‘JP Morgans perfect silver crime’

Text av Ted Butler från Ed Steers blogg

Back in the late 1970’s the Hunt Brothers accumulated close to 100 million oz of physical silver (and more in futures contracts) and were found to have manipulated the price of silver higher as a result of that accumulation. What makes the much larger accumulation of physical silver by JPMorgan today different is that it is the perfect crime.  

The Hunts were outsiders; JPMorgan is the ultimate insider. The Hunts ran afoul of the regulators; JPMorgan owns the regulators. The Hunts’ purchases were widely known; as far as I know, I’m the only one pointing to JPMorgan accumulating massive amounts of physical silver. The Hunts drove prices higher as they accumulated silver; JPMorgan, by virtue of its price control on the COMEX, has been able to accumulate silver on sharply declining prices. Talk about a stacked deck. 

Given that JPMorgan has such control over the U.S. regulators and is able to operate in near total secrecy in matters related to physical silver, it’s hard for me to imagine what could foil their perfect silver crime. All that’s missing is JPM selling out at extremely high silver prices. And considering that big banks, in essence, don’t have to report anything they don’t want to publicly report, I would be surprised if JPMorgan would even have to pay taxes if they made the many billions of dollars they seemed destined to make on silver to the upside.Silver analyst Ted Butler: 20 December 2014

Swiss Gold Referendum, bara dagar kvar part 1

Inför valet i Schweiz, här kommer lite historia om vad SNB (Swiss national bank) gjort med sina guldserver, hur de gick med i IMF och därmed var tvungna att släppa valutans koppling till guld som en del i kriget mot guld. Detta lade sedan grunden till landets enorma utförsäljningar av guld, återkommer om det i part 2. Text från boken Gold Wars skriven av Ferdinand Lips: http://www.amazon.com/Gold-Wars-Battle-Against-Perspective/dp/0971038007

Tragic Turn of the Gold War

In the nineties, the gold war entered what may be its last and most tragic phase. Gold-rich Switzerland became the main target. War preparations are often made a long time before actual hostilities begin. The groundwork was laid many years ago when it was suggested that neutral Switzerland join more international organizations. The battle for Swizerland’s gold opened when the country became a member of the IMF in 1992. A few years later, in 1996, the SNB radically changed its gold policy.

Late in 1996, the Swiss government, in co-operation with the SNB, came to the surprising conclusion that, in today’s world, a 40% reserve backing of its currency was no longer necessary.

For decades the SNB had been considered as solid as the rock of Gibraltar. Not that its record was impeccable, to the contrary, it blundered repeatedly. But, it had in its coffers 2,590 tonnes of gold representing the golden guarantee. It was the fourth largest gold reserve in the world, equivalent to 8% of total official gold, or almost as large as the reserve of Germany, a country 10 times larger than Switzerland.

The Swiss National Bank decides to give up its independence because of its own blunders

Things were going to change. In the early 1990s, the Swiss economy was not doing well, and unemployment was uncharacteristically high. The SNB knew that the most expeditious tool to weaken the franc was to drop the golden link, i.e., to reduce monetary discipline. The golden link had to be eliminated anyway because Switzerland had surrendered to the rules of the IMF by becoming a member.

Chronology of the swiss monetary drama

1992

Switzerland joins the Bretton Woods Institutions

”All Warfare is based on deception” – Sun Tzu (China, 500 BC)

”The Swiss National Bank has no intention of selling any gold” – SNB Board member, June 20, 1992

The end of the Swiss Franc’s historic tie to gold was brought about in 1992, and not in 1996 or 1999. The decision was taken when Switzerland joined the IMF. According to IMF articles of agreement adherence to a gold-backed currency was prohibited, and Switzerland fell to its knees under the leadership of its Federal Councilors EU-favorer Flavio Cotti and the social democrat Otto Stich. The only ones who did not know what was going on were the Swiss people. They were never told the truth.

In recent years the government and its growing bereaucracy built up a powerful PR machine for the purpose of direct intervention. It is now the order of the day that before each plebiscite this opinion-making propaganda machine is deployed, and heavy pressure is put on citizens to follow government proposals. The whole exercise it not only illegal, but it is done at taxpayers cost. This is no longer a democracy.

How could the Swiss be lured into giving up their gold standard? The easiest way was to let them join the IMF, although it pretends to be in favor of strong currencies, explicitly states in its articles of agreement that member are prohibited from tying their currencies to gold. They can tie their currencies to anything else, to Special Draing Rights etc, but not to gold. This is how tha Swiss franc lost its unique status. And that is why Swiss banking will gradually lose its powerful position.

It was a sensational triumph for the manipulators. They had finally achieved what they wanted for so long: the complete abolishment of gold’s monetary role. From there it was only a short step to convince Switzerland to sell its gold, thereby pushing the price of gold further down into the abyss. The Switch was thrown and the manipulators only needed to wait. The gold wars were entering their most decisive phase

Viktig historielektion för silverinvesterare (reblogged)

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Sentimentet är sämsta på mycket länge, tekniskt ser det illa ut och priset är inne i en kapitulationsfas, men före man tar några beslut gällande sin silverposition kan det vara värt att titta på vad som hänt historiskt för detta har hänt förut. 1970, före den historiska uppgången för silverpriset på över 3,000% såg det riktigt illa ut tekniskt, priset hade precis brutit ned i en stor triangelformation och rasade snabbt 20%, se graf:

silverbreakdown2

Det var säkerligen många som sålde där pga teknisk analys, men de fick snabbt ångra sig då silver strax efter att ha brutit ned satte sin sista botten före en enorm uppgångsfas, se graf:

silverbreakdown1970

Detta är vad som hände då och kan vara en varningssignal för dem som försöker ta TA på för stort allvar istället för att ha fokuset på fundamenta. TA sa sälj, FA sa köp, samma mönster utspelar sig nu ca 45 år senare. Silverpriset har brutit ned genom en stödnivå som etablerats senaste året, se graf:

silvertoday

Samtidigt ser fundamenta ser väldigt bra ut, bör man sälja? Är det värt att ta beslut på TA i en marknad där prissättningen styrs av en aktör? Rent logiskt bör TA skrika sälj före en stor uppgång baserat på hur priset sätts, inte bara är det logiskt, historia visar att så är fallet.

Kommer samma scenario utspelas nu som det gjorde 1970? Ted Butler säger att kommande botten kommer att bli den sista botten före priset rusar mot nya höjder, precis som det gjorde 1970, enligt honom beror detta på tillgång efterfrågan dvs fundamenta och det gick säkerligen att se samma indikationer 1970. Personligen blir jag inte förvånad om de som styr priset skapat dessa stödnivåer för att skrämma ut silverinvesterare som glor för mycket på tekniska nivåer, om denna teori är korrekt är det vi ser nu väldigt positivt.

Du vet att graferna ritas när sånt här inträffar

Se guld- och silvergrafen nedan. Det är omöjligt att två helt olika metaller med helt olika fundamenta når exakt samma stödlinje som sträcker sig tillbaka ca 10 år på exakt samma dag och exakt samma klockslag. Det inträffar inte i en marknad där tusentals aktörer påverkar priset genom sina beslut, en sådan marknad är helt random och den här marknaden är allt annat än random:

xaglong

xaulong

Det finns bara en teori som kan förklara varför detta inträffar: Några få aktörer (antagligen bara en) styr prissättning helt och ritar grafen efter behag. Folk har svårt att acceptera att så är fallet eftersom de tror på en annan teori om prissättningen. Deras teori säger att det vi ser i grafen ovan är omöjligt, medan min teori säger att det är fullt möjligt, ist tom troligt, då det vi ser är ett resultat av en icke-random-prissättning.

Kan du se att graferna ovan är ritade?

‘We are set up for violent price reversals to the upside for silver’

Uppdatering av läget från Ted Butler:

We are set up for violent price reversals to the upside for silver and for all the COMEX/NYMEX metals. Maybe the setup can get stretched out a little longer, but it looks stretched out enough to me by historical standards. We’ve gone too low in price on too many important commodities as a result of this stupid and manipulative machine trading. There’s a payback and a counter-reaction to the price distortions we’ve witnessed and it seems to me that the payback is at hand.

I think the technical funds have been lulled into a sense of complacency, particularly in silver, by how easy the commercials have let them off the hook when they held extreme short positions recently. But just because the commercials have let the technical funds buy back shorts at prices close to upside penetrations of important moving averages previously, doesn’t mean that will always be the case.  Just because the technical funds think they will be able to buy back silver shorts near the $18 mark, that doesn’t necessarily make it so. The commercials can demand much higher prices before selling.  There will come a day when the commercials won’t be nearly as accommodative to the technical funds as they had been previously and that will be a great day for silver investors. That day seems at hand to me.Silver analyst Ted Butler: 29 October 2014