Gold-and-Silver Trading Biggest Scam in History, Financial Armageddon Could Result
http://www.huffingtonpost.com/tom-pappalardo/gold-silver-trading-bigge_b_706594.htmlFor those with a good memory, this is the promised follow up to my piece on the manipulation of the silver market and its very scary ramifications. Before we get into the possible end-of-civilization-as-we-know-it details, a recap is in order. Andrew Maguire of London blew the whistle on JP Morgan Chase's very likely profound manipulation of the silver market to the CFTC. As financial government watchdog agencies are wont to do these days, they did their best to sweep it all under the carpet. How the SEC handled Bernie Madoff's Ponzi scheme is a prime example of this. This matter is not a Ponzi scheme, but it is the largest scam ever, going into the trillions of dollars territory. But back to Maguire, who was quite determined to clean up the business of commodities trading. He goes public with powerful compelling evidence of JP Morgan Chase's manipulation of the silver market. This happens on a Kingsworld radio show. The next day someone tries to kill him by ramming a car into Maguire's car. Maguire and his wife, who was also in the car, are hurt pretty bad but survive. After this, in their infinite wisdom, the commodities watchdog the CFTC decides to have a meeting with most of the key players in commodities trading but exclude Maguire from attending. At this meeting a secret is revealed that could easily tear apart the fabric of our barely functional financial system. The secret is that for every 100 ounces of gold and for every 100 ounces of silver traded on paper there is only one actual ounce of gold and one actual once of silver to back up these trades. Given that yearly there are trillions of gold and silver traded on paper, this is the literally biggest scam in the history of scams. Now the guy who let this cat out of the bag didn't think it was a big deal, using the logic that as long as the buyer was paid the value of his purchase at the time he wants to sell it doesn't matter if his purchase was backed up by an actual commodity. This cavalier attitude does seem to reflect the mindset of people working in our financial system that everything is smoke and mirrors except the money being exchanged.
It is quite possible and even probable that someone with enough financial resources and the will to do it could turn our financial system upside down and make an enormous profit from it. This person would have to have no loyalty to western currency and the financial well-being of western countries. So let's assume a very wealthy Asian wants to take a shot at getting into Bill Gates' wealth status. From what I gather, the game plan would be a simple one. That is, buy enormous amounts of what I like to call the paper version of silver and gold and buy even more actual silver and gold. Then start a run on Comex by demanding to replace your paper with actual gold and silver. The next part is for me admittedly a bit fuzzy, so my play by play of this could be off a bit, but I believe the general idea fits the situation. Given that commodities' trading is a relatively small community, if the player of this scenario has purchased enough of these metals and starts demanding their paper be replaced with the real thing, their demands should cut fairly deep into Comex reserves and then the rumor mill will kick in big time. It shouldn't take long for the word to get out that there is more paper of gold and silver out than actual gold and silver exists to back it up. Once this gets on the street it should not take long for the Comex reserves to get wiped out. Then financial chaos is right around the corner. However as chaos swirls around them, those that possess actual silver and gold will see their investment shoot up, perhaps skyrocket in value. I believe a conservative estimate would be to rise anywhere from two to four times in value. However given the volatility of anything financial these days I fully expect it to zoom to five to ten times in value.
That's the good news if you are sitting on actual gold and silver, but the bad news is really, really, really bad because the basis for all valuation including the stock market, the dollar, the euro, etc., is gold and silver. Remove silver and gold from the valuation process, and as one financial analyst recently told me, the stock market probably drops to 25 percent of its value the dollar probably loses 30 percent of its value and so on. These figures are guesswork and possibly conservative, but what is not a guess is that the value of stocks, the dollar, the euro and more will lose big chunks of their value enough to throw our fragile financial system into chaos. The value of silver and gold are bedrocks for building the valuation of currencies the stock market and other financial entities. Remove a bedrock and the house comes tumbling down, or at least a good part of it, probably most of it.
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Between silver and gold, silver gives the much stronger appearance of giving an investor a more viable short term reward. Since the DOJ and SEC started investigating JP Morgan Chase's very likely manipulation of silver, you no longer see silver pushed down hard after it has rallied up. In fact an interesting phenomenon has taken place recently regarding silver. Silver and gold used to be joined at the hip in that both would go up and down together as a matter of course. However, silver has continued to go up regardless of when gold goes down. Even more remarkably, silver has recently continued to go up even if the stock market goes down. This shocking behavior of silver only strengthens the case that JP Morgan was manipulating the silver market. That the silver market has such staying power is not really surprising given the big picture of high deficits, a weak dollar, a weak euro. Silver stands out as a relatively safe investment perhaps the safest investment anyone with a some extra money can make. Right now its just under $20 an ounce which is a whole lot more affordable for the average person than gold at around $1250 per ounce.
And keep this thread in mind, too:
Gold 2008! JP Morgan Fixes Prices and the Saudis Snag 180 Tons, Cheap
http://www.democraticunderground.com/discuss/duboard.php?az=show_topic&forum=389&topic_id=9025200
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