Similar To The US, Spain Has A Failed Government Bond Auction, But They Lack A Fed To Cover It Up

Treasury bond auctions have been failing for the last three years at this point, but most people do not even have a clue and think everything is fine - why do you think I keep talking about gold??? Similar thing happened in Spain today. Unlike the US Spain lacks a central bank that can step in to hide this fact as they are part of the European Monetary Union and the ECB is not engaging in any illegal cover up operations that the Federal Reserve in the US does. The Spanish stock market was down more than 6% as a result.

The euro, too, took a beating against other currencies and the US dollar. One would think as there are problems with sovereign debt and paper, gold price would fly through the roof no matter what the dollar does against the euro especially considering the US is in an as bad situation debt and monetary system-wise. And old was about to fly early today. That was until "someone" came in and at 4 different occasions around 9AM sold 20,000 to 25,000 April gold futures on the Comex in less than a minute. Let's do the math here: Each future is 100 ounces of gold. 25,000 contracts at 100 ounces each is 2.5 million ounces. That is close to 4% of global annual production sold in less than a minute with no regard for the price decline which was to the tune of $5 to $20 at each occurrence. 2.5 million ounces is $2.5 billion dollars. Assuming this "someone" -ah, could it be the Fed?- posts 20% margin only according to Comex -ah, could Comex be a fraud?- that is still more than $500 million sold in less than a minute. Let's assume this "someone" is a normal entity. That $500 million or $2.5 billion position is obviously is not their whole position. If we assume that is a staggering 20% of their position although they are acting like it is less than 1% of their position, that would be a $12.5 billion exposure to gold. I ask you, who is big enough in the world to be able to have that much exposure to gold and sell so much of it without any regard to what they are selling or what they have left. Who has such deep pockets especially considering that this happens several times a day everyday, so that gold price can be kept below certain levels??? Yes, there is only one answer and you can probably guess it for yourself. I guess I don't have to tell you that no one fund's only holding would be $12.5 billion in gold. Assuming this fund has 10-20 positions to diversify, that would put the fund at $125 to $250 billion dollars. Yet this entity sold trillions of it over the last several years. Of course bought back at times, but still net net it is short a boat load. By boat I do not mean a tiny fishing boat, I mean the TITANIC!!!!! The Fed is in BIIIIIIIIIIIIGGGGG trouble with this short position. Good luck. Nothing lasts for ever....