John Maynard Keynes, Essays In Biography, p. 170
It really freaks the Oracle of Ottawa completely out when one of his wild predictions that he casts while wearing his tinfoil hat with tongue firmly in cheek actually comes to pass. Such was the case when the Oracle wrote to this blog what would actually start happening to certain commodities, mainly that of gold, when Pope Francis finally got his hands on the controls of the Vatican Bank. It is a very common rumor in the financial world that certain commodities are or rather were being kept artificially high due to machinations of under the counter derivative contracts linked to over the counter derivative contract programs.
|Pope Francis is cleaning house?|
Fast forwarding to today, if you are one of those people that keep an eye on the world price of gold, you were no doubt totally shocked at the biggest one day drop in the price of gold since 1980! The market surely must have traded "lock limit down" which caused many margin calls and the disposal of many securities that were posted as collateral for these derivative trades at less than favorable market prices. It would appear to the Oracle of Ottawa that someone, somewhere, has started winding down a huge derivative position, and has failed to warn his friends.
Many rumblings and winds of change are blowing in, through and around the Roman Curia, especially since March 13, 2013! You can read all about it at very wicked blog called; "Whispers In The Loggia". It seems that Pope Francis has called a special committee that is finally going to take several matters in hand. As far as gold goes, there is still a lot of room and time to make some serious coin with a spread of put options, or any other similar over the counter options play. As for the market movements in Canada and the United States, you can simply put that down to a temporary dead hand cascading market drop caused by unexpected margin calls. It is all like eating a burrito from Taco Bell, it too shall pass...