I had the pleasure of discussing various aspects of the global economy with Gordon Long in our monthly podcast.
This month we touched on “casino banks”, Christine Lagarde at the IMF, and precious metals (gold and silver) rigging.
In the following video, FRA Co-founder Gordon T. Long is joined by Mish Shedlock in discussing the rigging of gold and silver by Deutsche Bank and the reliability of so called “casino banks” and the state of global banking institutions.
For a transcript and charts in the video, please see 04/21/2016 – Mish Shedlock: “EXCUSE ME MR. PRESIDENT, IS THAT A JOKE?”
Mike “Mish” Shedlock
tony of CA said:
Please stop mis-pronouncing Grillo’s last name.
How did he pronounce it ‘Grill o’ instead of ‘Gree yo’ ( haven’t watched yet)?
Meesh, a grillo is a cricket, not a steak.
tony of CA said:
Actuually, Mish is not pronouncing it as Grill o. it’s Grillo like Grill in steak. the ll sound needs to be stressed. Mish is pronouncing as if it was a Spanish name not an Italian which is ridiculous considering Pepe is from Italy. They pronounce ll the same as us American use to.
Ha. I didn’t realize it was Italian.
Tony, you’re not from around here are you. ☺☺
Michael Rudmin said:
About a year and a half after I had invested in Pd at Goldmoney, I discovered that there is no free market in PMs: that the price is et by about seven-fifteen specially permitted market makers, and then traded (or not) at that price.
I was heavily disappointed, because it meant that bid rigging was almost definitely going on. Further, it matter not at all the form of the system, be it through the “London Gold Fix”, or the “Auction of Permitted buyers”.
Now, that said, I have no idea whether I bought at too high a price because bid rigging wa ued to drive the price up, or at too low a price because futures are used to keep the price down. Shoot, maybe I purchased at the PERFECT market value price, we a free market permitted to exist.
But I’ll never know, will I?
“People are angry. Something is wrong.”
Could be a world population of 7 billion has a surplus of labor.
First world labor became accustomed to a $40K/year life style. Two billion souls survive on $2/day and would jump at the chance to earn $10K/year. Our wage slaves are not better than their wage slaves.
One billion souls subsist on an oil stipend from the local chief. The oil money is gone.
Socialist wealth transfers succeeded in bankrupting governments, and raising a welfare horde incapable of feeding themselves.
I’d guess that the wasted time of millions of cell phone junkies fits somewhere in the equation.
I typed this before reading your comment so as to agree with you and am not using a phone as a phone but an agile computational mechanism.
Gold can never be rigged, only the currencies are rigged.
My thought also – goes to show how people really relate to gold, everything is in dollars as their final metric.
So when they talk of manipulation, they should maybe look at what they subscribe to first.
Yes we do have too much inflation. Bank printers are oppressing the people.
A “profit of €20B from €21T” in derivatives positions is small in percentage terms. If they were doing a good job of rigging they should be getting at least a 5% return, or about €1T. Even a 1% return should be yielding the bank €210B. A very incompetent bank, if they can’t win big in a rigged market of their own creation. It just shows that the so-called “rigging” is not working very well or is not happening often enough or on a large enough scale to make a big difference. I mean, the bank could make more money holding euro bonds or USA Treasury notes. Why bother with a rigged casino when the return is less than on government bonds? It makes no sense.
Which makes me think this is a “false flag” type of promotion, like a terrorist attack, designed to get the people to demand “government intervention” against the big bad banks. I won’t dispute that the banks suck in a multitude of ways. But the “government intervention” chorus is basically designed to transfer revenues from bank coffers to government coffers. In the process the banks will get even more financially weaker. At least in Japan the guy at the top takes the blame, and in resigning forfeits personal financial gain. Curious that there is no person to blame here, is it not? I mean, a rigged market implies that there are people involved in the scheme.
Net result here: 1) Media chorus for “government intervention;” 2) revenue raised outside the official tax system for government coffers. I think this is why most banks refused to bid on taking over the “London fix” from the Bank of England. The “London fix” is a losing game for the banks; the return on the price rigging is low, and the bank becomes a cash cow for the government to milk. Even with the “fix,” there is too much market transparency and too many players. It smacks of a free market in many ways, at least compared to the days when the USA government set the price of gold and confiscated the metal from private owners. As long as the government does not intervene to set the price of gold, gold is free to go up or down over the longer term.
Those who sold gold to people at $1,900 no doubt use the rigging charges to mollify their customers holding losing positions. As they can say, “We were right, but the market price is rigged and wrong.” Always better to point the finger elsewhere, and a sucker is born every minute to fall for it.
Ron J said:
“Those who sold gold to people at $1,900 no doubt use the rigging charges to mollify their customers holding losing positions.”
The TV show Gold Rush premiered when everyone was gaga over gold. It was an indicator of a topping gold market.
Missing the point.
Criticizing only banks, the ‘gold/silver fix’ or “rogue traders” distracts from the real manipulation, which is systemic and lets the real guilty party – government/regulators – off the hook.
Gold – paper gold – is a fractional reserve scheme. If bettors in that game had to put up – or put in escrow – every ounce of metal before they could issue their flood of paper betting tickets, problem solved. Just like that.
Who has the power to change the rules to ensure they do that?