unclear that s.koreans in the aggregate truly wish to be one w/ the n.koreans ala w vs e germany.
in the mean time, just in in-tray
From: TH
Sent: Wednesday, December 21, 2011 12:22 AM
Subject: Re: Comments - Week of December 12
zerohedge.com
On 12/20/2011 10:59 AM, B wrote:
None of the fundamentals cited in the QB piece are changed by leasing...
What leasing does is produce temporary supply surplus, which is adjusted for by price... That is, a suppression method.
If the gold is sold into the open market there may be issues getting it back, and at what price?
Another method appears to be shorting gold (and silver) for future delivery. An unlimited supply of offers to sell gold at a reduced price can move the market, especially one where the actual delivery is such a tiny fraction of the futures bets.
Again, a suppression tactic.
I am not sure how this ends unless a much higher percentage of folks take delivery, forcing down the supply of a limited commodity... And thereby making the suppression practice too expensive or impractical...
Or unless CB's become over whelmed with other problems... For example, currency or multiple simultaneous banking failures.
Of course, making gold illegal to hold world wide would also be a "solution"...
From: W
Sent: Tuesday, December 20, 2011 11:03 PM
Subject: RE: Comments - Week of December 12
As I posted earlier, I believe all banks that are in euro member states are required to keep their gold with ECB. Ergo, the ECB would have to be the lender at the request of member states and st their allocated holdings. But since the ECB can (and did) get painless usd swap financing from the FED-WTF? The price of gold fell-but not because of Euro banks needing usd credit lines.
From: G
Sent: Tuesday, December 20, 2011 10:35 PM
Subject: Re: Comments - Week of December 12
Thanks for what is a very reasonable explanation
In some ways we are all playing against the house , which may be corrupt (I mean is likely) , but none of us want to keep the house chips or for that matter their equity in our pocket either
So we can only hold hoping for the day that a drop causes a big uptake in physical which shocks the market, more then the lending out of gold paper, that can likely never be collected on
Best regards
G
From: K
Sent: Tue Dec 20 21:42:02 2011
Subject: Re: Comments - Week of December 12
Hi G,
What you said that you don't understand is something which a lot of poeple (including myself) have
not been able to understand since early 1990's !!!
Please allow me to explain :
1) on 12 Dec, at 11:17 A.M (a Monday morning !!) Gold fell from 1710 to 1684 in 12 minutes flat.
there was no news at all... and in fx world too nothing moved (euro fell from 1.3354 to 1.3346). As the
great story telling goes, the reason given out was that euro-area banks were leasing Gold to raise dollars .
Oh is it ??!!! But just 4-5 days before that all swap lines betwen the 6 cent-banks were supposedd to lend as many dollars as was needed.... huh??? so were the swap lines dead ? did they have no money to lend ???
2) going back to point 1., which cent-bank would want to lend so much of Gold on a Monday morning , when mkts are anyways too thin??? So was the purpose to lease out or to hammer out??????
3) Remember the great bubblemeister said these words in 1998 "Central banks stand ready to lease gold in increasing quantities should the price rise.”
so the purpose of the lease was not to raise money but as the great obfuscator said to stall rising price !
4) You said "someone borrowed all that gold, in return for a small premuim"
yes, the bullion banks have done this since early 1990's , borrowed the Gold , hammered the price & made
fabulous returns covering it back as the price fell.
5) I am sure you are aware , these are mere paper entries to sell/lease Gold..... so effectively trying to control prices via paper market
6) The less said the better !!!!
On Sat, Dec 17, 2011 at 4:37 AM, G wrote:
One thing I don't understand
One of the cited reasons for the fall in gold price in the past weeks was that a flood of european banks were lending out their gold to raise usd.
That they took a negative yield on this gold lend, as usd were desperately needing usd.
But who was the opposite side of the trade.
Ie someone borrowed all that gold, in return for a small premuim.
Then this party sold the gold ? To someone who bought it.
But surely these parties need to later unwind the whole trade
Ie is this not a massive short, caused by the unintended big gold lending by euro banks
But someone is equally as long the gold
I guess the question is did all the borrowers manage to cover their positions in the short term buying back.
And assuming the ultimate banks are less sensitive to the fall in gold price ?
Best regards
G
From: J
Sent: Sat Dec 17 04:27:42 2011
Subject: Re: Comments - Week of December 12
the movement to cash a/c may pick up more velocity with higher second and third and forth order derivatives than was true of the OWS weekend outing
if and when so, the effect may not be pleasant for the mkt participants, bull or bear
it would be as if the situation of a bunch playing collaboratively the lego toys, and all of a sudden half the kids was called home, in a hurry, with whatever lego components at hand
if as we may believe that the paper gold mkt trades at 10-50x the volume of the physical mkt, and all of a sudden the paper shorting game is halved (but paper long game would also be halved) - what happens? i am not smart enough to know for the short term of to n fro, zig n zag, unless such "i am going home" also entails significant physical possession off-take in which case a short squeeze would be
in the longer term, the mkt 'supply' is less even as demand keeps on trajectory until and unless the mkt sees the light at end of the darkest interregnum
let us watch and brief to see whether such 'i am going home' picks up speed
From: GC
Sent: Friday, December 16, 2011 9:53 PM
Subject: Re: Comments - Week of December 12
i did the same.
On Dec 15, 2011, at 4:07 AM, J wrote:
converted all brokerage accounts from margin to cash a/c
while i now can neither short nor sell naked calls, and must match all shorted puts with usd cash in a/c to cover the brokers must no longer loan out my shares for others to short, and must segregate all my cash and holdings apart from their own
as more folks do what i just did, the mother-of-all-short-squeeze would be full-on
mf global may have triggered TwoAPuc (the worst of all possible unintended consequences)
(i) as and when and should the judge of competence in the hsbc-vs-mf-global-trustee case rule against the ithaca man re his warehouse receipts for serial-numbered gold and silver bars ... oh boyz, what a beautiful day that would be as all reach for their warehoused metals, or
(ii) alternatively, should the judge rule in favor of the ithaca man, all folks who supposedly hold collateral in the form of ledger a/c bars and bricks may have to take hold of such collateral and store in their own warehouse ... oh girlz, what a wonderful night that would be.
either way, one bar of gold cannot and must not answer to two masters, and so
either way, somethings have changed, because the trust has been disturbed and faith shaken, and all we need to do is stir the pot :0)
given that the current global monetary crisis and debt debacle can ONLY be definitively 'resolved' through massive dilution / devaluation (along with the usual tyrannical taxing and draconian belt-tightening), such cannot happen without execution of capital controls, then that should mean ... well, let us wait and see, watch and brief ... am giddy with excitement and aim to get more gold, stack more silver, and pile on more platinum - the current margin-call panicked gold is a god-sent gift, that which we must embrace, per contingent script
unrepentant
tout ou rien
j |
