Sep 11, 2014
One of the more persistent flaws in the world’s most important price discovery mechanism comes down to a simple question.
How did it come to pass that banks were given access to the commercial category of traders?
It’s a given that the market is rigged to high heaven. And it’s completely obvious by now how it is accomplished. They only folks left in denial about it have a direct incentive for ignoring it – usually an obvious one.
The nature of the players should tell one all they really need to know about price discovery and a system that is corrupt through to the core. They have 24/7 access to a paper market that is a gamblers den, and a faint shadow of that which it is purported to represent: fair price discovery.
What you have in the silver market is an extreme continuation of a policy from long ago. The commercials that operate these massive illegal and naked short positions are simply an extension of the users, the original CBOT board members whose positions were threatened by the Hunts.
Of course, the Hunts were easy scapegoats. The users were protecting themselves long before the Hunts. The users have been around since the days before silver was officially demonetized.
By extension, they opened the avenue for big finance.
The users could now operate in the background, while financial conglomerates could do what all giant trusts strive to accomplish – dominate with deep pockets, tentacles spread everywhere. Completely above the law by sheer size and political revolving door connection.
This post was published at Silver-Coin-Investor on Dr. Jeffrey Lewis /.