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First we start off with Currency Wars, then we have Golden Wars, now we have Legal Wars.
This is on top of the Military Wars, War on Drugs and Education. I guess he was bored, so The Fedi has just started a Legal War with China. This probably explains why 2 big mining companies from China (Sino Forest and Silvercorp -SVM) were attacked lately by shorts sellers and story tellers. Makes you wonder who really profited from the short selling and why?
I wouldn't doubt if we see The Fedi will declare an all out War on Humanity soon, just like he did in "Attack by the Fedi" on Gold. Get ready to be a total slave to your Fedi Master. This is sad. We as a society are letting this happen and we are partly to blame. In a way, I feel sorry for the Fedi, because he will never know how good things could have been if he would just stop all these WARS. He is more interested in Power and Control because he needs the salves to Fear him, that is his only weapon left and he may use it with full FORCE.  This was just sent to me by a close friend and mentor, I love reading his insights into how the Market works from his point of view. He sends me articles daily so I asked him to share some of his thoughts about the World Financial Market to our readers. The commentary below is what he sent me earlier today and it's a real EYE OPENER to how the financial markets work. Hopefully "The Silver Fox" will continue sending us this kind of insight, I highly Trust and Respect his knowledge and I am sure you will too. Submitted by The Silver Fox:
Some things never change - even in earliest days going back to opening day - January 2, 1967 -there were allegations of manipulation and insider trading.
What I did find notable from earliest days was the "Undue influence of COMMERCIALS (Banks, metal fabricators, jewelry wholesalers, etc) on the operations of the official exchanges." Even though, theoretically, speculators and the small traders were represented by major brokerage houses, their influence was minimal. In my experiences as a former member of COMEX (now NY Mercantile exchange), the Board of Govenors paid more attention to the TRADE representatives than brokerage houses.
Perhaps most noteworthy in earliest days, forty years ago, the Trade was perceived as more knowledgeable and professional than speculators even though based on my twenty odd years, the Trade never predicted Major Changes in Price direction !!!
The Trade was always bearish at bottoms and bullish at tops. I sensed they were myopic in vision seeing only the present market factors never the future market price forces.
One important "Insider" observation is the Trade speculates just like "speculators". Never believe that all their activity is "hedging" or banking related. The Basic Greed factor is present at all times. The Biggest recorded Losses were reported by Banks with "unauthorized trading" by alleged "rogue traders". Witness recent $ 2 billion dollar loss at European Bank.
Having worked as a Head Trader at Merrill Lynch, once a major player in commodity markets especially NY based Comex exchange, it would be IMPOSSIBLE to hide "unauthorized trades" without management knowledge!!! We had margin depts, credit depts, clearing depts and daily audits to monitor and catch any improper trading.
Vin, my dear friend and colleague, NEVER believe PR stories about "rogue traders" - it simply is Not possible. For whatever reasons these banks allow these activities, they KNOW about these incredible large losses. Every Trader receives daily trading reports that MUST be reviewed BEFORE commencing any new trading!
I can confirm that as Head Trader at Merrill Lynch, all combined trading activity was reviewed daily. In fact, in Regulated commodities like the Grains, daily reports had to be submitted to CEA (Commodity Exchange Authority) now CFTC (Commodity Futures Trading Commission) on all open positions over 2 million bushels of grains. If any Trader held more than 10% of the Total Open Interest, Government Regulators FORCED that trader to liquidate open positions.
This good policy was to prevent "control or manipulation" by any large group!!!
This policy did NOT apply to Unregulated commodities like Gold, Silver or Copper!
In my judgement, Same rules should apply to unregulated precious metals. JpMorganChase or Goldman Sachs or HSBC would NOT be able to hold more than 10% of total Open Contracts and be able to manipulate futures prices as they are alleged to do now! Simple solution - ENFORCE EXISTING RULES!
Respectfully submitted,
The Silver Fox
Former Member of Comex (1972-1974)
Active Trader (1964-1983) (CTA-CPO)
Private Trader (1983-2011)
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