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Selling Short via ‘Phantom’ Shares will ‘Suppress’ Silver Prices!

April 10, 2013

The concept of Naked Shorts is mostly a strategy of very select Hedge Funds who operate with special privileges as Wall Street Gurus. These rich and powerful funds (and the CEO’s who control these funds) can create ‘phantom’ shares via a Naked Short which passes as a normal short in their minds. These special traders can operate under the radar to suppress select prices via their strategies of day trading using special Algorithms and the privilege of settling or covering their Shorts via IOU’s. You and I are unable to use this strategy as we do not have the ‘image’ of a super-rich/powerful Wall Street Guru status.

Those who have dug into the details of the 2008 crash and the collapse of the Lehman stock and the Bear Stearns Stock know how this Naked Short strategy works in real-time. For some details that reveal the crime of Naked Shorts you can visit these websites:

1.  (basic video describing the concept of Naked Shorts for the retail investor)

2. (read the details from a real expert)

3. (Patrick Byrne takes on Goldman Sachs and the N.Y. Media)

What has happened in recent years are many new strategies for ‘manipulating’ the markets including select stocks, commodities, bonds, and currencies. This knowledge reveals why all global markets are now mostly manipulated via select Gurus who operate under the radar. Our S.E.C. (Securities and Exchange Commission) is unable to regulate these strategies given today’s complex electronic markets. Our speed of light transactions (trading) and new ‘strategies’ for following ‘prices’ (numerous unique algorithms) gives these special Guru’s options that did not exist under the historical ‘open outcry’ system. Real-time trading (now mostly via computer platforms and algorithms) and ‘out of the market’ strategies (where a trading desk is totally into cash at the END of a Trading Day) allows the Naked Short strategy to suppress prices via IOU’s (a loop-hole in the trading rules).

All these strategies have unique ‘names’ and ‘rules’ which can be interpreted differently (especially for select Wall Street Guru’s who are given special privileges). Today our markets are totally corrupted by all these unique and mostly criminal strategies. None of our Regulators, however, are capable of solving these issues given the nature of our electronic markets today. Those who ‘game’ the System can usually operate ‘under’ the radar where few can expose their criminal operations. We now must operate with manipulated markets and manipulated prices. This means that reason and logic can not predict future trends with any real accuracy. All is jumbled within ‘anonymous’ computer programs.

The above websites provide me with ample evidence to conclude that ALL the markets are now corrupt and manipulated! So what is the solution for the average retail investor? My personal view is that we need to wait for a market CRASH before anything will really change. After the CRASH we can gradually get to the bottom of the matter and clean-up the issues. During this transition period my advice is to invest based on historical logic and wisdom. My view is that silver coins, gold coins, mining shares, and items that can be bartered in your local area will provide you with a ‘store of value’ for the coming dark days. Think about maintaining your ‘purchasing power’ (based on need) to preserve your wealth.

My wisdom also leads me to the view that AFTER the CRASH (which could occur at anytime) that our existing corrupt markets will be internalized as corrupt markets by the Authorities. This will mean that these Authorities could lose all their credibility and capability to keep the corruption going. Institutions, like the Fed and our current Media pons, will likely become impotent as creditable  spokesperson’s for the markets. We all know that the markets are illogical and unsound. Few, however, have discerned the ‘details’ of our financial issues. The Devil is usually in the Details. Now is the time to get yourself educated on the issues. Watch the above videos for new information. Enjoy! I am:

P.S. I think we all can identify the main culprits in this manipulation saga. These select Hedge Funds and Trading desks are mostly located in the large and well-known trading centers within the U.S.A. Your list would likely to be my list!

3 Comments leave one →
  1. Graham Reinders permalink
    April 11, 2013 5:32 am

    Hi Don,

    Just came upon your site via Howe Street

    Your article is about “Government Manipulation” and Conspiracies everywhere.

    I offer a counter viewpoint. — In the Big Picture of a quadrillion in CDS’s, US 100 Trillion in liabilities, Global GDP of 50 Trillion, US GDP of 16 Yrillion and etc. No Cabal or even any single government is powerful enough to manipulate it.

    Gold and Silver only equal about one Trillion so they are not even on the scale of real concern. If they disappeared tomorrow the world would not miss a beat.

    Now we come to the punch line. There exists in our species of opportunists a wonderful thing called the Unconscious Conspiracy. All those with a functioning IQ, if they discern that a certain action will benefit them as “individuals” but usually best acted out in a group, not a single word needs to pass between them. They all know what has to be done.

    Shooting the bullets into the air, — will happen spontaneously.

    This talk of Precious Metal Manipulation is placing too much intelligence in too few hands. And to think a government could do it is like asking the room full of monkeys to write a Shakespeare.

    Out there are millions of opportunistic, greedy, semi-psychopaths, who are the active players in this global game and each one thinks they see a way to either get something for nothing, or see a way of gaining some advantage over their fellow players.

    There are no fundamentals. There is no base-line. If flipping between paper and physical will show a buck, so be it. If shorting a paper or flooding the market with papers will show a profit so be it. No collusion needed. It is individuals using the collective unconscious of a common goal to profits that inspires it. Like fish in schools or birds in flight. With computers now able to do a million trades a second, only computer collusion is needed.

    You are totally correct, not a single share, bond, or investment bears any relationship to its intrinsic value. It is all an arbitrary construct which will only show when the tide goes out.

    Bitcoin reaching $250 from its $4 of a very short time ago. Time will tell.

    If we accept that the US government is captive to the five TBTF Banks, That the Fed is a banking Cartel, the 2000 lobbyists and the Elite Cabal of Capitalists, then governments do not and certainly cannot act or do anything of economic value because they are rigidly controlled and bought off by greater powers.

    To even try to imagine the US government as an unencumbered force is crazy. They are totally reactive to putting out fires. Original, predictive, or even preventive ideas are beyond their scope.

    Sad but true



    • April 11, 2013 7:54 am

      Graham: I would agree that these manipulations could be done via unconscious behavior. Algorithms can do the manipulation of prices with no human conscious thinking (after the program is installed within a computer). Manipulation is rather evident IMO, the question is: are these manipulations done via premeditated acts or unconsciousness acts.


      • Graham Reinders permalink
        April 12, 2013 5:05 am


        Like you I read all the great thinkers (most of whom are also gold bugs and have a vested interest in precious metals going up, or brokers who have a vested interest in investments going up.

        I always love their common theme: ” The system is going to collapse so send your money to us and we will invest it for you”

        Each one is intellectually very bright. some say there is manipulation some say there is not.

        In answer to your question; each is manipulating the hell out of what they know best, determined to make a profit from their knowledge. But like Longs and Shorts there are two sides to who gains or loses in the end.

        Personal anecdote: My extended family were big time into horse racing and one brother was a Jockey, one a Trainer and the third an owner. I once seriously said to them that they had all the bases covered in many races why were they not millionaires.

        Their reply was,” All of us are all cheating so hard in this game that it is almost fair”.———–

        I would apply this theory to all those who see conspiracies everywhere. There is always “the other side” who stand to gain out of manipulation. Human greed cannot keep a secret for more than 60 seconds.



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