Golden Week 2016
by Bankster Slayer
Do you detect a hint of irony over the fact that this past week has witnessed one of the worst smash downs in the Gold and Silver spot prices during the period when Chinese markets were closed in observance of a national holiday … a holiday known as GOLDEN WEEK? Now isn’t that just too funny?
Altair China offices will be closed all week due to National Day and Golden Week. To those celebrating, enjoy! pic.twitter.com/lJWncO1vTC
— Altair Global (@AltairGlobal) October 3, 2016
Jim Willie was guest of Will Lehr of PerpetualAssets.com earlier this week. He offered insights on what may have gone on to cause the Great Gold Slam of October 2016. Never fear, Shanghai will likely come roaring back next week with a response. Fast forward to the 31-minute marker of this Youtube video. I will paraphrase his thoughts below:
Jim: China has offered $100 Billion to Deutsche Bank to acquire their vast gold derivatives contract book.
The word on the street is that there is more gold in that book than in the entire COMEX. Deutsche is interested in this offer. But City of London and Wall Street officials are forcing DB to dump that book before the Chinese get their hands on it, even at a loss. COL and Wall Street don’t care if DB takes a loss on that dump. They just want those contracts sold off so that the Chinese don’t get it.
COL and Wall Street don’t want that book to get under Chinese control because the counter-party of those gold derivatives is the US Treasury’s Exchange Stabilization Fund.
Will: Whoa! And there’s your mushroom cloud.
Jim: Suppose China now comes back on Monday with an order to DB to cease and desist all gold book sales. We might have a situation where a giant block of Long positions is held by China via the DB office with the opposite party on that trade being the US government….
The Chinese could use that book to take physical delivery of gold. This could be the arena through which China finally converts their Treasurys to Gold, using Deutsche Bank as a tool.
I don’t think China is happy that a bunch of gold contracts were dumped yesterday. There’s some “bad faith” going on here because China has an offer pending on those contracts. And wherever there is “bad faith,” there you find the US government. They are looting the country.
China likely will not give up on this Deutsche Bank issue. The Chinese are not interested in the Interest Rate Swap derivatives; they are interested in the gold derivatives because they can control the dumping of the US Dollar through that vehicle. And they can use that as the ultimate “force majeure” over the COMEX.
Therefore, even though China celebrated this past week with fireworks, the real fireworks may be yet to come.