Tag Archives: fiat money bubble

Comex Paper Gold Open Interest Continues Its Vertical Ascent

 From sublime to ridiculousness there is only one step.  – Napoleon

The Fed is nothing but a mafia organization that took control of the United States starting in 1913 (Rory Hall, The Daily Coin).  In sheer defiance of all free market principles, the paper gold open interest on the Comex continues to move inversely to the price.

Yesterday the open interest in fraudulent paper gold futures open interest spiked up another 8,056 contracts to 470,720 contracts.   This added another 800,560 – 25.1 tonnes – ounces of paper gold to the Comex open interest, while the amount of gold “received” into Comex vaults increased by only 35,107 ozs.

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COMEXGOLDRecall that Germany is trying to get back just 300 tonnes of gold from the Fed but has to wait seven years for this to happen.  But the Fed, through its agent bullion banks, can create more than 300 tonnes of paper gold in just one week (remember Bernanke’s magical electronic printing press).  Why won’t Germany just agree to hold paper gold?  Based on the business activity of the Comex, paper gold is perfect substitute for real gold.  Angela? Wolfgang?  Jens (Weidmann, head of the Bundesbank)?

The amount of fraudulent paper gold created by the banks yesterday is 165% of the total amount of gold that is being reported as “registered,” or available to be delivered.  No other commodity in the history of the world is allowed to operate with kind of paper to physical ratio.

The entire U.S. financial and economic system is nothing but one enormous fraudulent Ponzi scheme enabled by the complete takeover of the U.S. Government by corporate and banking interests  (see this podcast with John Titus on the Shadow of Truth for direct proof of my assertion).   The Comex is ultimate symbol of complete fraud and corruption that has completely engulfed the system.

Historically the level of open interest in gold and the price of gold have been highly correlated.  The last time the paper gold futures interest was as high as it is now was November 27, 2012.  The price of gold was $1741 per ounce.

The only conclusion that can be drawn is that the Federal Reserve, likely on orders from the BIS, is going to try and suffocate the price of gold.  The unintended consequence is the enormous drainage of gold from western vaults into the eastern hemisphere.  I suspect the bullion banks themselves are on the receiving end of that gold.

At some point the Comex itself will suffocate under the weight of paper gold.  The elitists will conjure some event of force majeure and the Comex will exercise its right to settle the paper with more paper, i.e. U.S. dollars.  At that point they may as well use drachmas…

Paper is a check drawn by legal looters upon an account which is not theirs: upon the virtue of the victims. Watch for the day when it bounces, marked, ‘Account overdrawn.’  – “Ayn Rand, Atlas Shrugged”