Friday, 7 October 2016
The deep pockets of Central Banks are mugging the Precious Metals canary this week.
- Cannot have the canary singing a warning about bad things economic afoot. Better to artificially 'manage' the price of Gold and Silver downward, giving the outward appearance of 'normalcy' when there really is panic behind the financial world's baloney curtain.
Especially as the 2008 Lehman moment is being repeated in 2016 by the crashing of Deutsche Bank (DB), which is becoming a bigger and badder Lehman 2.0.
As Gold and Silver are monkey-hammered lower when all logic screams their price should be rapidly rising, bear in mind that these artificial machinations are intended to mask a number of things:
- DB has announced a 2015 loss of Euro6.2 billion.
- DB was just caught-out on 103 "enhanced repo" deals which made their loans "disappear" a la MF Global/Jon Corzine. [read: by selling borrower collateral, DB created obligations to pay back the borrowers, which were used to offset DB loans to borrowers = said loans "disappear" thanks to accounting gimmickry; for non-financial types think: ENRON.]
- DB has over $40 trillion in its derivatives book, which is a tightening noose.
- The EU is suddenly proposing Taxpayer-Funded derivatives bailouts.
There are a lot of schnickengrubens roasting over the fire right now, and not just in Germany.
From Theo Spark at 11:10