*upandaway I think you missed my point a bit mate. One of the things we're inclined to do as active traders is second guess the market based on our experience of past events - so when a situation occurs where all the conditions are ripe for an event to happen it's natural to feel that ol' deja-vu - especially where metal shorts are concerned.
Added to this we're going thru a period of unprecedented challenge to US$'s dominance as primary reserve currency - which as you know is supported artificially by the suppression of prices of the pm's we're all interested in.
We may not be able to compete with the major banks but we should always keep tabs on what they're doing, plan accordingly & profit from it where possible.
It's a fact that when the pos & pog trip a level - a few days ago that was clearly US$34/oz for silver - and it took off US$1.12 in less than a minute - the Fed calls up its mates JPM, HSBC, the ECB and BoE and they trigger a paper contract sell-off - sometimes not successful, but mostly resulting in a dive in pm prices.
Use the info - it can save or make you some money if you look out and try to recognise the patterns.
One thing's for sure - and that's that the paper pyramid can't continue - neither can these levels of debt be sustained - the US alone owes around $75 trillion* - that's aside from the total outstanding 'value' ascribed to derivatives in all their forms, which is another $70+ trilion on top... these numbers are truly mind-boggling when you think about it... there is absolutely no way they can ever be written off or paid-down... even by creating unlimited currency out of thin air - so you'll understand that the process of trying to do that in itself builds-in - and necessarily requires deceit, corruption and manipulation - or as some call it 'creative capitalism' - by way of deregulation, unaccountability and deeply opaque practices.
(That US$70 trillion translates to US$500,000 of debt for each & every household in the US btw)
Now we have 'open ended liquidity' at least until 2015 (and beyond) - not only from the US Fed but from the ECB too...
You have to ask yourself the question why, if the dire macro picture could be addressed and 'fixed' somehow, nothing constructive's been or is being done - and the answer is - there is no solution - things have gone too far now.
The truth is ever since currency became detached from gold & silver those in charge of the global economy have conjured up 'money' out of thin air, without limit or control.
What you're seeing now, as Mike Moloney put it this week - was the event horizon for fiat currency - from last Thursday, there is no turning back.
I'm therefore expecting pm's to rise parabolically to the major currencies as they devalue & dilute themselves into oblivion... but I'm also expecting the usual crooksters to try to draw the process out as long as they possibly can - which inevitably means complicit manipulation, deception and corruption on the grandest of scales...
*Annual World trade value 2011-12 is approx US$18 trillion, if that puts things in perspective (Source:
http://www.wto.org/english/news_e/pres12_e/pr658_e.htm )
x
JIA) now a couple of thousand points higher than where it stood when Lehman Brothers went belly-up, many investors are commemorating the fourth anniversary of that bankruptcy by telling themselves that any Lehman-like danger has passed.