Options expiry brings on silver and gold raid/Japan troubles intensify/CFTC abruptly cancel meeting on the Vote for position limits.

Harvey Organ, Monday, March 28 2011

Options expiry brings on silver and gold raid/Japan troubles intensify/CFTC abruptly cancel meeting on the Vote for position limits.

 

With The CFTC Position Limit Response Period Over, Here Are Select Opinions By PIMCO, World Gold Council And Goldman Sachs

Submitted by Tyler Durden on 03/28/2011 19:21 -0400

The public comment period for the CFTC's proposed position limit rule has come and gone. It should come as no surprise to anyone (and particularly those transfixed by the massive surges in various commodities, among them most certainly gold and silver) that what is at stake here is not some actual position limit definition and subsequent regulation and enforcement (although that most certainly is), but yet another challenge to the klepocratic status quo which naturally prefers the status quo to remain as is, and public interests, which seeing 100% moves in the price of grain, cotton, corn, and other commodities, would obviously prefer to reign in speculative fervor. At the end of the day, Wall Street will find loopholes in whatever the end rule is as it always does, but the polemic on the way there is quite interesting. Which is why having combed through some of the last minute public comment submissions (of which there were 5,561 in total at last check), we present some of the most indicative ones: one the one hand that of Carl "Shitty Deal" Levin, Chair of the Permanent Subcommittee on Investigations, who obviously is for the most prompt implementation of position limits as envisioned in Dodd Frank, and on the other hand institutional money managers and traders such as PIMCO, Morgan Stanley, the World Gold Council, and, naturally, Goldman Sachs (oddly, we have yet to track down the response by one JP Morgan). We present these for our readers' perusal below. 

 

 

 

Barclays Says CFTC Should Delay Limits Decision Indefinitely

Submitted by Tyler Durden on 03/28/2011 17:26 -0400
Well, we know at least one bank has some sizable, non-grandfatherable commodity block positions. Per Reuters:

• BARCLAYS SAYS CFTC SHOULD DEFER DECISIONS ABOUT NATURE AND EXTENT OF POTENTIAL LIMITS UNTIL AFTER IT COLLECTS NEW DATA ABOUT OTC MARKETS

Why Barclays thinks CFTC does not have data on OTC markets is beyond us. So while we await the CFTC to issue its decision on position limits, any minute now, we wonder just how many other banks (wink wink Blythe) will follow up with comparable objections demanding an "indefinite" delay to what may soon unleash true price discovery, particularly in the PM market. And incidentally, whatever happened to the Fed's mandated disclosure of the confidential bank rescue information. At what point will Ben Bernanke be held in contempt to court for not following the decision of the Superior Court? 

President Obama's "Target Libya" Speech Summarized In One Picture

Submitted by Tyler Durden on 03/28/2011 19:57 -0400

Presented without comment 

 

 

 

 

 

 

 

 

In The News Today

Posted: Mar 28 2011     By: Jim Sinclair      Post Edited: March 28, 2011 at 8:04 pm
Filed under: In The News

My Dear Friends,
The paper gold market is not the gold market. As in the 1970s, cash will rule the ultimate price. Gold’s involvement in a new virtual world currency will sustain 80% of that high price.
In the 1970s paper gold was a short term game and influence on price. Today paper gold has been just that.
Greg’s article posted today has reviewed what you must realize by now. Pay no attention to the games the gold banks are playing. That is for their short term benefit.
Gold will trade at $1650 before it goes much higher.
Regards,
Jim

We are Way Over the Edge Right Now

Posted: Mar 28 2011     By: Greg Hunter      Post Edited: March 28, 2011 at 1:38 pm
Filed under: USAWatchdog.com
By Greg Hunter USAWatchdog.com

Dear CIGAs,

Last Friday, I wrote a piece called “Could America be Pushed over the Economic Edge?” It was about how Libya, Japan or even covert economic warfare (from America’s enemies) could push the U.S. into another financial meltdown.  I received a one sentence email from my friend Jim Sinclair that said, “We are way over the edge right now.” His message gave me a sinking feeling.  Mr. Sinclair is a world renowned gold expert, but in order to trade that market, you must be extremely knowledgeable in many aspects of economics and politics.  Almost everything affects the price of gold.  War, government, oil, debt, money creation, the Fed and many other variables can dictate how much the yellow metal costs.  Gold is probably the single most difficult market to trade, and Sinclair is the Yoda of the gold traders (except much better looking.)
Last week on his website JSMineset.com, Mr. Sinclair outlined “why” we are already way over the edge right now and why gold is going much higher in price.  Here are a few of his reasons that I picked out from his bullet pointed post:  “You must realize that the economic and political damage is already done.  You must realize that the mountain of OTC derivative paper is not going away. . . . You must realize that this means the mountain of OTC derivative weapons of mass financial destruction can only grow. . . .You must realize that it is not whether or not QE will continue, it is what it already has done to the Western economies that much higher gold prices will reflect. . . .You must realize the monumental change in the Middle East is NOT positive for the West in any manner, shape or form. . . . You must realize that it is the currency that breaks, not the country.” (Click here for the entire Jim Sinclair post.)
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