Thai Guru's Gold und Silber ... (Informationen und Vermutungen)

The rumor below is all over the internet. I was bombed with it yesterday and held back from bringing it to your attention for various reasons. However, it is gaining SO MUCH exposure you should be aware what is out there. Ironically, it coincides with what I have been ranting about for months:

Morning Bill - more from George Ure's website called UrbanSurvival. You know this rumour would also explain why the net foreign security pruchases at $91.5bn for January were so far above analysts estimates - and as usual this artificially props up the USD and keeps the pressure on gold. Nothing is beyond belief these days.
Cheers, mark.

A Serious Rumor

We have an unsubstantiated report from some of our usually highly reliable sources that there are some posts surfacing on financial web sites in Europe that are wondering aloud whether the U.S. government has now set up a new mechanism to in effect buy our own bonds. According to the report, the way the process works is this: The US fronts a big pile of money to a cooperating bank (most recently, alleges one post, a Caribbean bank) about a week before the US bond auction. Then, along comes the auction, and the US funds are used to buy up the US debt.

While we don't have any confirmation of the report, it's the kind of assertion that could cause immediate - and serious - repercussions should it start making the rounds in the more mainstream financial media.

Obviously, it would be like a Ponzi scheme, when Ponzi in addition to running the pyramid, would be printing up money to give to potential investors. Our concern is, that if true, it could be viewed as a major reason for the "powers that be" to quickly invent a massive public "emergency" in order to blame shift and hide what is in effect a financial circular reference in the money markets. Thus, we are on high alert now for a major "event" out of left field because such a ploy - again IF TRUE - would be an unsustainable end game. Ergo, the demand is quickly rising for a "blame shifting" event. Watch the headlines.

-END-

Adrian wasn’t alone:

Bill,
As I woke up today I had a secret bet with myself. I said "I bet they’ll drum up a wildly bogus employment number and goose the DJ back up after yesterday’s drubbing and hit gold and boost the dollar" Lo and behold it was exactly as I thought….except there was no bullish reason. The employment number was slightly worse than expected but oil prices had soared over $57!!!!

I scanned the news for the bullish news I had maybe missed…then I found it….Martha Stewart had appeared before an appeals court!

I believe we are very close to the abyss in the financial system for any manipulator to make markets move in a direction that doesn’t make sense. The smart money will seize the opportunity.
Cheers
Adrian

Neither was Tom:

Lord almighty Bill these are the strangest days I can remember. The PMs are under relentless attack, and the financial "experts" cower and shrink from this subject and the growing disastrous financial news like the craven sycophants they are.

Oil is rampaging - no problem! Budget and account deficits are soaring beyond historical precedent- no problem! "Hedonically-adjusted" employment and inflation indicators are engineered to deceive with impunity - no problem! Foreign central banks desperately want out of the US$, endangering its (now undeserved) international currency reserve status, with dire implications for Americans - no problem! Massive derivative structures, allowed to grow unhindered and unregulated like financial cancers, cheered on by Secretary of Inflation Greenspan, may threaten the whole economy - again, what's the problem?!

None of these crises ever appear to be much of a problem to the "see no evil, hear no evil, speak no evil" pretty-faced, airhead, bought-off news media. They chose to focus solely on manufactured marionette financial indicators that the puppeteers have conspired to control.

This farce is all going to end very, very badly. I continue to believe the PMs, vis a vis overwhelming and relentless physical demand, can and will break free of their blatant price-fixing and provide some relief to the people who seek them as a refuge from the depredations of the financial elites, who by their unconstitutional, lawless actions appear to be attempting no less than to prop up a corrupted system of imperial privilege, and in so doing, destroy much of what is still good in America. Tom K

Love this one re India and gold:

Hi Bill,
thanks for publicising the Indian paper-gold story

http://www.iht.com/articles/2005/03/15/news/gold.html

I have it on reasonably good authority now that Indians will laugh this one out of town: I passed this article by my Indian housemate, who has been in Sydney only for a year and is still very connected to Indian culture, and she says no one is going to fall for this. She filled me in about Indian marriage rituals: the bride's dowry is, per a new Indian law of maybe 5 years ago, hers for life, and if the marriage breaks up, she'll get to keep all of it.

Traditionally the bride and groom perform a kind of dance around a fire, the central piece being seven steps, on each of which the bride is being gifted a piece of jewellery - imagine a change of tradition: here's a gold certificate my dear child - and here another one - ... ain't gonna happen. And this is all new gold, since a woman very rarely gives her jewellery away. It is for a reason that the gold market watches the Indian marriage season (October through February). Also, in the olden times, both families donated gold, which was melted together to make the marriage rings - isn't that wonderful!? These days the families donate money and the couple goes and buys - jewellery. So the physical metal demand increases even more.

The whole paper-gold idea may be just another case of Western cultural insensitivity and hubris, and the naïve and desperate belief in another "liberation" effort. We'll see how this flies, or crashes.

My housemate was only surprised that there are supposed to be $200 bn worth of gold in private Indian hands - but then that converts to just 0.6 ounces per head, at today's prices. That does sound realistic.

I wish you guys much success for the Gold Rush conference, and, as I've written to Ed Steer before, look after yourselves and don't get yourselves blown up or something - because you know how powerful and ruthless your adversaries are, and the headwind is going to get stiff as GATA really gets rolling and people start paying attention.

Cheers,
Jan Burke in Sydney

Some insight into Asians and gold, as well as the Chinese economy:

Thanks Bill,
I'll do my best on Gold Rush 21.

By the way, I recently moved to Singapore to pursue an MBA in International Business. Talking to other students (mostly Indians and Chinese) and regular people here, it's incredible how many of them are totally convinced of the precariousness of the whole financial system. Most of them hold physical gold, and those who can't afford it, say that they will as soon as they have some savings (you have to imagine that most people in Singapore have 2 low-wage jobs just to stay afloat). Gold is regarded as the ultimate wealth safe-box.

The Indians laugh at me when I ask them about the paper-gold idea.... I had a long taxi ride with a Chinese driver who knew more then me about the whole gold manipulation issue. That was really satisfying, after several years of total indifference in Europe.

Regarding the Chinese economy, all seems well, except for the fact that most big companies were State Owned Enterprises, and today still hold the burden of many decades of free loans and mismanagement. The economy will keep expanding, but the stock market is extremely dangerous (this was suggested also by several professors I know). The point is that the equity structure is pretty complex for every company, since there are several types of shares, of which most are not tradable. The Government aims at further relaxing the regulation, at which point some of those shares will hit the markets resulting in a crash. This has happened already a couple of times before and will certainly happen again. Another point is that most firms cooked the books in order to have a good IPO, and now they can't show growth anymore. It's a dangerous place... I would leave it to the Chinese pros... Well, as Richard Russell says, let's see what tomorrow brings. Cheers Chris

Why betting on sound gold exploration companies will eventually prove to be a mega investment winner:

Hi Bill, trust you’re doing well.
I just wrote a piece yesterday to a couple of petro-geo friends of mine about these topics! There are very few "giant" undeveloped gold and silver deposits out there today, and these are what the big companies are looking for. A case in point is Barrick’s Pascua deposit in Chile/Argentina (ore in Chile; waste dumps in Argentina). It’s a big deposit, but a large engineering firm gave them a cap cost estimate of something like $1.4B to put it into production. Too much money to fund at the time. Does one want to put the entire company in jeopardy for the sake of one mine? Barrick never made any real money on Pierina, despite the hype and moderate gold grades; too much money paid out in stock to buy the property. Ironically, certain of the exploration plays are really where one should put money to work. For certain of these companies are focused on finding high-grade metal deposits, the only ones that will have "real" profit margins. One just has to do more work to find those exploration companies!
Best regards, Rick

My kind of guy:

hi again bill, these guys running "our" gold mining co. are like "deer in the Headlights" when it comes to understanding that a cartel is controlling the price of gold and silver!!!! i mentioned to the cfo of ========= mines, that anyone in his business who did not understand that precious metals have been manipulated for years, had a brain, the consistency of hot oatmeal! I was being generous! further, as i was a significant shareholder in his establishment, i recommended that he get his goggles, snowshoes, and santa outfit, and head for dawson city, yukon, as it was a stones throw from where he parked his fat butt. i further gave him the gift of light and understanding, by suggesting he click on lemetropolecafe, where bill murphy and friends would educate him on matters of suppression!!! i further told him that if his name was not on the attendant list of bright eyed and bushy tailed guests at "gold rush 21", he would find out what suppression felt like, when i sold my #%&%#** shares in ========mines!!!!!! i further assured him, that his next accounting job would probably be counting sheep in the australian outback!!!!! last i heard he was starting up his snowmobile heading your way!!! look for the brown trail! best to us all,

ECU Silver (33 cents Cdn) news:

ECU Silver Mining, Inc.: Press Release-Completion of Phase II Mill Expansion and Initiation of Phase III Program

The Company also wishes to state that it is active in pursuing large acquisitions in the area, designed to eventually gravitate the Company to becoming a mid-sized producer.

http://biz.yahoo.com/ccn/05031…3ac2c8b4d085194739_1.html

-END-

If there was any good news on the gold/silver front today, it was how well the shares held up under The Gold Cartel onslaught. The XAU actually rose .16 to 101.60, while the HUI only lost .06 to 220.15 and closed above 220 key support. No doubts about it … superb action.

What could be the reason? You never know for sure. However, I am sticking with my gut. The problems out there in US financial land are staggering. The likelihood of severe stress hitting our markets in the near future is highly probable. Long lost fear of loss of capital will return to the average psyche.

The Fed is in a dilemma. With commodity markets and real US inflation on fire, they should raise rates sharply. However, if they do the US stock and real estate markets could get severely whacked. And if the action of AIG, GM and FNM are telling us what I think they are, there is a derivatives debacle brewing. To raise rates sharply could set off the derivatives neutron bomb, just as a soaring gold price should. Thus the Fed is in a pickle.

However if markets unsettle further and fear takes over from greed as the investment emotion of the day, more and more investors all over the world will run to gold – especially with commodity markets as a group on such a run.

My guess is The Gold Cartel knows this and has begun to buy gold shares again. It is either them or others who see what I see in the markets. If all heck breaks loose as I believe it will, the cabal will probably lose control of their fraudulent price-capping scheme. At that point gold could rally $100 per ounce in a week, overnight maybe. The gold and silver shares will go ballistic.

This is why it is so important to keep in mind:

GATA BE IN IT TO WIN IT!

MIDAS

Appendix

New French gold site:
HI,
Dear Bill and REG, here is a new french instrument for GATA supporters =>

I am glad ( and proud) to present you our creation...

The only french Gold, silver and mines website...it's not a personal page anymore, but a real site, (with several private forums inside)....and it is a pro GATA one...!

HARDINVESTOR

http://000999.forumactif.com/

As you'll be able to see, we (mary and me) have put several direct and indirect links which lead to gata and gata supporters...goldensextant, etc...

we are not used with html programming, so it's been a very hard work for both of us two.

We hope it's worth the energy we spent...feel free to comment .

I dared put lemetropole and goldensextant in partner sites, we hope it's not a problem for Reg or for you, if it is a problem, feel free to signal it.

There's a part of our posts which are in free access...for example our initiative to relay GATA's campaigns... as the letter to send to mines board about your Klondike's conference, news about Banchard vs barrick and jpm, etc...

It's an evolution of the private gold forum of actibourse that we left in february 2005...

It's very hard for us to promote our site in France (and gata's thesis) ; because of the censorship and sabotaging we are exposed to on the main financial francophone site: boursorama.com

So, if you consider that our new site is credible enough to be add in the list of your partners, it would be a great honor for us.
------------------------------------------------------------------------------------------------

If you decide to accept, here's our logo:

http://img29.exs.cx/img29/650/vraihardlogopourmidas6fr.jpg

the presentattion text should be both in french ( for the canadian quebec cousins) and in english:

" Hardinvestor est un site français gratuit fondé et animé par des passionnés qui supportent de longue date des theses du GATA. Ce portail en français comporte plusieurs forums thématiques (dont une partie est en lecture libre) consacrés principalement aux métaux précieux, mines et physique, mais aussi OIL et Gaz. L'acces aux forums privés s'opère uniquement par parrainage".

Hardinvestor is a french free site, founded by some old gold and silver bugs who share a real passion for the GATA's thesis. This portal contains several thematic forums ( with a part in free reading without membership request) about PM's (mines and physical), but also OIL and Gaz. The access to the several private forums is possible only by the sponsoring of a veteran member."
---------------------------------------------------------------
Wathever will be your decision on this topic, we will, off course, continue to promote your marvelous and impressive work, and to support the camp of truth.

Best regards and congratulations.

GO GATA...Bury the Cabal...GO GOLD...!!!

@ Freunde der Le Metropole-Texte:

Ab nächste Woche am Dienstag muss ich für ca. 2 bis 3 Wochen beruflich ins Ausland und werde in dieser Zeit keine Möglichkeit haben, die Texte aus dem James Joyce Table hier zu posten.

Sollte jemand die Möglichkeit und die Zeit finden, sich in dieser Zeit vertretungsweise (bspw. per Testabo) im Le Metropole anzumelden und den "Service" weiterlaufen zu lassen, wäre es sehr schön ...

Viele Grüße
Schwabenpfeil

March 18 – Gold $438.80 up 70 cents – Silver $7.35 down 1 cent

You Have To Be Out Of Your Mind To Be Short Gold – Either That Or Clueless

"Borrowers will default. Markets will collapse. Gold (the ultimate form of safe money) will skyrocket." - Michael Belkin

For the second trading session in a row, the action in the gold market was unusual and could bode well for its price in the near future. Yesterday, it was the senior shares coming back to the unchanged level with gold down $5. Today, it was gold’s ability to bounce back when the dollar was sharply higher. When the dollar was down .60 and the euro up over a full point, gold could have collapsed with the funds as long as they are. Instead it turned around after slumping to $435, down $3. Gold recovered first, then the euro followed to eventually close down .55 to 133.43. The dollar rose .29 to 82.10.

You Have To Be Out Of Your Mind To Be Short Gold – Either That Or Clueless

Why that title today:

It doesn’t mean someone won’t make money on the downside in the near term. What it does mean (IMO) is the risk of being short now versus the upside potential is beginning to go off the charts. Gold could potentially drop another $10 to $30. However the upside risk for shorts is $100 to $300, or more.

The reason for stating this is the increasing likelihood of a derivatives neutron bomb going off in the weeks and months ahead. There are signs here and there one could be brewing – the most visible ones being the collective crummy action of derivatives-laden corporations like Fannie Mae, AIG, and GM. Then you have the lousy stock market action in general (new DOG lows for 2005 were hit today) and the gargantuan effort of The Gold Cartel to prevent gold from taking out the $445 level. This highly visible effort by the cabal suggests something is very wrong behind the scenes and that they are petrified a soaring price of gold could exacerbate some big problem out there in financial land.

Bombs, such one that might be brewing, are not announced in advance. They just go off. Most all market participants are caught unaware and are shocked, after efforts to solve the problem behind the scenes fall apart. Usually, it then precipitates some kind of market panic.

The investment world is aware of our fiscal deficit problems, consumer debt levels, soaring commodity prices (led by oil), etc. However, most are unaware of the enormous level of market rigging undertaken by The Working Group on Financial Markets. Without getting in to all that again, the result of the market manipulations have been calm, steady US financial markets. Downside volatility in the stock and interest rate markets has been reduced so much that market participants cannot conceive of a calamity anymore. They have been set up for one like never before. When it comes, the surprise will be greater than in 1929. It will be like the Titanic hitting and iceberg and going down. The unthinkable.

One of the great shocks will be what the price of gold does. As the GATA camp and Café members know, the price has been managed and kept artificially low for more than a decade. To achieve their mission the crooks have lent/swapped more than half of the central bank gold the world thinks they have. That half is gone and they cannot get it back – or I should say, at this point they can’t get it all back any price less than say $1500 per ounce. These haughty central/bullion bankers would have to be bailed out by the peasants of India turning in their investment jewelry in the form of scrap. Even then it would take months, years to refine it all.

This is not going to happen. Yet, it gives you some idea of the magnitude of the problem the major gold shorts have. A substantial portion of the gold shorts are tied to derivatives in some manner. Should a derivatives neutron bomb go off somewhere in the financial world, it will have to affect entities carrying gold derivatives who have upside gold exposure. If even a small portion of the shorts try and cover, along with new investment demand around the world, the gold price will go bonkers, increase the gold option volatilities, and set off the Gold Derivatives Neutron Bomb. It is for this reason The Gold Cartel instituted their $6 Rule years ago. IT is their worst nightmare.

In my Wednesday MIDAS I stated:

"The gold price is rigged. The upside, until The Gold Cartel is sent to a firing squad or the gold derivatives neutron bomb is in the process of going off, is nil at present."

Gold then dropped $5 like a stone on Thursday. Certainly, while disappointing, it was no surprise. It was clear The Gold Cartel was not going to let the price go up no matter how high oil went, how high the CRB went, how low the dollar fell, and how much the funds were buying.

To give you some idea how aggressive The Gold Cartel selling has been, the large specs increased their net long position by 40,645 contracts and that was prior to Wednesday when they stopped the price rise dead in its tracks. This is the same fund buying which sent oil and soybeans soaring. But not gold, for it is a corrupt managed market.

We shall see on all this. All I know is you couldn’t pay me to be short gold.

OL' FOGGIE gives us some idea what kind of risk the gold shorts are looking at:

Bill;

Your median Gold price comparison $620, (1980) with CRB converted to the equivalent to today’s inflation adjusted labor dept. gold price would be $1434. We are being beat out of approx. $1000 on each ounce of gold we might own. Yikes!
OL' FOGGIE

The Gold Cartel is going to go all out to wipe the funds out again. For that not to occur, gold must clear $440 quickly and then take out $445 soon thereafter.

The John Brimelow Report

Could this time be different?

Friday, March 18, 2005

Indian ex-duty premiums: AM $6.49, PM $8.23, with world gold at $439.20 and $436.40. Adequate, and lavish, for legal imports. This is basis Bombay, usually said to be the biggest bullion entry point for the country. The other cities Reuters reports were not quite as exuberant (possibly because world gold was volatile during the Indian afternoon) but were generally quite conducive to importing. It appears India is a serious bidder for world bullion below $440.

Japan’s response to gold’s drop yesterday was minimal. On virtually unchanged volume equal to 13,428 Comex lots, open interest did edge up 422 Comex lots equivalent; Mitsubishi’s data implies the public added 1.1 tonnes to their long. The active contract closed down 8 yen, but world gold stood 65c above the NY close at the end. Japan is closed on Monday. (NY yesterday traded 82,581 lots - heavy, even netting out 10,580 for switches. Open interest slipped 398 lots to 335,132.)

Shanghai, if the data is to be believed, responded with more enthusiasm than Japan. Premiums of $3.32 - $3.50 were $2.50 or so above yesterday, with world gold $4.90 lower. Yesterday, of course, saw a serious assault on gold. As Rothschild reasonably remarked:

"Having failed to break through resistance at US$445 traders became weary of remaining long and took profit."

Scotia Mocatta’s version was:

"Funds and dealers were both sellers of the metal and there were very few bids around until we saw the 440.00 level. Gold found some support in this area, but soon broke through with stops being hit. From here, it traded down to a low of 437.10/437.60 with some decent physical buying going through."

Mitsui-NY explicitly says

"Yesterday the broker who was the featured buyer a weak ago turned seller of 2,500 contracts on the Comex."

The fact that open interest fell so little with such extensive (and plausible) talk of stops being hit suggests that, as suggested yesterday, predator funds were shorting in reaction to the large scale seller detectable this week c. $443. No doubt some longs were faltering too. Refco Research observes:

(Gold’s) "failure to pierce 445 resistance and subsequent retreat through 440 support suggests fund interest has waned for the moment in the face of some determined dealer selling."

All this being so gold’s recovery in the face of the dollar’s rally this morning (which followed a softening in gold in a pattern noticeably common nowadays) is rather surprising. Could it be that the cycle of liquidation which normally follows the re emergence of the resolute seller has been short-circuited? Reuters found a London trader this morning who appeared to think so:

"Yesterday fund liquidation took it down, but there were funds buying it as it came down. We're seeing a repeat of that …"

2005 seems likely to be a year to remember.

JB

CARTEL CAPITULATION WATCH

How about the DOW? Yet another Hail Mary rally in the last half hour. The PPT saved the day again just went it looked like the US market was going to break down in a substantial way. The DOW closed at 10,629 UP 3. The DOG finished at 2008, down 9, after making new lows for the year.

While I now hear this news was out all day, I only heard about it after the close:
Week of Horror for Doral

By Matthew Goldstein
Senior Writer
3/18/2005 3:58 PM EST

Puerto Rico-based mortgage lender Doral Financial (DRL:NYSE - news - research) has had a week to forget.

Heading into the close of trading Friday, shares of the bank were getting crushed, falling $6.34, or 24%, to $20.05. For the week, the bank, which is one of Puerto Rico's biggest mortgage originators, has plummeted 48%.

The selling in Doral has accelerated throughout the week, following a series of analyst downgrades because of concern about the bank's aggressive use of derivatives to hedge its mortgage portfolio against interest rate fluctuations. The downgrades were prompted by a series of disclosures in the bank's 2004 annual report, which revealed that Doral has been making more aggressive valuation assumptions than previously believed.

http://www.thestreet.com/_tscf…ketfeatures/10213971.html

-END-
Talk about waterfall charts (punch in DRL):

http://new.stockwatch.com/swnet/default.aspx

On that score talk is surfacing of some problems at Citigroup. Just talk at this point.
Crude oil continues its run for the heavens. It went up another 32 cents per barrel to $56.72.

The US economic news continues to be lousy:

17:58 Semi equipment book/bill 0.78 in February vs StreetAccount consensus 0.79
* * * * *

18:00 Follow-up: Semi equipment book/bill 0.78 in February vs consensus 0.79
February bookings rose 3.9% vs a StreetAccount consensus of (8.2%); billings rose 4.6% vs consensus (6.3%). January was revised to 0.78 from 0.80.
* * * * *

08:30 Feb. Import/Export Prices reported 0.8% vs. consensus 0.6%
Prior revised to 0.7% from 0.9%.
* * * * *
09:48 Univ. of Michigan Consumer Sentiment reported 92.9 vs. consensus 94.9
Prior 94.1.
* * * * *

GM and Fannie Mae both recovered somewhat today. AIG was hit for another buck. Commentary on AIG yesterday.

"AIG lost 2.10, or 3.3%, to 60.80, the worst performer on the Dow. The giant insurer said it wasn't able to file its annual report on time because of management changes and its continuing internal review of the accounting for some transactions. The management changes include Monday's naming of Martin Sullivan as the company's new chief executive, succeeding Maurice "Hank" Greenberg."…-END-

This means both AIG and Fannie Mae are not able to file their annual reports on time.

Chuck checked in earlier:

Bill:
I'll try to send something later. But you hit upon it yesterday with the declines in those three stocks. Now throw in Citipuke today. The technicals of this market have changed dramatically. The selling has been almost the mirror image of the high Tick figures that dominated the market even during the decline of 2001-2002. We could see something very scary soon. Stay on top of the financials and real estate related shares here and see if the very short-term rates continue to climb. Notice that no one is really bearish here even among the bears. Chuck

You will want to take a gander at Jesse’s charts:

A closer look at the market break of 1987. The case for Fed 'manipulation?'
http://www.100megsfree3.com/jessel/dow1987CrshTrk.gif

As always, those lesser known facts at Jesse's Charts
http://www.geocities.com/arthurcutten/jesse.html

-END-

One to keep an eye on:

SPEAKING FREELY
Resurgent Russia challenges US
By Jephraim P Gundzik

Washington's "war on terrorism" is designed to militarily establish United States economic and geopolitical hegemony on a global scale. Rather than subduing Russia, the "war on terrorism" is encouraging Moscow to strengthen its relations with Washington's prominent foes. The war is also supercharging Russia's economy. Over the next four years, Russia will increasingly challenge the foreign policy goals of the Bush administration.

http://www.atimes.com/atimes/Central_Asia/GC18Ag01.html

-END-

Oil and gold:

Bill,
I think what has happened in the oil market is astounding and should have parallels in gold & silver soon. Only a few weeks ago energy analysts and OPEC were publicly blaming speculators for driving up the market and saying that there was ample supply in the market. Just a few weeks later this rhetoric has completed evaporated and there is admission of the stark reality that demand is rapidly getting ahead of supply. It is true that the parallel futures and derivatives paper market can affect the price because it affects the APPARENT SUPPLY but it sure as hell doesn’t affect the real supply because the speculators never take delivery nor do they have inventory.

We have had the same thing in gold and silver going on. The paper market controls the price by apparent supply and demand. The Cartel bombs the market by selling a bunch of promises to deliver gold making it look like they have plenty of gold to deliver. Of course they don’t but it works every time and the longs never call their bluff. The longs dump their promises to buy and the Cartel buy back their promises to sell at a profit. The difference with the oil market is that the speculators through CB leasing have had access to real supply to make their scam more effective. As we now know they have almost run out of available supply so they are very much into the same scenario as the oil market speculators. This supports what you have long said that it will be the physical market that does in the Cartel but I think it is interesting for Café members to see how fast one can move from the parallel paper market controlling prices to the actual supply shortage of the underlying physical market controlling prices AND being openly admitted.
Cheers
Adrian