Banks Change Regulation and the Metals Stock Market Crashes
and the Metals Stock
Market Crashes
“Did the Big Banks Manipulate the Metals Stock Market to Crash?”
“The Commodity Futures Trading Commission’s (Commission’s) Division of Market Oversight (Division) today issued a letter providing temporary relief from the requirements of the Commission’s regulations regarding large trader reporting of physical commodity swaps (§§20.3 and 20.4). Because this is the first time that swaps data is being collected, this temporary relief is intended to provide sufficient time to enable both the industry and the Commission to develop and refine systems and processes that will be able to report these complex transactions.
On July 22, 2011, the Commission published large trader reporting rules for physical commodity swaps and swaptions. The rules require daily reports from clearing organizations, clearing members and swap dealers, and become effective on September 20, 2011. The letter issued today provides temporary relief from reporting, as long as parties are making a good faith attempt to comply with the reporting requirements, until November 21, 2011, for cleared swaps, and January 20, 2012, for uncleared swaps. Upon the conclusion of applicable relief periods, such reporting parties must become fully compliant.” -Source. |
In words that make sense:
The big players that own most of the market in commodities are being trusted to operate ethically and correctly on “good faith.” Is not the purpose of The U.S. Commodities Futures Trading Commission (CFTC) to protect the public from fraud and manipulation by these big players through continued regulation and reporting? Let’s read the mission statement of the CFTC:
“The CFTC’s mission is to protect market users and the public from fraud, manipulation, abusive practices and systemic risk related to derivatives that are subject to the Commodity Exchange Act, and to foster open, competitive, and financially sound markets.”
-Source. |
What happened in the Metals Stock Market:
The stock market drops 6% two days after the regulation change goes into effect. But the real damage was in metals.
Gold
Silver
Copper
Copper drops from nearly $3.75 per pound (hitting a high of $4.50 not too long ago) to just over $3.00 per pound. this is a 20% loss.
On a downward trend cycle, they sell at the higher point of the downward trend. Then the smaller players continue to sell, thinking this is the right move, bringing the price lower. The big players then wait for the price to reach a point where they profit by buying it up. The big players then start buying, causing the smaller players to see this and think it is the right move to buy, so they buy too. This then drives the price up. The result: The big players sold first at the higher price, and bought first at the lower price, profiting from the difference, or spread, of the two figures.
This price drop is incredible and highly suspect of potential manipulation, which is not being regulated by the very group that is supposed to regulate to stop manipulation. The findings are disturbing. Regulations forcing these large traders to report their numbers do not take effect again until “November 21, 2011, for cleared swaps, and January 20, 2012, for uncleared swaps.”
Without proper regulating, we the people cannot properly audit this form of manipulation, which is known to exist. Though one could argue that though this manipulating of the market is known, but not understood by the general public. If it was understood, would it be acceptable practices by the general public? Is this form of manipulation fraudulent or just good business sense? The problem is that no one talks about it in a manner in which the general public, who are not economists, to know and properly understand it.
Conclusions & Speculations
The facts we know are that the big players who have the ability to do this kind of manipulation are JP Morgan Chase Bank, CitiBank, Bank of America, Goldman Sachs Bank, and the Money Changers that control these banks and the international banking money system. So the big players are the major banks that own the majority of the derivatives of risk in the market and also are known to control the Federal Reserve? This should not come as a surprise.
At this point you should take away only what you feel is appropriate to take away. No conspiracy theories have been presented; Only facts and speculations. You are encouraged to draw your own conclusions, do your own research, and, above all else, demand the truth from the Government Regulation Agencies that are here to protect you. Take a stand. You are not alone if you do not like this manipulated system. Why let the big powers manipulate prices downward so they can buy it all up cheap and then force prices upwards? Capitalize on commodities by securing your wealth in commodities.
that’s crazy
can’t say too much, but will say this is beyond true.