Who really pays?

Who is really paying for the bail outs? Like many gold investors I believe it will ultimately be the invisible tax of inflation through money printing, but in the short term another another funding mechanism is obvious.

If you subscribe to the notion that all markets are now manipulated (which I do), then it is likely that the US government is profiting from this in conjunction with the banking cartel of JP Morgan, Goldman Sachs, Bank of America, HSBC etc


Oil $145 -$70
Silver $21-$9
Gold$1030-$750
Soybeans$1500-$800
Commodity Stocks -50-70%
PM stocks -60-80%
US dollar +20%

If the government had advanced knowledge of price direction, simply taking a leveraged bet across these markets could raise hundreds of billions dollars, all at the expense of hedge funds, sovereign wealth funds and anyone short US dollar and long any type of commodity position. JP Morgan’s timely entry as a major short in the Silver market in July is a good example.

Suddenly some things start to make more sense ie uptick rule, naked short selling, CFTC/SEC blindness, futures margin rate changes etc etc

The US government has done a great job. Supported US dollar, wounded the Russians economically, hammered inflation, bailed out its banking masters and made a substantial profit all at the expense of commodity investors.

However this is only one battle within a much bigger war. Manipulation can only ever work on a short term basis, markets always win in the end. The last few months have been brutal but gold and other commodites must go higher. View price takedowns as a gift. Accumulating great commodity assets on substantial discount is a wonderful way to create long term wealth.