Busting Comex?

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LogansRun's picture
LogansRun
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Busting Comex?

http://www.gold-eagle.com/editorials_08/willie052709pv.html

 

If true, everyone in gold/silver will be jumping for joy.  Should be interesting.

Mike Pilat's picture
Mike Pilat
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Re: Busting Comex?

I read this article on the Silver Bear Cafe.

Right now, it's a little hard to see through some of the hype and speculation, but a not-so cloudy picture is continuing to form with more and more nations hoarding gold or demanding their holdings back from storage overseas. We already know that the COMEX is a joke, I will be most curious to see what happens if/when foreign gold is demanded back from the United States, as is supposedly already occurring with Great Britain.

LogansRun's picture
LogansRun
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Re: Busting Comex?

Germany has already asked for all of theirs back and I haven't heard yet as to what % they've received....if any.  The Comex is a fruadulent entity that needs to be destroyed IMO.  The price of PM's (currency type/Au, Ag) are so underpriced to the US$ because of the fraud taking place.  Au/Ag IMO are priceless and will/should continue to be so.  The busting of CONEX will be the start of the justification titanic.

SamLinder's picture
SamLinder
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Re: Busting Comex?
LogansRun wrote:

http://www.gold-eagle.com/editorials_08/willie052709pv.html

If true, everyone in gold/silver will be jumping for joy.  Should be interesting.

LogansRun,

That was a fascinating read, but I'm a little confused on one aspect. Jim Willie makes the following comment:

The USDollar has broken below important support at 81. Expect it to fall further after more dithering.

However, when I look at the chart he posted (see below), it looks like the dollar was already broken down back in 2007 and continued that way until it strengthened in August of 2008 and continued that way up through November 2008. Since things were falling apart, big time, last fall, why would the dollar strengthen? What am I missing here?

 

Mike Pilat's picture
Mike Pilat
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Posts: 929
Re: Busting Comex?

I've now had multiple coworkers contact me re: this article. Apparently the notion of economic hitmen attacking the COMEX is a pretty big deal...I suppose this should be classified as a "rumor" right now, but it certainly doesn't strike me as outlandish for China to use a technique like this to deal the death blow to petro-dollar finance.

JAG's picture
JAG
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Re: Busting Comex?
SamLinder wrote:

 Since things were falling apart, big time, last fall, why would the dollar strengthen? What am I missing here?

Sam,

I think the general consensus as to why the dollar strengthened during that period was due to three factors:

  1. Massive deflation: Trillions of dollars of debt were defaulted on, decreasing the money supply.
  2. Safety Trade: Global demand for the USD went up as traders wanted liquidity in the midst of falling markets.
  3. Extreme Sentiment: To many people bet on continued USD weakness, thus the market moved against this widely held expectation.

Of all three factors, I think the sentiment factor could really be something to watch for again in the future. The expectation that the dollar will weaken significantly seems to be ubiquitous again.

 

Doug's picture
Doug
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Re: Busting Comex?
Quote:

Since things were falling apart, big time, last fall, why would the dollar strengthen? What am I missing here?

The USD is still the world's reserve currency.  The world, fleeing to safety, reflexively bought dollars sending the USD up despite a 3 or 4 year history of steadily declining strength.  There was simply no adequate replacement.  I think that's why China, Russia, Saudi
Arabia, Brazil and others are scrambling looking for an acceptable replacement and working with each other to trade in other currencies.  The days of USD dominance are numbered.

SamLinder's picture
SamLinder
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Re: Busting Comex?

Jeff, Doug -

Thanks for your responses. Perhaps a mix of all of those factors were in play. Certainly it is hard to know what is driving anything these days with so much going on!

LogansRun's picture
LogansRun
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Posts: 1443
Re: Busting Comex?

There's a double top in a short time period.  At least that's what my chart expert says.....and I'm not HIM.  Charts to me are ridiculous when making investments but again, only my opinion.

pinecarr's picture
pinecarr
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Re: Busting Comex?

Hi LogansRun-

   Good Jim Willie article.  I saw it on FinancialSence.com as well and had also thought about posting it!

   II have a strong affintiy towards Willie's articles.  I've often thought he tells a story that  "rings truer", ex.plains more of what I observe, and is more believable to me than the MSM.  Yet on the other hand, I "know" I  don't know how credible he is (yet).  A lot of what he says is not substantiated.  I've often thought that if I knew what he said to be true, then things would truly be scary! 

   But despite not yet having a solid sense of how credible he is, I keep coming back to reading his articles because they do ring true to me, and give me a source of {potentially true) insight that is hard to get from many sources.   I wish I did have a better sense of his degree of credibility!

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