Thoughts for the Week

by Michael Pennington 

FREDDIE, FANNIE and THE FEDIt seems to me that the FED is way too close to the financial markets, Wall Street and the elits in charge of them. They are too quick to jump in and respond to their pleadings for help using taxpayer funds that our politicians offer on a platter. The thing that bothers me the most is that the people being “saved” are the very ones who got rich off the backs of the public and their employees. Is there any question why all this greed and corruption continues? Those responsible for it are the very ones being rewarded for their corruption. Our markets will never be cleaned up until this changes. 

THE  SILVER and GOLD PRICE  MANIPULATION EXPOSEDMost of us are well aware now of the price suppression scheme orchestrated by the U.S. Central Bank. Well-known silver analyst Ted Butler deserves much of the credit for exposing the many illegal practices used to implement this fraud. In commentary published today, Butler examines data from the U.S. Commodity Futures Trading Commission and reports:“As of July 1, 2008, two U.S. banks were short 6,199 contracts of COMEX silver (30,995,000 ounces). As of August 5, 2008, two U.S. banks were short 33,805 contracts of COMEX silver (169,025,000 ounces), an increase of more than five-fold. This is the largest such position by U.S. banks I can find in the data, ever. “Between July 14 and August 15, the price of COMEX silver declined from a peak high of $19.55 (basis September) to a low of $12.22 for a decline of 38 percent. “For gold, three U.S. banks held a short position of 7,787 contracts (778,700 ounces) in July, and three U.S. banks held a short position of 86,398 contracts (8,639,800 ounces) in August, an 11-fold increase and coinciding with a gold price decline of more than $150 per ounce. “As was the case with silver, this is the largest short position ever by U.S. banks in the data listed on the CFTC’s [Internet] site. This was put on as one massive position just before the market collapsed in price.”Yet, the regulators turn their heads and ignore the most blatant evidence that the FED is orchestrating through their brokers such as Goldman Sachs, the late Bear Stearns and now their commercial banks who carry out their bidding to paper sell silver and gold into the market to drop the price. In spite of these derivatives being extremely risky and in spite of the fact many of these financial institutions are already insolvent, they know they will be bailed out by the FED regardless of the huge losses possible. How much more corrupt can things get? 

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