Deutsche Bank trader David Liew admitting to precious metals manipulation is a positive development but not as big of a win as “Doc” and I would like to see.  We address this and why gold and silver rocketed higher on Friday and what to expect from the Federal Reserve this year.


The latest developments surrounding the case against Deutsche Bank is a positive development.  But we need to keep things in perspective.  From the very first day the Deutsche Bank case was revealed, I’ve been warning that we’d see the case move in the direction of a “limited hangout.” That’s where we are moving. It’s a good thing that we now have even more evidence about collusion with other bullion banks. But the fact is, spoofing is a minor action compared to the full scope of manipulation – and ongoing manipulation – that turns the precious metals paper trading markets into a fiction of price discovery. To heck with spoofing. I want to see outed the huge “naked shorting” operations going on by bullion banks, the ridiculous and criminal multiple leases on gold held by central banks and governments and investment banks, the outright dumping of physical gold in price raid bombings when the guardians of the fiat paradigm and system are compelled to truly take massive steps to stop demand spikes (e.g., April, 2013). The scope of the fraud going on is an order of magnitude greater than mere spoof trades.

The US Dollar is in trouble.

The dollar fell hard today as longer-term expectations for the Fed to follow through with their full rate hike schedule in the coming year took a big hit on the back of Friday’s lousy employment report.

>> Related: Huge Miss: Only 138K Jobs Added In May; April Revised Much Lower As Wages Disappoint – click here.

That sent the standard equities market higher as traders and computer driven algorithmic trading jacked stocks higher on the expectation that monetary heroine will support asset prices will continue longer than previously expected, regardless of the extremely high probability that the Fed will indeed raise interests rates in two weeks.  I view this coming rate hike as the last one from the Fed for 2017 because the stock market will be in a significant downturn later this year and the economy is rolling over.  This will be a powerful driver for higher gold and silver prices.  Tune into this week’s podcast for more analysis:

speaker audio mp3MP3 podcast streaming or right-click and “save as” for download:

Podcast: Play in new window | Download

 YouTube Streaming Alternative:

# # # #

Mr. Dubin is the Managing Editor of He has 25 years of experience as an independent buyside securities and global macro analyst. He has well over a decade of experience as a financial journalist, editor and political analyst. He’s primarily an autodidact, but his formal education includes degrees in economics, international relations and MBA. He welcomes feedback on his articles and will make an effort to respond to comments. Email Eric by sending to “Eric” and then He can also be “followed” on Facebook:

# # # #