U.S. Engineered Commodity Collapse

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U.S. Engineered Commodity Collapse

Postby mxsquid » 12 Sep 2008, 01:00

To hear Donald Coxe tell it, the commodity selloff ripping through Canada's stock market is no accident. It is the result of a deliberate, brilliantly executed plan hatched at the highest levels of the U.S. Federal Reserve and Treasury.

Mr. Coxe is no paranoid conspiracy theorist. As the chairman and chief strategist of Harris Investment Management in Chicago, he is one of the most respected investment authorities in North America. He also happens to have lost about 10 per cent of his personal wealth in the commodity rout, which came at the worst possible time for his Coxe Commodity Strategy Fund that started trading in June.

“This has done more damage to my personal wealth than anything in the last 20 years,” he said in an interview yesterday. But he has too much respect for how the U.S. authorities engineered the collapse in commodities – a move he said was necessary to shore up the global financial system – to be bitter.

“My attitude is, goddamn it, they're good … it was brilliant.”


How to Collapse Levered Hedge Fund Long Bets

Actual Transcript of the Don Coxe Sept 5, 2008 Broadcast
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Re: U.S. Engineered Commodity Collapse

Postby mxsquid » 13 Sep 2008, 04:44

Eric Hommelberg editorial (references Don Coxe)

Thrilled about the latest sell-off of your beloved gold shares? Thrilled about your junior mining stocks trading at rock bottom bear market levels? Thrilled about governments/media magic to spin an endless chain of bankruptcies into hyper bullish (dollar) events?

Well, in case you missed it we just witnessed the biggest, ugliest, fastest correction in gold and gold shares ever despite the fact that fundamentally nothing has changed regarding the bull run that took gold from its $250 low in 2001 to its recent high of $1030.

So what did reverse the gold bull trend then?

As pointed out In my piece “Gold – Fundamentals still pointing towards $2000+” the dollar started a miraculous rally in early July and kept on appreciating week after week with a stunning speed leaving most analysts clueless for the reason why. Now did the dollar rally so fast because the rest of the world became so excited about the endless chain of bankruptcies haunting the US? Never mind Bear Stearns blew up, the dollar rallies, never mind IndyMac blew up, the dollar rallies, never mind 11 other US banks blew up, the dollar rallies, never mind the two biggest mortgage banks (Fannie/Freddie) blew up, the dollar rallies, never mind the US has taken on an additional amount of debt overnight equal to what has been accumulated over the last 200 years, yet, the dollar rallies..This all makes sense to you? Well, not to me but then what the heck is going on?

The answer is simple:

The US has shown its financial muscles and orchestrated one of the biggest intervention of all time in order to restore confidence in the financial markets.


http://www.gold-eagle.com/editorials_08 ... 91208.html
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Re: U.S. Engineered Commodity Collapse

Postby mxsquid » 11 Oct 2008, 12:51

The 10/10/2008 Don Coxe interview with Jim Puplava on "Homeicide", the brilliantly engineered commodity collapse and propping of the dollar/financials orchestrated by Bernanke & Paulson.



Don Coxe Basic Points PDF titled Homeicide from October 8, 2008
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Re: U.S. Engineered Commodity Collapse

Postby mxsquid » 18 Oct 2008, 22:38

Don Coxe: Food, energy prices in contango. Dropping energy prices mean no new offshore drilling and no new exploration projects in the oil sands. Friday October 17, 2008.


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Re: U.S. Engineered Commodity Collapse

Postby mxsquid » 26 Oct 2008, 18:59

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Re: U.S. Engineered Commodity Collapse

Postby mxsquid » 02 Nov 2008, 19:56

Jim Willie on the US Dollar rapid ascent dark side


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No hint of investment in the US Economy is coincident with the paradoxical US$ rise. In “Plumbing the Depths of Depravity” posted of October 29 (the intrepid expert forensic financial analyst Rob Kirby, and erstwhile bond trader, confirmed my view of a twisted engineered perverse US Dollar rally. He echoes one of my major points delineated, that settlement of credit derivatives, like with the credit default swaps from failed insured asset backed bonds, has produced a demand for US Dollars in contract settlement payouts. His website contains a treasure trove of information that reads like criminal indictments, but without the hundreds of obscurely written pages and weird words.

In the cited article, Kirby wrote: “What folks need to understand is that the global OTC derivatives market, measured in tens or hundreds of Trillions, is virtually all US Dollar denominated. Its SYSTEMIC failure, which is now occurring, requires US Dollar balances to clear (settle) the trades (bets). This has created the paradoxical global demand for US Dollars, the currency of a country that is fundamentally bankrupt. By rationing credit to hedge funds that were naturally levered and ‘long commodities’ (institutions like JP Morgan routinely took the other sides of their customers commodities bets, ruining institutions like natural gas player Amaranth), and propping up the balance sheets of those who were short commodities [such as] the Banks. The Federal Reserve led cabal of Central Bankers have ENGINEERED the collapse in commodities prices while creating the illusion (of a perverse USDollar rally). The engineered collapse of the commodities complex became necessary in the eyes of monetary elites because the rush for tangibles and corresponding repudiation of fiat money was becoming manic, as so CLEARLY evidenced by the emerging shortages of precious metals, gold and silver bullion.” My rejoinder is that the crude oil price, and many commodity prices, have come down right before the election, just like in autumn 2006, a perception we share.

Kirby went on to conclude that “We are CLEARLY going to HYPERINFLATE!!!!” He steadfastly contradicts shallow assertions that deflation will dominate the scene. Anyone observing the money supply acceleration in recent weeks can easily see this, yet deflationists seem unable to observe the human response in desperation. We two have frequent debates between ourselves, whether USTreasury Bond default will occur or else a big Reflation Episode. It is possible both will occur. These exchanges will contribute toward a key section in the upcoming November Hat Trick Letter on the weekend of November 9. A topic raging lately between us has been the failures to deliver USTreasurys. This extraordinary phenomenon highlights the extreme mountain of toxic bond (in)securities spewed worldwide by the corrupted US financial sector, but it also highlights the questionable legitimacy of USTreasury Bonds. The traded volume of USTBonds had been recorded a few years ago to be over $2 trillion above official issuance in USTBonds. So maybe we are seeing a redux of counterfeit issuance of USTBonds in order to satisfy unprecedented demand. By the way, USTreasury management is done, and accounting is done, handled by only one giant bank.

Jim Willie on Rob Kirby

http://www.kitco.com/ind/willie/oct302008.html


Plunge Protection Team or Hank the Plumber

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Rob Kirby piece: "Plumbing the Depths of Depravity"

http://news.goldseek.com/GoldSeek/1225289916.php

Marketwatch Story:


http://www.marketwatch.com/news/story/d ... 25C14914FF}
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