Gold and Silver: Crisis of the Fractional Banking SystemSubmitted by legalizeliberty on Thu, 03/08/2012 - 15:18
The Pan Asia Gold Exchange (PAGE) – was to represent real price discovery and that is yet to happen. The first move to smother the exchange was by an increase of holdings in the endeavor. This move was to stop them from constructing their own platform rather than buying an existing platform. Due to that move shareholders rose from 10% to 25%. That brought in additional directors whose job it obviously was to stop the fully allocated spot contract. One of these directors was a US banker who has worked for the Federal Trade Commission, the Sloan Foundation at MIT and whose wife is a member of the CFR, the Council on Foreign Relations. Thus, nothing is going to happen to this venture until next year for a variety of reasons. Fortunately a new exchange is on the way to replace PAGE, which we will fill you in on in a few months. Once underway it will first trade silver. The Chinese regional exchange recently phased out of gold trading and is setting up to trade silver in the domestic currency – the RMB. Accounting will take place monthly and will be held in private facilities, not with bullion banks. That way they cannot illegally hypothecate the silver. No 350 to 1 leverage. Only trading for cash delivery. In the final analysis this new vehicle will be out of the hands of the Elitists – it will function far better and draw major international players.
If you are looking for a reason for the attack on silver this past week just look at the gold cartel’s net short position, that rose from 160,000 contracts on 12/31/11 to 229,000 just a week ago. The total net silver short rose from 14,000 to 39,000 an increase of 178% as silver rose 30%.
Silver was on its way to break $40.00 and gold $1,800.00, and something had to be done or the criminals were about to lose control and a lot of money.