The Perfect Storm: Will Silver and Gold Short Squeeze Collapse the Bond Market?
Jack Mullen
Activist Post.com
Monday, June 23, 2014
In October of 2013 I wrote an article titled “Gold Market Sunk to Keep Bond Market Afloat” [1]. In this article I made the argument that gold and especially silver prices are being violently manipulated and held below free market dollar prices in order to sustain and prolong the collapse of the US Bond market.
The United States Bond market, in my estimation, is the largest bubble, in terms of nominal dollar value, and the most defended Ponzi scheme, in terms of wealth squandered to sustain prices, in recorded history.
In recent days there has been much excitement in the gold and silver markets regarding a possible short squeeze in progress dramatically raising paper market silver and gold prices. [2]
The price of silver has increased by $2.00 since June 1, representing more than a 10% increase in the price of silver in 20 days. The same situation appears in gold with gold rising roughly $70 per ounce since June 1 translating into nearly a 6% increase in price.
The price of silver is the most defended asset price on the earth, with as much as $5 Trillion dollars of silver-related derivatives being created to defend and maintain an unnatural and absurdly low price for the silver metal. [2]
Bond Bubble the Last Support for American Financial System
The price of silver must be defended and maintained at the lowest possible price so that the US Bond bubble can remain inflated.
The nearly $37 trillion dollar US Bond market is 29% Treasury bonds of which 60% are 10-year or less notes. The Treasury market is the life blood of the US financial Ponzi scheme; the primary source of cash used to make payments on debts and continue to fund ever-increasing government spending.
The remaining bulk of the $37 trillion is in Mortgage and Corporate Bonds representing the financial wealth of the entire United States GDP.
The Rest…HERE
