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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (43314)	5/2/2013 11:59:12 AM
From: benwood	1 Recommendation Read Replies (1) \| Respond to of 48092

I don't trade futures. Could somebody explain how it works if e.g. JPM shorts gold in the futures market? That is, is there a time when they must buy it back, and how far away can that be? If the Feds buy these contracts, or some derivative that JPM created which includes them, can it stay in the Fed vault forever? I think the bonds getting purchased by the Fed, which lowers interest rates with artificial demand, also allows the TBTF to borrow money to get short gold with impunity. Just wondering if there's a time frame involved... if it's forever, then it's basicallly Atlas Shrugged time for just about anything they want to manipulate. If it's a year, or three years, then eventually something has to give. Can the end game plan for this operation (stab and twist?) be that the Fed would buy severely devalued contracts should gold rise, but at face value to e.g. JPM so there is zero risk for JPM to do this? Then the Fed would later sell additional futures (down the road) in order to cover maturing paper, thus keeping the game going forever as it is currently doing with Treasuries? Meaning the pile of crap in their vault would have more and more friends over time which all start growing exponentially, until some kind of event occurs in which the transfer of wealth out of the US has a big day and then the game is over, perhaps, via collapsing dollar and/or skyrocketing commodities. I'm just trying to get a sense of what insane people would do to keep the game going even if they are in a tiny barrel heading towards Niagara Falls.