How interesting - enjoy the read. CSH
Reposted From Resource Investor
Silver is a bigger 'problem' because CB's don't have any physical metal to "inject" into the market in order to maintain the confidence game.
But probably not for long. And one might assume the end is very near, given how fragile/vulnerable the system is (especially the credit/REPO market) to "unforeseen" shocks, Black Swans, etc.
This is where I find it too easy to get carried away. One quick look around the macro world reveals a host of potential shocks. This would fuel the need and opportunity to build short-term predictions about current events (rationalized with evermore sophisticated technical or trading indicators).
Interpreting the Whistleblower
The work of GATA and Ted Butler dovetail somewhat. GATA has exposed the reality and legal mechanism for intervention. Ted focuses mainly on the details of how that intervention manifests in the trading data.
Backing up further, it's generally accepted by the "street" that the Fed, the Treasury or the ESF intervene all over the place — and that's perfectly okay. But mention of precious metals intervention remains a very successful (though ultimately destructive) taboo.
The ESF, with its broad authority and coordination with the Fed (and by proxy, the Fed's member banks) have the ability to control prices in both gold and silver. This also happens to be very profitable for the banks.
The giant banks are given carte blanche by the mainstream because they are so "successful," and “surely the man in the fancy suit is someone you can trust.” They are also too big to fail and/or prosecute.
Price suppression, controls, and manipulation are common occurrences. They have been observed and documented for practically all modern markets. And they always end eventually.
Just because it is legal does not make it right.
In the ultimate public relations triumph, the most economically destructive are actually perfectly acceptable by the majority of observers. However, the most dangerous to the financial system and the governments who serve them is the manipulation of the monetary metals.
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