Captain's Quarters

[JD400]

U.S. government is authorized to rig all markets, GATA secretary says

CQs

Hello Saturday

9:23a ET Saturday, July 8, 2017

Dear Friend of GATA and Gold:

Mike Gleason of Money Metals Exchange in Idaho this week interviewed your secretary/treasurer, who argued that market regulators in the United States are powerless against market rigging instigated by the U.S. government itself, which is fully authorized by federal law to rig markets in secret anywhere in the world. Financial institutions trading on the U.S. government's behalf, your secretary/treasurer said, may share the government's immunity in the scheme.

After all, responding to a federal lawsuit in New Orleans in 2003, Barrick Gold argued that, in borrowing gold from central banks and selling it into the market, the mining company became an agent of governments in controlling the gold price and should share their sovereign immunity from suit:

http://www.gata.org/node/1858

Since the gold price is related to the price of all major assets and financial instruments, your secretary/treasurer said in the Money Metals Exchange interview, rigging the gold market rigs the price of all major assets and essentially destroys the market economy and democracy throughout the world, which is the scheme's greater offense, an offense against all humanity.

The interview is about 20 minutes long and can be heard and read at the Money Metals Exchange's internet site here:

https://www.moneymetals.com/podcasts/2017/07/07/silver-breakdown-drag-go...


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Another bullion flash crash is testing traders
Submitted by cpowell on Sat, 2017-07-08 14:35. Section: Daily Dispatches

But not so much to cause them, or financial journalists, to pose critical questions to anyone.

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Another Bullion Flash Crash Is Testing Traders

By Luzi-Ann Javier and Susanne Barton
Bloomberg News
Friday, July 7, 2017

After-hours surges and plunges that have whipsawed gold and silver prices over the past two weeks are unnerving traders. ...

Such moves, which occurred at times when liquidity in these markets is generally lowest, are giving traders an additional headache at a time when investor sentiment is already turning bearish. Hedge funds are retreating, while exchange-traded fund investors are pulling out of gold, pushing the precious metal to the lowest in almost four months.

"All fundamental factors aside, it does tremendous technical damage to the market," Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said by telephone. "There should be some effort to study this and come to some solution that will make for a more orderly trading pattern. This type of activity is not good for a fair playing field."

Gold has lost about $47 since the session before that 1.8 million ounce-trade that many blamed on a "fat-finger" or erroneous trade. While O'Neill believes that trade may have been done in error, he said the precious metal struggled to bounce back from its low on June 26 because the transaction pushed the price below the 200-day moving average, triggering automated sell orders set by algorithmic traders, thereby sustaining the slump. ...

"These so-called 'flash crashes' that occur periodically are frustrating to traders caught on the wrong side of the downdraft," Jim Wyckoff, senior analyst at Kitco Metals Inc., a research company in Montreal, said in report. "It also makes many market watchers question the viability of futures markets, which are supposed to create more liquidity and better price discovery."

... For the remainder of the report:

https://www.bloomberg.com/news/articles/2017-07-07/another-bullion-flash...

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Avery Goodman: Smashes in gold foretell a big move up


Submitted by cpowell on Sat, 2017-07-08 12:54. Section: Daily Dispatches

8:58a ET Saturday, July 8, 2017

Dear Friend of GATA and Gold:

Securities lawyer and market analyst Avery Goodman today describes the gold swap mechanisms being used by central banks and by the U.S. government particularly for suppressing the monetary metal's price, and he argues that the investment banks assisting the central banks in this scheme are smashing the gold futures market so they can exit their short positions at the expense of hedge funds and speculators. These smashes, Goodman asserts, signal a big move up in gold. Goodman's analysis is headlined "Recent Gold Price Declines = The Cusp of an Upward Move" and it's posted at his internet site here:

http://averybgoodman.com/myblog/2017/07/08/recent-gold-price-declines-th...

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Ronan Manly: Bullion banks line up in London to support LME's gold futures
Submitted by cpowell on Fri, 2017-07-07 13:29. Section: Daily Dispatches

By Ronan Manly
Bullion Star, Singapore
Friday, July 7, 2017

The London Metal Exchange (LME) and World Gold Council have just confirmed that their new suite of London-based exchange-traded gold and silver futures contracts will begin trading on Monday. These futures contracts are collectively known as LMEprecious.

The launch of trading comes exactly 11 months after the LMEprecious initiative was announced by the LME and the gold council on August 9. Anyone interested in the background to these LMEprecious contracts can read previous BullionStar articles. ...

This July 10 launch is itself over a month behind schedule given that LMEprecious was supposed to be launched on June 5.

These LMEprecious gold futures and silver futures contracts represent unallocated gold and silver and there is no direct connection in the contracts to physical gold or physical silver, since settlement is via unallocated gold and silver balance transfers across LME Clearing unallocated metal accounts at member banks of London Precious Metals Clearing Limited (LPMCL).

Still, this hasn't stopped LME from using terminology in the contract specifications that attempts to link them by association to real precious metal. ...

... For the remainder of the report:

https://www.bullionstar.com/blogs/ronan-manly/bullion-banks-line-london-...

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Mark O'Byrne: Silver prices bounce after futures manipulated 7% lower in minute


Submitted by cpowell on Fri, 2017-07-07 13:20. Section: Daily Dispatches

9:23a ET Friday, July 7, 2017

Dear Friend of GATA and Gold:

GoldCore's Mark O'Byrne notes this morning that there was a "flash crash" in silver futures overnight and that it was blamed on a "trading error" though such flash crashes seem to happen almost exclusively in the monetary metals. More likely these "flash crashes" indicate central bank intervention against competitive currencies. O'Byrne's analysis is headlined "Silver Prices Bounce Higher After Futures Manipulated 7% Lower in Minute" and it's posted at GoldCore here:

http://www.goldcore.com/us/gold-blog/silver-prices-bounce-higher-futures...