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Bob Moriarty has been a Marine pilot during Vietnam, owned and operated one of the first Macintosh online computer sales websites before retiring in 2000. When he saw the incredible disdain that both gold and silver were held in during 2001 he believed it was time to start a website specializing ... more

Another Turd in the Punch Bowl

Date: Monday, November 11, 2019 1:35 AM EST

I have never even hinted that I believe markets are sacrosanct, free and fair. I cannot speak for every word written or spoken by the remainder of the writers the Turd attacked but I have never heard or read anything that suggests any of them believe markets are free and fair.

All financial markets are manipulated all of the time by everyone involved. If you can’t handle that, don’t invest. Just about everyone is out to screw you and take your money. Live with it or don’t play in their sandbox.

Over a year ago I offered the Turd the opportunity to respond and either give me an example of where I suggested what he claimed or accept that he is a liar and was lying when he put out his asinine twitter. Naturally he didn’t come up with even a single example perhaps because there are none.

The Turd, the stone cold liar, wrote a recent piece about commodities, remarkable in that all he managed to accomplish was to use a lot of words exposing that not only is he a liar, he also knows sweet fuck all about commodities.

All good articles should have a title that grabs the attention of the reader. I do it and so did the Turd. He called his piece, The Continuing COMEX Fraud. That’s the sort of title that both Turdites just love. They want to assume that Comex is part of a continuing fraud. After all those playing that one string banjo they call a Manipulation/Conspiracy all want to believe Comex is fraudulent. Alas, the Turd never actually gets around to demonstrating any facts showing fraud on the part of the Comex, he just replays the old, tired clichés about “CRIMEX” none of which has any basis in fact.

Comex is an exchange. They are no more or no less fraud than your local swap market. They allow certain commodities to be traded under rules that everyone is aware of. And if you think they are a fraud, you owe it to yourself to not deal in the commodities they trade.

In his first sentence the Turd starts demonstrating his ignorance of even the basics of commodities trading. He begins by mumbling, “the extreme level of futures contracts issued by the market-making banks.”

But banks generally do not issue futures contracts. Some banks might act as representatives of purchasers of commodities such as jewelry makers or producers such as mining companies. Those who consume or produce commodities are correctly called “Commercials.”

If hedge funds and banks are speculating on their own behalf, they are correctly called “Speculators.” You can have large speculators and you can have small speculators but banks participating on their own behalf are never commercials. Banks do not and never have issued futures contracts.

It’s vital in commodities to understand the role of participants. Producers of commodities such as mining companies are natural sellers as prices increase. Consumers of commodities such as manufactures are natural buyers as prices decrease. It’s common for the fools similar to the Turd to believe that as Commercials get shorter and shorter as prices increase that they are under increasing pressure to buy to cover. That just goes to show his total lack of understanding. Commercials get stronger as prices go up or down because there are both natural sellers, and natural buyers.

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