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Nov 23, 2014

GATA | THE GTA DISPATCH - November 23, 2014: Gold market is manipulated, Grant Williams tells Lars Schall / Senate report shows how easily banks can rig gold, copper, and other markets

Gold market is manipulated, Grant Williams tells Lars Schall

Submitted by cpowell on  Sunday, November 23, 2014.
 Sunday, November 23, 2014
Interviewed by the German financial journalist Lars Schall for Matterhorn Asset Management's Gold Switzerland, Singapore fund manager and "Things That Make You Go Hmmm. ..." letter editor Grant Williams says there's no doubt that the gold market is manipulated, that the only question is how much, and that because of central bank intervention there's not much left to free markets. Schall and Williams cover other subjects, including the nature of money, the abuse of money creation and credit, the likelihood of returning to a gold standard, and the Swiss Gold Initiative. The interview is an hour long and can be heard at Gold Switzerland here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Senate report shows how easily banks can rig gold, copper, and other markets

Submitted by cpowell on Sunday, November 23, 2014.

 Sunday, November 23, 2014

The heavy involvement of investment banks in commodity trading creates the potential for market manipulation and conflicts of interest in the gold market, and exchange-traded gold funds may be mechanisms of market manipulation contrary to the basics of supply and demand, according to the 396-page report published last week by the Permanent Subcommittee on Investigations of the U.S. Senate's Committee on Homeland Security and Governmental Affairs.
GATA's friend J.H. points out these findings on Page 38 of the report:
"Possible conflicts of interest permeate virtually every type of commodity activity. If the bank's affiliate leases an electrical power plant, the bank may attempt to use regional pricing conventions to boost its profits, even at the expense of clients that pay the higher electricity costs. If the bank's affiliate mines coal while the bank trades coal swaps, the bank may ask its affiliate to store the coal rather than sell it to help restrict supplies, and benefit from long swap positions, while causing its counterparties to incur losses. If the bank's affiliate operates a commodity-based exchange-traded fund backed by gold, the bank may ask the affiliate to release some of the gold into the marketplace and lower gold prices, so that the bank can profit from a short position in gold futures or swaps, even if some clients hold long positions.
"A fourth problem with mixing banking and commerce is that, in the context of physical commodities, it invites market manipulation and excessive speculation in commodity prices. If a bank's affiliate owns or controls a metals warehouse, oil pipeline, a coal-shipping operation, refinery, grain elevator, or exchange-traded fund backed by physical
commodities, the bank has the means to affect the marginal supply of a commodity and can use those means to benefit the bank's physical or financial commodities trading positions. If a bank's affiliate controls a power plant, the bank can 'manipulate the availability of energy for advantage' or to obtain higher profits."
And on Page 368: "At the same time, a commodity-backed ETF can have a significant impact on the price and volatility of the underlying commodity, even when a precious metal is involved. For example, gold-related ETFs first surfaced in 2004, with dozens of similar ETFs springing up over time. Today, it has become clear that significant movements in the gold-related ETFs have had direct impacts on the price of physical gold.
"As one analyst in the field noted: 'You watch the flow of money. ... No matter what the supply-and-demand fundamentals [for physical gold] may suggest, if that moneys flowing, those prices are going to move.'
"The Wall Street Journal cited as a possible explanation for the impact of gold ETFs on physical gold prices the relatively small size of the gold market, estimated at $236 billion in annual sales in 2012, and the ETFs' significant share of those sales."
Starting on Page 353, the report describes JPMorganChase's acquisition of the copper market, thanks in large part to an exemption from position limits granted by the Federal Reserve and Office of the Comptroller of the Currency to banks trading copper, an exemption previously granted only to banks trading gold and silver. The implication of the copper exemption is that the U.S. government decided that manipulating gold and silver prices was not enough if the major industrial metal was still able to trade freely and broadcast inflation signals as gold and silver also would do if they were traded freely.
Interesting as it is, the Senate report really has done little more than reiterate the old principle, the first premise of anti-trust law, that if a market participant is big enough, it can push any market around. Unfortunately that premise has been pretty much overlooked in the United States since Wall Street took over both major political parties.
Also unfortunately, if predictably, the Senate report does not touch on direct but surreptitious government intervention in the commodity markets, though sensational documentation of such recently became available, documentation that central banks and governments are receiviing volume discounts for surreptitiously trading all major commodity futures contracts in the United States:
Apparently the work of exposing that surreptitious intervention will continue to be left to outsiders like GATA.
The Senate report is posted at GATA's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

RT Selected Videos: Abductions, killings of activists in Libya on rise amid spiraling unrest.

Abductions, killings of activists in Libya on rise amid spiraling unrest

Published on Nov 23, 2014
In Libya's ever-more-complex conflict, rival militias, hardline Islamists and pro-government troops fight for supremacy. Some Libyan citizens decide to speak their mind risking their lives. RT's Bel Trew reports.

NYT Today's Headlines - November 23, 2014: Top News: In Iran Talks, Seeks to Prevent a Covert Weapon.

The New York TimesMost Popular | Video | Subscribe: Digital / Home Delivery

Today's Headlines

Sunday, November 23, 2014

Top News
In Iran Talks, U.S. Seeks to Prevent a Covert Weapon


Unstated during negotiations is the fear of a "sneakout," the risk of a bomb being produced at an undetected facility, or built from fuel and components obtained from one of Iran's few trading partners.
Afghan forces responding in August after a Humvee was ambushed by the Taliban in the Tagab district of Kapisa Province.
Hour's Drive Outside Kabul, Taliban Reign


In the absence of international troops or their air support, the Taliban have eclipsed the legitimacy of government forces in several parts of Afghanistan.
Esther Cervantes held Willie Morales, her grandson, at her home in Bakersfield.
Turmoil Over Immigration Status? California Has Lived It for Decades


President Obama's executive action on immigration was almost anticlimactic to many people in California.
For more top news, go to »
Editors' Picks
An oil pad on North Dakota's Fort Berthold Indian Reservation flares natural gas produced in the hydrofracturing process. Over a quarter of all natural gas produced in North Dakota is burned off this way.


The Downside of the Boom
North Dakota took on the oversight of a multibillion-dollar oil industry with a regulatory system built on trust, warnings and second chances.


When Is a War Over?


What an Army major and Alexander the Great tell us about America's 13 years in Afghanistan.
WORLD | Scotland Rejects Independence From Britain in a Close Vote
THE UPSHOT | Scotland’s Independence Vote Shows a Global Crisis of the Elites
WORLD | New Islamic State Video Features British Hostage as Group Spokesman


"My parents are going to be able to qualify under this program."
PAOLA FERNANDEZ, 28, who was brought to the United States as a child and received permission to stay under President Obama's immigration program.
Today's Videos
Video VIDEO: A Controversial Prosecutor
A look at Robert P. McCulloch, the St. Louis County prosecutor in the grand jury case of Officer Darren Wilson. Protesters argue that he should have recused himself from the case.
. Related Article
Video VIDEO: Bill Cunningham | Thanksgiving Season
It's Thanksgiving week, and the city is full of holiday imagery.
Video VIDEO: Creamy Broccoli and Potato Soup
Melissa Clark makes broccoli and potato soup with grated Parmesan and a drizzle of olive oil.
. Related Article
For more video, go to »
Members of the Dnipro-1 volunteer battalion in Pervomaisk, Ukraine.
With Borscht and Rifle Scopes, Volunteers Power Ukraine Forces


Volunteers are offering not only support but at least a glimmer of hope that poorly funded Ukrainian government troops can hold their own.
President Xi Jinping of China received a traditional Maori greeting in Wellington, New Zealand, last week. Mr. Xi also visited Australia and Fiji.


Asia's 'Big Guy' Spreads Cash and Seeks Influence in Pacific Region


As China seeks to assert itself as the dominant economic power and strategic partner in Asia, President Xi Jinping has visited Australia, New Zealand and Fiji bestowing largess.
The governor of Jakarta, Basuki Tjahaja Purnama, center, runs the capital of the world's most populous Muslim-majority nation.
An Ethnic Chinese Christian, Breaking Barriers in Indonesia


Basuki Tjahaja Purnama, the new leader of Jakarta, the capital of the most populous Muslim-majority nation, says his faith and ethnicity are not political handicaps.
For more world news, go to »
Workers erected barricades on Saturday outside the Buzz Westfall Justice Center in Clayton, Mo., where a grand jury is considering whether to indict Officer Darren Wilson in the shooting of Michael Brown.
In Ferguson, Preparation and Anticipation as Grand Jury Decision Nears


On Saturday, workers erected barriers around the St. Louis County Police Headquarters as the area awaited a grand jury's decision on whether to charge an officer in Michael Brown's death.
. Updates From Ferguson
Climate Change Threatens to Strip the Identity of Glacier National Park


In a century, the number of glaciers in Montana's Glacier National Park, on the Canadian border, has dropped to about 25 from 150.
. Slideshow: Disappearing Glaciers
Boy, 12, Shot and Wounded by Cleveland Police Officer


The authorities said the boy brandished what turned out to be a fake gun on a playground, then reached for it when two officers arrived.
For more U.S. news, go to »
Marion S. Barry Jr. in 2009.
Marion S. Barry Jr., Former Mayor of Washington, Dies at 78


Mr. Barry was a flamboyant and polarizing mayor of the nation's capital who went to prison on cocaine charges, then recaptured City Hall in one of the most improbable comebacks in the history of American urban politics.
Potential contenders include Gov. Chris Christie of New Jersey and former Gov. Jeb Bush of Florida. Mr. Christie, center, attended a meeting of Republican governors last week.
A Deep 2016 Republican Presidential Field Reflects Party Divisions


With more than a dozen potential candidates and a fast start to the 2016 campaign, the party appears headed to an unusual free-for-all.
Democrats dismiss the investigation as an effort to discredit Hillary Rodham Clinton.
G.O.P.-Led Benghazi Panel Bolsters Administration


The House Intelligence Committee has joined previous panels in rejecting the most damning accusations about the handling of the 2012 attacks on American outposts.
For more political news, go to »


Conspicuous Consumption? Yes, but It's Not Crazy


Clearly, many rich people like to display their incredible wealth. Yet, generally, they think they know value when they see it.
The Fight for $15.37 an Hour


Forces both inside and outside the traditional labor movement united to campaign for a higher minimum wage for hotel workers in Los Angeles.


The Week That Shook the Fed


For a secretive institution, assorted challenges to how it uses its power. Or doesn't.
For more business news, go to »
Beers brewed with a prototype unit.


Brewing Your Own Beer, With Help From an App


A company called Brewbot is aiming to market a 4-foot-tall machine that allows amateurs and professionals to brew craft beer, and to even devise their own recipes.
Stacia Carr in the Lavapiés neighborhood of Madrid. Previously of San Francisco, she is building an online video business and has benefited from a Spanish law that offers a special visa to foreign entrepreneurs.
At Spain's Door, a Welcome Mat for Entrepreneurs


A nation is beckoning foreign brains and money with the kind of immigration reform that Silicon Valley can only envy.
For more technology news, go to »
For Landon Donovan soccer has been more of a chore since the 2010 World Cup.
Thrill Is Gone; So Is Donovan


Landon Donovan has made no secret that the responsibility and the trappings that came with being the standard-bearer of American soccer for more than a decade had long ago become a burden.
Landon Donovan on His Sabbatical, His Time in Europe and His Retirement


The Los Angeles Galaxy midfielder discusses his sabbatical, his plans for retirement and the reasons his foray to Everton went better than his years in Germany.
Manny Pacquiao landing a punch on Chris Algieri. For the ninth consecutive time, Pacquiao failed to score a knockout.
Manny Pacquiao Defeats Chris Algieri by Unanimous Decision

RT Selected Videos - November 22, 2014: Going Underground: Assange lawyer on court decision ‘mess’ & ‘inconvenient’ drug policy truth

Going Underground: Assange lawyer on court decision ‘mess’ & ‘inconvenient’ drug policy truth

Published on Nov 22, 2014
Afshin Rattansi goes underground on the recent decision by Swedish courts in the case of Julian Assange. His lawyer, Per E Samuelson, says the whole situation is a ‘mess’ and that UK and Swedish governments should agree not to extradite him to the US, or allow him safe passage to Ecuador. MP Norman Baker reveals why he resigned from the Home Office, and talks about the ‘inconvenient’ truths that the Conservatives wanted to bury when it comes to UK drug policy. Nick Dearden of the World Development Movement looks at the issues Band Aid 30 should be talking about if they want to improve the situation in Africa for the long-term. And we give our take on Prime Minister’s Questions, with bedroom tax, mansion tax, and rents on the agenda.

RT | Keiser Report - November 22, 2014: Keiser Report: Cemented UK Generation (E683)

Keiser Report: Cemented UK Generation (E683)

Published on Nov 22, 2014
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the heavens being taken by force rather than by consensus as Podemos rises as a political force in Spain and, in the UK, students plead for David Cameron to be gentle with them. In the second half Max interviews John Mill Ackerman, law professor and editor-in-chief of the Mexican Law Review, about the protests in Mexico, the economic ‘reforms’ which partially led to the unrest and the new oil law and what it means for social programmes in Mexico.