I have watched the markets over the last month plus with an eye out looking for change. Specifically the type of change that Mr Obama promised.

Over the weekend, in one of the zillion video clips of the president, there was one vignette that got my attention. I can’t quote it exactly, but it went like this:

While we are doing what we see as necessary and trying to get the economy back on track, money flowing, and people back to work; we find ourselves fighting special interests and “very powerful forces”.

It struck me the instant I heard it that he may be referring to the people I cal the new jerk filth and the greedy, bought off politicians and the continuing intervention in PM markets. This got me to thinking and wondering if I couldn’t find some facts that would fit this assumption. When I looked at the last 10 days of pm trading and the typical OE dip it struck me.

Here is the scenario overlaid with an optimistic interpretation:

Obama wants to end the manipulation of markets and put transparency into the markets. The biggest banks, e.g. Goldman Sucks and JP Moron, are the biggest violators of free markets. They are also too big to bail and too big to fail. They are being treated in a special way because if it was widely known what they have been doing there would be a huge public outcry and call for action.

So for the last month we have seen both the same old trading patterns and some new ones.
1 Gold and silver have been moving up, but not at the rate of free markets: a compromise to unwind the massive short positions in a controlled manner without an explosion that would sink JP Moron and their toxic derivative portfolio.
2 The typical downturn of the metals going into OE. Protection for moron (very powerful force).
3 Then does the continued paper games to keep pushing down pm prices fit? Yes, if we consider the demand for physical gold and silver to be a growing and significant fact of today’s rush to safety. It may be that, even though they pushed gold below the magic $1,000 , there were still many many calls in the money at OE. Some % of these calls were anticipated to be stopped out. The filth needed to find a way to buy physical to meet the demand of those who opted for a futures contract and wanting delivery.
The last few days of continued paper pressure on prices was an attempt to find a way to get the filth out of their positions ( deliver physical ) without them having to default on their contracts which would expose them for what they have been doing and the position they are currently in.

I will continue to look for any further evidence that this might be a perverted endgame rather than same old same old.