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<p>[QUOTE="Zuhara, post: 851915, member: 23099"]Interesting stuff. Okay, what proof would I like? I would like proof that this is any different from any other commodities exchange. What they're not saying here is that futures markets allow anyone to short much larger amounts of stocks, or oil, or cotton than actually exist in the world. And on margin too, so one does not even have to have the actual money much less the commodity to be short a certain index or commodity. And while these markets may be used by producers of cotton or oil or wheat, to hedge their risks, there are also just used for pure speculation.</p><p> </p><p>But it doesn't necessarily mean we are going to run out of cotton or oil or wheat, just because people are trading much greater amounts of it than actually exist. If the shorts get squeezed, they don't have to "deliver" any of these commodities they supposedly "own" (actually just fictionally borrowed) because they are allowed to settle in cash. </p><p> </p><p>If they want to argue that there really isn't any gold left in any of these banks, which they are always implying, or that all the banks are full of tungsten, they need to produce some evidence, which they have not been able to do.[/QUOTE]</p><p><br /></p>
[QUOTE="Zuhara, post: 851915, member: 23099"]Interesting stuff. Okay, what proof would I like? I would like proof that this is any different from any other commodities exchange. What they're not saying here is that futures markets allow anyone to short much larger amounts of stocks, or oil, or cotton than actually exist in the world. And on margin too, so one does not even have to have the actual money much less the commodity to be short a certain index or commodity. And while these markets may be used by producers of cotton or oil or wheat, to hedge their risks, there are also just used for pure speculation. But it doesn't necessarily mean we are going to run out of cotton or oil or wheat, just because people are trading much greater amounts of it than actually exist. If the shorts get squeezed, they don't have to "deliver" any of these commodities they supposedly "own" (actually just fictionally borrowed) because they are allowed to settle in cash. If they want to argue that there really isn't any gold left in any of these banks, which they are always implying, or that all the banks are full of tungsten, they need to produce some evidence, which they have not been able to do.[/QUOTE]
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