Saturday, 18 May 2013

Magic Act or Crime Scene or New Zimbabwe?....................from Rico

It's getting difficult to determine if the 'markets' today are merely a "magic act" or a big messy "crime scene."

In the paper bullion spot market, the current "market operation" underway does NOT reflect the sale of ANY physical bullion...only of paper, and the paper bullion is increasingly being 'dumped' and abandoned (<16%> YTD) while physical bullion is setting blistering sales records.

- The COMEX "crimnal activity" is making the Central Banker's 'point' that paper fiat=good and physical bullion=bad, but is a sideshow that distracts from the fact that paper bullion is in BEAR mode and physical bullion is in a BULL mode, while providing 'cover' for a Central Bank 'juiced' fiat Dollar index and paper equities market.

The price rise in physical bullion is a major threat to Central Banks (paper fiat) and their TBTF trading proxies (paper bullion), so at any cost and at any price trying to 'manage' physical bullion via paper bullion to defend the illusion of PAPER (bullion and fiat) is a big "magic act" that belies the actual deteriorating economic fundamentals.

- Or is it a "crime scene"...the S&P500 is UP 76.9% of trading days 1Q (Huzzah! Economy is getting better!); while for the past 8 months 83% of Fridays have seen massive raids of unbacked (naked shorts) paper bullion on the COMEX?

Since "magic" is mis-direction, and "criminal" activity includes theft, figure out which the following might be...

- Note that the US produces ~40 tons of physical Gold bullion per year, but in Jan-Feb alone it exported ~103 tons of physical Gold bullion. Where it is 'going' is less interesting than where it is 'coming from' don't you think?

This Keynesian manipulative folly is leading Western economies to a place I'd call "New Zimbabwe"...a place where (as Kyle Bass dryly noted) the 'paper equity market' was the best performing of the last decade, and your 'paper fiat' winnings bought you a few eggs at the end of the game.

- A place where people now dig for physical gold nuggets so they can buy bread to eat.

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