What Happens To Gold And Silver Next? Look Out Below?

I understand it's easier for some to provide an atheistical opinion about the manipulation of PM's
when it's now become so obvious to many, even the less savvy
cannot come to any other conclusion.

Where there's smoke, there's a fire

-And there was lots of smoke before the LIBOR scandal became a full fledged fire

-Jeffrey Christian is on record saying,.. "PM's trade in the multiples of 100 times the underlying physical"

-Andrew Maguire the JPM whistle blower (who almost got murdered the day after testifying for the 1st time)
said; "The CFTC is sitting on information that implicates JPMorgan as manipulating the futures market in Silver and Gold.
The reason this is so damning is that the CFTC has evidence that incriminates JPM as having malicious short positions
designed to influence the price action of Silver and Gold towards JPM's favor; akin to the LIBOR scandal in which rates
were manipulated down towards the banks favor."

-No matter what Bart Chilton says, it's obvious he's a shill with a gun to his head...literally

-Refusal to believe until proof is given is a rational position; denial of all outside of our own limited experience is absurd.
Annie Besant

-Stubborn and ardent clinging to one's opinion is the best proof of stupidity.
Michel de Montaigne

US wages are too high? Huh? Factories pay $9/hr around here. $1440/mo gross. Around $1100 net. Apartment average $450/mo, homes $650/mo. Utilities average $150. Fuel to get back and forth to work, based on 20/gal a week, averages $280. Auto insurance, required by law, averages $100 a month. And the internet/phone, which like it or not, are necessities in the modern world adds about $200/mo....what are we up to now? $1180 on an $1100 paycheck? And those poor SOB's still need to buy food. Don't say food stamps as they make too much money to qualify. Most take a second job....but jobs are at a premium and there are many people just looking for ONE job.

The point is that at these wages there is little or no disposable income. Disposable income IS consumer spending. Consumer spending drives the economy. You can talk about how important it is for the "one percent" to keep their wealth and generate jobs...but the sad truth is that if only the one percent have significant disposable income then only 1 out of a 100 people can buy....toasters....or spark plugs and lawn chairs.

I think all economist agree that consumer spending drives the US economy. If wages only support basic expenses then we will never get out of this slump.

I've seen the argument about US wages being too high. That they are not globally competitive. But in this case we are competing against almost slave labor, or places which pay less than a dollar an hour. I've seen figures which show to be globally competitive that we would have to lower our wages to around $5 an hour. At that wage people would not even be able to afford rent.

According to the BLS 50 percent of all Americans make less than 25k a year. And 75 percent make less than 50k a year.

Wages too high? I think not.

The sandel you guys keep pointing to as proof of manipulation is actually proof against it. That was a isolated incident and it was found out and being delt with but somehow everyone else is supposed to be doing the same thing undetected?

There's no proof it trades in multiples of physical the amount of phsyical in the world is unbelievably large, its been mined for 2000 years and still being mined with no ends in sight. Futures trade in multiples because your buying future production you know is there.

So a wistle blower is telling the truth yet someone who denies is is lying do I have that straight?

Jpm having short positions is malicious why becuase you do like the direction that takes the price?

Again the white house can't keep the smallest thing secret but somehow 1000s of crooks have been tight lipped and completely trusting of each other to pull this off. Your basically just saying these guys are super geniuses superior to everyone else in every way to pull this off. The type of people that do that also aren't the trusting type to trust each other. Its like the bank robbers that rob each other after.

Shorting something isn't manupulation. The markets free to counter those moves. Manipulation would be buying every ounce so people had to pay whatever price you wanted or rigging the books to jack up the price or bribing wall street to not accept longs against your short or vice versa.

Simply shorting something is the market working how it works. You know what they're doing and if you want to take a counter position are free to do so. The fear mongering the metals sites are doing making big bucks driving up fear is more manipulative than JPM taking a position you don't agree with or don't want them too.

Via Simon Black of Sovereign Man blog,

The world is truly an enormous place... and, despite the dearth of good news and positive trends out there, I still see a lot of amazing opportunities in my travels.

But it's really important to remain grounded about the challenges that face us. As I pen this letter to you, in fact,

- The NSA's Utah data center, which will intercept every phone call, email, and tweet sent across the Internet, is nearing completion.

- The Marketplace Fairness Act, which will create additional sales taxes on US-based Internet transactions, is set to pass the Senate next week.

- The government of Cyprus just passed the final bail-in measures, officially authorizing the direct confiscation of people's savings in that country's banking system.

- The Bank of Japan recently announced its intentions to double down on their already unprecedented money printing operations.

- Not to be outdone, the US Federal Reserve just announced that they will maintain their Quantitative Easing program, which dilutes the existing money supply by more than $1 trillion annually.

- At $16.83 trillion, the US federal debt is at a record high and set to breach $17 trillion early this summer.

- President Obama recently proposed to cap the tax deferral benefit on Individual Retirement Accounts in the Land of the Free

These are clear warnings signs that a rational person simply cannot ignore.

Bottom line, nations are going bust. And the worse things get, the more desperate their tactics become.

This isn't the first time that the world has been in this position. This time is not different.

History shows that there are serious, serious consequences to running unsustainably high debts and deficits. And those consequences have almost invariably involved pillaging people's wealth, savings, livelihoods and liberties... either directly or indirectly.

What's happening right now is playing out in textbook fashion. More taxes, more debt, more printing, more confiscation, less freedom.

I'm not talking about the end of the world here, I'm talking about difficult times ahead, and the things that go beyond economics. It's time to face facts and look at how society will change (and has already changed).

Many people will resist the change and instead cling desperately to the old systemâ€" the cycle of debt and consumption that provided jobs, stability, and prosperity. These people will have their lives turned upside down because that system is gone forever.

yup - better hurry on the Chaco - they are delaying them to the 18th and generally that starts the trend towards sold out soon to follow.

@ Miggs: One of the items on your list is a bold-faced lie. Cyprus is not confiscating people's money. Two of their largest banks failed. The people with balances below the insured amount keep every penny of their money. People with balances above the insured amount will lose a large portion of the non-insured money. That is what is suppose to happen when a bank fails! That is not confiscation or theft!

(EDIT: Just to be clear, I'm not saying that Miggs is lying. The liar is the author of the article that his is quoting.)

@ Doug / Yup: I suspect the Mint is about to do the last production run of Chaco's. They will take orders over the next few days and then list it as sold out. That last production run will start shipping on the 18th.

Can I just ask why always the slight negative bias in the general way you word a lot of your reports? Just something I've noticed through the thread.

For instance I get that silver/gold were very much in a downtrend and in your technical analysis still are but surely you can't justify typing something like


when one only has to look at the GLD charts to see such a comment hardly represents whats been happening since the dramatic price crash. Even SLV which is a lot more choppy wouldn't qualify for such a statement.

Nice to see you generally being more civil of late btw.

Norm