Which presidential candidate would you be most be confident would NOT lie to you? Here’s Ron Paul on CNBC taking up the philosophical arguments no other candidates are discussing, including one hell of a debate on gold and the debasement of the dollar with Morgan Stanley’s Stephen Roach.
JP Morgan has taken delivery of almost 10 million ounces of silver over the last month bringing its current holdings to just under 14 million. As the chart shows, something has changed and JPM is adjusting its strategy in the silver market.
According to analysis by Ted Butler, JPM has had an abnormally large short position of paper silver in the futures markets ever since they acquired Bear Stearns in 2008. He estimates JPM’s current short position to be 18,000 contracts, which represents 90 million ounces of silver.
The new strategy being employed by JPM is likely to be one of the following:
- Acquire as much physical silver as possible to dump on the market, forcing silver prices to fall and enable JPM to unload its short position in the futures market. JPM takes a small loss on the physical silver and a huge profit on their paper futures contracts.
- Acquire as much physical silver as possible prior to covering their futures positions. Depending on how quickly JPM covers, the loss on the paper contracts could be limited, while the long-term growth potential of the physical silver remains.
- Acquire as much physical silver as necessary to enable delivery to those parties taking the opposite side of JPM’s short issues.
- Perhaps some combination of all of the above.
Judging from past behavior of these Wall Street giants, one would suspect that JP Morgan is likely to chase after whatever gives them the most profits in the shortest time (option 1). However, Mr. Butler has noted that over the past year of frantic turnover in COMEX silver inventories (in and out movement) there has been some big underlying demand that has not been so obvious to the main stream. Whether JPM plans to dump their accumulated physical silver at some point is unknown, but generally folks buy when they expect something to go up.
The Fed released meeting minutes from FOMC board meetings held during the 2008 financial crisis. But most of the ‘good stuff’ is still blacked out, still hidden from the public. Here’s Dylan Ratigan on MSNBC discussing this issue.
Here’s Jon Stewart revealing how insane the policies of the Fed have been. Quantitative Easing is simply “imagineering” money out of thin air. Between two 60 Minutes interviews 21 months apart, Ben Bernanke is caught contradicting himself on this concept of “printing money.”
- The Federal Reserve’s behind-the-scenes true mission
- Price & capital controls & suppressed inflation
- US & European monetization of debt
- Decline of civil liberties
- Housing market implosion
- The Buffett Rule is really a pro-oligarchy scheme
Here’s a chart from the St. Louis Federal Reserve showing Bureau of Labor Statistics (BLS) data on persons not in the work force. Record numbers!!! One of the reasons the statistics on unemployment have shown decreases lately is that there are fewer persons counted among the total. When one compares the total population to the number of employed, one can see that there’s a real problem here.
U.S. Treasury Secretary, Timothy Geithner and Federal Reserve Chairman, Ben Bernanke testified at the House Committee Oversight and Government Reform on March 21, 2012. In discussing the European debt crisis and responding to questions regarding IMF funding, the Treasury Secretary suggested that a default by the IMF or any of its borrowers was highly unlikely because the loans are backed by “a substantial amount of IMF gold …”
More commentary from Swiss America can be found here.