We are entering currency/trade wars. All paper will be fighting for credibility as values (intentionally) depreciate. China and Russia are actively accumulating physical, while Anglo Americans boast (LOL) 100% of derivatives. Point being with BRIC nations hungry for physical, the ability to impact physical through paper is politically important. That's not to say I'm making the case for Anglo American big bank manipulation. Simply pointing out the contrast between the height of western civilization and the older (perhaps) wiser eastern folks (audit of Ft Knox/NY Fed withstanding).
"...The report shows that JPM has about 80 percent of the gold derivatives in the world on its book, with HSBC holding the other 20 percent..."
"...And in other commodities, JPM holds a similar position as well as part of their overall $78 trillion derivatives book which is heavily dominated by interest rate and credit derivatives..."
"...JPM is not just Too Big to Fail. It IS the market. And 95% of their transactions are still OTC..."
"...As general rule of thumb, if you are the House in any game, you should not be able to also sit at the table as a player, internal confidentiality agreements notwithstanding. It really is just that simple..."
"...One cannot help but wonder if some of these mega banks have not become so interwined with government as to be in a virtual partnership in their implementers of fiscal and financial policy, which is a dangerous development indeed..."
http://jessescrossroadscafe.blogspot.com/2011/09/precious-metals-duopoly-quarterly-occ.html
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