The LBMA appears now to be in an intractable and rapidly degenerating position – with the vaulted gold available outside of the Bank of England and ETF holdings largely gone from London, how do you manage the appearances of a spot gold market with turnover of 200M oz per day and a massive open interest? While gold flow from the miners provides some liquidity and enables the LBMA paper gold market to provide some gold delivery and suppress gold prices, it is obvious that a massive gold event has occurred and that this paper market will not be the same given increased pressure for physical delivery. The London market cannot sustain any material gold withdrawal as occurred in 2013.
You can read the rest of this article by Dave Jensen here: Watch Out
Seems like there has been some MASSIVE fracture in the system behind the scenes. I wonder if they have finally lost control of the fraudulent paper pricing mechanism.
Federal Reserve board has an emergency (previously unscheduled) meeting today. And Obama will meet Janet Yellen later today, which also seems like an emergency (previously unscheduled) meeting. Could it be that there has been a massive derivatives explosion that can’t be hidden anymore, even with help of Exchange Stabilization Fund or PPT?
Yep. I wrote a blog post last week about something melting down. It’s not just Deutsche Bank
Bill Holter said that the Yen carry trade has blown up very badly in the faces of big institutions – like Deutsche Bank & possibly more….Morgan Stanley etc.
How in the world did Yen appreciate so much vs US Dollar, despite Bank of Japan committing negative interest rate suicide?
That’s because the demand for Yen has artificially shot up in a scramble, in order to satisfy the previous Yen carry trades.
This has turned into possibly one of the biggest cluster*#^@s, which even if one tried to design it from scratch on a drawing board, they couldn’t have come up with. How is it all going to unravel seems next to impossible to predict, due to the incredibly complicated tangled web. It’s like a butterfly wing-flapping in Costa Rica resulting in a hurricane in Indonesia effect. But surely this is bound to blow up like an enormous explosion.
Yeah, more gibberish today of ECU bailouts for the Italian banks (post on ZH). Looks like the wheels are coming off again. I expect a coordinated hit on the PM’s soon as they’re getting a little too frisky. Can’t wait for the SGE fix to put the synthetic PM’s where they belong-perpetual irrelevance….
I thought I’d repost this for anyone who might have missed it when I posted it in the Kinder Morgan post a few days ago … Rickards says the Chinese would buy twice as much Gold if they could source it … I personally deal with some Chinese Gold companies and can also confirm this is true.