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Things That Make You Go Hmmm - On Silver Conspiracy Theories And Other Oddities

Tyler Durden's picture


From Grant Williams: "There are many commentators for whom I have the utmost respect, who completely discount any silver conspiracy theories. They cite the fact that it would be impossible for the manipulation to be conducted in the way that the conspiracy theorists allege or that there are corresponding longs for every short, but yet answers from either the regulators or those supposedly involved in the manipulation are conspicuous by their absence. Let’s face it - if this were a simple case of a misunderstanding it wouldn’t take much in the way of  evidence to clear it up now, would it? Over the past several months, each time a futures contract has expired since the price break in silver began in earnest, the delivery situation has gotten progressively tighter until progressively closer to the wire and talk of a commercial signal failure has become progressively louder. The number of people opting to take warehouse receipts for delivery on first notice day has been climbing and stocks in the various warehouses have been declining to the point that it has been touch-and-go as to whether there would be enough physical silver on hand in the warehouses to satisfy demand for delivery. If, at some point in the (near?) future, time runs out and enough people stand for physical delivery, we will find out once and for all whether there is any truth to the manipulation/massive short position stories, and we will CERTAINLY discover how much physical metal there is available for delivery."

Full report:

Hmmm Mar 30 2011 (2)


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Thu, 03/31/2011 - 20:29 | 1123528 Rahm
Rahm's picture

Buy Physical AU/AG until EVERYONE sees the naked emperor. 

Thu, 03/31/2011 - 20:38 | 1123554 Twindrives
Twindrives's picture

Silver rope around Dimon's neck.  Awesome.

Thu, 03/31/2011 - 21:30 | 1123694 Ahmeexnal
Ahmeexnal's picture

A chain of strikes at several silver mines is about to go viral.

With an already tight supply of the metal, this means the systemic collapse of silver price manipulation will be an event not even the most bullish silverbugs could have expected in their wildest dreams.

The endgame is within days of unfolding.

Deposed despots and soon-to-be on the interpol criminal list financial bigshots will be stuffing their private jets not with gold, but with SILVER!!

Thu, 03/31/2011 - 22:36 | 1123862 zaknick
zaknick's picture

Fuck "interpol". Bankster thugs is all they are. Banksters love "international" (read:unaccountable) "institutions".

Fri, 04/01/2011 - 01:01 | 1124093 Oh regional Indian
Oh regional Indian's picture

Ahmeel, I agree completely. In fact, with war war looming/growing everywhere, silver will be declared a strategic asset right alongside oil. And will disappear much faster than gold.

I can see it happening here in India, where the "mania" for it is recent, unlike for gold, which has shone here for centuries.

It's a timeless battle or cycle, call it what you want.

Silver and oil. Cannot have physical oil, so the alter-native is clear. To all. I hope.

Good luck everyone. We might lose this forum soonish.



Fri, 04/01/2011 - 04:38 | 1124331 Sudden Debt
Sudden Debt's picture

This is a very good article about the Silver Price Suppression:


Thu, 03/31/2011 - 20:49 | 1123557 long juan silver
long juan silver's picture

You read that 21 page report in 3 minutes? YOU DA MAN!!!...
or maybe not.

I only got as far this part on top of page 2:

"Snoop Dogg leaned forward over.."

Thu, 03/31/2011 - 20:54 | 1123599 Rahm
Rahm's picture

Silver bears rock.  Mugabe can shove his March25th decree up his butt, and keep his platinum and chrome for his teeth.  Your neighbor(s) are defaulting on their mortgage, your bank is failing, and I didn't know I was going to receive a pop quiz, but should of known since everyone on this site calls you by  your name.... bitches!  Off to watch G Edward on Beck....

Thu, 03/31/2011 - 21:13 | 1123638 Al Gorerhythm
Al Gorerhythm's picture

Snoop Dog was preamble to a 3 paragraph section on silver manipulation. The report covered more than that. Other than stating the obvious (except to the CFTC), mostly pop journalism.

Thu, 03/31/2011 - 21:18 | 1123665 Quantum Leaped ...
Quantum Leaped Thinker's picture

Ted Butler has been talking about this for umpteen years, but no one bothered to listen. Guess they wanted us to buy silver at a discount?

Thu, 03/31/2011 - 21:18 | 1123666 Quantum Leaped ...
Quantum Leaped Thinker's picture

Ted Butler has been talking about this for umpteen years, but no one bothered to listen. Guess they wanted us to buy silver at a discount?

Thu, 03/31/2011 - 20:30 | 1123529 iota
iota's picture

As a speculator I'm gonna speculate that the post below will be widely ignored and this will get several hundred comments.

Silver and conspiracy in a single headline. ZeroHedge definitely knows its demographic.

Thu, 03/31/2011 - 20:32 | 1123538 NOTW777
NOTW777's picture

so you argue its all wild paranoia - just our imaginations?

and ZH only reports what its readers want to hear?????

Thu, 03/31/2011 - 20:39 | 1123563 long juan silver
long juan silver's picture

Yep. It's like the guy shared earlier about the rat punching the bar to get cocaine until it dies.

Thu, 03/31/2011 - 20:47 | 1123588 tmosley
tmosley's picture

You need to punch the bar a few more times, it looks like.

Thu, 03/31/2011 - 20:52 | 1123597 long juan silver
long juan silver's picture

I punch u dickweed. Where u stay?>

Thu, 03/31/2011 - 21:12 | 1123656 Living_Stone
Living_Stone's picture

Didn't you forget to dangle the preposition on that threat, homie?

Thu, 03/31/2011 - 21:56 | 1123782 A Nanny Moose
A Nanny Moose's picture

I thought only participles dangled?

Fri, 04/01/2011 - 03:20 | 1124294 Hephasteus
Hephasteus's picture

In the past they have. I don't know if present participles dangle or not.

Sat, 04/02/2011 - 00:43 | 1127431 GoinFawr
GoinFawr's picture

Hey you lot, quit your gerundmandering.

Thu, 03/31/2011 - 21:35 | 1123714 Richard Head
Richard Head's picture

Did you forget the password for your "william the bastard" login?  Jeezus, you are a pathetic douche.

Thu, 03/31/2011 - 22:20 | 1123831 tmosley
tmosley's picture

God you sound like such a moron.

Thu, 03/31/2011 - 20:59 | 1123619 iota
iota's picture

Actually I own some 'Sil'vah', but that's some excellent extrapolation.

Thu, 03/31/2011 - 21:22 | 1123673 Quantum Leaped ...
Quantum Leaped Thinker's picture

The last refuge of scoundrels is ad hominem attacks. Guess Zero hedgies are a bunch of moron conspirators ...not an iota of truth in that

Thu, 03/31/2011 - 21:29 | 1123693 agNau
agNau's picture

Not one iota of a prob do I have with that comment! I love those types of comments! Bahhhhhhh! Sheeple....... You help me with my averaging into this market!

Thu, 03/31/2011 - 23:53 | 1124041 dogbreath
dogbreath's picture

11 junks.........11 ZHer's with no sense of humor

Fri, 04/01/2011 - 09:14 | 1124697 iota
iota's picture


Thu, 03/31/2011 - 20:34 | 1123539 RobotTrader
RobotTrader's picture

Like I said, the easiest cure for the problem is to shut down the silver futures market, and/or make it 100% cash market (no leverage allowed).

If you want to buy physical or hedge, then it's COD only.

This will permanently eliminate the weak handed specs who are trying to "make a killing" on the long side.

And at the same time, make it virtually impossible to pile on infinite short positions in the futures market, because you have to come up with 100% cash to enter the trade.

So the cosmic joke is this:

The faster they raise margin requirements on silver, the faster the market will go up.

I'd vote for immediate elimination of all margin on silver contracts right now.

Then you will see a $10 upside move in silver in one day.

Thu, 03/31/2011 - 20:37 | 1123550 hambone
hambone's picture

Robo's my hero today.  Robo for...well... whatever position Robo wants!!! 

Thu, 03/31/2011 - 21:07 | 1123640 bigdumbnugly
bigdumbnugly's picture

robo makes a decent point but failed to drive it home with an adjoining picture of a scantily clad babe rolling in silver coinage.

your slipping, RT !     ;-)

Thu, 03/31/2011 - 21:58 | 1123781 Rahm
Rahm's picture

First time in a long time (maybe ever?) that I haven't seen RT get junked.  Almost good enough for me to say good post RT.... I said ALMOST! :)

Thu, 03/31/2011 - 23:43 | 1124012 rocker
rocker's picture

All good traders see the light when it is bright enough. Robo is no different. The trend and strength of this commodity is real. Good traders do not fight a powerful tape. Another thought, the more they raise the margin call means the less of a pull back when the phony stock market valuations goe in the tank. PE's are too high.

Thu, 03/31/2011 - 20:42 | 1123566 long juan silver
long juan silver's picture

Nope. It's called exchange fees.

Thu, 03/31/2011 - 20:46 | 1123582 baustibaustafa
baustibaustafa's picture

Brilliant points.  Makes too much sense to happen.  :(

Thu, 03/31/2011 - 21:09 | 1123642 Al Gorerhythm
Al Gorerhythm's picture

Just buy the physical. How novel.

Thu, 03/31/2011 - 21:26 | 1123689 Quantum Leaped ...
Quantum Leaped Thinker's picture

$10 in a about $100 in a day when silver goes parabolic?

The problem with most folks is that they are deep in limited linear thinking about silver and finance..when the rogue wave hits.they will be partying on the beach. Zero Hedgies will possess the resources to rebuild real lasting prosperity for not only themselves but for the average person. Its not all about us folks its about being able to hold body and soul together to inspire hope on realistic basis after the tsumani hits.


Thu, 03/31/2011 - 21:52 | 1123763 gordengeko
gordengeko's picture

NO robo, don't take my crack stock AGQ away!  I will not stop twitching and blurting out expletives at random times like in church!  I need me my double leveraged option silver fix, it's my form of colloidal to maintain my sanity.  Damn you robo!lol

Fri, 04/01/2011 - 03:20 | 1124295 ebworthen
ebworthen's picture

I would tend to agree here.

Miners or physical, get the speculum's out of it.

Thu, 03/31/2011 - 20:37 | 1123547 LostWages
LostWages's picture

I only listen to the little bears, and its not because of the farting noises and the sheeple bear continually shitting his pants.  I just believe the insiders will talk to a bear before they talk to other humans.

Thu, 03/31/2011 - 20:46 | 1123585 long juan silver
long juan silver's picture

There's no sense of a short squeeze or any long side panic. Don't worry about JamiePeeM. JPShyster will get a deeper asspounding from REOs and CMO clawbacks than any mosquito bite PM pops. Besides, they are TBTF whatever the cause!!! HHAHAHAHAHA

Thu, 03/31/2011 - 20:37 | 1123548 bania
bania's picture

I'd only be upset with a conspiracy to keep the price down if I were selling.  as long as I'm buying, keep suppressing, thanks.

Thu, 03/31/2011 - 20:43 | 1123568 mynhair
mynhair's picture

<What bania said.>

Fri, 04/01/2011 - 18:03 | 1126737 Hacked Economy
Hacked Economy's picture

Well, keep suppressing until I'm done buying, anyway.  ;-)

Thu, 03/31/2011 - 20:54 | 1123603 prophet
prophet's picture

Around here there does not seem to be as much bias against fiat securities as there are against fiat currencies. 

Thu, 03/31/2011 - 20:55 | 1123608 mynhair
mynhair's picture

Nobody stupid enough around here to buy that Chinese shit.

Well, except Leo.  Anyone seen him lately?

Fri, 04/01/2011 - 07:48 | 1124393 Zero Govt
Zero Govt's picture

yes he's having a heavy lunch with the pension industry asking them some of his tough questions like "What are you having for main course?" ... "How many $billions do you need off the taxpayer to bailout your last mistakes ...what angle should i take to spin my article and snake oil over the systemic errors of big centralised incompetence in our imploding broken promises of an industry?" ..."I can't decide between the fillet steak and the chicken McNuggets on the childrens menu, what do you think?"

Thu, 03/31/2011 - 20:55 | 1123605 Henry Chinaski
Henry Chinaski's picture

I am sorry.  I can't keep up with all of this.  I am suffering from outrage fatigue.  I hope you will all carry on...

Thu, 03/31/2011 - 21:08 | 1123648's picture

I love to follow investment insights that reference Snoop Dog...Maybe he can collaborate with Little John on a track titled...."Im the original OG slinging the AG all up in my Grill G.... YYYEEEEAAAAA" I will send this to my Wall Street buddies that think I am crazy for buying silver....I am sure they will see my logic now....YYYEEEEAAAA...

Thu, 03/31/2011 - 21:20 | 1123669 AN0NYM0US
AN0NYM0US's picture

faber bullish on America (sort of) video

Thu, 03/31/2011 - 21:24 | 1123680 plata pura
plata pura's picture

A GSR of 38.03 be intolerable.

Thu, 03/31/2011 - 21:30 | 1123695 A Lunatic
A Lunatic's picture

It would seem to me that there is someone out there big enough to force delivery thus exposing the supposed manipulations in the market? I read about one firm in particular who could pull it off but chose instead to make a killing by not taking delivery.............I guess I don't see why this cannot be easily resolved.

Fri, 04/01/2011 - 08:57 | 1124640 fiftybagger
fiftybagger's picture

Hard to spend those winnings while wearing cement boots

Thu, 03/31/2011 - 21:31 | 1123701 plata pura
plata pura's picture

1 ozt .999 precious rounds minted from the strategic stockpile sold today for 17.875% premium on tonnes. The precious and it's cousin gold are very close to going parabolic in exchange for notes.

Thu, 03/31/2011 - 21:51 | 1123757 LongSoupLine
LongSoupLine's picture

BoJ hittin' da Yen hard tonight.  up she goes (pssst, it's really Bernanke)

Thu, 03/31/2011 - 21:50 | 1123758 bbq on whitehou...
bbq on whitehouse lawn's picture

Silver is like napalm. Its highly volatile, and it only matters when you feal the heat.

But by then its often to late.

Thu, 03/31/2011 - 22:43 | 1123876 Long-John-Silver
Long-John-Silver's picture

Now we know why 14Kg of Silver is used in Tomahawks......

Thu, 03/31/2011 - 21:57 | 1123779 Forgiven
Forgiven's picture

The witch and her minions are defending 37.80 lately.  On the 5 minute silver plots, you can plainly see the beat downs.  It's comical.

Thu, 03/31/2011 - 22:47 | 1123883 Long-John-Silver
Long-John-Silver's picture

and they are losing the fight. They fought $36 really hard and now they are fighting off $38.

Thu, 03/31/2011 - 21:57 | 1123783 gordengeko
gordengeko's picture

Sweet!  Tin foil hats for everyone!  How about a zerohedge/MK custom JPM tinfoil hat?  I have dibs on royalities, we could use half proceeds to buy physical.  My mind is twisted, ty.

Thu, 03/31/2011 - 22:20 | 1123820 Dr. Gonzo
Dr. Gonzo's picture

I know a fool proof way to for the U.S. government to put this whole issue to bed. Make our quarters, dimes, and halves silver again. Show how it's so easy it is for their rigged markets to function, their military to wage endless war and their social services to provide welfare and health care to the impoverished masses with real money. They can't. PERIOD! So they do what they do to make their world go round and part of that involves managing (manipulating) gold and silver. They can barely make our pennies out of zinc without causing them pain. Ain't gonna happen. Silver is poison to them because it is the perfect money for the people. They have a war going on the middle class. They are not going to surrender or propose a treaty. They are going to try to manage a retreat and hope for an eventually escape.

Thu, 03/31/2011 - 22:22 | 1123838 Bagbalm
Bagbalm's picture

Silver foil hat.


Thu, 03/31/2011 - 22:48 | 1123886 americanspirit
americanspirit's picture

The biggest problem here is the limited number of people who can afford megabucks to buy enough contracts to qualify for delivery. And most people with that level of assets aren't into crashing the system. However, 5000 people buying 1 ounce of silver every payday can have the same effect as one guy who can afford one contract. This is truly a revolution that can be made by the people on the street - if enough of them finally get the word. I have a partner who has a fair amount of money in SLV, and in spite of everything I tell hum mhe still believes in paper. That is the crux of the problem. Let's all keep working on it - think global, act local.

Fri, 04/01/2011 - 01:13 | 1124176 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

well put americanspirit.  i buy more silver every time i notice those pesky frn's collect into too big a pile anywhere near me.  paper burns, silver does not.  moreover, buying the silver keeps it out of the hands of the banksters, a truly constitutional and patriotic thing to do.  in that way, silver does burn - the banksters anyway!  keep stackin'!

Fri, 04/01/2011 - 05:58 | 1124350 Urban Redneck
Urban Redneck's picture

Finance revolves round the easy exchange of paper which supposedly represents an underlying asset or obligation.


Smashing the myth would be, on balance, negative to most Financiers (with balance sheets large enough to execute the maneuver) as it would put a dent or blow a huge hole in the rest of their income statement, for an extended period of time.


The challenge is to find a willing balance sheet that is large enough, and income statement structured so that it benefits from the smashing of the myth, or a small group which collectively meet these requirements.


The two largest groups of such entities are silver producers and the central bankers who currently import inflation via currency pegs to the mad printers of the G7.  Generally speaking, the former need additional cash (financiers) to execute, and for the latter- political considerations tend to outweigh economic considerations, until things get really bad domestically, and the window of opportunity has passed.


If 100 zealots buying 1 coin a time exceeds the supply replacement rate they will eventually achieve what 100,000 dedicated individuals could achieve in short order, or what a small well funded cabal could achieve overnight.


There is also the pesky moral aspect of weather an open market with actual price discovery is worth the very tangible implementation costs.  However, the central banker who has already paid the implementation costs by importing the inflation might have a different perspective, if he has any moral values to begin with.  


That said, the individual has a moral obligation to protect himself and his loved ones.


Damn conundrums,    

Thu, 03/31/2011 - 22:48 | 1123892 cat2
cat2's picture

Well if there is a silver conspiracy going on it's failing.  The price has skyrocketed.

Thu, 03/31/2011 - 22:53 | 1123894 DavidPierre
DavidPierre's picture

It looks like the 1% cap remains firmly in place on gold.

So much commentary every week from people that are hostile to the very idea that any form of manipulation is in play on the precious metals, but just once would love to read some explanation offered from these people on how it is that the price of gold can be locked down so easily within a prescribed range if indeed it was just normal market activity.

Gold trades in historic relationships with other sectors and yet this precise containment of gold seems to occur in isolation of the other influencing factors.

Note today that the dollar did not do much and there was no significant outside news to account for the abrupt selling pressure that showed up to halt the advance of gold.

In silver it was even more pronounced today as silver was dumped for 50 cents to the downside with no other market action to account for the violent move. It is even more suspicious to note that a sharp sell off also hit silver at about the same time yesterday, with no outside market action of interest.

And how it is that the COMEX silver inventory started the month with about 104 million ounces of silver bullion. The march contract month accounted for about 8.5 million ounces of silver deliveries, and yet the total inventory only declined about 1 million ounces over that time.

The data provided by Adrian every day and I do not recall seeing more than 7 million ounces of silver arrive at the warehouses, and the net dealer inventory during the month did not change much either.

Okay, so some of those contracts were settled quietly in cash, and at a premium if the market buzz is correct, but no one seems to question how that can be if in fact there is just a huge surplus of silver lying around.

Memo to Jeffery Christian: Care to take on that little mystery for us next time you put your grill in front of the cameras?

So why is it that the numbers never seem to add up no matter how many contracts stand for delivery? And if indeed there are irregularities with the reporting process, as the above seems to suggest, then just what the hell is being investigated at the COMEX that takes more than 2 years to uncover?

Isn't the concept of a free and honest market for all participants dependant upon accurate disclosure of the documented warehouse inventory including shipments in and out on any given day?

So too with the notion that the JPM has emerged in the warehouse business as a means to transfer paper silver to avoid disclosing a delivery failure.

JPM has already been busted once on this scam to claim ownership of physical bullion on behalf of clients that was only in fact a paper promise of bullion. They charged storage fees as part of this fraud and were fined. If their new warehouse is a continuation of this same scam, surely the regulators would have an interest to scrutinize the transactions.

I am very interested to hear from the people that think I am nuts. Being denounced as a conspiracy theorist is fine if they can back it up. Tell me where I am getting it wrong. And for the regulators, how can anyone trust in their capacity for oversight when they have taken years to conduct an investigation with still no conclusions presented.

It took a commission just a few months to present a report on the worldwide operation to bring the world trade center down, case closed... But a small group of crooks running a scam at to cap a tiny market sector is a big mystery that no one seems to be able to unravel?

WTF? There are documented irregularities in the trading pits just about every single day in this sector. Yet we are supposed to believe that nothing is amiss at the same time as we are supposed to trust that everyone is doing their job while the whole process grinds on for years. And do not even get me started on the naked shorting of the mining juniors, nor on the failure of the CME to enforce the mandate for position limits within a reasonable time frame.

The whipsaw action of the metals does not alarm me. I have been a steady buyer of bullion for years and have no plans to stop now. It is the ethical breakdown among the larger participants, and the cavalier attitude of the regulatory enforcement that has me deeply concerned.

How much more of a broken system  must we endure before the panel on CNBC even notices?

And with the NFP report due out shortly ... sure even more manipulation is on the way. Just where the hell are the emperor's goddamn clothes anyway?

You better believe I am disgusted. The system is beyond broken. And I sincerely believe that the day after we get a delivery default exposing the entire rotten, corrupt and criminal enterprise that exists in our metals markets, the crooks will set about trying to find a way to screw those legitimate owners that actually have physical bullion in their possession.

Fri, 04/01/2011 - 01:17 | 1124181 FIAT_FixItAgainTony
FIAT_FixItAgainTony's picture

i share your disgust.  i can hardly wait for the real value of silver to be revealed.  in the interim though, i add to my silver stash while it is still on sale.  so not all is bad!

Thu, 03/31/2011 - 22:55 | 1123900 tony bonn
tony bonn's picture

the scenario in the opening paragraph is beyond deceitful or simply misses the point of the conspiracy....the conspiracy is rooted and nested in the fact that the banksters can make naked shorts without having to provide collateral of any kind.....i wish to fuck that i could sell infinite amounts of silver or buy amounts completely unrelated to supply....only the banksters are privileged to make such economically fucktarded is why the conspiracy continues - not to mention the fact that genlser is physically threatened by these thug criminals....

Fri, 04/01/2011 - 08:01 | 1124414 Zero Govt
Zero Govt's picture

yes you can sell naked but don't forget in order to complete the transaction they have to buy the stock back at the end. Like it or not it carries the same risk as any other (legitimate) transaction and gives the market liquidity ...there's nothing wrong at all with naked short selling

Thu, 03/31/2011 - 23:29 | 1123958 Rob Jones
Rob Jones's picture

In the old days when silver was money, anyone who borrowed money was effectively short silver. Banks collected silver from depositors and loaned it out to borrowers in exchange for the promise of being repaid with more silver in the future.

Nowadays silver is no longer money, but the basic idea remains the same. An investment bank looking for funds to invest could borrow some silver, sell it, and loan the money out to someone promising to pay a high interest rate. This would seem fine (in theory) so long as you assume that silver is a commodity that will appreciate at the inflation rate and that the return on your loans will be more than the inflation rate. These assumptions might have seemed pretty good in the 90's and early 00's. So it is not difficult to imagine that certain investment banks might have built up large silver short positions back then.

The problem arises if silver is temporarily undervalued at the time when you are shorting it (perhaps because you are shorting it), so that it's price will eventually rise faster than inflation. Another problem arises if the loans that you make (e.g. mortgage backed securities) go bad, so that they are not able to generate enough return to redeem your silver short positions. In that case, the investment bank that shorted the silver (or the larger bank that takes it over) would be facing major losses.

Thu, 03/31/2011 - 23:50 | 1124035 SumSUN
SumSUN's picture

what the if is all this talk about tinfoil hats?

I think i'll stick to my topaz helmet and lavender space whistle.

Fri, 04/01/2011 - 00:11 | 1124080 sellstop
sellstop's picture

I'm going to sell some silver tomorrow. I'm going to push this thing down hard. Good luck Girls.




Fri, 04/01/2011 - 00:41 | 1124130 SumSUN
SumSUN's picture

do it, i fucking dare you.  And after you do that, what will you do next?



Fri, 04/01/2011 - 00:27 | 1124110 mt paul
mt paul's picture

ballast five and a half ton

9000 lbs of it 

is rebar...

Fri, 04/01/2011 - 02:16 | 1124232 mycousin
mycousin's picture

Can anyone provide an email for "Things that make you want to go hmmm" so I can subscribe.  Unfortunately, the "subscribe" button for some reason generates an error message on my computer.



Fri, 04/01/2011 - 05:56 | 1124351 Orémus
Fri, 04/01/2011 - 03:23 | 1124297 ebworthen
ebworthen's picture

I have a sneaking suspicion that Ben and the boys will crush PM's and the markets with a rate raise this Summer; after they have forewarned their bankster masters and minions.

Fri, 04/01/2011 - 05:09 | 1124336 ivars
ivars's picture

Could silver prices look like this, then:

With FED taking over short positions of JPM and others.



Fri, 04/01/2011 - 05:41 | 1124347 Snidley Whipsnae
Snidley Whipsnae's picture

Forbes recently ran this missive up the flagpole... It's about a new monetary system backed by gold... But, it leaves in place the Fed to provide open market operations 'to stabilize the price of gold'... And, it takes away the Fed mandate to manage interest rates and jobs... WTF! Can anyone say that five years ago Forbes would have printed an article suggesting that gold/silver would be back as the monetary system? The Fed is drowning in their own fiat and are casting about for a life ring...

"Stop The Madness: Make The Dollar As Good As Gold"


The fourth type of gold standard could be called the “Dollar Bill” system.  The name comes from the title of the bill that Congressman Ted Poe (TX-02) is planning to introduce into the 112th Congress for the purpose of fulfilling Congress’ Constitutional mandate to “…coin money, (and) regulate the value thereof…” (Article I, Section 8).

Under a Dollar Bill system, the monetary base consists of fiat dollars (both currency and bank reserves) created by the Federal Reserve.  The Fed is not allowed to set interest rates, and it is relieved of responsibility for promoting full employment.  Instead, the Fed is tasked with employing its Open Market operations to adjust the size of the monetary base so as to keep the COMEX price of gold as close as operationally practical to a target gold price. Fractional reserve banking is allowed.

The target gold price is set by naming a “date and time certain” sometime in the near future, and then fixing the target price at the market price on the COMEX at that moment. This is similar to the approach that was used to establish the final exchange rates for the currencies that were replaced by the euro.

A Dollar Bill system could work.  Unlike a Bretton Woods system, it cannot be “attacked” in an effort to drain Fort Knox and panic the Fed.  And, because the Fed is not involved in setting short-term interest rates, it creates no opportunities for arbitrage.  The mechanism used for setting the target gold price would force the markets to disclose “what gold is really worth”, thus avoiding both inflation and deflation at startup.

The Fed’s discretionary, fiat money, “dual mandate” system is failing.  It is creating inflation, impeding economic growth, and provoking rising anxiety.  It is sowing the seeds of a sudden, violent “dollar crisis”.  It is time to stop the madness and make the U.S. dollar once again “as good as gold”.  The “Dollar Bill” will show the way."

Fri, 04/01/2011 - 08:12 | 1124433 Zero Govt
Zero Govt's picture

yes and the Dollar Bill system is doomed to fail yet again. Why? Because it's the same centralised (monopoly) money system and yet again has at its centre the crony and clown show, The Fed

The very wise old sage Jim Sinclair is now suggesting a new international currency will evolve and it'll be electronic set on some base-level to each currency. I can only imagine how this even larger centralised global monopoly money system would lead to an even bigger disaster due to the main protagonists (usual big bwankers). 

The solution as always is not centralisation of power but disparity/variety and competition to let the free market to develop diverse money systems. God help us if Jim's right about this nightmare money system!!!

Fri, 04/01/2011 - 13:58 | 1125761 honestann
honestann's picture

A gold or silver standard is USELESS and NOT a real standard if:

#1:  ANY unit of currency or value other than "gram" exists.

#2:  ANY form of fractional reserve practices exists.

#3:  ANY paper receipts for the PM exist.

Why do you think they have totally fiat, fake, fraud, fiction, fantasy names like "dollar", "peso", "yen" and so forth... which they then PRETEND to make equivalent to a certain quantity of gold or silver?  Why not just make the unit "gram" in the first place?  Answer:  Because they can then just change the conversion rate to SCREW US.  That's what they did in 1933 after they stole all bullion gold coins from US citizens.

If any form of fractional reserve practices exist, they can and DO create unlimted quantities of fake currency at zero cost, which they then give to themselves and their friends, and/or lend out to others at interest.  This creates the utterly non-productive predators-that-be manipulator class with total control and domination over the productive class, and a total end to honesty, ethics, justice and individualism.

If any form of "paper currency" exists that claims to be a receipt for the gold or silver that is the basis of the currency, then the predators-that-be will print endless quantities of the paper, then give it to themselves and their friends, and/or lend out to others at interest.  This creates the utterly non-productive predators-that-be manipulator class with total control and domination over the productive class, and a total end to honesty, ethics, justice and individualism.

The ONLY real money is real, physical goods that must be produced.  Though the brainwashing of the masses is pretty much complete, anyone who refuses to turn their own brain over to the predators to be converted into kool-aide must understand that real money is identical to real physical goods, which makes all transactions HONEST barter (where goods are exchanged for goods, and no place exists in the process for elitist predators to steal from either party in any transaction).  To understand this clearly only requires the experience, intelligence and common sense of a 3 or 4 year old.  It is high time that adults once again become more intelligent than 4 year olds.

Fri, 04/01/2011 - 08:38 | 1124479 fiftybagger
fiftybagger's picture

He hints around the bush worredly, I might be mocked if I said it.  Mock on people:


If you think long enough and hard enough you may even find the connection to silver.

Wagging the Moondoggie

Fri, 04/01/2011 - 09:00 | 1124648 SilverRhino
SilverRhino's picture 

Silver shorted like fucking clockwork at 0900 AM. 

Fri, 04/01/2011 - 09:21 | 1124730 Beau Tox
Beau Tox's picture

New episodes of FutureBank! It's Ratings Week.


At FutureBank, we're Banking on the Future!


Customer 1: There is nothing in my account.  I'll work for food. 


Beau Tox (the Bankster): There is some coffee in the dispenser over there.  And here's a cookie.  Go clean ALL of the toilets.  The supplies are in that closet.  I'll check the toilets when you're done and you can have your cookie.


Customer 1: OK


Customer 2: Are you guys still servicing my mortgage or what?


Beau Tox: Yes. sir.  Are you here to pay, or WHAT?


Customer 2: Well, I kinda thought you might honor our long relationship by considering my ba, ba, ba, and you used to have a 8.75 per cent APR rate on home equity loans, but I don't see it advertised here anymore, and ba, ba, ba, my sister said she borrowed some on a co-sign to pay for her surgery, and, ba, ba, ba, well is there ANY way I can get $10,000 to feed my family?  I do have a summer home in Idaho as collateral.


Beau Tox: Sir, come back tomorrow with the deed.  I'll have $10,000 for you, but I'll be taking care of the summer home from now on.


Customer 2: OK


Customer 3: Oh, Sir.  The ATM said that something was wrong with my card and I couldn't use the debit feature to pay my cell phone bill and now I can't get home to see my poor, dying daddy.


Beau Tox: Miss, what's your name?  I'll check the accounts.


Customer 3: Brittney, Brittney Bimbo.


Beau Tox: Well, Miss Bimbo, you certainly look like a good credit risk.  Let's go back into the vault and check out your box.




Beau Tox; Oh, Brittney, I mean, Miss Bimbo, it was so good to access both of your boxes.  You are very tight, with your money, and I mean, I'll check out the problem with your EBT and debit cards and all those silly accounts and you come back here and see me next Tuesday.  Here's a Silver Coin.  Go see your Daddy and bring him a dinner.


Customer 3: OK


Customer 4: I got two gallons non-ethanol regular back around the old drive-thru.

Beau Tox: Put in into the white F-150 and come back with the empty jerry can.




Beau Tox: Here's 50 bucks.  Come back with that can full next Tuesday and I'll show you what's in the vault.  Natalie, can you get me the phone number for a Miss Brittney Bimbo?


Customer 1: Well, how do they look?  Can I have my cookie?


Fri, 04/01/2011 - 09:51 | 1124875 ZapBranigan
ZapBranigan's picture

LMAO!  Another 10:00am EST Ag nosedive...BTFD!

Fri, 04/01/2011 - 10:30 | 1125015 GoinFawr
GoinFawr's picture

ROFL! Another 9:00am EST Ag nosedive that didn't last long... Hope you BTFD!

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