Sunday, August 31, 2014

Manipulations watch ( August 31, 2014 ) - " There are no markets , just manipulations " ( in gold , silver , FX , equities ( and the Central Banks are the Ring Leaders....Consider the following from GATA !

From Gata.....



Central banks get discounts for trading EVERYTHING through CME Group and Comex

 Section: 
8:45p ET Saturday, August 30, 2014
Dear Friend of GATA and Gold:
When a high school graduate told GATA's conference in Washington six years ago that "there are no markets anymore, just interventions" --
-- he didn't know the half of it.
For Zero Hedge reports tonight --
-- that Eric Scott Hunsader, founder of market data research firm Nanex in Winnetka, Illinois (http://www.nanex.net), which exposed the algorithm trading responsible for the flash crash in gold futures on January 6 this year --
-- has discovered documentation at the U.S. Commodity Futures Trading Commission showing that CME Group, operator of various futures markets, including the New York Commodity Exchange (Comex), has been providing to central banks outside the United States, since at least July 1, 2013, a program of discounts for trading equity market, bond market, and commodity market futures, including gold and silver futures.
The documentation consists of a letter, dated January 29 this year, from CME Group's managing director and chief regulatory counsel, Christopher Bowen, notifying the CFTC of changes to the discount trading program for central banks. In his letter, Bowen insists, "The program's incentive structure does not impact the exchanges' ability to perform their trade practice and market surveillance obligations under the CEA [Commodity Exchange Act]. The exchanges' market regulation staff will monitor trading in the program's products to prevent manipulative trading and market abuse."
The letter is posted at the CFTC's Internet site here --
-- and, for safety's sake, at GATA's Internet site here:
Of course the CME Group letter does not say that any central banks have actually been using the trading discount program. But it does confirm that the trading mechanism has been established, and presumably it would not have been established and maintained if there had been no interest among central banks. In any case more documentation is available, as the CME Group letter says: "The program is subject to the exchanges' record retention policies which comply with the CEA."
That central banks are active in the currency and government bond markets long has been grudgingly acknowledged. GATA has documented extensively the surreptitious interventions of central banks in the gold market:
And now the CME Group filing with the CFTC indicates that central banks are surreptitiously active in the markets comprehensively,bringing their power of infinite money creation to bear against ordinary market forces and ordinary investors -- without even telling them.
Those who expect the stock market bubble to pop may want to reconsider as long as central banks are prepared and equipped to buyeverything.
This dispatch will be sent separately to representatives of most major Western financial news organizations. Will even one of them decide that comprehensive surreptitious market intervention by central banks is news?
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.





New silver fix mechanism won't stop futures price suppression in New York, Speck says

 Section: 
1:39p ET Sunday, August 31, 2014
Dear Friend of GATA and Gold:
Manipulation of the silver market has been greater than manipulation of the gold market, financial researcher and GATA consultant Dimitri Speck remarks in an interview with Gold and Silver Worlds. He adds that this manipulation is not likely to be eliminated by the relatively minor changes in the mechanism used to establish the benchmark price in London, since the manipulation is heaviest in the futures market in New York. The interview with Speck is headlined "Can the New Silver Fix End the Ongoing Silver Price Manipulation?" and it's posted at Gold and Silver Worlds here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Promoting his new book, Rickards details the furious international currency war

 Section: 
12:40a ET Sunday, August 31, 2014
Dear Friend of GATA and Gold:
Geopolitical analyst and fund manager James G. Rickards has gotten together with the Money Morning people to produce a 45-minute video commercial for his latest book, "The Death of Money," but the commercialism can't obscure Rickards' compelling description of the currency war that is raging around the world, if largely beyond the gaze of the mainstream financial news media. Even those who know the basics about the war may be intrigued by some of the details described in the video. It's posted here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.






Koos Jansen: Precious metals markets -- China vs. U.S.

 Section: 
11:55a ET Friday, August 28, 2014
Dear Friend of GATA and Gold:
Gold researcher and GATA consultant Koos Jansen today compares the growth of China's gold and silver markets to the Comex futures market in the United States, noting that the governor of the People's Bank of China says "gold still bears the marked nature of money under the modern financial system." Jansen's analysis is headlined "Precious Metals Markets: China vs. U.S." and it's posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.





GoldCore: Referendum on Swiss gold would repatriate it from UK, Canada

 Section: 
4:10p ET Thursday, August 28, 2014
Dear Friend of GATA and Gold:
GoldCore's daily commentary today remarks on the impending gold repatriation referendum in Switzerland and notes that much Swiss gold is vaulted at the Bank of England in London and the Bank of Canada in Ottawa, the latter bank vaulting gold for three other nations as well:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.




Digital currency is Ecuador's scheme to increase money supply

 Section: 
Ecuador to be First Country to Issue Its Own Digital Currency
From The Associated Press
via South China Morning Post, Hong Kong
Friday, August 29, 2014
QUITO, Ecuador -- Ecuador is planning to create the world's first government-issued digital currency, with some analysts saying it may be a first step towards abandoning the country's existing currency, the US dollar -- which the government cannot control.
The virtual currency, which central bank officials say they expect will start circulating in December, does not yet have a name. Officials would not disclose technical details of the currency, but said it would not be like bitcoin. The amount of the new currency created would depend on demand.
Deputy bank director Gustavo Solorzano said the currency was to exist in tandem with the greenback and, by law, be backed by "liquid assets". It would be geared toward the 2.8 million Ecuadoreans -- 40 per cent of participants in the economy -- too poor to use banking, officials say.
They would initially be able to use the currency to make and receive payments using cellphones, said Solorzano, at minimal cost. Such payment schemes are already popular in African nations Kenya and Tanzania, where they are privately run.
The new currency was approved, and stateless crypto-currencies such as bitcoin simultaneously banned, by Ecuador's National Assembly last month in a new law.
President Rafael Correa has said the project's only problem was that it had taken this long, defending it against "pseudo-analysts who have appeared in the media trying to smear it." He denied any plan to replace the US dollar, which Ecuador set as its currency in 2000 after a crippling banking crisis.
The official in charge of the new currency, Fausto Valencia, said the software was already used in Paraguay by cellphone firms.
He said the planned currency was not like bitcoin, whose advantage is in its technical underpinnings: only a limited amount of bitcoin can be minted.
Without that safeguard, economists have warned, a government could theoretically create as much as it wanted.
Nathalie Reinelt, an emerging payments analyst with the US-based Aite Group, suggested that the only motivation for creating such a currency was to allow Ecuador to increase its money supply and devalue its US dollar holdings.
"It is far too early to know how they are thinking of making the electronic money work," said analyst Juan Lorenzo Maldonado of Credit Suisse.
Some believe it could be a first step in abandoning the US dollar, but Correa denies this.
His government has tripled social spending.
It "has a serious fiscal liquidity problem. It needs money", said opposition lawmaker Ramiro Aguilar.
"It doesn't mint money. It has no control over what circulates."
The state is currently US$11 billion in debt, mostly to China, which buys much of Ecuador's oil. It recently sold US$2 billion in bonds with a 7.95 per cent return, as well as obtaining another US$400 million from Goldman Sachs in exchange for part of its gold reserves.
Use of the currency will be voluntary and it will not be used to pay public employees or contractors, according to the law. Nor can it be used to buy government financial instruments.




Koos Jansen: Chinese weekly gold demand highest since February

 Section: 
1:35p ET Sunday, August 31, 2014
Dear Friend of GATA and Gold:
Offtake from the Shanghai Gold Exchange for the week ending August 22 was the most in 25 weeks, gold researcher and GATA consultant Koos Jansen reports today. He estimates that the gold reserves of the People's Bank of China likely have reached 4,000 tonnes, while admitting that he has no hard data indicating such a total. Jansen's commentary is headlined "Chinese Weekly Gold Demand Highest Since February" and it's posted at Bullion Star here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.