The Federal Reserve's opposition to audit
under legislation by Ron Paul, R-Texas,
is a matter to prevent the American people
from learning the status of the U.S. gold reserve
http://www.gata.org/node/8357
Commodities Futures Trading Commission (CFTC)
has granted bankers a mechanism to perform alchemy
and turn paper into gold on the COMEX by allowing
them to establish obscene short positions that
represent 25% to nearly 40% of annual gold
production at times while simultaneously allowing
them to renege on their fiduciary responsibility to
actually physically possess the gold represented
by their short positions.
In other words, the CFTC has allowed gold
to operate under the principles of the fractional
reserve banking system on the COMEX futures
markets.
As I stated above, the net short position
of the commercials in gold represented more than
30 million troy ounces yet for the past few months
they almost never exceeded delivery of 0.2%
of their short position on a daily basis.
Many people would refute this argument by stating
that COMEX only delivered a minute fraction
of physical gold represented by this obscene short
position because no institution asked for substantial
physical delivery of their long contracts.
While it is true that less than 1% of most commodity
futures contracts are ever settled by physical delivery,
futures markets should not exist to serve the purpose
of distorting the underlying reality of supply-demand
fundamentals of the actual physical commodity.
With gold and silver, this has been the case for decades
http://www.theundergroundinvestor.com/2010/02/why-the-imf%e2%80%99s-announced-sale-of-191-tonnes-of-gold-will-prove-to-be-irrelevant/
IMF Gold Sales,
Fed Rate Hike, China, Soros & Inflation
http://www.goldstockbull.com/articles/fed-rate-hike-imf-gold-sales-soros-china/
U.S. central bankers closed four emergency
lending facilities this month and are preparing to
reverse or neutralize the more than $1 trillion in
excess bank reserves they have pumped into the
banking system.
The discount-rate
increase will encourage banks to borrow in
private markets rather than from the Fed
http://www.gata.org/node/8352
GATA Daily Dispatches
http://www.gata.org/taxonomy/term/2
Five Finger Discount No More
http://www.kitco.com/ind/nadler/feb192010.html
