Hi Charlie, below is a copy and paste from an exchange between me and Steve. I highly respect Steve's point of view. Please read our exchange of ideas...Silverwood
November 14, 2014 at 7:05 am
Steve, the manipulation of markets, to defend what Traderdan is saying, he emits there is manipulation but it is not all the time. I have been using the Yen carry trade for my analogy. Large spec funds borrow Yen at very low interest rates. They then sell these Yen to invest in another currencies better yielding products ie. stocks bonds commodities, etc. This all works as long as the Yen is falling or remaining stable in price with the other currency. If the Yen appreciates those carry trades will be unwound. The BOJ has been giving the green light to the carry players who are short Yen to help the bank efforts to drive down the price of Yen.
A similar type of game is being played in gold. Central banks lease out their gold at very low interest rates to bullion banks. They sell the gold and buy higher yield instruments just like the Yen carry gold must be in a bear market for this to work. So IMO the manipulation by the banks has been to maintain the bear market in gold by defending upper resistance. The hedge fund see this clearly so they are playing gold from the short side knowing the banks will defend their carry in gold. This is why it important to see what the miners(supply side) are doing. Your work is indicating a future supply crunch as miners go into survival mode. How long this will take to play out is unknown but the longer the price stay here the more damage it will do to future supply. Let me know what you think on this.
November 14, 2014 at 7:27 am
I totally understand what you are driving at. However, I do believe the precious metals as well as most of the market is manipulated all the time. Before, it was less… but the precious metals and commodities received the lion’s share.
Let me see if I can explain it this way. As I stated in another comment… the Fiat Monetary System is in control by the Central and Commercial Banks. They are in control of how capital is spent and who gets it. Whereas in a real gold and silver monetary system based on the Real Bills Doctrine, the masses have this voting right.
The printing and increase of debt to the staggering levels have given FINANCIAL ASSETS an inflated value, while the precious metals and commodities get treated like JUST IN TIME worthless garbage…. only good for supply and demand purposes.
You must understand the $18 trillion in U.S. Debt plus all the other unfunded liabilities are the other side of the $24 trillion U.S. Retirement market. Without the Debt, there would be no retirement market.
Do you understand??? And, as I have stated numerous times, DIGITS in a bank account are not wealth, but promises of wealth in the future based on BURNING ENERGY. And not just burning energy, but burning MORE ENERGY than the year before. This highly leveraged debt-based system needs an increasing global energy supply to function.
Conventional Oil peaked in 2005. Do you think it’s just a mere coincidence that the collapse in 2008-2009 and the huge Monetary Printing Schemes by the Fed and Central Banks took place right after the world peaked in conventional oil production??
Trader Dan does not see the ENERGY-MONEY-WEALTH connection. The debts in the world cannot be repaid because we don’t have the energy to do so. So, if all debts were extinguished… then MOST PAPER ASSETS based on this debt would vaporize as well.
Where would you want to be invested when this realization takes place????
This is why the manipulation has been taking place on an ON GOING BASIS for decades. Wealth of the world has been siphoned into a Paper Ponzi Scheme that will implode. If a fraction of the ANNUAL FLOW OF FUNDS went into real hard assets such as gold and silver rather than the Paper Ponzi System… you would see just how wrong DAN NORCINI truly is.
It’s the brainwashing of the public to continue to invest a monthly income stream into this Huge Paper Ponzi scheme that is the REAL MANIPULATION.
Steve is right-we all buy gold and silver and then wham the energy crisis is over right? If this is the assumption then we must conclude that there is a small widow in which we can trade our gold and silver for the last remaining oil supply. If we are out we are out and if we are out the how much gold and silver do you have to have so that you aren't. Whats the future dialogue?
Sorry we are all out of oil.
Well I have gold.
Oh Then! We suddenly have oil.
This is not to disagree with peak oil but it is to point out that gold nor silver makes oil and when oil is all gone no amount of silver or gold will bring oil back. That market will have ended.
Also enjoy when you send these out.... it's almost like I'm getting a, "checkin' in & cheer up" phone call from my big brother Charlie!
You ROCK man...and have made me even consider living in Maine.