Four Proofs of Silver Manipulation!

[webmaster]

Subject:Four Proofs of Silver Manipulation!
By: Jason Hommel, Silver Stock Report

Overview: The very nature of silver itself is that it is not a promise, it is payment in full. All kinds of paper promises are by nature, a substitute for silver and gold, and hence a manipulation, because their very existence creates a substitute demand for something other than physical silver and gold.

Link: http://news.silverseek.com/GoldIsMoney/1210798485.php

[prahudka]

Originally Posted by webmaster

Subject:Four Proofs of Silver Manipulation!
By: Jason Hommel, Silver Stock Report

Overview: The very nature of silver itself is that it is not a promise, it is payment in full. All kinds of paper promises are by nature, a substitute for silver and gold, and hence a manipulation, because their very existence creates a substitute demand for something other than physical silver and gold.

Link: http://news.silverseek.com/GoldIsMoney/1210798485.php

Why is this an "Achilles heal" for the world financial system?

Why did Volcker say his only mistake was not capping the price of gold?

Why are PM prices a threat to anyone?

[Richard]

Originally Posted by prahudka

Why is this an "Achilles heal" for the world financial system?

Why did Volcker say his only mistake was not capping the price of gold?

Why are PM prices a threat to anyone?

I'm afraid I don't understand why you ask those questions. Are they rhetoric or investigative in nature?

[lawrence]

To my mind the only real alarm bell is the huge short position by a small few. This is what should be the focus.

Hommel's first point is invalid. so what if retail buyers cannot buy physical. That may just indicate lack of supply but not manipulation.

so the report has contradictions -no proof there. Good point made though as shorting is killing the markets - we should be forcing the introduction of a sell limit-why not if there is a buy limit. similarly in the equity markets - bring back the uptick/downtick? rule

there is no control in markets on the short side - that is the source of these problems. Ok while i am at it, kill off all ETFs which are manipulators tools

[prahudka]

Originally Posted by Richard

I'm afraid I don't understand why you ask those questions. Are they rhetoric or investigative in nature?

I am genuinely unclear on these issues.

I understand the theoretical embarrassment that suggests a currency is losing value when metals are up. But, I am having a hard time understanding what that is such a big deal to economic fundmentals. I understand pride. I understand devaluing metals prices so that the rich can buy cheap. But, why should it genuinely threaten anyone.

[lawrence]

embarassment is the wrong word. confidence is more accurate. if PM metals are up then faith/confidence is lost in fiat currencies and people realise that there are real inflationary pressures. Any panicked exit from the dollar could topple the shakey US financial system and have systemic knock on effect around the globe. The US markets have been rigged for so long and inflated so much that they are themselves along with the dollar an bubble which could pop at the slightest provacation e.g. the next failure of a major US investment bank - e.g. UBS, citibank, BoA, Lehman, JP Morgan to name but a few

[prahudka]

Originally Posted by lawrence

embarassment is the wrong word. confidence is more accurate. if PM metals are up then faith/confidence is lost in fiat currencies and people realise that there are real inflationary pressures. Any panicked exit from the dollar could topple the shakey US financial system and have systemic knock on effect around the globe. The US markets have been rigged for so long and inflated so much that they are themselves along with the dollar an bubble which could pop at the slightest provacation e.g. the next failure of a major US investment bank - e.g. UBS, citibank, BoA, Lehman, JP Morgan to name but a few

That could be the prevailing wisdom.

But, how could enough people possibly exit to a market (silver) that is a few billion at best?

If you compare the PM market to the freaking derivatives (10s or trillions or whatever), I just dont see how this market matters much.

[Richard]

I am genuinely unclear on these issues.

I understand the theoretical embarrassment that suggests a currency is losing value when metals are up. But, I am having a hard time understanding what that is such a big deal to economic fundmentals. I understand pride. I understand devaluing metals prices so that the rich can buy cheap. But, why should it genuinely threaten anyone.

Sorry, I thought you did understand that. Okay, it's like this:

You have to understand that they are not manipulating the pm prices so THEY, or anyone for that matter, can buy it cheaper. Rather, they're doing it to keep people into paper and paper derivatives, because those can be faked to a far greater degree than pm can.

The artificial price of pm is a RESULT of thier maipulation, not a primary target of it, ie.

PM competes with paper as money. If you wanted to beat your competition, you would manipulate away as much as you could your appearance as a bad money while trashing the appeal of the competing money (pm).

And having accomplished that, you can keep right on printing up money to buy whatever you want while everyone else foots the bill for you. They don't want to lose that advantage.

[Richard]

Originally Posted by prahudka

That could be the prevailing wisdom.

But, how could enough people possibly exit to a market (silver) that is a few billion at best?

If you compare the PM market to the freaking derivatives (10s or trillions or whatever), I just dont see how this market matters much.

First question: Of course not. The point of pm is sound trade, according to the market principles on supply and demand. PM is not really for hording or as a "store of wealth", at least not in the way a lot of people seem to regard it.

On the last point, you're absolutely right: The dollar value of a pm does NOT matter.

[prahudka]

Originally Posted by Richard

Sorry, I thought you did understand that. Okay, it's like this:

You have to understand that they are not manipulating the pm prices so THEY, or anyone for that matter, can buy it cheaper. Rather, they're doing it to keep people into paper and paper derivatives, because those can be faked to a far greater degree than pm can.

The artificial price of pm is a RESULT of thier maipulation, not a primary target of it, ie.

PM competes with paper as money. If you wanted to beat your competition, you would manipulate away as much as you could your appearance as a bad money while trashing the appeal of the competing money (pm).

And having accomplished that, you can keep right on printing up money to buy whatever you want while everyone else foots the bill for you. They don't want to lose that advantage.

Thank you.

Pro 16:11 Honest weights and scales [are] the LORD's; All the weights in the bag [are] His work.