I wrote Monday ”how” and on Tuesday ”why” precious metals (and all markets for that matter) are manipulated, today I will tell you “what” will remedy and the results.
First, the manipulation in U.S. markets has become so blatant and so obvious that foreigners are taking note and altering their future plans. All you have to do is look around to see nation after nation, friend or foe, making plans to live and trade in a world without using dollars.
China is at the center of these plans but the list is very long of nations who plan to trade in their own (or Chinese) currency. Off the top of my head, we have seen announcements from Argentina, Brazil, India, South Africa, Britain, France, Germany, Venezuela, Australia and of course let’s not forget about Iran and Russia. This is not all inclusive but the point is …the thought process and preparation is far and wide.
Oddly, the CME group who “oversees” COMEX has made several announcements over the last couple of weeks. It seems they would like to be seen as putting their foot down on “disruptive” (manipulative) trading practices. Even more odd was a story which came out last week that showed “central banks” as a category of CME customers.
This “category” it seems has been given financial “incentives” to trade. Very curious indeed, why would central banks have any need to trade in the S+P futures?
Why would they be given financial rebates from CME to transact trades? I see it as some sort of joke so to speak because if a central bank needs “more” money, they would just print it up right? So why the rebates? More importantly, why would CME allow central banks in as their clients? Doesn’t this look or “smell” bad in our supposed free and fair markets society?