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A recurring theme of mine – particularly since
“D-DAY,” i.e. November 9, 2010 – has been the complete
takeover of U.S. financial markets by the government. Not that they tell
you thus, but the evidence could not be more
abundant or telling. I make this point to emphasize the eminent danger of
“investing” in a market not only rigged by malicious ALGORITHMS,
but completely devoid of human representation. This is particularly true in
the PM mining shares, which not only have seen reduced volume via the general
trend of reduced equity investment, but have been specifically “marked
for death” by the gold Cartel.
Since I have discussed the latter theme incessantly,
I will not do so here. Instead, I want to bring to your attention two
fantastic articles about the “death” of the U.S. equity markets,
the first citing specific, technical “PROOFS” of the
phenomenon…
Why The Market
Is Slowly Dying
…such as the 50% decline in trading volume
over the past two to three years…
…and the 80% decline in average trade size,
care of HFT (High Frequency Trading) ALGORITHMS that primarily operate in 100
share blocks…
And next, a “layman’s explanation”
of why the market is dying, care of analyst extraordinaire Bill Holter:
Volume speaks louder than words – Bill Holter
To all; in an interesting story http://www.bloomberg.com/news/2012-04-13/trad...test-trade.html
the “locals” (local traders) walked out of the Eurodollar pit
in protest of non other than manipluation
and the cessation of the rule of law. Even after the protest, a CME spokesman
said and I quote from the article “The block trade in question was
managed by longstanding rules and processes of our exchanges,” Michael
Shore, a CME Group spokesman, said in an e-mail. “It was a legitimate,
well-managed trade, which was executed within one tick of the market and in
one trade.” In brief “street speak”,
what he said was this, “the trade was pre arranged
and only broke the law by one tick, it’s been done for years,
what’s the big deal?”
I bring this to your attention because
“manipulation” of every market on the planet has been alleged for
years by myself and many other “conspiratorial
nuts” that came to the same conclusion through common street sense. In
this instance, we have traders who work on the floor and have witnessed and
experienced (read FLEECED) the manipulation and illegal activity and
apparently had had enough. While reading the brief article it struck me like
an obvious 2 by 4 smack in the head, “volume has dropped because the
Fed has locked rates down at zero %.” Of course, Eurodollars
won’t move if the central bank locks down rates, people get bored and
move elsewhere so volume drops, THIS is not the drop in volume that hit me
over the head. Volume on the day naturally dropped because local traders
walked out in protest and refused to be fleeced.
Do you see where I am going? Trading in the equity
markets has been pathetic for over a year now and continues to decline. My
thoughts on this subject had been all over the place. Volume was declining
because the economy was and had slowed which was not generating enough cash
flow to enter the market. Debt levels were atrocious and syphoned capital to
service debt that otherwise would have made its way to the equity markets.
Another thought was that the outflow from mutual funds was the result of the
poor economy and debt loads, so the little guy was pulling out of the market
by necessity. All of these probably true to some extent. But here is where I
was shortsighted, maybe the lack of volume is because the average person
understands, no, KNOWS that the whole game is rigged? Maybe the average
person is “taking their ball and going home”? Maybe they have had
enough? Not everyone of course but “on the margin”, and it is
this “margin” that counts the most. It will surely count the most
if this “margin” is expanding, it will count if more and more
people become more and more “disillusioned” (enlightened?).
Switching gears on the same path, I for one would
love to see the volumes traded in the COMEX Silver and Gold pits dry up like
a south Texas creek in August. If people would just not try for the leveraged
home run by using levered contracts and instead just paid cash and
…only carried 10% of the real deal away from the alleged inventory, we
would see immediate results! Paper markets can and have always been
manipulated for huge percentages, more so now than in the old days because of
the use of leverage. Cash markets however are different. You pay your money
and carry the product. Not that these can’t be nickel and dimed but not
to the extent as purely paper markets. If investors would just plow their
cash into physical product and take power away from the hucksters at the
COMEX, the current charade of low prices and plenty of inventory
would be exposed. This by the way WILL eventually happen,
it has already happened to some extent on the margin. You can be a part of
this expanding margin and help or you can be a part of “their”
margin and continue to be fleeced. Take delivery!
The primary reason I write these missives is to help
PROTECT you from the ongoing GLOBAL ECONOMIC COLLAPSE that will NOT stop
until the system melts down and “reboots” with new leaders, a
gold-backed currency, and regulations that will NEVER let such abuses occur
again – at least not in our lifetimes. Until then, the world will still
be run by vicious sociopaths with unlimited checkbooks of PRINTED MONEY and
governments and regulators in their pocket.
If you play in their unregulated casino, you will
LOSE, just as millions have done so in the past decade in stocks
– particularly PM miners – as well as corporate, municipal, and
sovereign bonds, and real estate. I was a professional equity analyst for 15
years, and until last year held most or all of my assets in stocks. However,
due to “THE DYING MARKET,” I sold my last share last summer,
never to return. I now sleep better than ever knowing my PHYSICAL gold and
silver are the only assets the Cartel CANNOT steal from me.
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