Interviewed today by Daniella Cambone of Kitco News, veteran trader Vince Lanci of Echobay Partners in Stamford, Connecticut, says "flash crashes" in gold and silver are caused largely by computer trading algorithms probing for stops in the futures markets. Lanci says he considers this to be market manipulation and notes that manipulation of the gold and silver markets already has been admitted in the pending anti-trust lawsuit against Deutsche Bank and other investment banks.
Cambone asks whether governments might be behind the "flash crashes" but Lanci does not address that detail. Could governments and central banks be operating those pesky algorithms too?
Surely there are many specific questions that could be put to governments and central banks about surreptitious intervention in markets, questions drawn from documents compiled here:
http://www.gata.org/node/14839
After all, for example, the director of market operations for the Banque de France says his central bank is surreptitiously trading gold for its own account and the accounts of other central banks "nearly on a daily basis." Is that trading just for fun or does it have some policy purpose, like the longstanding Western central bank policy of driving gold out of the world financial system, a policy documented extensively in government archives, as it is documented here?:
http://www.gata.org/node/13310
Filings with the U.S. Securities and Exchange Commission by CME Group, operator of the major futures exchanges in the United States, show that the company's clients include governments and central banks and that CME Group offers them volume discounts for their surreptitious trading:
http://www.gata.org/node/14385
http://www.gata.org/node/14411
Is this trading just for fun or does it have some policy purpose too?
But if they are to be posed by mainstream financial journalists and fund managers, such questions apparently will have to wait for another day -- or month, year, decade, century, or millennium.
Kitco's interview with Lanci is headlined "There's No 'Fat Finger' But Gold Manipulation Is Happening: Vince Lanci," runs for eight minutes, and can be viewed here:
http://www.kitco.com/news/video/show/Kitco-Ne...-25/Theres-N...
