Many are getting excited about Deutsche Bank coming clean concerning their part as well as fingering some of their co-conspirators on how they fixed the gold price for their own benefit. Admission of guilt, especially in important areas that seriously affect others is typically a good thing and helps to correct future behavior for the benefit of all (I hope that does not sound too Communist because that is certainly not where I am coming from). Deutsche Bank owning up to their past transgressions in this case may be akin to a dying man suddenly confessing the error of his ways so as to leave an improved legacy as well as prepare a better path forward in coming spiritual world. Deutcshe Bank, like several big American banks, has a huge derivatives exposure and is like a nuclear bomb whose fuse has been lit and we are just waiting for the explosion. The overleveraged governments may try to save their big banks by printing more money or even nationalizing them but in the end I believe that will be futile. Just like creating more debt is not an answer to an overleveraged indebted government or business, having one extremely overleveraged entity join forces with another extremely overleveraged entity does not really solve anything. It just creates a bigger more concentrated explosion when the two newly joined, deeply in debt entities are vaporized by their mutually constructed debt bomb.
The bigger question as to the gold and silver market manipulation is does this really address the larger issue of government sourced precious metals market shenanigans. The big banks are just the agents of big government and its need to keep the gold price suppressed to support their less than weighty paper fiat currencies. The answer is a definitive no. This particularly applies to the U.S. government and their loyal paper money cohorts, their big money center banks. The U.S. dollar is the basis for the current world economic system so the U.S. government has the most to lose if the price of gold rose to the point that it would become obvious to many of the public that there is serious trouble brewing within this government’s tea kettle. The U.S. dollar is in serious trouble that there is no escape from. The possibility of serious reform and spending cuts needed to even lessen the impact of the coming economic debacle is non-existent. Especially with this band of lunatics, criminals, and crooks that we have running the U.S. government and its corrupt, rigged economic system. I would expect more downside for the precious metals over the next few months for the reason alone that this band of criminals are not going to just give up and that the dollar still has a ways to go before they devalue it to the point of economic meaninglessness.