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Now Reddit Investors Are Talking About Targeting Silver, And That Could Change EVERYTHING

For decades, the big fish on Wall Street have been able to do virtually anything that they want, but now the small fish are fighting back and it has been a beautiful thing to watch.  Finally it is payback time, and the losses have been absolutely staggering.  In fact, Reuters is reporting that short sellers have lost more than 70 BILLION dollars so far this year.  But nobody should be crying for the short sellers.  As Charles Payne pointed out during an epic rant on Fox Business, the short sellers have ruthlessly crushed countless businesses over the years, and they did so without showing any mercy whatsoever.

So now the big hedge funds want mercy themselves?

It’s not likely to happen.

After sending GameStop, AMC and other beleaguered stocks into the stratosphere, now investors on Reddit are talking about going after a really huge whale.

The silver market is perfectly primed for an epic short squeeze, and a coordinated assault by retail investors could make it happen.

The following is an excerpt from the post on the “WallStreetBets” Reddit subgroup that everyone is talking about

The silver futures market has oscillated between having roughly 100-1 and 500-1 ratio of paper traded silver to physical silver, but lets call it 250-1 for now. This means that for every 250 ounces in open interest in the futures market, only 1 actually gets delivered. Most traders would rather settle with cash rather than take delivery of thousands of ounces of silver and have to figure out to store and transport it in the future.

The people naked shorting silver via the futures markets are a couple of large banks and making them pay dearly for their over leveraged naked shorts would be incredible. It’s not Melvin capital on the other side of this trade, its JP Morgan. Time to get some payback for the bailouts and manipulation they’ve done for decades (look up silver manipulation fines that JPM has paid over the years).

The way the squeeze could occur is by forcing a much higher percentage of the futures contracts to actually deliver physical silver. There is very little silver in the COMEX vaults or available to actually be use to deliver, and if they have to start buying en masse on the open market they will drive the price massively higher. There is no way to magically create more physical silver in the world that is ready to be delivered. With a stock you can eventually just issue more shares if the price rises too much, but this simply isn’t the case here. The futures market is kind of the wild west of the financial world. Real commodities are being traded, and if you are short, you literally have to deliver thousands of ounces of silver per contract if the holder on the other side demands it. If you remember oil going negative back in May, that was possible because futures are allowed to trade to their true value. They aren’t halted and that’s what will make this so fun when the true squeeze happens.

That post has already been upvoted more than 9,400 times, and it appears that a consensus is building that this is going to be the next big thing after the raid on GameStop short sellers is done.

On Thursday, the price of gold was up 4.5 percent in anticipation that something might happen, and much of that price movement was apparently caused by short sellers that feverishly rushed to close their positions

“After watching GameStop (NYSE:GME) and other shorts getting blasted, rumours that silver could be targeted has traders preemptively covering shorts just in case,” said Tai Wong, a trader at investment bank BMO in New York.

As Eric King has pointed out, if Reddit investors really do decide to go all-in on silver, they could do some serious damage…

“Chris, I just calculated the last 4 trading days in GameStop (GME) in dollar terms and it totals $82.3 billion. I think annual silver production is roughly 1 billion ounces and at current prices that would total about $25 billion. That means yesterday’s trading volume in GameStop of $29.9 billion would have purchased more than the entire annual silver mine production! And the last 4 trading days in GameStop ($82.3 billion in dollar terms) would have purchased more than a staggering 3-times the entire annual global silver mine production! This type of buying would obviously create one hell of a violent short squeeze in the silver market.”

Of course the other side doesn’t exactly play fair.

On Thursday, Robinhood and other trading platforms suddenly restricted trading in some of the key stocks that retail investors have been targeting

Shares of AMC Entertainment Holdings, BlackBerry Ltd., Bed Bath & Beyond Inc., Express Inc., GameStop Corp., Koss Corp., Naked Brand Group and Nokia Corp. have been restricted to “position closing only,” Robinhood said in a blog post.

The decision means traders cannot initiate new positions in shares of those companies and can only sell existing holdings. The company also raised margin requirements for certain securities.

There are allegations that Robinhood and other trading platforms were persuaded to shut down trading in those stocks by the big fish on Wall Street, but Robinhood and the other trading platforms are denying this.

And Robinhood is also denying that it forced some users to suddenly dump their shares in GameStop and other key stocks

No, Robinhood tells The Verge, it didn’t sell off full shares of GameStop, AMC, and other buzzy stocks without permission from its traders.

That contradicts the stories of twelve people who spoke with The Verge, saying that the app unexpectedly sold off their holdings in some of these companies. Quite a number of Robinhood users expressed their surprise on social media today that the app was selling off their stakes, and we tracked down a dozen of them. These traders didn’t believe they had prompted the sales, and they said they weren’t aware of anything on their account that would have automatically triggered them.

Hopefully authorities will investigate and get to the bottom of what actually happened.

At this point, Robinhood has already been slapped with two lawsuits because of what took place on Thursday…

Two Robinhood users filed separate lawsuits against the brokerage app Thursday after it and other apps restricted trading of certain securities.

The first lawsuit filed in the Southern District Court of New York alleges that Robinhood “purposefully, willingly, and knowingly” restricted certain securities transactions, including GameStop. The other filed in the Northern District Court of Illinois alleges that the app manipulated its platform.

And it is being reported that the House and the Senate will both be holding hearings on the matter…

The U.S. House Financial Services and Senate Banking committees said on Thursday they will hold hearings on the stock market after users of investment apps faced trading limits following the “Reddit rally” that put a charge into GameStop and other volatile stocks that were touted in online forums.

“We must deal with the hedge funds whose unethical conduct directly led to the recent market volatility and we must examine the market in general and how it has been manipulated by hedge funds and their financial partners to benefit themselves while others pay the price,” said Representative Maxine Waters, a Democrat who heads the House panel.

After everything that just went down, I don’t know how Robinhood is going to survive.

There are also rumors of a “liquidity crisis” at Robinhood, but the company insists that those rumors are simply not true.

Meanwhile, the firm has “tapped at least several hundred million dollars” in emergency credit in recent days…

Robinhood Markets, the trading app that’s popular with investors behind this month’s wildest stock swings, has drawn down some of its bank credit lines to ensure it has enough cash to clear trades, according to people with knowledge of the matter.

The firm, according to one of the people, has tapped at least several hundred million dollars, a significant amount of money for a firm that was valued at about $12 billion a few months ago. Robinhood’s lenders include JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to data compiled by Bloomberg. Representatives for Robinhood and those banks declined to comment.

I have a feeling that this story is not going to end well for Robinhood.

But for the retail investors that are changing the course of history, this is truly an amazing time.

Finally, the small fish are standing up for themselves and are fighting back against the big fish, and the big fish have good reason to be quite scared.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions.  I encourage you to follow me on social media on FacebookTwitter and Parler, and any way that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post Now Reddit Investors Are Talking About Targeting Silver, And That Could Change EVERYTHING first appeared on The Economic Collapse.

A Terrifying New Bill In Congress Would Eliminate The Possibility Of Turning America Around In 2024, 2028 Or Ever Again

This article was originally published by Michael Snyder at The End of the American Dream.

Have you heard about H.R. 1?  If not, I would urge you to read the text of the bill immediately.  It is called the “For The People Act”, and you can find it right here.

The text of this bill specifically states that Congress has the “ultimate supervisory power over federal elections”, but of course anyone that is familiar with what the U.S. Constitution actually says knows that this is not true.  The states are supposed to have final authority over their own election laws, and H.R. 1 is a blatant attempt to usurp that authority.  Unfortunately, in the aftermath of the riot at the U.S. Capitol, there are very few politicians in Washington that still have a willingness to stand up for election integrity.  H.R. 1 is almost certainly going to get through the House of Representatives, and it has a really good chance of getting through the Senate as well.

If this legislation is approved, it will fundamentally change the nature of our federal elections forever.

And not in a good way.

I do not think that Tucker Carlson was exaggerating by very much at all when he warned that “Democrats will control the federal government for decades” if H.R. 1 becomes law…

Democrats will control the federal government for decades or more if a sweeping new proposal touted as comprehensive government reform becomes law, Tucker Carlson said on Monday.

Carlson warned of the many dangers of “H.R. 1.,” the “For The People Act,” a nearly 800-page bill sponsored by Maryland Democrat John Sarbanes of Baltimore.

In essence, this bill would make elections all over the country just like elections in California.

If that statement sounds terrifying to you, that is because it is terrifying.

Democrats introduced the same bill last year, but it died in the Republican-controlled Senate.

But now Democrats control the Senate, and they just need a handful of Senate Republicans to go along with them so that they can overcome any potential filibuster.  The following comes from Zero Hedge

In the House, Democrats have revived sweeping election reform legislation that died in the Senate during the previous session, perhaps hoping they can browbeat enough Republicans into going along with them. If that happens, the “Grand Old Party” of Abraham Lincoln might as well disband, because Republicans would never have any hope of regaining a congressional majority or controlling the White House under the rules that HR 1 would put in place.

Although the Constitution explicitly places state legislatures in charge of managing federal elections, HR 1 seeks to use the power of the purse to bludgeon the states into conforming to a centralized system pioneered in California and other deep-blue states. Congress can’t technically compel the states to change their voting laws, but seasoned politicians know that the states have become dependent on federal money to run their elections, and can’t afford to pick up the tab themselves.

Inevitably, there would probably be a few red states that would attempt to defy this new law, but the threat of reduced federal funding would force most red states to submit to the new mandates.

So exactly why are many Republicans so deeply alarmed by this bill?

Well, the good people over at Pundit Press have put together a list of some of the things that this new law would do…

1) Internet-only registration with electronic signature submission.

2) Banning the requirement to provide a full SSN for voter registration.

3) Nationwide ‘Motor Voter’ registration.

4) 16 year olds required to be registered to vote.

5) Nationwide same-day registration.

6) Grants ($25M) for using minors in election activities.

7) More children voters.

8) Prohibiting attempts to clean voter rolls of non-residents.

9) Murderers and rapists can vote.

10) Mandatory early voting.

11) THE BIG ONE – NATIONWIDE VOTE BY MAIL, BAN ON BALLOT PROTECTION MEASURES, LEGALIZED LIMITLESS BALLOT HARVESTING.

If you are a Republican and you live in a state that already allows “ballot harvesting”, then you probably already know how devastatingly effective it is.

When ballot harvesting is legalized without any limitations, it becomes exceedingly difficult for Republicans to win except for in the most conservative areas.  During one of his recent shows, Tucker Carlson explained why

“Under H.R. 1, [people] could freely go house to house and apartment to apartment collecting unknown thousands of ballots and then dump them all in a ballot dropbox. No one would have any idea if those ballots had been tampered with at any point along the way or would there be any way to prove it if they had been tampered with,” he continued.

Not only that, but H.R. 1 would also reportedly allow people “to print out their ballots at home”

For example, HR 1 would allow ballot harvesting on steroids. Voters would — for the first time — have the ability to print out their ballots at home, creating a gaping security hole that could easily be exploited by either domestic or foreign interests. The legislation also allows third parties to collect ballots from an unlimited number of absentee voters and submit them through ballot drop boxes, dramatically increasing the risk that vulnerable Americans could be bullied, bribed, or blackmailed for their votes without the protection of election workers.

Can you imagine what would happen if we actually allowed tens of millions of people all over the country to print out their own ballots?

It would be utter madness, and we would never have a legitimate election ever again.

Of course, everything in this nearly 800-page bill is designed to help Democrats, and their plan all along has been to set the stage for a one-party rule for the foreseeable future.

And that is what this “trial” in the Senate is all about too.  They want to destroy Donald Trump and the movement that he started so that nobody like him can ever come along again.

Sadly, it doesn’t even look like it will be a fair trial.  The Democrat that will be presiding over the trial is also one of the jurors, and we already know how he is going to vote.

The key for the Democrats will be to find 17 Republicans in the Senate that also want to convict Trump so that they can get to the magic number of 67.

I believe that if 67 votes can be confirmed, Mitch McConnell and other prominent Republicans will pull the trigger and will vote to keep Trump from ever running for office again.

But if they can’t find 67 votes to convict, I believe that Mitch McConnell and his close allies will back off.

There will be high drama in D.C. in the coming days, and the outcome of this trial in the Senate has enormous implications for our future.

Of course even if Trump is acquitted and he decides to run again in 2024, he definitely will not win if H.R. 1 becomes law.

This bill has the potential to change everything, and so I would encourage all of you to get information about this insidious legislation out to everyone that you know.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on FacebookTwitter, and Parler, and anyway that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post A Terrifying New Bill In Congress Would Eliminate The Possibility Of Turning America Around In 2024, 2028 Or Ever Again first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.