More and more, Comex precious metal action has the look of a patsy-muppet set-up operation for the parasite guildists to buy low and then conduct a large-scale ramp. In fact, the small speculator Commitment of Traders’ position are at the largest net short position in 15 years. The managed money slinger contingent has remained at around the near-record 80,000 contract naked short level and hasn’t moved much higher.

So in characterizing the action of the last several weeks, it was the small speculator muppets that were rounded up to provide the last pieces of tender for the short-squeeze fire. That left the conventional, long, precious metal contingent guessing about who was doing the indiscriminate naked short futures.dumping in the middle of the night.

The most popular assumption was banksters. But I think the correct theory is that banksters (most likely out of London) facilitated this operation by using muppets (patsy clients) as tender or foils to set up this trade. These shorts are then reported by the corrupt crimex as “managed money,” and then in the last stage as “small speculators”.

The purpose of muppets

Friday’s surge started when the Ministry of Truth released the ever-present, psycho-tropically drugged, Potemkin Village, University of Michigan consumer survey of 300 carefully selected asylum inmates. It is perhaps the most blatant piece of  lying, misdirection propaganda out there — and there are plenty of contenders. It was obviously leaked ahead of time so that the manipulators can turn markets. Most of us won’t get the memos on this mockery either, but put it on your “surprise” calender. Twice a month, on Friday, between the hours of 9:55 a.m and 10 a.m. EST.

So the item that initially sparked precious metals was the Potemkin inmates’ very low inflation expectation number. The algos connect the dots by assuming it means a deflation is loose in the village, and deflation translates into an excuse for some intervention, and so on.

In my view another reason for this phony outcome was to try and turn the oil market around. Yes, Martha, the masters of the universe initially thought lower oil prices would hammer Russia and Iran into submission. But now it is looking increasingly like sub $75 oil is going to sink the shale oil fracking racket, which in turn is a large component of the junk bond monster. And once junk monster craters, turn out the false economy’s lights.

Then, as PMs were putting in a rather normal up day, another bankster, Deutsche Bank, decided to release an “analysis” that it was looking like the Nov. 30 Swiss Referendum might pass after all. That one pinned the price of gold higher by about 12 bucks in a matter of minutes.

Stay tuned!

In looking at Crimex open interest after the fireworks, we see gold contracts expanded by 6,118 to 456,481 and that a large 225,777 December contracts are still in play. The December open interest in silver increased by 1,439 contracts at a time it should be rolling over.

So the muppet shorts are still trapped, and there is potential for large Crimex deliveries to be made right as the Swiss Referendum results are announced.  I wouldn’t want to be one of the banksters' muppets right now.