China Metal Price Premia and Other Topics
Interview with Jay Taylor taped on July 28, 2014 and posted on July 29.
1. China metal price premia for physical metal vs. NY / London virtual metal pricing.
- Silver : $0.98/ oz or 4.7% premium (Shanghai Gold Exchange)
- Plat: $84/oz or 5.6% premium (Shanghai Metal Exchange)
- Pall: $142/oz or 16.1% premium (Shanghai Metal Exchange)
Palladium trading for $1,020 /oz in Shanghai vs $878 /oz in London and NY as evidence of physical pricing departing from virtual pricing markets.
2. Silver manipulation lawsuit coverage by Bloomberg, Reuters etc on weekend
- focus on patterns of trading
- issue is not so much trading patterns as the exchanges themselves - products traded aren't gold, silver, plat etc. but digital / virtual products
- virtual gold and silver trading guarantees manipulation because metal can be created without limit in NY & London
- Goes back to central issue of suppressing gold & silver allowing interest rate suppression; Gibson's Paradox
- Key to the bubble that was blown in the 1990s was loose central bank monetary policy obscured by rigging gold and distorting CPI measure of inflation
- Metals intervention accelerated under Greenspan in 1991 when J.Aron (Goldman Sachs) secretly allowed by CFTC to speculate on commodities.
3. Argentina - approaching July 30 deadline - appears that default will occur; 2002 / 2003 Peso crisis coming back
- abuse of money by central banks.
4. Swiss / China currency swap agreement between central banks
- In addition to BRICS, Germany, England, Switzerland, etc. preparing for disruption of function of USD transaction mechanism
5. US Embassy evacuated on weekend
- Gadaffi killed, country destabilized by NATO;
- pattern of systematic destabilization of Middle East and now Ukraine
- chaos being spread as petrodollar is challenged.
Length: 28 mins 16 seconds