• Tag Archives Manipulation
  • Against Irredeemable Paper – Precious Metals Supply and Demand

    The Antidote
    Something needs to be said. We are against the existence of irredeemable paper currency, central banking and central planning, cronyism, socialized losses and privatized gains, counterfeit credit, wealth transfers and bailouts, and welfare both corporate and personal.
    When we write to debunk the conspiracy theories that say manipulation is keeping gold from hitting $5,000 (one speaker here at Freedom Fest claimed gold will go to $65,000), we are not trying to defend the Fed. When we discuss the flaws in predicting that kind of price, and the error in expecting to profit from it, we are not expressing a pro irredeemable dollar view.
    We are saying there are good arguments against the regime of irredeemable paper currency – but this is not one of them. Irredeemable currency has two fatal flaws. One is the interest rate is unhinged.
    It can skyrocket as it did from the end of WWII through 1980, or collapse as it has been doing since then. Two is there is no extinguisher of debt. Debt grows – must necessarily grow – exponentially. As it has been doing for many decades.

    This post was published at Acting-Man on July 25, 2017.

  • Who Is Most Likely To Lie On Their Loan Application: A Surprising Answer From UBS

    According to conventional wisdom, or at least logic, the less income one has the more likely they would be to lie on a loan application due to disproportionate and non-scaled needs to obtain capital as well as the willingness – statistically speaking – to do so at any cost, even if it means lying. And while that would have been accurate 6 months ago, the latest quarterly UBS Evidence Lab survey of consumer credit reveals something surprising.
    As UBS’ Matthew Mish writes, “the manipulation of risk estimates appears to be continuing for non-mortgage consumer loans. Specifically 26% of respondents (vs 25% in Q1) describe the factual accuracy of their loan applications (student, auto or card) as inaccurate.”
    Translation: while the overall percentage of potential “cheating” borrowers is increasing, the chart below shows the unexpected finding is that while the proportion of those making $40-$99K in June responding their loan applications were inaccurate declined from March 31 to June 30, the percentage of respondents in the $100K and higher bucket spiked from 20% to 24%, which means that the wealthiest Americans are – as of this moment – as likely to lie on their loan applications as those making as little as $40K. Just as disturbing is that the incidence of lying on loan applications among the “richest” bucket Americans has jumped by far the most YTD, from 17% at the start of the year to 24% currently.

    This post was published at Zero Hedge on Jul 18, 2017.

  • Dollar Continues Fall While Metals Offer Ratio Plays | Golden Rule Radio

    The following video was published by McAlvany Financial on Jul 13, 2017
    This week we talk about how the Dollar continues to fall, and we’ll discuss the recent bear raid on Silver. We look at gold, Platinum, Palladium price movements this last week and emphasize the importance of Ratio Trade opportunities. Janet Yellen of the FED believes we won’t see another Financial Crisis in our lifetime….. Is that even possible and what levels of manipulation are the FED willing to take. Thanks for listening to Golden Rule Radio our weekly precious metals update. Be sure to subscribe for more.

  • The Gold Industry is in a Massive State of Dysfunction, Delusion and Denial

    In 1980, the Financial Deep State realized that there existed an extraordinary opportunity for serial plunder and profiteering: the manipulation of the gold and silver markets. They immediately mobilized to exploit it.
    During the subsequent 37+ years (we are now well into the 38th), the Deep State manipulators have criminally looted the gold and silver markets, pocketing astronomical profits for themselves in the process, all of which have come from real victims on the other sides of their fraudulent trades. While literally billions of people worldwide have been financially damaged by this crime, many of them severely, not one of the perpetrators has spent so much as ten seconds in jail for the global looting spree they have conducted. This is because precious metals price fraud is a state-sponsored crime.
    While in this article we will concentrate on gold from here on, the exact dynamics we describe also apply to silver. The only difference between the two is that the price carnage in silver has been far worse than it has been in gold, on a percentage basis.
    As a consequence of the unrelenting gold price manipulation, gold has been thrust into two severe bear markets that have lasted for more than 27 of the past 37 years, or more than 72% of the time.

    This post was published at GoldSeek on July 11, 2017.


    Sport to some, digital bullying to others – whether you abide online trolling or find the inflammatory, sometimes cruel, practice repulsive – the Internet’s myriad disparate troll armies are apparently here to stay.
    Seeding malcontent, disputation, division, needless provocation, and, often, chaos, trolls merit their characterization by the hordes as the bane of the Internet.
    But, upon examining the psychology of these ruthless keyboard provocateurs, their likely detriment to civil discourse – already evinced in the mimicry of youth – sounds a warning not to be ignored.
    Trolls, researchers found, possess a worrisome psychologic profile, laced with psychopathy and sadism, as well as a dearth in empathy – all of which they employ in online manipulation to sow mayhem, an ultimate reward for their mischief.
    Researchers at Federation University in Australia queried 415 participants, approximately two-thirds of them female, with a median age of 23, to determine their levels of psychopathy, sadism, and empathy – such as gauging trolls’ agreement with the statement, ‘People would enjoy hurting others if they gave it a go.’

    This post was published at The Daily Sheeple on JULY 10, 2017.

  • When It Shows Up in Economic Releases, This Data Will Push Fed to Tighten Fast

    The other day we explored Federal Withholding Tax collections that suggested that the US economy is beginning to overheat. Data on other tax collections in June from the US Daily Treasury Statement also is leaning that way. It takes a month or two for the economic data to catch up with the reality of what is happening in real time.
    The tax collections data has no lag. It tells us what is going on in real time, with no manipulation whatsoever. We merely need to track it to know what’s coming in the lagging economic data reports. That gives us an edge enabling us to stay ahead of the crowd to take advantage of, or protect ourselves from, what’s coming.
    In this case, strong economic data will encourage the Fed to begin its promised course of balance sheet reductions. That will be a real tightening, as opposed to the sham tightening of increasing the interest the Fed pays the bank on the excess reserves at the Fed.
    Jim Rickards refers to this coming balance sheet reduction as Quantitative Tightening. I think that’s an apt monicker. Just as Quantitative Easing, QE, or money printing, pumped money into the markets and drove the asset bubbles that are still raging today (see yesterday’s price data on new home sales), QT will drain money from the markets and starve those bubbles.

    This post was published at Wall Street Examiner on July 10, 2017.

  • Gold Bear Raid & Stock Market Alarm Bells Sounding – Are You Prepared? Golden Rule Radio

    The following video was published by McAlvany Financial on Jun 29, 2017
    This week we discuss the importance of listening to the alarm bells sounding regarding the Stock Market. These patterns of Divergence in the DOW Jones Industrial in the past have led to significant corrections and prudent investors need to be ahead of the curve. We’ll cover the Gold manipulation bear raid that occurred this last week, as well as the price movements of Silver, Platinum, Palladium, The US Dollar Index & the Dow Transports. The Dow Transports are starting to lag the Industrials another signal of instability and a pending correction for the stock market. Thanks for listening to this week Golden Rule Radio

  • Another flash crash in gold — engineered, or fat finger? Quick recovery :: Lawrie Williams

    56 tonnes of paper gold sold in one minute in the markets at precisely 9 am London time. My colleague Ross Norman puts it down as most likely due to – as he puts it – as bearing ‘the hallmarks of a fat finger ‘Muppet’ – a trade of 18,149 ounces would be a very typical trade, but a trade of 18,149 lots of a futures contract (which is 100 times bigger) would not be… it leaves us wondering if a junior had got confused between ‘ounces’ and ‘lots’.
    Personally I take a more cynical view as this being very much an engineered trade designed precisely to knock the gold price, and other precious metals, down sharply just as they seemed set to take off on an upwards path again. This seems to happen too often with gold, it has happened before – again just when the yellow metal seemed to have shrugged off adverse news and events and shown some strength regardless. If this is the case, the volume of presumably fictional paper gold on this occasion would have seemed sufficient to drive the metal price down towards some kind of death spiral. In the event it knocked the price back around $20 only before the price began to recover again.
    By today, the gold price had recovered in overnight trade – presumably led by Shanghai – back to the $1,250 level so it looks like any engineered crash has failed in the attempt to make a long-term dent in the gold price. That has to be gold positive in the days and months ahead. Gold has survived the latest Fed rate increase and more hawkish statements as well as what looks to be a huge attempt at manipulation by a massive paper gold sale, almost unscathed.
    Silver has recently been behind in its attempts to match gold’s increases – and is altogether more vulnerable given the relatively small size of the market compared with gold. The gold:silver ratio is sitting stubbornly a little above 75 which is seen as a buying level as the writer remains convinced that the ratio will reduce to 70 or below – the target for the year is 65.

    This post was published at Sharps Pixley

  • Ted Butler Quote of the Day 06-16-17

    As I see it, this is the defining moment for James McDonald, the new enforcement director for the CFTC. Either he will do something about the continuing silver manipulation or he won’t. In the event he doesn’t do anything to interrupt the big commercials like JP Morgan from continuing to snooker the managed money technical funds into and out of COMEX futures positions by illegal spoofing and other dirty market tricks, it will fall to something and someone else. I’m not worried that the silver manipulation won’t end dramatically and soon, but it is not written in stone that it will be the defining moment that McDonald will look back on with satisfaction many years from now. Defining moments can be either good or bad and by definition last forever.

    But it would be a mistake to underestimate the pressure he is under not to do the right thing. Essentially, for him to dismantle the crooked price discovery mechanism on the COMEX for silver (and gold) and on other futures exchanges for other commodities, he must repudiate more than 30 years of prior agency thinking, as well as overcome the secret and illegal agreement made between the U.S. Government and JP Morgan, on the occasion of JPM taking over Bear Stearns in 2008. Admittedly, that’s a very tall order. But the taller the order, the greater the defining moment.

    Certainly, the inability to overcome the standard line from the CFTC for decades, namely, that no manipulation was possible in silver, has plagued others who set out to do so. Gary Gensler comes to mind because he started off in hitting the road running to establish legitimate position limits in 2009 and seemed to be on the right path to doing so. Even Bart Chilton, the former and very outspoken commissioner who talked openly of the silver manipulation, eventually lost his public voice for the same reason as Gensler failed – neither could overcome the illegal agreement with JPM.

    A small excerpt from Ted Butler’s subscription letter on 14 June 2017.

    More precious metals news & information available at
    Ed Steer’s Gold & Silver Digest.

  • Gold Market Morning: June-14-2017 — Gold waiting for the Fed!

    Gold Today – New York closed at $1,268.60 yesterday after closing at $1,268.90 Monday. London opened at $1,267.24 today.
    Overall the dollar was slightly weaker against global currencies, early today. Before London’s opening:
    – The $: was slightly weaker at $1.1217 after yesterday’s $1.1212: 1.
    – The Dollar index was weaker at 96.92 after yesterday’s 97.04.
    – The Yen was slightly stronger at 110.14 after yesterday’s 110.16:$1.
    – The Yuan was slightly stronger at 6.7976 after yesterday’s 6.7979: $1.
    – The Pound Sterling was stronger at $1.2785 after yesterday’s $1.2700: 1.
    Yuan Gold Fix
    As you can see from the above, Shanghai traded both yesterday and today lower than New York and London. This was the first time we have seen that happen! New York closed higher than Shanghai yesterday and London opened higher than Shanghai. On these numbers Shanghai is not a buyer from the west today.
    We have heard that China stands accused of gold price manipulation. They are accused of keeping prices low until they have acquired a particular number of tonnes. Meanwhile, Shanghai prices have consistently been at a premium to western prices. This is not the path down.

    This post was published at GoldSeek on 14 June 2017.

  • Chinese Companies Ask Employees To Buy Their Stock, Promise To Cover Losses

    Just when we thought there were no surprises left in the world’s foremost incubator of “financial engineering” that is China, we got a stark lesson in never underestimating China’s market manipulating ingenuity.
    According to Caixin, around two dozen Chinese companies recently offered their employees a deal: buy company shares while guaranteeing that any losses would be covered.
    While employees think they may be getting an unbeatable deal – who can say no when your employer promises you all the upside and no downside – the reality is that any participants in such scheme are merely locking in their fates with that of their soon to be insolvent employer, who desperately needs to raise the price of their stock to fend off collateral calls on stock-backed loans usually made by founders and other major sharehholders.
    As Reuters points out, attracted by guarantees that their principal is “safe”, workers have eagerly stepped up to take advantage of the “offer” even as it remains far from clear how these guarantees would work, with employees in some cases being asked to buy shares and hold them for at least 12 months. Details aside, many of the companies that resorted to this drastic stock price manipulation were quickly rewarded and saw their share prices spike.
    The entire farcical episode is reminiscent of what happened in 2015 when China’s stock bubble grew exponentially, then burst just as dramatically. At the time, there were similar efforts, but then it was the government appealing to major shareholders’ patriotism to buy and hold shares in what Beijing said was as a battle against speculators, both domestic and foreign. This time, with the proposal centered entirely on the private sector, the motive is different and is the result of companies using their own stocks as loan collateral, a practice that according to Reuters’ estimates has quadrupled in China over the past two years, and which is driven mostly by founders and major shareholders posting large batches of stock as loan collateral in recent months.

    This post was published at Zero Hedge on Jun 9, 2017.

  • HSBC faces fresh suit alleging forex manipulation

    HSBC is facing a fresh legal battle over allegations that its traders manipulated foreign exchange markets for their own profit at the expense of their clients, with the allegations centering on trades from more than a decade ago.
    ECU Group, a U.K.-based currency investment firm, has filed an application to London’s commercial court asking for HSBC to be required to hand over records relating to three large foreign exchange orders it executed in 2006.
    The court filing — seen by the Financial Times — comes after regulators uncovered systematic rigging of the $5 trillion-a-day foreign exchange market by traders at HSBC and several other global banks, which were fined $4.3 billion three years ago. At the time of ECU’s 2006 forex trades, the firm suspected it was being ripped off by HSBC traders “front running” its forex orders. When it complained, the bank promised a full internal inquiry, only to report back that it had found no wrongdoing.

    This post was published at Financial Times

  • Central Banks Now Own Stocks And Bonds Worth Trillions – And They Could Crash The Markets By Selling Them

    Have you ever wondered why stocks just seem to keep going up no matter what happens? For years, financial markets have been behaving in ways that seem to defy any rational explanation, but once you understand the role that central banks have been playing everything begins to make sense. In the aftermath of the great financial crisis of 2008, global central banks began to buy stocks, bonds and other financial assets in very large quantities and they haven’t stopped since. In fact, as you will see below, global central banks are on pace to buy 3.6 trillion dollars worth of stocks and bonds this year alone. At this point, the Swiss National Bank owns more publicly-traded shares of Facebook than Mark Zuckerberg does, and the Bank of Japan is now a top-five owner in 81 different large Japanese firms. These global central banks are shamelessly pumping up global stock markets, but because they now have such vast holdings they could also cause a devastating global stock market crash simply by starting to sell off their portfolios.
    Over the years I have often been asked about the ‘plunge protection team’, but the truth is that global central banks are the real ‘plunge protection team’. If stocks start surging higher on any particular day for seemingly no reason, it is probably the work of a central bank. Because they can inject billions of dollars into the markets whenever they want, that essentially allows them to ‘play god’ and move the markets in any direction that they please.
    But of course what they have done is essentially destroy the marketplace. A ‘free market’ for stocks basically no longer exists because of all this central bank manipulation. I really like how Bruce Wilds made this point…

    This post was published at The Economic Collapse Blog on June 7th, 2017.

  • Ted Butler: Surprise CFTC Announcement

    I was shocked by Friday’s announcement by the CFTC of an order and simultaneous settlement of manipulation charges in COMEX gold and silver futures. I first saw it in a Zero Hedge article and subsequent articles on Bloomberg and in The Wall Street Journal, but all those accounts were somewhat off target compared to the CFTC announcement itself. This was one of those rare cases where the source announcement was much clearer than the articles describing it. I would ask you to take the time to read and reread the actual announcement from the CFTC, including both the press release itself and the complete order.
    In essence, for the first time in history, the Commodity Futures Trading Commission has brought charges against someone for manipulating the gold and silver markets exactly in the manner I have described for decades. This is so astounding on its face, that I hardly know where to begin. In addition, I am writing this less than 24 hours after reading the announcement, so I reserve the right to alter my opinion as time evolves. But there is much to say at this point.
    While it is true that the agency brought these charges against a former junior trader of an unnamed foreign bank (said to be Deutsche Bank), the price manipulation occurred during the time of the CFTC’s infamous five-year formal silver investigation. You’ll remember that the original investigation by its Enforcement Division previously concluded that there were no manipulation charges worthy of pursuing. Clearly, something changed the CFTC’s mind. Also, please note that all the alleged price manipulation took place on the cesspool also known as the COMEX and not on any of the foreign exchanges often bandied about.

    This post was published at Silverseek

  • BLS B.S.: 93% Of New Jobs Since 2008 Were Birth/Death Model Estimates

    A research report from Morningside Hill Capital sourced from Zerohedge shows that 93% of the jobs ‘created’ since 2008 were Birth/Death model estimates. While some portion of those jobs were no doubt legitimately created, the issue is over-estimation of jobs created by new businesses net of jobs lost from failed businesses. As it turns out, most of the job growth that has been reported by the Government since 2008 – and which in turn fueled some massive stock rallies – never existed.
    Ronald Reagan’s administration was the ‘culprit’ behind the creation of the Birth/Death model because apparently Reagan was complaining that the BLS was undercounting the jobs he ‘created’ (from the link above, pg 11).
    The source of estimation error derived from the methodology used by the Census Bureau is highly flawed because it extrapolates B/D growth estimates based on historical experience. When the economic activity in the current period is below the historical rate of economic activity (real economic activity, not inflation-generated growth or growth fashioned from data manipulation), the slow-down in new business formation that occurs in reality is not picked up by the B/D model.

    This post was published at Investment Research Dynamics on June 3, 2017.