January 22, 2020
The Miles Franklin Newsletter
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From The Desk Of David Schectman
They will continue to syphon all economic power away from their grand kids to help themselves have all they want to have right now by leaving their children and grandchildren with the forever unplayable bill — a bill where the interest alone will cost every penny in taxes they can possibly scrape together. They’ll do that on the false premise that it will make the nation stronger for the future, as if a nation far deeper in debt can ever be considered stronger, especially when we are seeing no lasting benefits in improved infrastructure and a more vibrant economy. Mark my word. That’s what they will do!
 
That is, for a fact, what the nation is doing — pulling all economic power into the present just to keep the economic engines barely running by making future generations fuel all of it. In decades past, parents did all they could to make sure their children had a future that was brighter than their own times had been. We’re doing everything conceivable to undermine that environmentally and economically just to keep things on a more gradual downward glide path for now.

But we do have more rich people. That’s for sure.

And more poor.

And fewer middle class.

We have, indeed, trickled down. – David Haggith
 
Just like capital-gains tax cuts, corporate tax cuts also have not gone into building new factories or into entrepreneurial new service businesses but — as I argued here before they even became law — have gone almost entirely into stock buybacks and dividends that just help the rich get richer without helping anyone else. Sure, they may finally help the middle class in their retirement years because 401Ks are about the one place where the middle class have enough money to buy stocks, but that is only IF those retirement funds don’t get crushed again as they did in the dot-com bust and in the Great Recession. That money all exists only on paper until the days in which you actually get to spend it. It doesn’t help the middle class any now; but the rich are helped fabulously right now. Fabulously! Better times than they’ve ever know! – David Haggith
 
"Over the decades, COMEX silver futures have had the largest concentrated net short position of any commodity in terms of world production. This, I claim, is what accounts for silver's almost unbelievable low price, both on an absolute, as well as relative basis when compared to any and everything else. But there was an exception, about 5 or so years ago, to silver having the largest concentrated short position of all commodities, when the concentrated short position in palladium came to exceed even silver's egregiously large short position.
 
I didn't think much of it at the time, since I don't follow palladium closely, but after observing what has transpired since, I'm certain that the current obvious shortfall of physical palladium supply in relation to demand, owes its origin to years of artificial price suppression on the NYMEX. That's why price manipulation is the most serious market crime possible, namely, because it can mess up the balance of world production and consumption for years to come.
 
I would further conclude that the current physical shortage in palladium is a precursor of what will occur in silver. Since the price of silver has been kept artificially depressed for many years, it is virtually impossible that physical mine supply is not less than what it would have been in the absence of price manipulation and someday that will become obvious - just like is now occurring in palladium, complete with the same industrial user inventory buying panic being reported in palladium." --  Silver analyst Ted Butler ...18 January 2019
 
If we look at the Gold/Silver Ratio right now all signs point to a massive rally. And if you recall sometime in 2008, silver was trading at about $9.70/ounce as we were entering the recession of 2008. The price of silver after breaking down in the gold/silver ratio below the 80 level, exploded to a high of $49.82/ounce. That was approximately a 500% gain in the price of silver. And during this period of time, many fortunes were made and lost. The gold/silver ratio reached the high of about 88 to 1 in 2008, before it collapsed in the same time frame that silver exploded to almost $50, with the ratio reaching a low of 30 to 1 by mid 2011. 

Let's be clear... Gold and Silver will explode in the coming months/years. Nobody can predict when. But history has proven it time and time again. Which side will you be on when it happens? – David Morgan
David's Commentary (In Blue):

Last weekend our first grandchild, Molly, was married. It was a year-and-a-half in the planning.

And here is the Bride, the lovely Molly Yarosh-Scudder
Can you tell – I am not comfortable in a tux. Susan, on the other hand, is in her element.
Andy and his wife Zhanna
Andy got his license to perform the wedding ceremony, and for one night at least, he was a licensed minister.
The parents of the bride, our son in law David Yarosh and his wife, our daughter Betsy
David, Susan and our daughter Betsy. Why the concerned look on my face? It was half time and the Vikings were loosing to the 49ers. Betsy is a big Viking fan too. In high school she was a member of the Minnesota Vikings cheerleaders and we, as her parents, were forced to sell programs before the games started. Even when it was 10 degrees below zero.
The bride and groom, Mr. and Mrs. Mathew Scudder – in black and white and living color.
From wedding cake and Champagne to gold, silver and the markets.

Of course the Fed is going all-in to keep the system from collapsing. They are the cause of all the bubbles in the first place. The only reason the stock market is at such lofty heights is because the Fed flooded the marketplace with liquidity and slashed interest rates, which made it easy for corporations to buy back their own stock, which levitated the stock market. The Fed is taking it a step further and is offering REPO money to the hedge funds. The Fed is behind the curtain providing all the necessary liquidity to keep the bubble aloft.
LeMetropole Café

Dave from Denver…

The Fed Is Going All-In To Keep The System From Collapsing

January 14, 2020Financial Markets, Gold, Market Manipulation, U.S. Economybank bailout, Fed, FOMC, repo, Repo rate

Gresham’s Law in action: The diminishing availability of physical gold from the market (per several different accounts in London) corresponds to the proliferation of fiat currency printing and paper gold derivatives.

Since September the Fed has increased the size of its balance sheet by $414 billion or 11% in less than four months. It’s the fastest rate at which the Fed has printed money in its history. The Fed insists that this "repo" program is not the reinstatement of "Quantitative Easing." In one sense the Fed is correct. This money printing program is a direct bailout of the big banks. And now the Fed is proposing to start bailing out hedge funds:

Federal Reserve officials are considering lending cash directly to hedge funds through clearinghouses to ease stress in the repo market. But that could be a tough sell for policy makers (WSJ).

Yes, liquidity in the interbank overnight collateralized lending system dried up in September. But it’s not because of a shortage of cash to lend. The reason is two-fold.

First, banks needed cash/Tier 1 collateral to shore up their own reserves. Why? Because bank assets – especially subprime loans – are starting to meltdown – i.e. rising delinquencies and defaults. This is provable just by looking at the footnotes in quarterly bank 10-Q’s. Second, hedge fund assets – primarily the bottom half of CLO’s, credit default swaps, leveraged loans – are melting down.

The banks know this because these are the same deteriorating assets held by banks. In order to induce overnight repo lending, it would require a repo rate many multiples of the artificially low repo rate in order to reflect the risk of holding compromised collateral overnight. This is why the repo rate spiked up briefly to 10% in September. That rate reflected the overnight interest rate desperate borrowers were willing to pay for an overnight-collateralized loan. Banks pulled away from lending in the repo market because they no longer trusted the collateral – even on an overnight basis. This is why the Fed was "forced" to start printing $10’s of billions and make it available to the repo market.

The Fed created the problem in the first place by holding interest rates artificially low and leaving several trillion of its first series of QE operations in the banking system. This in turn fostered a catastrophic level of morally hazardous investing by banks and hedge funds. Now the Fed will try to monetize this – it has already hinted that the "repo" bailout will be extended now to April. Absence this Fed intervention, 2008 x 10 will ensue – which will happen eventually anyway.

Ultimately, it will be a tragedy if the Fed bails out the banks and the hedge funds – especially the hedge funds. Who benefits from this? Bank and hedge fund operators should be penalized for making reckless investment decisions – not bailed out by what will end up to be taxpayer money. We already saw in 2008 that banks take the bailout funds and continued to pay themselves huge bonuses despite making lending decisions for which they should be penalized.

And a bailout of the hedge funds would reward hedge fund managers for investments that would never have been made had the Fed let a free market determine the true cost of making those investments.

I said back in 2003 that the Fed would print money and monetize debt until the elitists had swept every last crumb of middle class wealth off the table and into their own pockets before letting the system collapse. The bank bailout in 2008 and now the bank/hedge fund bailout is an example of this wealth transfer process. The only question that remains in my mind is whether or not the current bailout operation will be the last "sweep.
In recent years, demand for physical gold has been strong. Chinese private sector buyers have to date accumulated an estimated 17,000 tonnes (based on deliveries from Shanghai Gold Exchange vaults) and Indian private sector buyers another 24,000 tonnes (according to WGC Director Somasundaram PR quoted in India’s Financial Express last May). Is it any wonder why gold has been on a run for the last four years? 

In the 1980s my Friend Ken Coleman, who published The Fed Tracker newsletter, said, “Don’t fight the Fed.” I say, “Don’t fight the central banks who are now aggressively accumulating gold (and dumping – paying for it in – dollars).

It is generally thought that higher prices for gold will deter future demand from these sources, with the vast bulk of it being categorized as simply jewellery. But this is a western view based on a belief in objective values for government currencies and subjective prices for gold. It ignores the fact that for Asians, it is gold that has the objective value. In Asia gold jewellery is acquired as a store of value to avoid the depreciation of government currency, hoarded as a central component of a family’s long-term wealth accumulation. Gold has a history with them. It is in their DNA.

Therefore, there is no certainty higher prices will compromise Asian demand. Indeed, demand has not been undermined in India with the price rising from R300 to the ounce to over R100,000 today since the London gold pool failed, and that’s despite all the government disincentives and even bans from buying gold.

Additionally, since 2008 central banks have accumulated over 4,400 tonnes to increase their official reserves to 34,500 tonnes. The central banks most active in the gold market are Asian, and increasingly the East and Central Europeans.

Now this is key: Russia is replacing reserve dollars for gold, and China has deliberately moved to control global physical delivery markets. Also, there is evidence of concern among the Europeans that the dollar’s role as the reserve currency is either being compromised or no longer fit for a changed world . Furthermore, Between China and India, who are two of the largest accumulators of gold, comprise over two-thirds of the world’s population and they are moving away from the dollar into gold.

Goldmoney estimates there are roughly 180,000 tonnes of gold above ground, much of which cannot be categorized as monetary: monetary not as defined for the purposes of customs reporting, but in the wider sense to include all bars, coins and pure gold jewellery accumulated for its long-term wealth benefits through good and bad times. Annual mine production adds 3,000-3,500 tonnes, giving a stock to gold ratio of over 50 times. The annual increase in the annual mined gold quantity is similar to the growth in the world’s population. This gives the price of gold great stability as a medium of exchange.

This stands in contrast to the certain acceleration of fiat currency debasement over the next few years. Anyone who is objective can easily see where the relationship between gold and fiat currencies is going. Most of the world’s population is moving away from the established fiat regime towards gold as a store of value, their own fiat currencies lacking sufficient credibility to act as a dollar alternative. Americans in general are clueless when it comes to gold. But when it rises a few hundred dollars more and the dollar is heading south, that too will change. The financial markets, which are dollar-centric, have very little physical gold in possession. Instead, American investors tend to hedge “risk” by accumulating the paper alternatives to physical gold: ETFs, futures, options, forward contracts and mining shares. Paper ain’t gold! Believe it. Paper is paper.

From the US Government’s point of view, gold cannot be allowed to rival the dollar. It must be suppressed at all costs. The primary purpose of futures options and forwards is to expand artificial supply to suppress the price from rising.

Open interest on Comex stood at 393,000 contracts on December 17, 2015. Open interest today has nearly doubled to 786,422 contracts, which represents an increase of paper supply equivalent to 1,224 tonnes. But that is not all. According to the Bank for International Settlements from end-2015 unregulated OTC contracts (principally London forward contracts) expanded by the equivalent of 2,450 tonnes by last June, taken at contemporary prices. And there are probably a few thousand tonnes more that are not reported.

The Fed must be panicked because currently the paper suppression scheme has picked up speed, as evidenced by Comex’s open interest rising. This is illustrated in Figure 7.
Things are changing – no doubt influenced by the massive central banks gold purchases. Note in the graph above, the rising gold price is accompanied by an increasing paper supply, which we would expect from a market designed to suppress the price. But, instead of declining with the gold price, open interest continued to rise following the price peak in early September while the gold price declined by about $100. The price suppression scheme has run into trouble, with large buyers taking the opportunity to increase their positions at lower prices.

In the past, bullion banks have been able to put a lid on prices by creating Comex contracts out of thin air. The recent expansion of open interest has failed to achieve this objective.  The amount of gold that is eligible for delivery and pledged, in Comex vaults is only 2% of the 2,446-tonne short position. In London, there are only 3,052 tonnes in LBMA vaults (excluding the Bank of England), which includes an unknown quantity of ETF and custodial gold. Physical liquidity for the forward market in London is therefore likely to be very small relative to forward deliveries. And of course, the bullion banks in London and elsewhere do not have the metal to cover their obligations to unallocated account holders, which is an additional consideration.

Clearly, there is not gold available in the system to legitimize derivative paper. It now appears that paper gold markets could be drifting into systemic difficulties with bullion banks squeezed by a rising gold price, short positions and unallocated accounts.
 
There are mechanisms to counter these systemic risks, such as the ability to declare force majeure on Comex, and standard unallocated account contracts, which permit a bullion bank to deliver cash equivalents to bullion obligations. But the triggering of any such escape from physical gold obligations could exacerbate a buying panic, driving prices even higher. It leads to the conclusion that any rescue of the bullion market system is destined to fail.

As noted above, the path to a final crisis for fiat currencies might have already started, with the failure by the establishment to suppress the gold price through the creation of an extra 100,000 Comex contracts. If not, then any success by the monetary authorities to reassert control is likely to be temporary.

Perhaps we are already beginning to see the fiat currency system beginning to unravel, in which case those that insist gold is not money will find themselves impoverished.
 
Here is another voice proclaiming that the Fed is going to extraordinary measures to suppress the precious metals market to not allow growth in price that would reflect massive money printing globally. Gold is getting ready to pop the top off of the lid that is holding it back.
Greg Hunter’s USAWatchdog.com 

Macroeconomic analyst Rob Kirby can sum up the massive Fed money printing it is doing each and every day. Kirby explains, “We are on a vertical curve where money has to be added to the system. . . . The Federal Reserve knew this would occur at some point 20 years ago. This is why they had to create a slush fund, which has grown into a very large pile of dung heap money. What’s being reported to us on a daily basis in terms of the ‘add’ from the repo activity is just the publicly acknowledged addition of money. The “missing” $21 trillion is in play, also, and it’s being added to the system to keep the system from crapping out and imploding. We are, without a doubt, on a vertical growth curve of money.”

To hide what is going, on the Fed is going to extraordinary measures to suppress the precious metals market to not allow growth in price that would reflect massive money printing globally. Kirby says, “The stench of criminality and collusion wafts over the COMEX now like a veil of evil. What they have turned our capital markets into with price suppression, so they can maintain the air of legitimacy and value to the dollar, is going off the charts.”

Want to know how JPMorgan never loses on a trade and has been able to control (suppress) the price of gold and silver for the last decade? Who better to discuss this than Ted Butler?
Ted Butler
 
The Genius of JPMorgan
 
Yesterday, JPMorgan Chase, the largest bank in the US, reported record earnings of $8.5 billion for the fourth quarter and roughly $35 billion for the full year. These are net profits, after all expenses and costs are subtracted from gross revenues. It is no understatement to call JPMorgan a profit-generating machine.
 
My interest in the bank, of course, comes from the perspective of gold and silver. The connection is that JPMorgan is the largest player, by far, in all aspects of gold and silver. Always among the top players in the gold and silver space for decades, what pushed JPMorgan to the very top was its takeover of Bear Stearns in 2008 which resulted in JPM taking the place of Bear as the largest short seller in COMEX gold and silver futures.
 
It is said that necessity is the mother of invention and I confer on JPMorgan the title of genius for its solution to a serious problem it found itself in early in 2011 when silver ran up to near $50 while the bank was heavily short and holding open losses of close to $3 billion. While JPMorgan did succeed in crushing the price starting on May 1 of that year and eliminating its large open losses, it knew it needed a permanent solution to what would be a recurring problem in the future, namely, how to mitigate against future run ups in the price of silver (and gold), since it intended on continuing to be the largest short in COMEX futures.

That JPMorgan’s solution was simple in no way detracts from it being termed genius. In hindsight, nearly 9 years after being conceived and implemented, JPM’s solution is only more genius. Since the bank was the largest short seller in the largest paper (derivatives) precious metals market in the world, the COMEX, it was not possible for JPMorgan to buy other paper contracts on the COMEX or elsewhere to offset its short paper positions. Such paper derivatives buying would cancel out each other and immediately eliminate JPM’s role as largest COMEX short seller and with that elimination end the bank’s leading role and influence on price. Besides, any attempt by JPMorgan to buy large quantities of COMEX contracts would immediately show up in Commitment of Traders (COT) and Bank Participation reports. (I would remind you that I first discovered JPMorgan’s leading role in COMEX dealings as a result of the Bank Participation report of August 2008).
 
Faced with the insurmountable obstacle that buying paper contracts to offset its dominating and price-controlling paper short position was not possible, JPMorgan came up with the perfect and only solution to protect itself from future run ups in silver and gold prices – it decided, in 2011, to buy real metal to offset its paper short positions. Normally, it is assumed that those holding or dealing in physical metals use the paper futures market to hedge or offset the risks of price change by selling futures and other derivatives contracts against physical holdings.
 
What made JPMorgan’s solution so genius was that it simply reversed that same equation and bought physical silver and gold against what was a preexisting paper short position. It certainly didn’t hurt that the COMEX futures market had become so large over the years that paper contract positioning had become the sole price influence and such positioning dictated prices to the real physical world of gold and silver. If COMEX futures positioning hadn’t become the main price influence for gold and silver – the futures market tail that wagged the physical market dog – JPMorgan’s genius solution would not have been possible.

But more observers than ever recognize the price dominance of COMEX futures positioning; it’s just that JPMorgan recognized it before anyone else and, most importantly, put that advanced knowledge into actual practice by buying more physical silver and gold over the now-near nine years since early 2011 than anyone in history. It took me a couple of years to discover what JPMorgan was up to and to this day there are those who still refuse to see what JPM has accomplished, namely, using its control of price by being the largest COMEX short seller to accumulate a massive hoard of physical silver and gold on the cheap. Truly, JPMorgan has come to master both the physical and paper markets in gold and silver
 
My latest estimate of what JPMorgan has acquired is 900 million oz of physical silver (at an average price of $18 per ounce) and 25 million oz of physical gold (at an average price of $1200). In dollar terms, JPM’s total acquisition cost is $46 billion for the silver and gold combined. That may seem like way too much money to be spent on physical precious metals, but in the case of JPMorgan, the cost represents little more than a year and a quarter of reported profits. Plus, the physical metals accumulation took nearly nine years, not 15 months.

Perhaps a better way of looking at it would be to consider the implausibility of JPMorgan acquiring an equivalent paper long position on the COMEX. 900 million oz of silver is the equivalent of 180,000 COMEX silver contracts and 25 million oz of gold is the equivalent of 250,000 COMEX gold contracts. It would be impossible for JPMorgan, or anyone else, to acquire that many COMEX contracts without notice or great impact on price. Impossible.
 
It would also be impossible for any one entity to acquire 25 million oz of physical gold in a year without notice or effect on price, since that would represent 25% of total world annual mine production. In the case of silver, it’s even more preposterous to imagine anyone being able to buy 900 million oz in a year since that would represent more than 100% of silver annual world mine production. But by stretching that over 9 years makes the acquisition all the more feasible – 3% of annual gold production and 10% of silver annual production - a snap for an entity as well-funded and capable as JPMorgan.
 
Quite deliberately, I have failed to this point to label JPMorgan as the criminal genius that I have in the past, so as not to detract in any way from what the bank has succeeded in doing in its physical silver and gold accumulation and what it portends for future price levels. I suppose it would be convenient to point to the US Justice Department’s labeling of JPM’s precious metals desk as a "criminal enterprise" in which RICO statutes have been invoked, but I’ve often referred to JPMorgan as criminal in its precious metals dealings long before the DOJ came along. Besides, the DOJ, up until now seems to have a specific focus on spoofing, something I consider peripheral to what JPM has done.
 
My main justification for accusing JPMorgan of criminal behavior in gold and silver dealings is the fact that it accumulated its massive physical metal holdings while being the largest COMEX short seller for nearly 9 years. It wouldn’t matter if I was the only person in the world to hold that was wrong and criminal - I know it’s wrong and criminal. Besides, I send everything I allege to JPMorgan and the regulators and have yet to hear any objection, threat or denial.
 
So what does JPMorgan’s magnificent and criminally genius solution of the accumulation of physical metal as an offset to its paper short position mean for future price? Had JPMorgan stopped accumulating physical silver at the 200 million oz equivalent level of its past peak COMEX short position levels and stopped at the 7.5 to 10 million oz levels in gold that reflected its past peak gold COMEX short positions, I would have concluded it would be super-bullish for future prices. But seeing how JPMorgan has vastly exceeded any possible levels of what it had been short on the COMEX in silver and gold dealings, super-bullish is woefully inadequate to express how bullish the situation has become.
 
The profit-generating machine that is JPMorgan has assembled the largest privately-held position in physical silver and gold in history. It is unreasonable to conclude it did so for reasons unrelated to profit. Normally, I would say that it’s just a matter of time before JPMorgan decided to ring the cash register, but even that statement is inadequate to describe what has occurred to date. So skillful and persistent as JPMorgan has been in its accumulation of physical silver and gold that it is already close to $9 billion ahead on its gold holdings (25 million oz times $350+). And if gold climbs another 30% to $2000, as just suggested by Bridgewater Associates, the world’s largest hedge fund, JPMorgan’s total profit on its 25 million oz physical long position will amount to $20 billion – and that excludes silver. But wait – there’s more.
 
For the past nearly two years, I have been writing of a coming double cross by JPMorgan of the other large COMEX commercial short sellers. In actuality, the double cross is already in play and continuing, but that doesn’t diminish in the slightest that there is likely much more damage to befall the big commercial shorts at the hands of JPMorgan.

Recently, I have been writing about the record open losses of several billions of dollars that have been accruing to the 7 biggest COMEX shorts, while at the same time pointing out that JPMorgan is already ahead by $9 billion on its physical gold holdings. If that is not clear proof of an ongoing and highly successful double cross, then I don’t what is.
 
Finally, the chance of a regulatory intervention by either the DOJ or CFTC seems increasingly remote, also attesting to the power of JPMorgan. Both regulators seem extremely intent on avoiding any issue other than spoofing, making a market solution the only solution possible. After proclaiming for 35 years that no price manipulation existed in silver, the CFTC can’t possibly assert now that JPMorgan was up to no good by being the biggest paper short seller and largest physical accumulator. Ditto the DOJ, which would never do anything to undermine the largest and most systemically important bank in the nation. Let’s face it; JPMorgan holds all the get out of jail cards it needs to be left alone.

The combination of JPMorgan being ideally positioned for an historic surge in the price of gold and silver and the other big shorts being as poorly positioned as is possible is not a work of fiction but of fact, based upon public data published by the CFTC. This is what sets the stage for a dramatic price rise in gold and silver. Should Bridgewater Associates be proven correct about gold surging to $2000, the additional damage to the big shorts is almost incalculable.
 
That is not to say that the big COMEX shorts should be expected to roll over and give up without a fight and the price weakness on Monday and Tuesday is clear evidence of that. For those paying close attention, the price weakness had all the earmarks of being deliberately created by the big shorts, based upon the timing of the selloffs (coming when trading volume and liquidity were at their lowest). But the old price-rigging games seem to have lost much of their effectiveness, based upon the limited amount of managed money selling that has resulted over the past few months. I still would imagine those new longs that have come into the market from late-December onward might be at risk of selling by the deliberate downward rigging of prices, but even there, I’m not entirely convinced.
All we can do is monitor price actions and future COT reports to determine which it will be, namely, the big shorts succeeding in not only jigging prices lower, but getting sufficient numbers of managed money traders to sell or completely failing to do so. It’s also important to recognize the key role that JPMorgan plays in determining the outcome.
 
As far as what the COT report will indicate on Friday, I’m going to once again refrain from predictions and concentrate on what the report may reveal. The reporting week that ended yesterday covered one of the most tumultuous trading weeks in memory, seeing as it started with last Wednesday night’s price explosion on the Iranian missile attack, to be followed by fairly steady selling through yesterday’s close. Trading volume was heavy, but total open interest only increased by 11,000 contracts in gold and was flat in silver. I am unsure what impact spreads may have had in gold. What I will be looking (and hoping) for is whether the big commercial shorts continued to close out short positions, as was evident in the prior COT report.
 
As far as the open losses accruing to the 7 big shorts in COMEX gold and silver, the price weakness on Monday and Tuesday brought some relief, but today’s rally blunted much of the improvement enjoyed by the big shorts. At publication time, gold was still lower from Friday’s late close by around $4 and silver was lower by five cents or so. This would indicate the big shorts reduced their total open and unrealized losses by around $150 million from Friday, meaning to around $4.9 billion, still higher by a billion dollars from the record yearend mark to market loss of $3.8 billion. There’s no way the top financial people at the institutions involved are not monitoring this on a daily or more frequent basis.

At this point, it would be hard to imagine any of the chief financial officers and risk officials at the organizations holding the largest COMEX gold and silver short positions not be well-aware of the impact, both to date and potentially to come, of the financial scoreboard to which I refer. But what to do about the open losses is no simple matter. I’m sure all are now aware of the predicament in which they are in and how the temptation to just rush and aggressively closeout the short positions would result in a price surge that will only magnify the losses. But the longer they delay and resist buying back short positions may just delay and amplify the losses in the end. I certainly don’t feel sorry for the financial organizations holding big short positions in the least, as their predicament seems almost biblical in scope. After sowing manipulation for decades, they will surely reap a bitter harvest. All excepting the criminal geniuses at JPMorgan, to be
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About Miles Franklin

Miles Franklin was founded in January, 1990 by David MILES Schectman. David's son, Andy Schectman, our CEO, joined Miles Franklin in 1991. Miles Franklin's primary focus from 1990 through 1998 was the Swiss Annuity and we were one of the two top firms in the industry. In November, 2000, we decided to de-emphasize our focus on off-shore investing and moved primarily into gold and silver, which we felt were about to enter into a long-term bull market cycle. Our timing and our new direction proved to be the right thing to do.

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