“Crunch Time”? Credit Markets, International Trade, Financial Volatility and the Gold Market (Source globalresearch.ca) Many situations around the world now look to be coming to a head. Geopolitically the East/West push and pull has heated up in the Middle East.  Iraq now looks to be pivoting toward Mr. Putin and Russia and away from the U.S. Turkey’s recent shoot down of a Russian plane also turned up the heat.  Economically, the price of oil breaking through $40 has shone a spotlight on a weak global economy and confirms weakness. Trade, whether international or internal is collapsing.  Freight rates are at decade lows and even internally, trucking has collapsed. Financially speaking, FOREX markets are experiencing daily volatility unseen before.  The credit markets have become illiquid as spreads have blown out.  This “illiquidity” has traders terrified because they know they have no exit door.  Even the Treasury market has begun to display the “locked in” feeling of thin markets.  We should not forget about the Fed meeting next week, raise rates or hold rates …traders are in fear of the aftermath. Let’s take a look at what just happened yesterday in COMEX gold since we are talking “crunch time”. The December contract added 881 net contracts standing for delivery.  This is another 88,100 ounces of gold that someone just stepped up for and is asking delivery.  Some ground work first …we have watched for over two years as COMEX gold contracts outstanding would dwarf deliverable inventory coming into first notice day and decline in a huge way just prior.  Then, many of those standing for delivery would just “evaporate”.  I have said many times that this did not make any sense.  Why would anyone FULLY FUND their account by FND to pay cash for their contracted gold …only to vanish?  It is obvious in my opinion these contracts were cash settled at a premium or bribe to entice these buyers not to take physical delivery because of strained inventory.