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.VANCOUVER ( 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" ( JPMorgan and HSBC) in the bullion market ratcheting up their short positions again. Understand that these short positions are tremendously underwater, and once the
Thus the rabid-ranters are in no way representative of the vast majority of silver investors. The bankers are doing a perfectly fine job of destroying themselves -- and they need no "assistance" from us to finish their greed-induced suicide. In fact, I am convinced that most of these "mouths that roar" are in fact paid tools of the bankers, performing an invaluable service for them: demonizing silver investors in the eyes of the (ignorant) general public. Readers must realize that among any even semi-informed individuals, "precious metals manipulation" no longer represents a "question mark." It is an
obvious reality , which has been documented by many (including myself). It includes not only obvious statistical evidence of manipulation, but a plethora of confessions from various "insiders" and (somewhat more recently) a bona fide "whistleblower" ( Andrew Maguire ) with decades of experience in bullion-trading. However, with respect to the general public (i.e. the sheep) "manipulation" represents just another "conspiracy theory" -- which the sheep have been carefully programmed to automatically ignore. This last fact is of utmost importance to the Banker Oligarchs, because as long as the sheep remain oblivious to the decades of banker-manipulation in the precious metals markets, they remain receptive to more banker lies. The new lies of the bankers are now fully visible to any who are watching for them. According to banker-lies, it is not the decades of their excessive shorting which has destroyed inventories in these markets, but rather the "hoarding" by "speculators." In fact, I wrote an entire commentary on this specific topic (" Commodities: Hoarding Versus Shorting ") where I demonstrated conclusively (in simple, economic terms) how "hoarding" is a virtuous form of behavior which repairs markets, while shorting is always and only a destructive influence. In the real world, "hoarders" are generally given a different name: conservationists. Indeed, we can easily separate the two forms of behavior (in conceptual terms) by simply choosing a different context. Given that the above-ground stockpiles of silver have been destroyed by nearly three decades of excessive banker-shorting (and other acts of manipulation which precede that shorting), the obvious context to use for this example would be the "endangered species" (i.e. African elephants).
The hoarders (or "conservationists") collect and protect the elephants, and if their actions are not interfered with, they can replenish the size of the "herd" over time. The shorters (or "poachers") on the other hand, are exclusively concerned with reducing the numbers of elephants -- just as they have done in causing global silver stockpiles to shrink from 6 billion ounces to only
a few, hundred million. Note that the "hoarding of silver" did not begin until after banker-shorting had already reduced global stockpiles and inventories by 90%, which is another obvious parallel between "conservationists" and silver-buyers. Not only do we have an irrefutable theoretical argument that shorting "destroys" while hoarding "preserves," we have overwhelming empirical evidence which demonstrates precisely the same point. With no truth available to the bankers to use in directing the actions of their servants in government, the bankers are resorting to lies: both ordinary propaganda, and their newer tool, disinformation. The "ordinary propaganda" takes the form of what I have just discussed: attempts to demonize silver-buyers by continuing to attach simplistic, but emotionally-charged labels to them: "speculators" and "hoarders." Note that the propaganda-machine has actually been demonizing "hoarders" for several years -- everything from incessant "news" items to reality-TV shows. Meanwhile one talking-head after another claims that it is "speculators" who are driving up commodities prices -- and not the hyperinflationary money-printing of Ben Bernanke. This is not an accident. Programmed to view "hoarders" in a strongly negative manner, the sheep are now "primed" to receive their disinformation: the rabid-ranters "threatening the destruction" of the U.S. financial system. Having already been programmed to view hoarders/speculators in a negative manner, the bankers are now producing their own "anti-bank hate literature" for the specific purpose of attempting to brand all silver-buyers as "economic terrorists" in the eyes of the sheep. Understand that not all of the rabid-ranters are simply paid stooges hired by the bankers. Some of these people are sincere, and ultimately decent individuals. Clearly there is no "terrorism" involved in wanting to put an end to the existence of the financial vampires who have been preying upon us for generations. There is also nothing improper about wanting to see these individuals "punished." Since the hopelessly-corrupt U.S. "justice system" will never punish the banksters for their crimes-against-humanity, and since these individuals exist for the sole purpose of worshiping their own money, it is hardly surprising that the rabid-ranters see the financial destruction of these entities to be a "suitable punishment."
The problem is that even the sincere individuals among the rabid-ranters now serve the bankers. At this point, I would hope that the strategy of the Wall Street Oligarchs is obvious to readers. With their own outrageous shorting rapidly bringing the silver market (and likely the gold market, as well) to the point of outright default -- and their own bankruptcy -- we are about to hear more whining from these predators about being "too big to fail." This will be coupled with any and every "rant" they can collect on the internet to show their political servants how the "evil speculators" are the "cause of all the problems" in the silver market. The bankers will lie, and say it was five years of "hoarding" and not 30 years of "shorting" which have destroyed silver inventories. After convincing their ignorant stooges in Washington of that point, the rest is "child's play." The bankers will point to the "take-down the U.S. financial system" rhetoric of the ranters as a "terrorist threat" to the United States. They will tell their servants in Washington that something must be done to halt these "terrorists." Of course, the only "something" which would save the bankers and "thwart the terrorists" is silver confiscation (the "government intervention" to which I referred at the beginning of this piece). Having presented the detailed "game plan" of the banksters to readers, hopefully I can now persuade readers to stop yourselves from also being pawns in this disinformation campaign. Either ignore the rabid-ranters, or (better yet) write comments to their pieces explicitly stating that you are a "silver investor" not an "economic terrorist," and that your goal is not "the destruction of the U.S. financial system" but simply saving yourself from the consequences of the "financial destruction" which was created and inflicted upon us exclusively by bankers. Know that "silver confiscation" (at least inside the United States) is now a foregone conclusion. This leaves us silver buyers with several tasks in the weeks/months ahead. As I just stated, part of that "mission" involves denouncing and separating ourselves from the rabid-ranters -- to weaken and hopefully destroy the banker-illusion that conserving the tiny, remaining silver inventories is supposedly some form of "economic terrorism."
For silver buyers inside the U.S. (and for those buyers outside the U.S. who also have little trust in their government), there are other measures we can and must take. Obviously the sheep have been steered into "bullion funds" and "bullion accounts" by the financial community for one very good reason: it takes nothing more than a few mouse-clicks to confiscate any/every ounce of silver (and gold) held in those funds. Thus anyone with a bullion "fund" or "account" with that bullion stored inside the U.S. should immediately liquidate all such holdings. The proceeds from the sale of those units should (naturally) immediately be used to replace your "paper bullion" with real "physical" bullion in your own custody. Thanks to the Patriot Act, U.S. safety-deposit boxes are no longer safe. They will obviously be the second stage of any bullion-confiscation campaign inside the U.S. This means that U.S. residents must find a personal means of storing/protecting their bullion, as the time, effort and "political damage" which would result from sending government thugs to "bust down doors" and loot the bullion of individual citizens is hopefully a price that even the U.S.'s two-party dictatorship is unwilling to pay. Dwindling Comex inventories have meant that "silver default" can now only be postponed by buying-off silver traders with cash bribes, since there is not nearly enough silver to satisfy "delivery" for these purchases. Along with the sudden and exponential increase in anti-banker rabid-ranting, this clearly tells us that U.S. silver-confiscation is imminent. For silver-holders outside the U.S., you need to ask yourselves a hard question: Is your government more likely to mimic the U.S. government (and steal your silver, as well), or do you have confidence that it will respect the property-rights of its citizens? For those who cannot unequivocally reassure themselves on this point, you must also liquidate any/all bullion funds/accounts -- to complete your own self-defense from government bullion confiscation. Few people are aware of the first episode of silver confiscation by the U.S. government. Just as few have any awareness/concern about imminent silver confiscation today. This is clearly a situation where "ignorance" is anything but blissful.