http://news.goldseek.com/GoldSeek/1319222906.php

By Rob Kirby

At the link to the S.E.C. below – there is an archive of “fails to deliver equity” data whose original source is the DTCC [Depository Trust Clearing Corporation].

http://www.sec.gov/foia/docs/failsdata.htm

What is presented below is an analysis of September 2011 “fails to deliver” equities which are understood to represent physical gold and silver bullion in the market place. The individual instruments are aggregated on a coloured, daily gross ounce basis to show the serial and systemic nature of the DRAMATIC SHELL-GAME build in [naked] short ounce equivalents – which, when one considers the Jeffrey Christian Constant. It was back in March, 2010 – at CFTC hearings in Washington that expert testimony was given by C.P.M. Group Chairman, Jeffrey Christian where he explained,

Precious metals are financial assets - and like currencies, T-Bills and T-Bonds they trade in paper at a multiple of a hundred times the underlying physical.

Using the “Jeffrey Christian constant” that 100 ounces of “paper metal” can expected to be transacted for every ounce of physical – we can “model” by “grossing-up” the effect of “understood-to-be” physical sales [but really a criminal, naked-short, shell game] by a factor of 100 to understand the amount of futures selling we should expect in response to any serial, systemic, pre-meditated, criminal, naked-shorting.

This sheds new light on the dramatic decrease of Large Commercial Net Shorts [LCNS] on COMEX we have experienced in September 2011.

We shall call this method of grossing-up what are understood-to-be physical transactions the JCGUFF [Jeffrey Christian Gross-Up Fudge Factor] to give us expected sales of COMEX paper ounce equivalents.

It’s important that everyone understand that Jane & Joe Sixpacks, as well as Hedge Fund Managers who purchase the securities listed below ACTUALLY believe that they have bought physical metal.

Note of what S.E.C. has to say about Naked Shorts / FAILS:

Here’s what the S.E.C. has to say on their website:

Please note that fails-to-deliver can occur for a number of reasons on both long and short sales. Therefore, fails-to-deliver are not necessarily the result of short selling, and are not evidence of abusive short selling or “naked” short selling. For more information on short selling and fails-to-deliver, see http://www.sec.gov/spotlight/keyregshoissues.htm, http://www.sec.gov/divisions/marketreg/mrfaqregsho1204.htm, and http://www.sec.gov/rules/final/34-50103.htm.

Response: While fails-to-deliver can occur for a number of reasons – SERIAL, SYSTEMIC, SHELL-GAMES only occur for ONE REASON brothers and sisters – and it is CRIMINAL.

Anyone reading this material is more than likely acquainted with the CFTC’s long-running discussion and stalling on the imposition of position limits in gold and silver futures. The whole world has been aware that the Large Commercials have long maintained an untenable short position in both silver and gold – and speculated on how financially ruinous it would be if they were ever forced to cover their positions.

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Conclusions:

The data above outlines an algorithmic, naked-shorting, shell-game which has been perpetrated on our Capital Markets in a co-ordinated fashion with the complicity of the CFTC, the U.S. Treasury, The Federal Reserve and quite possibly the S.E.C. as well. The object of this criminal exercise is/was to create a plausible path for bullion banks to reduce their systemic, serial gold and silver short positions while hopefully maintaining some illusion of “free markets”.

The large, main-line precious metals ETFs [the ones sponsored by the likes of J.P. Morgan, Barclays, HSBC et al] were created for a reason folks. They were developed to serve as “tools” to enable ongoing manipulation of the traditional inflation sanctuary metals – suppressing their prices in the face of MASSIVE, GLOBAL, FIAT CURRENCY DEBASEMENT.

The shell-game outlined above is VERY REAL, is being conducted by depraved lunatics we call our “leaders” and has severe geo-political and economic implications.

We better start dealing with this in a more transparent manner or humanity has a date – in the very near future – with Armageddon.

Got physical gold and/or silver yet?