US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

[jtabeb]

[FONT='Arial','sans-serif']Said it before, I'll say it again (or, in this case, I'll let some one else say it better). My emphasis highlighted.

http://www.marketskeptics.com/2008/1...ation-and.html



"Confidence in the solvency of the United States is in the early stages of a collapse. Hyperinflation is imminent. Buy physical gold and silver."

"[/font][FONT='Arial','sans-serif']My reaction: Important points to note from the above explanation of monetary theory:

1) If investors lose confidence in the solvency of the US government, hyperinflation is the guarantied outcome.

2) The dramatic increase in the velocity of money caused by a "crisis of confidence" can produce hyperinflation despite a shrinking money supply.

Also, here is another extract on the importance of confidence from Wikipedia's entry on hyperinflation:

:p>:p>[/font][FONT='Arial','sans-serif']In the confidence model [of hyperinflation], some event, or series of events, such as defeats in battle, or a run on stocks of the specie which back a currency, removes the belief that the authority issuing the money will remain solvent — whether a bank or a government. [/font][FONT='Arial','sans-serif']Because people do not want to hold notes which may become valueless, they want to spend them in preference to holding notes which will lose value.[/font][FONT='Arial','sans-serif'] Sellers, realizing that there is a higher risk for the currency, demand a greater and greater premium over the original value. :p>:p>[/font]
[FONT='Arial','sans-serif']
Confidence in the solvency of the United States is in the early stages of a collapse. Hyperinflation is imminent. Buy physical gold and silver.

(for more on currency collapses, read Episodes of Hyperinflation)"[/font]

[FONT='Arial','sans-serif']


http://www.marketskeptics.com/2008/1...ation-and.html
[/font]

[metalman]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

garbage. try... google hyperinflation complete

[Jim Nickerson]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Your post strikes me as one from a pilot working on a computer while flying too high with too little oxygen.

[GRG55]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Your post strikes me as one from a pilot working on a computer while flying too high with too little oxygen.

and inverted...

[metalman]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Your post strikes me as one from a pilot working on a computer while flying too high with too little oxygen.

[LargoWinch]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Your post strikes me as one from a pilot working on a computer while flying too high with too little oxygen.

C'mon guys, I think JT deserves a break.

After all, we all know that JT is high on sugar after "trick or treating" at gunpoint last night.

[jtabeb]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

and inverted...

Just call it like I see it.

(If the ground is rushing up at you, it doesn't matter if your are inverted or erect STS, you still better take the time to save your ass).

Hope I'm wrong, haven't been yet, would LOVE to be wrong in this case (Hope I am wrong, but don't so).

[jtabeb]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

C'mon guys, I think JT deserves a break.

After all, we all know that JT is high on sugar after "trick or treating" at gunpoint last night.

Ahhhh, the "Twinke" defense, I like it. (But sadly, that's my call and I'm sticking to it).

The "unrealized" Backwardation in the gold market is speaking volumes right now. That and the fact that M1 is doing the "hockey stick" since Ben 10 and friends have been following their playbook.

How does Hockey Stick M1 and gold backwardation NOT EQUAL early onset hyper-inflation? Come-on guys (and gals) Educate this here simpleton.

[Starving Steve]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

I can easily envision a run on the dollar now because there is an on-going default on dollar-denominated debt: such debt pays zero interest and is a growing risk to hold.

The slightest up-tick in inflation could be the spark that ignites this house of debt into an inferno. That could be how the hyper-inflation begins; i.e, when the saver loses confidence and begins to sell-out of U.S. dollar denominated debt.

On Friday, October 30th, 91-day U.S treasury bills paid 0.04% interest per year, a new all-time record low. A $1000 deposited in such an investment would yield 40 cents per year in taxable interest! (We have a tulip-mania.)

[surfersdsb]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Here is the real concern regarding GLD and JP Morgan.
Read this article regarding GLD http://www.marketskeptics.com/2009/0...wning-gld.html

Then read this recent COT report regarding JP Morgan's gold and silver short positions. As a 25 year career oil futures trader on Wall Street something seems very very wrong here. The fact that JP is a major custodian on gold and silver ETF's and at the same time have massive future short positions does not seem to jive. It is as if the trading part of the bank is taking the opposite side of the long positions that GLD has to be taking. While i would think that GLD would not necessarily be playing on the Comex they for sure have to be taking delivery on the London Good Delivery market.

This report:

After a three-day delay, the Bank Participation Report (BPR) for

October was released by the CFTC today. The report, for positions held

by commercial banks (foreign and domestic) as of October 6, covers all

commodities regulated by the Commodity Futures Trading Commission.

http://www.cftc.gov/dea/bank/deaoct09f.htm It is the companion

monthly report to the Commitment of Traders Report (COT), which is

issued weekly. The new BPR indicates that the largest one or two US

banks dramatically increased their short positions in COMEX gold and

silver in the reporting month.



For silver, in particular, the increase was shocking. The largest US

bank (thought to be JPMorgan), or banks, increased its silver short

position by more than 28%, or by 8,487 contracts to an all-time record

of 38,375 contracts. Expressed in equivalent ounces, the US bank(s)

increased its silver futures short position by 42,435,000 ounces to

191,875,000 ounces. With a short position of almost 192 million

ounces, JPMorgan appears to be short 29% of the annual world mine

production of silver (660 million oz). Never in history has one (or

two) entity held a more concentrated position, long or short, in any

commodity of finite supply.



In gold, there was also a dramatic increase in the short position of

one or two US banks to the second highest short position on record.

The one or two US banks increased their gold short position by more

than 41,000 contracts to 116,790 contracts. Foreign banks were also

notable shorts. It is clear that the big short has not been pulling in

its short position on the rally in gold and silver prices.



A while back, there was evidence that JPMorgan was retreating from the

market, and I speculated on that development. I said I would follow up

on my speculation as continuing data rolled in. With the latest BPR, I

can state now that I was wrong about them moving to cover their

shorts. The data reveals that they did close out many of their gold

short positions a month or two ago, at prices around the $950 level,

but reinstituted those shorts on the price rally. They never did close

out silver shorts back then, but did greatly add to their silver short

position on the current rally. The net result is that JPMorgan covered

and replaced a big chunk of its gold short position and added to its

silver short position at higher and more advantageous prices to them.

I might say good for them, but I’d be lying.



As offensive as I find JPMorgan’s dealings in silver and gold, I would

imagine there might be someone else even more offended. I speak of the

chairman of the CFTC, Gary Gensler. What JPM did in the past month is

contrary to everything that Chairman Gensler has spoken out against

since he has been in office. The current and forever silver

investigation came as a direct result of the Bank Participation Report

of August 2008 and my urgings for readers to write into the

Commission. This new BPR is much worse than that one. JPMorgan is now

short almost 30% of world silver production. This at a time when

mining companies are retreating from hedging their production.

Chairman Gensler must know this is wrong. He is too smart not to know.

He must know that the price of silver and gold would have been much

higher than what they are now, if it were not for JPMorgan’s

concentrated and excessive short-selling. In my estimation, if

JPMorgan did not short sell more than 8,000 contracts, or 40 million

ounces, silver would have been over $30 an ounce right now.



JPMorgan’s concentrated and uneconomic silver short position has

placed the market at risk. I am aware on no legitimate reason why this

position is allowed to exist. It undermines the credibility and lawful

functioning of our markets. It is nothing short of an outrage. It

bothers me greatly to have to make these accusations of manipulation.

If there is a good explanation for why this is not the crime in

progress that it appears to be, it is time for tthe Commission to offer

that explanation. Enough is enough.

One has to wonder what is going on and who is monitoring the physical holdings of these precious metal ETF's.

Comments Please



surfersd

[Sharky]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Well, if some entity is long (like GLD), then someone else has to be short (such as JPM). It's well-known, and fully disclosed in their offering documents, that GLD does not hold 100% physical; they also deal heavily in the paper market.

Also, if you were trying to suppress PM prices, how would you do it? Being a net seller (net short) seems like a pretty obvious answer. It wouldn't surprise me at all if JPM and the other large banks had government backing for their trades, in some form.

Maybe it's associated with the bullion lease programs?

[Starving Steve]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

Am I right to infer that Ben Bernanke might be selling short and using JP Morgan as the Federal Reserve Bank's agent? Or am I reading too much into this?:confused:

If I were Ben Bernanke now, I would be quietly capping the gold and silver price. That is probably what is going-on because if the metals begin to run, the dollar is toast. That would mean higher interest rates and a debt default in the U.S. dollar exploding into an inferno. That would ignite the hyper-inflation, so the Fed just would not let that scenario develop.

The Putz from Princeton is selling precious metals to defend the dollar and his assinine zero interest rate policy.

[metalman]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

The Putz from Princeton is selling precious metals to defend the dollar and his assinine zero interest rate policy.

agree with the sentiment, but do you have any data/evidence?

[Starving Steve]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

No, Metalman, I have no evidence of the Fed selling into this precious metals market; I infer it, and I could be totally wrong.

[metalman]

Re: US is in early stages of a collapse. Hyperinflation Immenent, by Physical PM

No, Metalman, I have no evidence of the Fed selling into this precious metals market; I infer it, and I could be totally wrong.

ok, thx. i hear this all the time from the gata guys... but see no evidence of it.