Naked Shorts as Liquidity Machine
posted on
Aug 12, 2010 06:48PM
SSO on the TSX, SSRI on the NASDAQ
jim willie explains that the large banks are short government securities and that gold and silver will benefit from futher quantitative easing:
The USGovt backs with guarantees the USTreasurys. If such debt securities are the exposed object of extreme multi-trillion$ naked shorting in order to avert a death experience by Wall Street and the Big US Banks, then the faith, confidence, and prestige of the USDollar will be harmed irreparably. The alternative is clearly GOLD. The USGovt backs with guarantees the USAgency Mortgage Bonds. If such debt securities are the exposed object of extreme multi-trillion$ naked shorting in order to avert a death experience by Wall Street and the Big US Banks, then the faith, confidence, and prestige of the USDollar will be harmed irreparably. The alternative is clearly GOLD. Bear in mind that the European and British government bond markets are suffering deep damage. Confidence is fast disappearing. Weaker nations are seeing a vanishing act from bidders and buyers of their bonds. Sovereign bond supply is growing during the crisis without respite. Austerity measures imposed upon government budgets is a ruse, a mirage, a smokescreen. Deficit reduction will be minimal, if at all. If such debt securities are exposed object of unfixable impairment, then the faith, confidence, and prestige of the all major currencies will be harmed irreparably.
The alternative to defrauded and counterfeited bonds is clearly GOLD. The badly deceived and ill-informed US public will figure it out, only when the GOLD price penetrates the $2000 level, or when the SILVER price penetrates the $50 level. Until then, GOLD shines with an insufficient crowd of advocates, afficionados, and lovers. The next big upleg will occur when the number of people on the GOLD/SILVER train is reduced to a minimum, using every crooked game and every false information possible. That day might be in the coming few weeks.