Dear Friend of GATA and Gold:
Silver market analyst Ted Butler writes today that Bank of America has taken what seem huge short positions in gold and silver because the bank was "tricked in some way" by bullion bank JPMorganChase & Co.
Butler writes: "No one, no matter how dumb or misinformed, would do such a thing after careful and objective due diligence. There's no way BofA senior management woke up one day and decided to put the organization in potential harm's way by borrowing and selling short gold and silver in the quantities I claim. It had to be tricked in some way."
But what if the gold and silver positions attributed to the banks are not their own at all but the positions of an entity less concerned about risk -- like an entity authorized to create and dispense money in infinite amounts?
What if the banks hold such astounding positions because they are only brokers for an entity or entities far larger? You know, like a government.
After all, the gold and silver futures markets in the United States, operated by CME Group, are actually designed for secret government intervention via what CME Group calls its Central Bank Incentive Program, under which governments and central banks and their agents receive volume discounts for trading all major futures contracts:
https://www.gata.org/node/18925
So it's far less likely that Bank of America has been "tricked" here than that Butler himself has been. His analysis is headlined "Solving a Great Gold Mystery" and it's posted at GoldSeek here:
https://goldseek.com/article/solving-great-gold-mystery
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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