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GATA Vindicated *BUT* Deutsche Bank a Limited Hangout – Bill Murphy, Welcome To Dystopia 19

dystopiaTND Exclusive:  Welcome To Dystopia #19

This morning, Jason Burack of Wall St For Main St and I interviewed GATA Chairman, Bill Murphy.  Last week’s announcement that Deutsche Bank seeks to settle lawsuits concerning the bank’s manipulation of the silver and gold fix is big news.  No two ways about it, this news vindicates GATA’s work.  Mainstream media producers, business television anchors and mainstream journalists no longer have the “risk-free” option of running with the party line that manipulation only occurs within the bond, currency and equities markets. Deutsche Bank’s settlement relegates that journalistic abortion to the dustbin of history.  I say “risk-free” because some of these “powers that be” stenographers will continue to make the case that there’s no manipulation in the precious metals market, despite the fact that an ever growing number of people can see these stenographers for what they are:  SHILLS, serving their own personal interest, and their own careers.  But I digress…

It’s important to underscore that the lawsuits against Deutsche Bank focus on the manipulation of the fix in London.  The manipulation of the fix represents only one of the many tools in the cartel’s manipulation bag of tricks, and it’s far from the most powerful of the tools the cartel employs.  The workhorse effort is achieved with the use of High Frequency Trading and the issuance of new contracts to meet periods of rising long interest (you need only look at what was happening last week for a textbook example, as Craig Hemke discussed last Friday).  Add on top of these tools the outright dumping of physical precious metal at strategic junctures and suffice it to say, the cartel is a long way from being emasculated.  There have been a number of over-the-top headlines in the last couple of days making the case that this news regarding Deutsche Bank is going to translate into an end to manipulation.  Reality is more nuanced, as Bill Murphy explains.

I see the potential for a “limited hang-out” scenario unfolding.  Deutsche Bank is in precarious financial health, and I believe there’s a possibility that the bank could be split-up, with “bad assets” segregated in a “bad bank” holding company, with losses nationalized.  If that scenario were to unfold, it wouldn’t be inconceivable to see the mainstream media spin precious metals manipulation as reality, but only in the backwater of the London fix process, and largely the product of Deutsche Bank leading the effort.  If Deutsche Bank morphs into some other entity at some point, the ability to spin a “limited hang-out” is possible.

Precious Metals Market Action

Given the way precious metals and miners have been trading for most of 2016, Bill makes the case that there has been a shift in psychology. One need only look at the way silver traded last week; Bill notes that it’s been years since we’ve seen back-to-back up days without so much as a cartel-induced hiccup.  The move in silver since the January low is impressive:


Bill also makes the case that longer-term “smart money” has been accumulating pure-play silver miners, and mining shares in general.  Bill offer’s the example of First Majestic’s majestic move:

first majestic

Tune into the show for Bill’s take on the Deutsche Bank news, the soon to launch yuan-based Shanghai Gold Exchange fix mechanism scheduled to roll-out tomorrow, and for his thoughts on how precious metals will trade in the face of ongoing cartel manipulation.

yellen - 619x350

Obama Reading Yellen Her Marching Orders?

Just what Obama and Yellen discussed isn’t certain, but the participation of foot-in-mouth veep, Joe Biden, strongly suggests that this was no ordinary set of meetings.  When Biden is in the picture, that adds a “national security” layer to this onion, given the facilitating role he has played on maters of national security policy.  My assessment:  the baseline interpretation of Obama seeking to ensure a smooth election season without a nasty economic downturn washing over the United States this summer is likely part of the reason for these meetings.  Dr. Ron Paul addresses this thesis, including the possibility that economic rot is so bad that negative interest rates are seriously being considered:  click here.

While I do not subscribe to interpretations that last week’s meetings are an indication that a crisis is within days or weeks from washing over the financial markets, these sort of planning sessions do concern the intermediate-term potential for nasty market developments.  Jason and I explore this topic following the segment featuring Bill Murphy.

Jason and I also dive into what’s going on with the Japanese yen, the dollar, the magnitude of bad oil loans blowing holes in bank balance sheets and of course, our scumbag nominees.  We also dissect the Wall Street Journal’s important report that over 40% of all U.S. student loan debt is impaired or in outright default.  Yikes, what a clusterf*ck!'s "Bernie is my comrade" Tee’s “Bernie is my comrade” t-shirt

Scumbag Nominees:

1) Jim Cramer for routinely recommending companies right before they go bankrupt

2) “California Labor Union That Fought for $15 Minimum Wage Now Wants an Exemption” –…

3) Bernie Sanders and his lawyers for sending a “cease and desist letter” to the seller of “Bernie is my Comrade” t-shirts:…

Thanks for checking out Welcome To Dystopia – Eric Dubin

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Click here to check out Bill Murphy’s 2-week free trial to his MIDAS report newsletter.  You can read Chris Powell’s free “GATA Dispatches” by clicking here.

Note:  Eric Dubin and Jason Burack own shares of First Majestic Silver.

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About the Author

- 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: