Gangsters and the Naked Gold Short

[georgephillip]

"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.

What would you estimate the chances are of the US dollar losing its reserve currency status?

Extremely low. The idiots running DC are the class of the world unhappily.

Paul Craig Roberts:

"Have you ever wondered how the government’s misinformation gains traction?

"What I have noticed is that whenever a stunning episode occurs, such as 9/11 or the Boston Marathon bombing, most everyone whether on the right or left goes along with the government’s explanation, because they can hook their agenda to the government’s account.

"The leftwing likes the official stories of Muslims creating terrorist mayhem in America, because it proves their blowback theory and satisfies them that the dispossessed and oppressed can fight back against imperialism.

"The patriotic rightwing likes the official story, because it proves America is attacked for its goodness or because terrorists were allowed in by immigration authorities and nurtured by welfare, or because the government, which can’t do anything right, ignored plentiful warnings.

"Whatever the government says, no matter how problematical, the official story gets its traction from its compatibility with existing predispositions and agendas."

Should the US dollar lose its reserve status "existing predispositions and agendas" on the left and the right would be justified in uniting to blame elected Republicans AND Democrats for selling out the interests of the US middle class in exchange for the richest 1% of Americans funding their election campaigns and retirements

 

[editec]

We had a BALANCE SHEET depression in 2007, not much the classic GREAT depression of 29.

People are now in the process of jettisoning their debt even while the FED is pumping money into the bank to get their balane sheets back to hoyle.

So I do not think we are in great fear of having a massive bout of inflation any time soon.

And if there is no great pressure on pricing, (because the economy is still weak) I cannot see how gold is a particularly smart investment at this time.

I think this fear of runaway inflation is overstated in order to sell gold, gold mines and gold related investment vehicles.

Perhaps day traders can still make money in this environment (If they're lucky and smart) but as to Gold being a good place to park your dough because massive inflation is right around the corner?

I doubt that narrative.

 

[Book of Jeremiah]

Well, Jeremiah, I think God blessed America when President Washington spent freezer time in Valley Forge and asked him to forever free the Patriots from oppression of uncaring monarchs. I think we will pull out of our current troubles and revive our interests in sharing our prosperity with whoever wants to live as free people. For that reason, we decided to invest in America rather than the massive push for gold. I have faith God will continue to bless the caring people in America who started out with nothing but dirt under their fingernails when they got here and their faith in the Almighty, for which the fru-frus of most European royalty gave them no credence unless they were making them wealthy, and even then, only in the most superficial way.

source
​

Some of us believe in America. We just do.​

I'm one of them. I believe in America but I don't have to back those who are destroying it. I love the story of Valley Forge and didn't look at your link but was wondering if you knew that it was a Jewish Banker from Philadephia named Haym Solomon who came to the rescue of George Washington and his men at Valley Forge by giving every penny they had! The generosity of Haym Solomon and other Jewish bankers is what saved our fledgling nation! We might not be here if it weren't for the Jews. Just a little bit of history I love to share with others. Anytime anyone complains about our support of Israel? You should tell them about Haym Solomon and ask them what their ancestors did for America that could compare to that. - Jeri

What? J P Morgan, Rockerfeller, Mellon, the Italian immigrant founder of BofA and Wells and Fargo weren't Jewish? Say it ain't so Joe.

Christopher Columbus was Jewish! Does that count?!

- Jeri

 

[georgephillip]

We had a BALANCE SHEET depression in 2007, not much the classic GREAT depression of 29.

People are now in the process of jettisoning their debt even while the FED is pumping money into the bank to get their balane sheets back to hoyle.

So I do not think we are in great fear of having a massive bout of inflation any time soon.

And if there is no great pressure on pricing, (because the economy is still weak) I cannot see how gold is a particularly smart investment at this time.

I think this fear of runaway inflation is overstated in order to sell gold, gold mines and gold related investment vehicles.

Perhaps day traders can still make money in this environment (If they're lucky and smart) but as to Gold being a good place to park your dough because massive inflation is right around the corner?

I doubt that narrative.

What's your estimate about the probability of the US dollar losing its reserve currency status?

 

[EdwardBaiamonte]

We had a BALANCE SHEET depression in 2007, not much the classic GREAT depression of 29.

People are now in the process of jettisoning their debt even while the FED is pumping money into the bank to get their balane sheets back to hoyle.

So I do not think we are in great fear of having a massive bout of inflation any time soon.

And if there is no great pressure on pricing, (because the economy is still weak) I cannot see how gold is a particularly smart investment at this time.

I think this fear of runaway inflation is overstated in order to sell gold, gold mines and gold related investment vehicles.

Perhaps day traders can still make money in this environment (If they're lucky and smart) but as to Gold being a good place to park your dough because massive inflation is right around the corner?

I doubt that narrative.

What's your estimate about the probability of the US dollar losing its reserve currency status?

well liberal policy has always been to debase the currency with easy money so we can assume it will happen sooner rather than later if liberals remain in control.

 

[georgephillip]

Did you notice any debasement of the currency between 2001-2009?

 

[EdwardBaiamonte]

Did you notice any debasement of the currency between 2001-2009?

dear, the liberal policy has been to debase the currency since Hamilton

 

[Dot Com]

17:15

[ame=http://www.youtube.com/watch?v=h9KL7KJVj94]Keiser Report: Drowning In Central Banking Abyss (E449) - YouTube[/ame]

 

[Toro]

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.

Roberts jumped the shark long ago.

This almost certainly has nothing to do with crazy conspiracy theories about gold, the dollar, the Fed, etc. Gold went parabolic in price into the Spring of 2011. Then - surprise, surprise - it collapsed. It's been bleeding in a bear market for two years now. Some heavy hitters were caught long in gold. It broke through support at $1520 and sell limit orders were hit and the algos slammed the price. FFS, I was trying to get short myself but it ran away on me and fell 10% in two days.

Occam's Razor.

 

[EdwardBaiamonte]

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.

Roberts jumped the shark long ago.

This almost certainly has nothing to do with crazy conspiracy theories about gold, the dollar, the Fed, etc. Gold went parabolic in price into the Spring of 2011. Then - surprise, surprise - it collapsed. It's been bleeding in a bear market for two years now. Some heavy hitters were caught long in gold. It broke through support at $1520 and sell limit orders were hit and the algos slammed the price. FFS, I was trying to get short myself but it ran away on me and fell 10% in two days.

Occam's Razor.

At the moment the entire world is betting that the world's central bankers know what they are doing when they have never done what they are doing now. I'd say the world is right. Japan and China prove that you can have massive central bank interventions as long as you don't allow a bubble/liquidity crisis, inflation or deflation. This was really the lesson of the Great Depression.

 

[Toro]

At the moment the entire world is betting that the world's central bankers know what they are doing when they have never done what they are doing now. I'd say the world is right. Japan and China prove that you can have massive central bank interventions as long as you don't allow a bubble/liquidity crisis, inflation or deflation. This was really the lesson of the Great Depression.

I think Bernanke is creating imbalances in the economy - as the central banks have been for 15+ years - and this will end badly.

However, the stock market going up a lot and the gold market going down a lot may be telling me I'm wrong.

 

[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.

Roberts jumped the shark long ago.

This almost certainly has nothing to do with crazy conspiracy theories about gold, the dollar, the Fed, etc. Gold went parabolic in price into the Spring of 2011. Then - surprise, surprise - it collapsed. It's been bleeding in a bear market for two years now. Some heavy hitters were caught long in gold. It broke through support at $1520 and sell limit orders were hit and the algos slammed the price. FFS, I was trying to get short myself but it ran away on me and fell 10% in two days.

Occam's Razor.

"Occam's razor (also written as Ockham's razor from William of Ockham, and in Latin lex parsimoniae) is a principle of parsimony, economy, or succinctness used in logic and problem-solving. It states that among competing hypotheses, the hypothesis with the fewest assumptions should be selected."

Is it possible that China is wielding Occam's razor?
I just listened to one of Max Keiser's rants in which he speculated gold will go sideways until China amasses 4000 tons. What changes when/if that day comes?

 

[EdwardBaiamonte]

I think Bernanke is creating imbalances in the economy - as the central banks have been for 15+ years - and this will end badly.

15 years?? easy money has almost always been the policy. Now everyone is very much aware of the imbalances and on guard. China and Japan are one big imbalance. The only result is slow growth in the age of intelligent central banking.

However, the stock market going up a lot and the gold market going down a lot may be telling me I'm wrong.

I'd guess stocks/gold is reacting to short term not promise of long term slow growth in the age of intelligent well managed central banking.

 

[georgephillip]

I'm one of them. I believe in America but I don't have to back those who are destroying it. I love the story of Valley Forge and didn't look at your link but was wondering if you knew that it was a Jewish Banker from Philadephia named Haym Solomon who came to the rescue of George Washington and his men at Valley Forge by giving every penny they had! The generosity of Haym Solomon and other Jewish bankers is what saved our fledgling nation! We might not be here if it weren't for the Jews. Just a little bit of history I love to share with others. Anytime anyone complains about our support of Israel? You should tell them about Haym Solomon and ask them what their ancestors did for America that could compare to that. - Jeri

What? J P Morgan, Rockerfeller, Mellon, the Italian immigrant founder of BofA and Wells and Fargo weren't Jewish? Say it ain't so Joe.

Christopher Columbus was Jewish! Does that count?!

- Jeri

Ask his slaves:

"After his fourth and final voyage to the Americas, Columbus summed up his feelings about gold in a July 7, 1503, letter to Ferdinand and Isabella: 'Gold is most excellent; gold is treasure, and he who possesses it does all he wishes to in this world.'" [2]

After Turning Out the Jews

"Beyond profits, Columbus sought to convert native people to Catholicism. In the prologue to his journal of the first voyage, Columbus wrote to Ferdinand and Isabella:

"YOUR HIGHNESSES, as Catholic Christians and Princes who love the holy Christian faith, and the propagation of it, and who are enemies to the sect of Mahoma [Islam] and to all idolatries and heresies, resolved to send me, Cristóbal Colon, to the said parts of India to see the said princes ... with a view that they might be converted to our holy faith ....

"Thus, after having turned out all the Jews from all your kingdoms and lordships ... your Highnesses gave orders to me that with a sufficient fleet I should go to the said parts of India .... I shall forget sleep, and shall work at the business of navigation, so that the service is performed.'"

The Enslavement of Native People...

Christopher Columbus: The Untold Story

 

[william the wie]

Paul Craig Roberts:

"Have you ever wondered how the government’s misinformation gains traction?

"What I have noticed is that whenever a stunning episode occurs, such as 9/11 or the Boston Marathon bombing, most everyone whether on the right or left goes along with the government’s explanation, because they can hook their agenda to the government’s account.

"The leftwing likes the official stories of Muslims creating terrorist mayhem in America, because it proves their blowback theory and satisfies them that the dispossessed and oppressed can fight back against imperialism.

"The patriotic rightwing likes the official story, because it proves America is attacked for its goodness or because terrorists were allowed in by immigration authorities and nurtured by welfare, or because the government, which can’t do anything right, ignored plentiful warnings.

"Whatever the government says, no matter how problematical, the official story gets its traction from its compatibility with existing predispositions and agendas."

Should the US dollar lose its reserve status "existing predispositions and agendas" on the left and the right would be justified in uniting to blame elected Republicans AND Democrats for selling out the interests of the US middle class in exchange for the richest 1% of Americans funding their election campaigns and retirements

Even though I disagree with your conclusions a well reasoned post.

 

[Dot Com]

I just listened to one of Max Keiser's rants in which he speculated gold will go sideways until China amasses 4000 tons. What changes when/if that day comes?

thats the video i posted. give me credit or at least a rep. Sheesh.

 

[georgephillip]

I just listened to one of Max Keiser's rants in which he speculated gold will go sideways until China amasses 4000 tons. What changes when/if that day comes?

thats the video i posted. give me credit or at least a rep. Sheesh.

You're right.
I'm getting greedy (or forgetful) in my old age.
Thank you for the link.