the backing of Chinas money but not anymore. So one guy in Europe and another friend here in US email me and tell me how significant it is.

I know these guys are at the top of their game and have access to more information than many people about this subject so I relayed his email word for word here so I would be sure to get it right. - Jeri

 

[Dugdale_Jukes]

[irrelevant gold buggery deleted]

Do you see an impending financial collapse on the scale of 2008 or larger?

Businesses and individuals are borrowing to invest. That means risks of a crash are real. Don't see a "crash". Do see a recession ahead this year.

 

[Book of Jeremiah]

George, I'll have to check my old emails on the gold news because they sent it to me in 3 parts. (with their own observations which were very astute to say the least)

The news article about China and Australia they sent to me from Europe because the news about it was reported there but not here at the time. I hope I still have it, I will post it on your thread here for you,. I don't know if the US Media ever picked up the story or not. - Jeri

 

[georgephillip]

"The whole situation mirrors the late 1960s, during a period that led up to the 'Nixon Shock.' Back then, the world was on the Bretton Woods System – an attempt on the part of Western central bankers to pin the dollar to gold at a fixed rate, while still allowing the metal to trade privately as a commodity.

"This led to a gap between the market price of gold as a commodity and the official price available from the Treasury.

As the true value of gold separated further and further from its official rate, the world began to realize the system was unsustainable, and many suspected the US was not serious about maintaining a strong dollar.

"West Germany moved first on these fears by redeeming its dollar reserves for gold, followed by France, Switzerland, and others. This eventually culminated in Nixon 'closing the gold window' in 1971 by ending any link between the dollar and gold.

"This 'Nixon Shock' spurred chronic inflation throughout the ’70s and a concurrent rally in gold.

"Perhaps the entire international community is thinking back to the ’60s, because Germany isn’t the only country maneuvering away from the dollar today. The Netherlands and Azerbaijan are also discussing repatriating their foreign gold holdings. And every month, we hear about central banks increasing gold reserves.

"The latest are Russia and Kazakhstan, but in the last year, countries from Brazil to Turkey have been adding to their gold holdings in order to diversify away from fiat currency reserves."

U.S. Dollar Collapse: Where is Germany?s Gold? | Global Research

I don't understand Econ 101 well enough to know how much of this is true.

 

[Book of Jeremiah]

"The whole situation mirrors the late 1960s, during a period that led up to the 'Nixon Shock.' Back then, the world was on the Bretton Woods System – an attempt on the part of Western central bankers to pin the dollar to gold at a fixed rate, while still allowing the metal to trade privately as a commodity.

"This led to a gap between the market price of gold as a commodity and the official price available from the Treasury.

As the true value of gold separated further and further from its official rate, the world began to realize the system was unsustainable, and many suspected the US was not serious about maintaining a strong dollar.

"West Germany moved first on these fears by redeeming its dollar reserves for gold, followed by France, Switzerland, and others. This eventually culminated in Nixon 'closing the gold window' in 1971 by ending any link between the dollar and gold.

"This 'Nixon Shock' spurred chronic inflation throughout the ’70s and a concurrent rally in gold.

"Perhaps the entire international community is thinking back to the ’60s, because Germany isn’t the only country maneuvering away from the dollar today. The Netherlands and Azerbaijan are also discussing repatriating their foreign gold holdings. And every month, we hear about central banks increasing gold reserves.

"The latest are Russia and Kazakhstan, but in the last year, countries from Brazil to Turkey have been adding to their gold holdings in order to diversify away from fiat currency reserves."

U.S. Dollar Collapse: Where is Germany?s Gold? | Global Research

I don't understand Econ 101 well enough to know how much of this is true.

Me neither but I know how to find people who do. Now here is a brief but interesting exchange - two UK bloggers made comments about it :

Australia & China dump the dollar

In the Times today OZ and China agree for bilateral trade deals they will not use the $US.
Currently this could mean as much as £85bn will not pass through $US. UK Column Live For real alternative news.
-------------------------------------------------------------------------
April 10, 2013

response:
The decision came as China buys nearly 1/3rd of Australian Exports. Trade with China, Australia's primary trading partner, totaled $120 billion in the last year.

 

[Toddsterpatriot]

First a brief bio of the conservative who's making the charge of a criminal conspiracy to rig the gold and silver markets:

"Paul Craig Roberts (born April 3, 1939) is an American economist and a columnist for Creators Syndicate. He served as an Assistant Secretary of the Treasury in the Reagan Administration and was noted as a co-founder of Reaganomics.[1] He is a former editor and columnist for the Wall Street Journal, Business Week, and Scripps Howard News Service. He has testified before congressional committees on 30 occasions on issues of economic policy."

This is where Robert's allegation begins:

"My explanation that the sudden appearance of an unprecedented 400 ton short sale of gold on the COMEX in April was a manipulation designed to protect the dollar from the Federal Reserve’s quantitative easing policy has found acceptance among gold investors and hedge fund managers.

"The sale was a naked short.

"The seller had no gold to sell.

"COMEX reported having gold only equal to about half of the short sale in its vaults, and not all of that was available for delivery. No one but the Federal Reserve could have placed such an order, and the order came from one of the Fed’s bullion banks, one of the entities 'too big to fail.'”

As one unschooled in the dismal science, my first question would be: is Roberts correct to call this particular sale a "naked short?" My second concerns his allegation that "only the Fed could have placed such an order?"

Gangster State America. ?Naked Short? in the Gold Market | Global Research

"Again we see that institutions of the US government are acting 100% against the interests of US citizens. Just who does the US government represent?"

That's my big question.

"The sale was a naked short.

"The seller had no gold to sell.

Naked short is a term better used when discussing the stock market.
It means you sell the stock without already owning it and without first borrowing it, like you should, like you must, when you sell short.

When you sell a futures contract, you're just selling short.
Most speculators in the futures market that think something will drop in price will sell a futures contract. They don't need to own the gold, oil, soybeans, whatever, before they sell.
They don't need to borrow the gold, oil, soybeans, whatever, in order to legally sell short, unlike the scenario I described about stock.
Anyone who has enough margin on deposit could enter a similar order, long or short, without it being a plot by the Fed (or JP Morgan acting for the Fed).

Paul can't be taken seriously anymore, he's gone around the bend.
A few eggs short (not naked short) of an omelet, if you know what I mean.

 

[Toddsterpatriot]

"Some readers have said “don’t bet against the Federal Reserve; the manipulation can go on forever.” But can it? As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes. In my opinion, these ETFs are like a fractional reserve banking system. The claims on gold exceed the amount of gold in the trusts. When the ETFs are looted of their gold by the banksters, the gold price will explode, as the claims on gold will greatly exceed the supply."

Do you see an impending financial collapse on the scale of 2008 or larger?

Gangster State America. ?Naked Short? in the Gold Market | Global Research

As the ETFs such as GLD are drained of gold, their ability to cover any of their obligations to investors diminishes.

Untrue. The only way they are "drained of gold", is when investors redeem their shares.
Once they do that, their is no obligation to them.