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Citigroup Just Cornered The "Precious Metals" Derivatives Market
One week ago, when we scoured through the latest OCC quarterly derivative report (in which we find that the top FDIC insured 4 US banks continue to account for over 90%, or $185.5 trillion of all outstanding derivatives which as of March 31 amounted to $203 trillion; nothing new here), we found something fascinating: based on the OCC's derivative update, JPM had literally cornered the commodity derivatives complex, when from "just" $226 billion in total Commodity exposure, JPM's notional soared by 1,690% in one quarter to $4 trillion, or about 96% of total.
Some, without even bothering to read the article, did what they always do when reacting to Zero Hedge articles: accused it of writing a "wrong" post first and asking questions later and coming up with some utterly incorrect response to show just how wrong Zero Hedge was because, guess what, the Office of the US Currency Comptroller had clearly "fat fingered" trillions in critical data which is far more logical.
As usually happens in these situations, Zero Hedge was right (there was some tongue in cheek apology but hey, at least someone got to boost their traffic briefly by namedropping this web site; incidentally apology accepted), which could have been checked simply just by looking at bank call reports, in this case the quarterly Regulatory Capital report, schedule RC-R, which made it very clear that indeed JPM's OTC commodity derivatives had exploded to $4 trillion.
For those too lazy to check before tweeting, here is the number of OTC cleared "Other" commodity derivatives for JPM before, as of December 31:
And after, as of March 31:
Furthermore, while we await the OCC to respond to our inquiry (we aren't holding our breath), nobody has disputed our claim (because it is purely factual) that as of Q1 the OCC decided to exclude Gold as a separate commodity category (see call reports above) and lump it in with Foreign Exchange for some still unexplained reason. It would appear that gold is money after all...
So to summarize: as we reported first (and we would be delighted if other so called financial experts dedicated as much effort to digging through the primary data as they have to desperately try to disprove our article), JPM has indeed cornered the OTC commodity market, with its $4 trillion in "Other" commodity derivatives which amount to 96% of total. We don't expect anyone to ask Jamie Dimon about this on the quarterly earnings call because this is one of those things one doesn't want an answer to if one wishes to be invited to the next conference call.
However, another big question remains: just what is Citigroup - not, not JPMorgan - with the Precious Metals category.
Here is the chart showing Citigroup's Precious Metals (mostly silver now that gold is lumped in with FX), exposure over the past 4 years. Of note: the 1260% increase in Precious Metals derivative holdings in the past quarter, from just $3.9 billion to $53 billion!
For those of a skeptical bent the proof can be found in Citi's own call report, which can be seen here as of March 31, 2015 vs December 31, 2014.
Another way of showing what Citi just did with the "Precious Metals" derivative category, is the following chart which shows Citi's total PM derivative exposure as a percentage of total.
Soaring from just 17.4% to over 70%, there is just one word for what Citigroup has done to what the Precious Metals ex Gold (i.e., almost exclusively silver) derivatives market.
Cornering.
So, the question then is: just what is Citigroup doing with its soaring Precious Metals (excluding gold) exposure, and why is such a dramatic place taking place at precisely the time when not only JPM is cornering the entire "Other" Commodity derivatives market in the form of a whopping $4 trillion in derivatives notional, but in the quarter after none other than Citigroup itself was responsible for drafting the swaps push-out language in the Omnibus bill.
And also: how is it legal that JPM is solely accountable for 96% of all commodity derivatives while Citigroup is singlehandedly responsible for over 70% of all "precious metals" derivatives? Surely even by the most lax standards this is illegal, but what makes the farce even greater is that all of this taking place out of FDIC-insured entities!
The final question, which we are absolutely certain will remain unanswered, is whether any of these dramatic surges have anything to do with the recent move in precious metals prices, or rather the complete lack thereof, even as Europe is on the verge of its first member officially exiting the Eurozone, and China's stock market is suffering its worst market crash since 2008. Oh, and we almost forgot: with both JPM and Citi now well over 50% of the derivatives market in two critical categories, who is the counterparty!?
We have inquired with the OCC about both the derivative moves of both JPM's "commodity" and Citi "precious metals" surges, both rising by over 1000% in the past quarter. We will promptly inform readers if we hear back, which we won't.
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in paper we trust
Good work, Tylers! Evil banksters!
"(there was some tongue in cheek apology but hey, at least someone got to boost their traffic briefly by namedropping this web site),"
When the Perth Mint blog sees the traffic spike, checks the referrer and follows the link back they'll see Tyler's middle finger.
But does this mean that Citigroup is now long precious metals excluding gold or are they short or is it something else entirely?
Math is so Kyle Bass 2012.
I wonder if these banks are going to be the fall guys for the next phase of the crisis? Seems like they are betting hard on "status quo" even as the status quo is coming under ever more violent assault.
True and great journalism, Zerohedge. Bravo.
+
Yes Billy - Is Citi long or short is the question.
This position has been exploding while the paper price first rose to $18/oz but then declined so Citi may well be cornered but holding the market for a period for another reason. Nobody knows.
my honest guess is short
I think they are both long and short and I don't really KNOW shit. The thing is they have been surpressing the price of PMs for a long time and its my understanding they do that by selling naked SHORT futures contracts into an illiquid market. It would seem to me that someone needs to be on the other side of that trade to make it work so I figure they (JPM and CITI) hold both sides. The thing is these are all paper contracts. So where is the metal? Ive seen pictures of huge vaults of silver and gold but I have no clue as to the age and ownership of any of it. All I really know is an OZ in my hand is mine and mine alone.
I don't really KNOW shit.
Knowing that makes you more self aware than most of the world. Then again, I do not know shit either.
Is this related to what Andrew Maguire is talking about on KWN, that open interest contracts in silver have spiked this year from 150 to 200K, and that swap dealers have transferred this massive naked short position onto "managed money or hot money funds"?
in this case the quarterly Regulatory Capital report, schedule RC-R, which made it very clear that indeed JPM's OTC commodity derivatives had exploded to $4 trillion.
The future releasing of the schedule RC-R report is likely to fall under the category of National Security Secret
It's all fed money until the war breaks out.
<<< Is Citi long or short is the question.>>>
I am thinking that both Citi and JPM are long and short, as they can influence the price at contract expiration in either direction in whichever is most profitable with very minimal risk. Rince and repeat with options expiration.
And they are arrogant enough to say "bite me"
So then collusion, "you get the silver and I get the gold" and act in unison.
Just thinking....
What we're seeing is a classic Martingale bet against the house. With leveraged money Citi and JPM can go to ridiculous extremes to beat the house in PMs.
what we're seeing is the Great Reset has been telegraphed
Precious metals are going nowhere. Right now dollar is king. Deflation is the name of the game. Learn it, live it, love it.
thanks as always zh.
I suppose the old -if you cant beat them join them- applys.
https://www.youtube.com/watch?v=qCiuI_g9vdg
"It would appear that gold is money after all.."
Tyler, before you crow too much, may I remind you that derivatives are to PMs as parking tickets are to a detached garage.
many smart posters admit they don't know shit. me too. and for these reasons i'll sit(shit) this one out. although we are talking about gold and silver phyzz, i still cant do due diligence. so, unless it is for prepping into uncertain tymes it is a very poor uninformed "investment" decision. and for those reasons i'm out. but, it is all very interesting as it signals the corruptness of our government sight seers(porn)...
also, when this gets ugly(and it will-has too), the deflationary(blood in the streets) cycle will kick in as the flight to cash will signal the bottom and that imfo is the tyme to come out both barrels loaded and finger a pullen(expect a 10 percent premium instead of 4-5%)...
According to Ted Butler and other sources, JPM has accumulated massive physical silver holdings. If JPM is long and Citi net short, things might get interesting? As in maybe Citi is next on the Goldman/JPM list to take out after the Lehman caper was succesfully completed?
The Greek (Dimon) will not trust an Arab (prince Alwaleed) Unless they cross-own eachother evenly
Yes it might be a "Thank you" for the Saudis move towards Russia and China and prior to agreement to accept payment for Chinese oil purchases in CNY. If so, I would expect that the (Misdirectional) 911 report will be "Leaked" shortly as a precursor......
Of course they are both long and short PM's... They are long physical and short paper... What this means is that price discovery is dead for PM's as long as these two bankster organizations can move the price anywhere they want via derivatives...
This scenario makes even better sense.
Thus, they are, perhaps, each other's counterparties, in the circle-jerk fashion?
While being long physical? Or not... depending on the "mission" statement...
The agenda is the commodity class that has held it's perception of value over several millennia, physical PM's... That will be all that's left after all the fiat crap is flushed out of the system...
If JPM has really cornered the market in physical silver, it's interesting to compare this to the Hunt brothers attempt to corner it back in 1980. The government busted the Hunts, but something tells me that's not going to happen to JPM.
Having traded in that cesspool for a few years, I have an opinion that may help.
The banks have their own trading desks as do the Spec Funds. The banks have been setting up the specs to be the fall guys in the poker game. They have been setting them up for years and have been fleecing them for countless billions over that time. Now, it occurs to me, being one who was fleeced as well (considering the fundamentals as my foundation for a trading strategy), that to remain in the game after realizing consistent and considerable losses, one must be completely clueless, unfathomably rich or betting with other people's money so no skin off your nose. That they (specs) remain is a puzzling question than leaves me with only one conclusion; It is the GAME. They are stripping money from spec managed funds collusively.
The way I see the pits is one of wealth transfer in the paper markets. The Comex and regulators are enablers. They provide the platform and the cover for a scheme where large pools of investor's funds (under management) can be accessed and stripped without the ever-trusting investor being aware of it, until the End of Year Oops-Sorry Performance Statement. "Oops! Sorry! Your returns for the year have been less than anticipated. We assure you that next year will be a banner year, so stick with us.
So, in collusion, the banks set up a huge short position in the precious metals markets, transfer it to the specs who coat-tail the banks as the price falls, adding to the price fall through their selling. The banks unload all their previous short positions onto the specs, going long, thereby setting themselves up for a scalping of the spec funds on the reverse price manipulation; rinse and repeat.
I've never seen anything proportionally quite like this and it looks as though a whole lot of money is going to be transfered to the banks out of people's savings accounts or margin accounts.
It's not as obvious as the MF Global theft of saver's money by JP Morgan, but it has the same MO and as you can see above, the same players are involved. Who needs the exposure of open theft, when it can be done legally or without having to buy judges and regulators?
Yes, I have often wondered WHY the Specs comtinue to play in such a rigged casino after they have consistently been on the wrong side of the Commercials Wash-Rinse cycling. If it is so painfully obvious to casual participants such as myself (And I have made monet trading WITH the Commercials based on the net short Commercial position) should it not also be obvious to the Specs? Perhaps the Algos have entirely taken over?
Failing the imposition of position limits, the best that can be hoped for with a captive "Regulator" is that this manipulation by the Cartel (As Agents of The Fed/PPT/ESF/BIS Complex) becomes widely acknowledged such that Comex will just disappear from a lck of volume, accelerated by a move to the new physical-backed futures market in Shanghai. Perhaps then we can finally revert to an honest price discovery mechanism and the semblance of a "Market"?
Sincere thanks ZH for the excellent jounalism. Is it any wonder that CNBS has only about 5 remaining viewers and the Financial comedy press is dieing?
The banks and specs "Big Churn". They both get paid. Who's on the other side of the trade? Savers and workers; both being stripped of their assets, right down to their sovereignty.
Wither goest thou, Greece? (et al).
It's the same as the miners. Why would Barrick hedge and lose a billion dollars in a rising gold market? Why do miners continue to operate at a loss? Because they've stacked the boards with their minions who they pay off in funny munny. It all traces right back to the FED's printing press. If you can print up unlimited cash, you can cover everyone's losses. Bullion banks, Commercials, and specs are all working for the FEDs.
preying on cog dis...
wake the fuck up!
Does this make Kyle Bass a "spoiler" by taking physical posession of the gold and putting it in a repository in Texas? It's going to be hard to rob him if he plays like that.
A big thanks to commenters like Al, Phillipat and other ZH members too. I have gained significant knowledge over the years from the excellent dialog you contribute here.
The financial system outside the delivery of a basic banking service is one gigantic skimming operation. They extract value for themselves and in doing so they destroy value elsewhere. They create no value - making money through the manipulation of money. This has been analysed via political economy. A book, ‘The Enchanted World. Inflation, Credit and the Global Crises (1982)’ took the analysis beyond a focus on production and examined the role of money and financial commodities.
Is there any way to figure out is Citi and JPM exposure on the short or long side?
Logic dictates that if they are in big, yet market neutral that price swings would be muted as the "rest" of the players, especially anyone really trying to cause a sudden move, would be left powerlessly "diluted".
So what has happened with the price of metals as of late? That's right, not much, sideways oon high amount of open interest.
When has any to big to fail bank ever been market neutral? They sold 4 trillion worth of insurance.
" Those who are closest to the plillars,
suffer most when they fall. "
Yes, the weekly COT Report and momthly BPR provide some insights. BUT, that is only on Comex and does not include LBMA or other OTC derivatives.
Very much love your work ZH
BRAVO
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And smoke and mirrors
" The game's afoot Watson!"
Silver slipper.
Looking at the charts, they lowered their 1 year Gold exposure Q4 2014 by 2/3 to Q1 2015.
Didn't change the longer term exposure "substantially" in the same report.
Not being real knowledgeable, aside from the legislative aspect, it looks to me that the short Dirs are going to be a write off, and the bet is that after a year, say Q2 2016 there will be a payout on the rest of their holdings.
the thought that the holdings will be made whole when things unzipper is a pipe dream on some group's part.
Interested to see what Q2 and Q3 2015 holdings will look like, if we're still able to use the current Status Quo medium (ie zh) to see them.
"But does this mean that Citigroup is now long precious metals excluding gold or are they short or is it something else entirely?"
Someone smart please answer the question.
If they own nearly all the derivitaves, does that mean that all the stuff being peddled by Erik Sprott & all the other ETF's were bought by Citi? Using free money fabricated from air? And why would they do that?
"Shooting Blamks" so to speak.
Sounds like they're buying up all the coinage using their "derivation of money."
Ironic a Bank "defaulting" (in the sense of a computer program not in the financial sense) to actual money (meaning coinage) if true.
You can buy the Blanks from a private company in Idaho...so if my theory is true this would as a derivative is a "contract" to buy up all the coinage from said enterprise.
The NOTIINAL amount would appear huge (TRILLIONS!!!) but the actual dollar amount...while not trivial...would be quite small for a Bank of this size.
Maybe a couple of hundred billion.
Not a bad bet if you think the price doesn't have much further to fall in Silver and obviously you are getting actual silver as per the contract.
Who knows...maybe the U.S. mint will actualy go back to a real copper penny...
Million not billion.
There simply isn't that much to buy when it comes to precious metals...
all i know (without absolute certainty) is that jpm has enough phys silver such that every $1 rise in its price earns them $350 million
they'll gain $18 billion if silver hits its double top of $50/oz
(but then that clould be wiped out x 100 if they're on the wrong side of the derivatives, so whadduzitallmadder? )
The purpose if my theory is true is to induce a PAPER panic...not so much drive up the price of gold or silver per se.
In other words "get the Default Train rolling" by scaring the shit out of "the traders" that they might have to turn over all their cash/turn to cash itself.
(Meaning US dollars.)
"Greece" in that sense could be the "kick off" to a whole string of defaults of Big Money..:meaning actual Governments and not "merely"
Detroit.
Take "Florida" for example...
looking at the historial chart recently, I see a 10 percent range(Silver 15.75 to 17.50). with 100/1 leverage that is a 1000 percent gain. 10/1 is 100 percent in 3 months. anualized we are talking some health gains. and that my friends explains these bets both long and short. simply put free fucking money from almost free money(skimming via primary dealer priviledge) with a bunch of doomers(fear) being the market movers on the upside. plenty of fear events to keep the cycle active!
so place your bet for a nice 10 percent move upside as we are at the bottom of recent range.
then do as the morge does and short the fucker right back down to 15.66. rinse repeat and if you got ball or lips margin the fuck out of it and 10 x gain(or better).
I was wondering how they were going to steal the Sprott stockpile.
He's only "out" the leverage...which could be substantial actually.
I highly doubt he is putting actual product up for sale.
I know I have never seen any.
Also of note YTD is how hard electric utilities have been hit.
Good luck moving that "product" when the chips are down...
They are as short as Gary Colman's ghost.
It would seem to me, that it is irrelevant whether they are long or short, only that they are on the right side of derivative in question. If Citi and JPM are confident that they have ABSOLUTE control over these specific markets, then their repective derivative exposure is practically risk free, and size becomes a matter of "how many of these guaranteed bets can I place?"
Why do I read ZH? ZH provides:
i think it's more akin to a simple, exponentially growing paper short. ie, in simple(r) trading terms.... short $1bn of gold contracts.. in order to keep from booking a big loss, defend your short (which you of course roll forward) with more and more new contracts - exploding the notional amount in your book. as long as you keep doing this such that the spot price of paper gold stays below your VWAP short, you can say truthfully (albeit only technically) that your 'commodity hedging activities' have produced [some] gains.. sweeping under the rug (kicking the can.. pick your euphemism) the massive unwind that will have to happen at some point - which as the article points out, will be picked up by the taxpayer. amazing how the common citizenry is [unconsciously] funding the very mechanisms of their financial undoing. seems to me there is a bigger lesson there about what is really going on with humans these days.
I don fink ma EBT car gonna handl it. Yu gonna take my gold teef?
Need more help, tyler. Old fart looking to protect little remaining fiat, and small pile of silver. Of the $4 trillion that JPM exploded to, $3.6 trillion has a maturity of 1 year or less. What happens to those derivatives then? Or, does JPM, Citi, expect the demise of fiat within 1 year? WTF?
It's just a contract to pay not actual payment.
So the "other side of the coin" so to speak (the Hedge as it were) is that a huge new source of supply will enter the market ala California in the 1800's "depressing prices."
Already entire Nations are being wiped oit because there are no dollars to be had right now...
Yep, they seem to be betting on rate hikes. Who would know better than the ones who control the FED?
Exactly.
The banksters are just an arm of the totalitarians in government. They do as they are told.
Tyler. Cudos on the quality research, as always.
K
Great Work Tylers.
This is what happens when private banks have an unlimited supply of digital cash with a simple keystroke and the taxpayer has all the debt and risk exposure.
It's a good thing we have gold in Fort Knox. What's laughable is they still guard the place. Hello hello the horse has left the barn
It's a good thing we have gold in Fort Knox. What's laughable is they still guard the place. Hello hello the horse has left the barn
Tungsten is valuable......
Banks like Morgan are Pentagon controlled now.
Stop being an idiot.
.
Banks like Morgan are controlling the Pentagon now.
Don't be an idiot.
No money, no honey.
yep.. how did good ol' rothy put it -paraphrasing.. 'give me control of the money supply and i don't care who makes the "laws"'?
the pentagon lost track of 2.3 trillion. I don't think they are in charge anymore. that's what happens when you let a rabbi run your budget.
Loading up the "destroy tangible stores of wealth" cannon on orders from the FED.
Nothing to see here.
Move along.
Please ..... just move along.
Calling All Texans: It Is Time, Texas! Operation Texas www.OpTexas.org
JH 15 is a foreign operation.
Soldiers are UN infiltrators learning to blend into Texas.
Wake up fools.
If it speaks Russian, kill it.
We know all about JH15. I started the thread monitoring it at Oath Keepers weeks prior to its announcement. Operation Texas is very cognizant and we are monitoring all aspects.
Watch who you are calling "fools".
Thanks for watching our backs, LSH.
Don't mind the Russian subs in the Gulf.
Just sight seeing.
No, moron, if it speaks neocon kill it!
Is that you, Dave Hodges?
Don't be dissin' commonsense Dave.
Allegedly, our beloved ZH is the brainchild of a Bulgarian. But I love it nonetheless.
"our beloved ZH is the brainchild of a Bulgarian"
Nice approximation of Anglo-Saxon alliterative meter. Definitely has a Beowulf feel. Makes ZH sounds like a relative of Grendel's mother.
"our beloved ZH is the brainchild of a Greek"
Homer-esque
(Just riffing a bit)
O my swineherd!
A Macedonian Greek to be precise
you can almost sense how salty his tears are, as he eats humble pie.
i suppose you'd have to give a BIT of respect for the fact that he didn't take down the post, which most other interwebsters would have done...
He ate it. You have to respect that.
they can keep their paper, I'll keep stackin' physical...
This situation is turning uglier than a Walmart shopper's butt crack.
No more buttered scones for me, Mater, I'm off to play the grand piano.
https://www.youtube.com/watch?v=S_CGIWYT8PQ
Does everyone have a short memory? The defense bill passed this past December. Citigroup snuck in a provision at the last second and the bill was passed quickly by both House, Senate, and the president....in like a week. The provision was putting off TRILLIONS of derivatives onto the American tax payer if they ever fail. To me, it's not if but WHEN. Does that have anything to do with why it soared in the first quarter????
Their memory is even shorter if they ignored the part in the post you are replying to where it says:
Whose derivatives books did CITI buy? Are they asigned the role of toxic waste dump?
Neither CITI nor JPM will survive due to these positions. Mark it.
Exxon Mobil could be one.
Again we have a DEFLATION as a basically infinite amount of energy comes on line in the form of shale oil AND shale natural gas.
"Prices so low even the economy might recover."
Obviously you don't want to own any DEBT of ANNNNNNNNNY kind right now this much liquidity sloshing around.
Who knows what will start spilling out onto the market right now "on the cheap"?
The flip side is "who knows what can be had at a premium price" as well.
Step right up and spin the wheel! See what your future holds!
I can't read it.
When you can't lose...
Dammit,
Go big.
unless i am mistaken, it reprioritised the order of creditors in the event of bankruptcy, meaning that derivatives now come before depositors. so if you have a $500k savings account and city go bust, well then you MIGHT get your $500k, but only AFTER derivative exposure payouts have occoured.
so in effect, it's the common depositor who pays for it, not the taxpayer.
ah, i am mistaken. thinking of the wrong bill.
Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For
If I had a sceptical mind, and I have a major f'ing sceptical mind, I would posit that the major banks are colluding to ensure each pays the other off (via heavily coordinated derivatives exposure) using depositor funds. The net result will be that the banks will transfer depositor funds to each other in the event of a systemic meltdown. Banks win We lose!
Anybody with deposits at JPM or CITI should not make jokes about Greek bank account holders.
My Chase account was already seized...about a year and a half ago.
Be careful what you write. They read here also.
Insulate yourselves before it is too late.
I make it easy to keep track of money by not having any.
We bought a motorhome recently, pulled around 8k in cash and were questioned like criminals (at the local bank).
LOL, good one. If... IF this were to pass, then Plan R* would come in effect, and the only people on "the Hook**" would be Banksters and their political sluts: the 0.01-0.1%. No quarters, no mercy.
Hell hath no Fury, like... an armed Populace, pushed to the wall and " Nothing left to lose", but their perma-servitude and last freedoms.
Molon Labe, MFers!
*Revolution. ** Meat hook.
Tyler, ZHers, can you verify if the Saudis are still the largest shareholders of Citi?
Largest share holders? For all intents and purposes, they are Citi.
Tyler, but are they long or short?
With CDS they're both.
Derivatives parties (CITI being the counter-party) come absolutely FIRST in line. Bond holders I believe are ahead of account holders, too. Forget stock holders, they usually are used as toilet paper in the process of a dump.
Actually the account holders funds are transfered to the derivatives parties, first.
BOA had to move their entire derivates arm back under the hood when these changes where made, so that the derivatives parties were assured access to the accounts assets.
yeah, that's what i was thinking of. perhaps not quite as egregious as tyler's article, but yet another clear indicator that the house takes all.
were wall street regulated as tightly as casinos, it'd be shut by now...
https://www.fdic.gov/about/srac/2012/gsifi.pdf
Paragraph 13 - An efficient path for returning the sound operations of the G-SIFI to the private sector would be provided by exchanging or converting a sufficient amount of the unsecured debt from the original creditors of the failed company into equity. In the U.S., the new equity would become capital in one or more newly formed operating entities. In the U.K., the same approach could be used, or the equity could be used to recapitalize the failing financial company itself—thus, the highest layer of surviving bailed-in creditors would become the owners of the resolved firm. In either country, the new equity holders would take on the corresponding risk of being shareholders in a financial institution. Throughout, subsidiaries (domestic and foreign) carrying out critical activities would be kept open and operating, thereby limiting contagion effects. Such a resolution strategy would ensure market discipline and maintain financial stability without cost to taxpayers
It's denial and error.
Someone better call a dumbulance
Make like a tree and fuck off.
Sounds like something is about to happen in the Silver market........Hum?
Andrew Maguire has been saying that both in the last few days at KWN and for the last couple of years. He has lost all vestiges of credibility.
Like I said before - give him until 4Q15, then we can bury the limey MFer.
But if he's finally right, I'll buy him a "Broken Clock" award...one broken clock.
In March, Maguire declared to KWN listeners that definitively the last pre-FOMC Crimex gold smash had taken place and that thanks to his imminent, brand new, exclusive, global spot physical trading consortium the gold price would henceforth be determined by immediate physical demand only. We all know what happened since then, the guy is a charlatan with dreams of grandeur.
the top FDIC insured 4 US banks continue to account for over 90%, or $185.5 trillion of all outstanding derivatives Reminds me of the great Mussolin quote: “Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power.”
Let's all quit the stupidity about there being any line at all between the big banks like JPM and the government. I know many of the readers here already have. The US is far more corrupt than most Americans realize and most Americans will not realize it until it is unfortunately far too late.
well, there actually is a difference.
in hitler's time, none of the big industrialists really ever went up against the big cheese (hitler). furthermore, practically all of the profits of their corporations were reinvested.
these days, "the big cheese" was put there BY those industrialists - who each takes out hundreds of millions each and every year.
Thanks for having the energy to say that.
Cap Ex to build the business is a dinosaur now a days.
(what are they teaching those MBA minions?)
Why would anybody put their money in these banks? and for a fractional return or essentially close to zero%? Physical cash seems the best solution stuffed in a mattress
Looks like something is gonna blow and they are trying to keep it stable from a FX perspective.
Possibly related, look at the Interest Rate Contracts less than one year for JPM. They went from 28T to 9T in the reports shown. Seems that's a significant drop. Anyone care to guess what happened there? Just a simple expiry of the contracts?
I once read a book "understanding the derivatives market", I an effort to understand this stuff. I admit it still escapes me, but I keep trying! I get the danger, and the bailout thing really scares me. What I don't get, someone be more specific; what does this mean??? What do you think Citi and JPM are doing this for? Is it an effort to drive up/down the price of gold and silver? A gamble? An end game?? In financial terms, not "cuz they're out to get us" terms, please!
Citi and JPM won't convert their paper to real stuff when the going gets rough. It wont stop all the problems but it will help a little when SHTF from .gov perspective. It keeps the music playing a little longer.
If it was so easy to look through their moves and motives the market would already be moving against them.
In the end they will either make a killing or get bailed out anyway.
Big Brother, The Ministry of Truth and The Thought Police are taking control. A rise in gold and silver is viewed as doubt in the fiat system, which must be quelled and controlled at all costs.
This is a high stakes gamble on the part of the Ministry of Truth. Rather than letting the markets correct as they would normally, they are trying to hold the market in a bubble state as long as possible, fueled by debt. The big problem with this is that the move down will become all the more cataclysmic than it would in a normal market.
What Spock said.
"Fascinating."
What does it mean if the gold/silver price crash CITI will collapse ?
please guide me
If CITI dumps a lot of paper on the market at once then the price declines.
The price for Gold or Silver is not a price for the actual metal but the price of a paper futures contract that promises delivery of that metal at a later date.
CITI can make the price for those paper contracts decline, or even crash, if they want that outcome,
They are in a position to set the price at any price that they want.
The Gold price which is reported as Spot is just a Fraction of the price of a Futures Contract which is a piece of paper. It is the same with Silver.
And as CITI can borrow virtually unlimited amounts of capital from the Fed at zero percent then they can cover any book losses that may unexpectedly happen.
What is the funniest aspect of this? There is more PMs accounted for in those paper cotracts than there actually exists as Physical Metal.
It is all a fraud. ALL OF IT. THE ENTIRE FINANCIAL SYSTEM.
And people actually buy it
That is why I am laughing my ass off daily.
The sheeple are buying this shit since Stonage.
Dumb asses with dumb and stupid ignorant genes.
The best is to build a chinese wall around your home wall and stop reading and listening whatever shit happens out there. As it's not bearable anymore. Neither the news nor the sheeple.
Wake me up again a million of years in the future - to see whether this failed race has finally been swept away.
It is comedy. Tragic comedy but still comedy.
Why will I want to stop reading the entertainment?
Seems like I got 10% of this issue exposed through a ZH post from 2013:
-
http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-met...
http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-met...
http://www.zerohedge.com/news/2015-07-04/why-did-citigroups-precious-met...
But seeing data on Futures after the fact in a report is not really 10% of the problem with Derivatives.
I wonder if someone has some kind of link for PM Options... But I would guess they would be for Stocks/Equities so the data would be very cumbersome and hard to understand.
ZH: Any links on Puts & Shorts on PMs?
Ha! No. Tax payers will bail them out. Normally the contract members would absorb the losses but because there are so many contracts the losses will be so great that "We the People" will need to pay for their folly or the whole fiat money system will far apart.
It's all on paper though, so just stack up on the physical stuff.
I think some were right, silver will hit $500.00 per oz., and gold $ 10,000.00 an oz, but when you cash in 1oz. each, you 'll be able to goto walmart for 1 weeks supply of groceries, for,$10,500.00, bankers backed by politicians don't lose.
No point in buying gold,or silver anymore..Just buy shares of Citigroup stock,they own it all,anyway..
They do not own all of the Gold and Silver.
They own paper claims, futures contracts, to non existent Gold and Silver.
Actually they are in a position to crush CME Group by just asking for delivery on a fraction of these contracts.
If they told Jeffery Christian to STAND AND DELIVER then CME Group declares Force Majuere.
Perhaps CITI is targeting for absolute Financial Control of ALL PRECIOUS METALS COMMODITIES and are seeking to incorporate a major division of CME Group while the Morgue gets the remainder.
Perhaps CME Group is on the chopping block as the next sacrificial lamb?
Fuck you Jeffery Christian, you dishonest fuck. It seems as if you have lost control of your destiny.
It may be advantageous to short CME Group.
It may be more advantageous to leave these markets before SHTF.
But sheeple and lemmings will follow the trails - until it's over. And beyond.
Dumb fucks.
So what does it mean?
Intelligent observations only.
It means this about the markets:
https://www.youtube.com/watch?v=dIIugm_FJOg
Volk------in the trade if you hold the most trades you fix the price--or in other words make the market-- to corner the market means control the price--
the question would be does Citi (or JPM) want the price to rise or sink-- or if prices start to rise in the market will they boost the price or rein in the price --ditto if the market starts to move down.
they want to hold it in a narrow range, while skimming, off the chop they cause.
It is not about the money...They can have the Fed provide gobs ond gobs of that...for nothing.
That skim amounts to nothing in the scheme of things.
IT IS ABOUT THE CONSOLIDATION OF POWER, having more chips than the other when the reset happens.
That is what makes sense...to me at least.
I mean just how many yachts can you use at one time? Or Gulfstreams?
Why would they allow a reset? What is the profit in that? Also, who would clean their pools and iron their shirts if that happened?