Shanghai Silver Exchange Historical Monument To Banker Control of Silver
The Nearly 10 months since the opening of the Shanghai Silver Exchange, silver has not broken the $35 level. After the “bubble” burst in April 2011, silver was targeting $40 once again one year ago, heading into March 2012. But, a waterfall led the metal into Shanghai Silver Exchange’s opening around the dreaded $26.00. And, beside a fleeting jaunt up the ladder to about $35. While the silver price kept above $30 for much of the Fall and Winter of 2012, its 2013 showing continues a depressed trend that seems to has normalized in the wake of the opening of the Shanghai Silver Exchange on May 10, 2012.
When the Shanghai Silver Exchange opened, many believed the west would be checked in its long term manipulation of silver. What they failed to note was that the east and west have worked together on many important projects to the world technocratic agenda. Mainstream press termed the exchange a victory for “diversification” in silver futures.
Ignorant of the way things are, many silver investors through feathers in the wind hoping to project their trajectory. The east was in cahoots with the west, and this was clear to see. The history of the Cold War – especially post Stalins’ death – has been collusion between the Communist nations and the Capitalist nations. In reality, both of these types of states were on their way to the commercial Communism of today.
And in this commercial Communism of today, as Brzezinski noted, most people expect the mainstream media to do their reasoning for them. And so therefore, China, Russia and the US are very different states, driven by their own self-interest.
Maybe true, but strong forces of history are carrying these nation-states along in a much bigger plan. We are moving ahead fast. The standardization of the world, setup by the Royal Institute For International Affairs, world bank BIS IMF, and the guys who set this stuff up were international lenders, lending to nations. So, take over all resources of the world and bring in the world run by a scientific establishment just like the international communists of the twenties and thirties in the Soviet Union.
If the individual is standardized, one can be sure that institutions like the Shanghai Silver Exchange is so as well. The Powers That Be control any sort of movement. The real world is all subterfuge.
You cannot be independent in this day-and-age. You have to be working for the international bankers or they will bomb you into the stone age. SV knew this, and SV was not optimistic heading into the opening of the SSE:
According to Silver Investing News, the Chinese now want increased influence in silver price discovery, wanting to “tame the volatility;” volatility is conceivably a euphemism for manipulation.
“Since there are no authoritative price signals in China to guide production and operation and head off price fluctuation risks, China’s silver production, consumption and trading enterprises are exposed to substantial market risks making it urgent to launch silver futures trading for the purpose of price discovery and hedging,” said the China Securities Regulatory Commission (CSRC).
Peter Krauth, Global Resources Specialist at Money Morning said that for years CME Group’s futures contracts have been viewed globally as a monopoly over the silver price.
“Outside of the US, [the COMEX] is seen as a monopoly because you have to trade in dollars,” he said.
Silver Investing News details a “sizeable camp” that “believes” the COMEX silver futures are a “rigged game.” They cite drastic margin hikes in 2011 and overpowering, multilateral selloffs – which they call “sharp price declines” – as reason for suspicion.
The new SFT contracts have a 15kg lot size. They will not be denominated in dollars, but instead in yuan (RMB). There is a seven percent minimum price requirement. The introductory prices for the silver contracts are expected to be around RMB 6,400 to 6,600 (approximately $1,014 to $1,046). Price fluctuation for the contracts is to be set at five percent per day.
The domestic setting and premium cost of the silver contracts is expected to cause a paradigm shift for silver in China and Asia. Chinese investors in particular will view the silver market as more accessible than before given its domestic setting.
The Shanghai Metals Market (SMM) believes that at first the Shanghai price of silver will follow the lead of London spot prices. Eventually, however, domestic spot trading in China may lead to global implications for spot silver.
The article suggests that the new futures market will make it more difficult for American speculators to manipulate the market in their favor.
The CSRC has said the plans for silver trading in the nation encourage the promotion of “the rational allocation of silver resources and balanced silver supply and demand in the market.”
Chinese silver miners and industrial users will now have the ability to hedge domestically. The CSRC predicts this will help enterprise improve management, competitiveness and promote the stability and development of silver-bound industries.
But, if silver is such a rigged game, what is the likelihood of a silver futures market in the country changing market dynamics? After all, China and the United States often showcase mutually beneficial national policies and practices. For example, the map below demonstrates shareholders in the Bank of International Settlements, the “central bank of central banks.”
So, England and the United States and China are member states, through their (dis)respective central banks, of the Bank for International Settlements. Wikipedia describes the bank as such:
The Bank for International Settlements (BIS) is an intergovernmental organization of central banks which “fosters international monetary and financial cooperation and serves as a bank for central banks.” It is not accountable to any national government. The BIS carries out its work through subcommittees, the secretariats it hosts, and through its annual General Meeting of all members. It also provides banking services, but only to central banks, or to international organizations like itself. Based in Basel, Switzerland, the BIS was established by the Hague agreements of 1930.
According to Wikipedia the Bank for International Settlements “is not accountable to any national government.”
Wikipedia goes on:
As an organization of central banks, the BIS seeks to make monetary policy more predictable and transparent among its 58 member central banks. While monetary policy is determined by each sovereign nation, it is subject to central and private banking scrutiny and potentially to speculation that affects foreign exchange rates and especially the fate of export economies. Failures to keep monetary policy in line with reality and make monetary reforms in time, preferably as a simultaneous policy among all 58 member banks and also involving the International Monetary Fund, have historically led to losses in the billions as banks try to maintain a policy using open market methods that have proven to be unrealistic. Central banks do not unilaterally “set” rates, rather they set goals and intervene using their massive financial resources and regulatory powers to achieve monetary targets they set. One reason to coordinate policy closely is to ensure that this does not become too expensive and that opportunities for private arbitrage exploiting shifts in policy or difference in policy, are rare and quickly removed.
Note that “as an organization of central banks, the BIS seeks to make monetary policy more predictable and transparent among its 58 member central banks.” The implication here is that member central bankers are sharing planned monetary decisions of their country with non-nationals.
So, it could already well be that the Chinese and Americans are crafting their monetary policies in such a way to stabilize Chimerica, along the way sharing sensitive information regarding monetary policy. Naturally, as the central bankers in each country grow close to major silver market participants – if they already aren’t the major participants – New York, London and Shanghai will be tipped off to the others’ silver positions, resulting in a beefed-up cartel setting the silver price.
After all, why would this not develop? For decades have elites in each country rubbed the back of one another – just look at China’s model of commercial communism. Or how about an article written by David Rockefeller and published in the New York Times on August 10, 1973. The article, entitled “From a China “From a China Traveler”, reads:
“The social experiment in China under Chairman Mao’s leadership is one of the most important and successful in history.
At first the Chinese futures exchange will follow the lead of the spot price out of London, but will over time, as corrupted interests embed their way into the pockets of regulators and takeover unfair market positions, lead to increased volatility in the silver market. The Silver Liberation Army cannot depend on nation-states to un-cage the poor man’s gold, especially in the age of demise-of-the-state globalism.
With silver futures in China, the world might be getting a sort of Trilateral Commission of the silver market. According to the Trilateral Commission’s website:
The Commission was originally created in 1973 to bring together experienced leaders within the private sector to discuss issues of global concern at a time when communication and cooperation between Europe, North America, and Asia were lacking. The Commission has grown since its early days to include members from more countries in these regions, and it continues to find that study and dialogue about the pressing problems facing our planet remain as important today as in 1973. Problems and threats have changed, but their importance has only increased due to the more interconnected and interdependent world in which we now live.
Perhaps the Shanghai silver exchange was created to help bring together experienced business leaders in China with business leaders in the United States and London? This could help usher in an era of communication and cooperation in the silver market when it had been lacking in a more interconnected and interdependent investment world. Maybe in the face of losing control over the silver market, western bankers took to heart an old Chinese proverb: “When out of means, seek change. Then opportunities will come.”
Who knows, though – maybe Chinese nationalists see the opportunity of a silver exchange as a perfect example to use the metal’s volatility against the western banks known to manipulate the metal. If there is even some truth to this, most likely is that the most volatile precious metal will become even more volatile, all-encompassing of massive swings to the upside as well as massive swings to the downside.
For the silver vigilante, however, nothing is changed. We take note of another proverb, although not of Chinese origin: “Those who fight with silver spears are sure of their victory.”
40 days after the opening of the exchange, Silver Vigilante followed up on the call:
Rumors, which circulate around the topic of the Shanghai Silver Exchange, submit that the exchange is to act in competition with western exchanges of the same nature, and not coordinate with them on the silver price mechanism. This, due to the new counterbalance to western banking silver suppression, will send silver prices higher. Now, about forty days after the exchange was opened, the silver price trend remains a slide down. The price has ranged from shy of $31 to tonight’s low of $26.75. This is a continuation of the downward trend embarked upon in March, when silver was still the best performing asset year-to-date.
In the ten days before today’s volatility, the silver price had barely moved. Its range from June 11 to June 21 was $28-29, which is quite narrow for silver. That’s price stability that proponents of future exchanges can be proud of, and this stability is the impetus that a platinum exchange is called for – to manage the bull market in gold and silver. Here are the charts from May and June in silver:
The Shanghai Silver exchange makes the market more liquid. The question is whether this is bullish for silver prices or not. Will this liquidity aid in “drive-by shootings” of the silver price? Tonight, the silver price is not firming up after a weak day in the U.S., dipping to the chilly, murky waters of $26.73 as the SSE is open for business.
