Many people are coming out and pointing fingers at the manipulation and complete fraud of the various precious metals markets- especially silver and gold. Not even the actual physical metals, but the paper holdings that supposedly are being traded all over the planet daily. This article actually gave a pretty good outline of the silver paper market manipulation, yet I completely disagree with the authors conclusions.
When it comes to the question of China, the vast majority of financial and economic experts lack an important understanding of one thing: Dynasty. And because they do not understand this very important aspect to China's actions and plans, they tend to miss a very important piece of the puzzle.
I've added my own notes (in blue) the the article below.
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China’s Role In The Global (Paper) Silver Market
Jeff Nielson for Sprott Money
A recent interview with a precious metals commentator in the Alternative Media raised several interesting points. While a number of the points raised are/were worthy of discussion; the topic which will be the focus of this commentary are the remarks (and conclusions) which were presented there concerning China’s “role” (if any) in the utterly fraudulent, global paper-silver market.
Knowledgeable readers are already well aware that the global “silver market” is at least 99% paper (i.e. paper-called-silver). The analyst in the interview, Eric Dubin, observed that competing (and contradictory) rumors/theories had emerged speculating that China was either “the Big Short” or “the Big Long” in this pseudo-silver market. Dubin himself rejected both theories, and those conclusions will now be reviewed here.
The theory that China is the Big Short in the paper-silver market was originally championed by Antal Fekete. His dubious reasoning was that China (whose economy is already the real “growth engine” of the world) was in partnership with the Western banking crime syndicate, allowing its own (supposed) secret stockpile of silver to be used by the banksters in their shorting “operations” (i.e. crimes), simply as a means of generating some modest income on that stockpile.
read my comments below on"dynasties"
There are several, fatal objections to this theory. To begin with; shorting destroys stockpiles. It is a predatory, cannibalistic, and entirely unnecessary form of trading, and thus an activity which cannot be justified in any legitimate market. Put another way; any perceived “problem” which is supposedly addressed by short trading pales in significance versus the larger, numerous problems (i.e. potential for fraud) which are created by allowing short trading.
And yet it is done constantly and continuously.
We already have overwhelming evidence of this truth, in the form of the silver market itself. Fifty years of (mostly illegal) shorting/price-suppression has decimated the global stockpile of silver by over 80%, according to the estimates of the esteemed Ted Butler.
Personally I think it is most likely closer to 90%
While we see the inevitable result of serial shorting; many readers (and some commentators) do not understand the dynamics itself. Serial shorting always depresses the price in any market, and thus destroys supply/demand equilibrium. Specifically, in commodity markets; it simultaneously over-stimulates demand (through under-pricing) and depresses supply.
This creates a permanent, structural supply-deficit, which can only be met though depletion of stockpiles. Worse still, in the 21st century Age of Recycling; the depressed price which results from shorting severely discourages recycling. It is in this manner that the majority of the world’s stockpile of silver – a metal – has literally been “consumed”.
Which he's right, it wouldn't make sense... unless that's exactly what you are striving for- creating a short supply so that the price will suddenly have to be matched to the actual demand.
Because most of silver’s (numerous) industrial applications only require this precious metal in small, or even trace amounts; at current (artificial) prices, it is not economically feasible to recycle the silver from most of these industrial applications. Thus most of the world’s silver is now dispersed throughout the world’s landfills – deposited in tiny amounts, but in countless billions of now-discarded consumer goods.
Until desperation sets in and some enterprising person decides to do exactly that: recycle. Like this one:
London Streets Paved With Platinum in $6 Billion Push by Veolia
http://www.bloomberg.com/news/2014-12-03/london-streets-paved-with-platinum-in-6-billion-push-by-veolia.html
20 years ago I was told about an Asian businessman who had been stockpiling titanium "scraps" for decades, because he knew that someday, someone would figure out how to recycle/resmelt it and then he'd make a fortune.
It makes no sense at all for China to have gone to the trouble of acquiring (and concealing) a secret stockpile of silver, only to become a literal “partner in crime” in an endeavour which must (eventually) consume that stockpile. Even if China’s stockpile was the last to go; its own, rapidly expanding domestic market requires all of the consumer goods which, in turn, require silver. It’s like someone operating an elephant wildlife sanctuary deciding to open an ivory store.
Not necessarily. If your plan is to take over the silver market, then you need a stockpile to have as back up once you push out the price of silver to it's actual worth. If you have a stock pile, the the microscopic amounts needed to take over the electronic industry are also a necessity, aren't they?
Beyond this; China has centuries of experience as a victim of various forms of economic terrorism perpetrated by Western governments; more specifically, the Western bankers pulling the strings of these puppet regimes. From the Opium Wars to the post-World War I destruction of the global silver market (covered so thoroughly in Charles Savoie’s The Silver Stealers); China has frequently been on the “receiving end” of this economic rape.
Yes, they have done an amazing job of acting out this part of their economic play- And that's all that this has been: a play. The set up to a much bigger theatrical production.
While it is true that China’s current government has engaged in its own (literal) “Deal with the Devil”, allowing Western oligarchs access to its economy (and huge pool of cheap labour); this was the only practical means of fast-tracking its own economic development. The stunning growth figures reported by China are a testament to the economic justification and necessity of that original Deal with the Devil.
Also part of the play. Like the illusionist that distracts you with something shiny over there, meanwhile setting up the "trick" right in front of you.
Conversely, not only would being the Big Short in the silver market ultimately result in consumption of its own (theorized) stockpile of silver, it would mean an unnecessary partnership with the same Economic Rapists who have victimized it in the past. We can thus rule-out this possibility beyond any doubt.
I completely disagree with this conclusion. If you want to gain control of someone, if you want to take them down, the absolute best plan is to work with them.... gain their trust, take over their economy on multiple levels, buy up all their debt so you have a large anvil over their heads, meanwhile quietly, behind closed doors that are inaccessible to most of the world, you set up the quiet take over of the ultimate tool of economic destruction: Gold and Silver. And you make partners with other nations that are also being picked on - "the enemy of my enemy is my friend."
The question as to whether China is the Big Long in the silver market, however, is a question which is not dealt with as easily. Eric Dubin dismissed this possibility rather abruptly, concluding that against the overwhelming market-manipulation machinery of Western bankers (the One Bank) that China could not hope to stand against such fraud, crime, and corruption.
This is the biggest mistake that is made over and over again- underestimating China- underestimating their ultimate goal, their ability to PLAN for this goal to be achieved, and by over estimating the bully boys on the block as being too tough for an old guy like China to take on.
Part of this assumption comes from pure ego- that "American" bluster of "no one can beat us at our game". The other part of this comes from the fact that the vast majority of western society has not a clue about China, how they work, how they think, and how they plan. Unlike the US, and the western banking controllers, who think only in terms of "years", "decades", or even a generation or two, China has a vast history of thinking in DYNASTIES. Not planning a decade or even half a century ahead... but thinking and planning hundreds of years ahead. China has at least 3 thousand years of history of very slickly changing dynasties whenever the rot of their current system begins to show. There is an uprising, the people "win", they get a new "Dynasty" put into place, they cheer their new found prosperity.... all the while, nothing has in fact changed at all: it's still the same people in charge, moving forward with the exact same plan. A few generations go by and then wella! Everything has returned exactly where they left off when the "old dynasty" was taken down.
As for the whole "communism" thing, that is nothing more than a changing of the dynasty. The exact same people are still in control.
This argument has obvious validity, but only when considered as a single strategy, in isolation of other current and potential strategies of China’s government. For example; China now sits atop the world’s largest war-chest of U.S. dollar instruments: several $trillions of its (worthless) bonds and (equally worthless) greenbacks.
This has given China its (economic) “nuclear option”, should the current generation of Western economic terrorists (most of whom infest Wall Street) once again seek to destabilize or cripple China’s economy – as these economic terrorists have done again and again to nearly every other economy on the planet.
EXACTLY! And that is what is about to be played out on the world economic stage: Enter Silver and Gold, stage left.
Armed with this additional context; this casts a new light on the possibility that China is the Big Long in the paper-called-silver market operated by the West. It has long been speculated/suggested previously in these commentaries that (along with Russia) China is “the Big Buyer” in the paper-called-gold market.
YEP- but not just the paper markets- more importantly, they hold the physical metal market as well.
We know that there is an entity (or entities) meeting this description, in both the paper-called-silver and paper-called-gold market, because we can (occasionally) see their “handiwork”. On hundreds of occasions over the past decade; we have seen the banksters launch one of their infamous (and endless) “ambushes” on bullion markets. The method for these illegal take-downs of bullion markets is painfully familiar to regular readers, and bullion investors in general.
With one tentacle (the Corporate media); the One Bank creates a fraudulent (and usually laughable) “reason” for precious metals prices to go lower – “cover” for the illegal market manipulation about to take place. With another tentacle (it’s beloved Big Banks); the One Bank plugs-in this “reason” into the master trading-algorithm it uses to control all the world’s markets, and bullion prices cascade lower.
On occasions where it’s feeling especially malicious (or desperate?); the One Bank will also utilize a third tentacle: the corrupt operator of these corrupt commodity markets – the CME. As the final back-stab; the One Bank will order the CME to blind-side traders in bullion markets with a sudden-and-dramatic escalation of margin requirements. Previous evidence of corruption here is equally overwhelming and conclusive.
Yet despite this (seeming) omnipotence in perpetrating market fraud, in this case price-manipulation; on numerous occasions we have seen these ambushes suddenly/instantly reverse. The ambush is, itself, ambushed. The ink won’t even be dry in the lies of the Corporate media, “explaining” to us why prices must go down that day, when we see gold and silver prices boomerang higher.
Inevitably, these “boomerang” events result in all of the day’s losses being erased, plus a token gain in price – a gesture obviously aimed at delivering a little come-uppance to the One Bank’s market-manipulating thugs. This is immediately accompanied by the painfully hilarious contortion of the Corporate media, where (in complete contradiction of its original “explanation”, minutes earlier) it now explains why gold/silver prices must go up that day.
The question that needs to be asked is: who made that token gain? The same question should be asked in the FOREX markets and the IPOs and the stock markets.....
Someone/something is producing these momentarily lapses of justice, in markets otherwise drowning in an ocean of corruption. When it comes to any “list of suspects”, China’s name must appear near/at the top.
While there is no means of proving that China is the Big Long of the paper-called-silver market, there is no more-likely candidate. Alone (admittedly) such a strategy would be like employing a fly-swatter against the West’s battery of corruption artillery. But as one of several (numerous?) counter-measures against these economic terrorists; it is a strategy which immediately gains in credence.
Or is China the one sitting back laughing at the various factions of controllers, squabbling like children over an M&M on the school yard, mean while they are sitting on the biggest pile of Smarties ever seen?
One of the theories that has been over looked is that China is long-minded enough to allow all the other competitors to kill each other off, while they sit quietly off back stage waiting for their cue for the final act.
Ultimately, the Big Long in the paper-called-silver market (China?) is an entity only concerned with its own economic agenda, and should never be thought of as any “champion” of the small investor, even though it stands (more or less) against the corruption of the One Bank. At the same time; it brings to mind the ancient, Arabic proverb: the Enemy of my Enemy is my Friend.
But are they? THAT is the mistake that many people involved in the "RV", "New" financial system propaganda, Nesara, prosperity packages, and various other groups and organizations that are heralding the coming of humanities saviors seem to not understand. China has no concern with saving the world... they are just changing the current Dynasty for a new one. Same chick, different party dress. Anyone thinking any differently will be in for a big shock.
Jeff Nielson for Sprott Money
http://www.zerohedge.com/news/2014-12-11/china%E2%80%99s-role-global-paper-silver-market
I leave you with two quotes
“The supreme art of war is to subdue the enemy without fighting.”
― Sun Tzu, The Art of War
“Engage people with what they expect; it is what they are able to discern and confirms their projections. It settles them into predictable patterns of response, occupying their minds while you wait for the extraordinary moment — that which they cannot anticipate.”
― Sun Tzu, The Art of War
