Monday's gold price “activity” was a joke. On Sunday night, gold was up over US$8 in the Far East before the boys showed up to play “Whack-A-Mole” with the price. This continued until only the LBMA and the New York Access markets were left open. Then we had the usual waterfall decline as the dealers pulled their bids, this time in the London market. Normally you only see this sort of activity with the paper hanger on the Comex, but when they're desperate, they pull this trick in London as well. Today they were desperate. Silver was a minor casualty in all of this.

The open interest for gold increased 1,973 contracts on the Comex on Friday. The total Comex gold open interest now sits at 489,181 contracts, which is still a huge number.

The financial, economic and monetary news over the weekend shows you just what a state the world is in. The boys pulled out all the stops everywhere on Sunday night and Monday (including ramping the US$) in order to prevent a repeat of what happened in the Dow on Friday, especially in light of the slaughter in the bourses in the Far East. This was central bank intervention at its most obvious.

Today's story comes from The Telegraph in London, where Barclays and the Royal Bank of Scotland have set up lines of credit with the Federal Reserve to rescue some of their American clients. It should now be obvious to anyone with an open mind and a modicum of common sense that all the central banks are working together to prevent the collapse of the entire world financial system. The story is entitled “Barclays and RBS Line Up Fed for US$30 Billion,” and is linked here.

Men occasionally stumble over the truth, but most of them pick themselves up and hurry off as if nothing had happened. - Winston Churchill"

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