The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
Bullion Bulls Canada) -- There have been two trends in precious metals markets in recent weeks that I find very alarming. On the one hand, we see the large "shorts" (
HSBC) in the bullion market ratcheting up their short positions again.
Understand that these short positions are tremendously underwater, and once the
is factored in, their short positions already represent large enough losses to ensure the bankruptcy of both of these vampires. Thus the fact that these "life-threatening" short positions are increasing (and being allowed to increase) tells us two things.
First, it is confirmation that the hopelessly corrupt U.S. Commodity Futures Trading Commission is simply going to defy the law, which requires these banker-slaves to institute "position limits" against the very Oligarchs they have dedicated their careers to serving. It is also apparent that JPMorgan and HSBC are now openly charging toward their own bullion-Armageddon: default events in the silver market (and possibly the gold market as well) which would lead to their
-- in the absence of any government intervention.
Obviously the key phrase in that paragraph is "in the absence of government intervention." I will return to that point later.
The other recent trend which I find equally disturbing is the sudden explosion of rhetorical rants on the internet, which specifically revolve around the battle-cry of "taking down JPMorgan" or even the entire U.S. financial system. As a silver bull, there are many reasons for me to be dismayed by this rabid and incessant rhetoric.
For one thing, it adds nothing to the "debate" about silver manipulation, nor does it do anything to inform investors -- most especially the new investors streaming into this sector. Indeed, the emotional excesses of these writers are likely only to frighten new arrivals to this sector, who were looking for an "investment" not a "war."
In addition, this totally misrepresents how and why the original investors came to this sector: it was not to "attack" the rapacious U.S. Banker Oligarchs, it was
to protect ourselves from them.
Silver isn't (to use the term coined by Warren Buffett) a "financial weapon of mass destruction," like the $1.5 quadrillion paper time-bomb which these Oligarchs have created in their derivatives market. It is a "suit of armor" -- to make us invulnerable to banker blood-sucking.