Fixing a Silver Fix – The Corruption Continues

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Fixing a Silver Fix - The Corruption Continues

Fixing a Silver Fix – The Corruption Continues

My name is Tommy Flanagan, and I’m a member of Pathological Liars Anonymous. In fact…I’m a boss of that organization. Yeah, that’s who we am.

I didn’t always lie. No, we used to tell a truth. Then one day we told a lie, and we got divided with it. Yeah, we told my relatives that we had a hermit that they had never met…

-Jon-the-Liar Lovitz, The Johnny Carson Show, Mar 28, 1985

As a impression Jon Lovitz explained on The Johnny Carson Show, fibbing is habit-forming. If perpetuated, it becomes compulsive conduct. Lying is a form of deviant duty that (in a eyes of a liar) creates problems go away. Of march such problems never disappear permanently, since a distortion can never solve anything. At some indicate a problem resurfaces, and since it never was addressed, mostly a problem has grown even larger.

The response from a liar is to tell another lie. But, since a problem is now roughly fundamentally larger, a new distortion tends to be bigger or worse than a original. The routine repeats. As a lies turn incomparable and some-more numerous, eventually some of a new lies start to plainly protest a aged lies.

At this point, a self-evident “jig is up” for a liar. At slightest that is how things are ostensible to work, as illustrated by a myth The Boy Who Cried Wolf. Which brings us to a “silver fix.”

The many apparent starting indicate is a question: since do we need a “silver fix”? In an epoch of electronic, immediate communication, and with (supposedly) “free and open markets,” since do we need someone to tell us what a cost of china is ostensible to be during a sold impulse in time? Why can’t marketplace participants simply observe for themselves a stream spot-price in a “free and open markets”?

The bankers (playing a purpose of Jon-the-Liar) have their answer during a ready.

We need an central “fix” of a cost of silver, since a allotment of a series of a opposite forms of contracts is formed on a prevalent cost of silver, during sold times in a daily trading. If we didn’t have an central “fix,” afterwards traders could try to manipulate a cost during those sold times, and distortion a system. That’s right, someone else could distortion a system.

How would “fixing” a cost of china (a routine that even sounds corrupt) assistance to forestall crime in a marketplace? The Liars again have their answer.

We’ll get some ‘honest people’ to tell us what a cost of china should be. These ‘honest people’ will accommodate behind sealed doors, and afterwards tell us a honest cost for silver. Yeah, that’s a ticket! Honest people, assembly behind sealed doors.

And so ‘the china fix’ was born. Who were these ‘honest people’ who were going to yield us with a honest cost for china around their tip meetings?

As unchanging readers know, a Big Banks of a West have been convicted of any form of financial crime in a books, many involving rascal (i.e. lying) in one form or another. The usually reason that these fraud-factories haven’t been convicted of distant some-more crimes is since a hurtful governments have erased many of a former laws and simply stopped enforcing many others.

The Pathological Liars were handed a shortcoming of providing us with a honest cost for silver. But wait, it gets better. The china repair was presumably combined to prevent crime in a china market. However, not usually are a Pathological Liars authorised to trade in a same marketplace where they are providing this quasi-regulatory function, though they are by distant a largest traders in these markets.

The Pathological Liars, who have a largest financial ground to supply a cost of silver, are a people to whom we handed a shortcoming of providing us with a honest cost for silver. This is not merely a matter of “putting a Fox in assign of a henhouse.” Rather, putting a hungriest fox we could presumably find in assign of safeguarding a hens.

However, we were told for many, many years that this complement worked usually fine. Then one day a Pathological Liars themselves told us that a china repair was no longer working. Of march this was distant reduction than a intentional admission. Instead, it came as a effect of several of a Pathological Liars being sued for – surprise, warn – utilizing a china fix.

The bankers, as always, had their subsequent distortion ready.

We’ll repair a china fix, and make it improved than ever. That’s a ticket!

And so, we got a bankers new-and-improved china fix. How was it “improved”? The sold Pathological Liars who were being sued for utilizing a china repair would no longer be concerned in “fixing a fix.” Instead, usually those Pathological Liars who were not being directly sued would be authorised to yield us with a honest cost for silver.

Then Jan 28th, 2016 rolled around, and Bloomberg Media expelled a following:

A daily china cost used as a benchmark by traders, miners, and jewelers risks losing credit with investors after it was set over levels traded on a market. One pronounced a complement seemed “broken” and another that clients had adopted alternatives.

The London Bullion Market Association Silver cost was set during $13.58 an unit Thursday, 3.5 percent reduction than a intraday low on a Comex in New York.

That came from a mainstream media, definition that (at most) it contains half a truth. Here is what was left out. The artificial “honest price” constructed by Pathological Liars Anonymous on Jan 28 th was not merely 3.5% reduction than a intra-day low. It was 6% subsequent a stream price.

Also conveniently wanting by a mainstream media was a stress of that date, that was a “options expiry day” in a futures market. All of a options trade for that month was staid formed on a cost set by a china repair on Jan 28 supth – a “honest price” constructed by a Pathological Liars. This means that all of a options traders who would have cashed in if a honest cost reflected a actual price of china were, instead, blatantly cheated out of their legitimate gain.

When Bloomberg and other mainstream promotion outlets reported that some traders indicted a London Bullion Market Association (LBMA) of handling a “broken” system, it was referring to some of those cheated options traders. What was also wanting was that a china repair tended to conveniently drop subsequent a tangible cost of china on many option-expiry days.

Prior to Jan 28th a Pathological Liars had not intent in a fake paraphernalia of a china repair in such blatant terms, not even before a repair was “fixed” a initial time. But even some-more discouraging was a latter partial of a quote from Bloomberg: “ …clients had adopted alternatives.”

The Pathological Liars distortion to us (among other reasons) for profit. If marketplace participants select to simply balance out a Pathological Liars, afterwards they could “fix” a china repair during any fraudulent, vast cost they chose, though there would be no distinction in doing so. You can’t distortion a other children if they won’t play in your sandbox.

Alarmed, Pathological Liars Anonymous called another meeting, where a bankers in assemblage fast cobbled together their subsequent distortion that would have left something like this:

We’ll “fix” a china fix…again, and this time, it will unequivocally be improved than ever!

Thus, now a Pathological Liars have presented their new new-and-improved china fix, designed to reinstate a old new-improved china fix, that was usually put into place final year. What did a Liars do to make a new-new repair improved than a old-new fix?

The initial of a new measures is a introduction of a blind auction. The total bid and offer volumes will no longer be disclosed during a auction round. This information will usually be finished accessible after a finish of any round.

The second magnitude is a “sharing of a imbalance” in a auction. In other words, after a auction is complete, a remaining buy and sell orders will be equally common among a participants.

Finally, a calculation representative will now be means to boost a imbalance threshold during a auction within an authorized range.

In short, currently a CME Group and Thomson Reuters (the other Pathological Liar compared with this sold fraud) announced that they are holding movement to forestall it from being unusually easy for a Pathological Liars to manipulate a china fix. They are doing some of a things they should have finished when they fixed-the-fix a initial time, if they had indeed wanted to make a complement reduction corrupt.

Why continue this imitation during all? Why would a Pathological Liars risk shredding their near-zero credit even further? Why not put to genocide this now entirely unprotected financial fraud? Why don’t a Pathological Liars calm themselves with their 24/7 strategy of china trading, in their paper “bullion” markets, that as everybody knows, are already some-more than 99% paper, and reduction than 1% bullion?

It’s all about control. Clients had adopted alternatives. These are difference that strike fear and loathing into a hearts of a Pathological Liars, such as usually a few other difference or phrases in a English denunciation are able of doing. Words like “competition” and “law enforcement.”




Courtesy: Jeff Nielson

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