The CME group outage and it’s alleged reason for it occurring – a “cooling issue” – is a bold faced lie.
Let’s be clear, our firm is a US business, that supports US natsec interest and the US petrodollar. My professional role is to stay bipartisan, although personally I lean center right/libertarian. So essentially a Peter Thiel approach to the world.
In the cyber intelligence world, we call this image above and it’s “story” the little lie to cover the bigger lie.
“It’s a black eye to the CME and probably an overdue reminder of the importance of market structure and how interconnected all these are,” Ben Laidler, head of equity strategy at Bradesco BBI, said.
…And the more I hear about it, the more it’s abundantly clear this is the modern day version of the bretton woods event in 1971….
So where should I start? Do I start with my tech and cybersecurity career going back for the past ~15 or so years? Or should I start with the start with my entry into investing from working hard,…while being as frugal as possible (and avoiding all risks such as this) I possibly could? Or should I start with my call for the rise of precious metals earlier this summer?
Or maybe I could start with my foray into cybersecurity consulting within finance for firms in 2017′-18′ like Grant Thornton, and then later firms like Boston Energy Trading, CFGI private equity, JPMorgan and semiconductor companies like Lam Research.
Firms like this take zero risks with cyber and possible attacks/failures/outages/blackouts. ZERO. They’ll pay for the best talent/advice/engineers and equipment possible.
These firms are in the RISK TAKING BUSINESS. They know 1 long tail black swan event could ruin an entire market, completely liquidating an entire marketplace, and they’ve known this for decades. These firms simply do not take the risk. And, they’re capitalized enough to know when to just throw money at the problem, or just avoid it all together..
THEY HAVE THE MONEY TO BE!
The cyrusOne datacenter responsible for the issue had implemented n+2 redundancy, meaning if the main cooling unit failed over, 2 more are ready to back it up. So in essence 3 failovers to prevent an event like this from occurring. See below (right from the data center’s spec sheet) :
Let’s start here:
Since this summer it’s been well known by those with a keen edge in the finance space that gold and silver were due for a healthy rally attributed to several factors, like a declining US dollar of ~24% since 2020, serious talks of BRICS adoption across the globe, geopolitical instability due to an unprecedented new US administration, Tether now becoming the fastest growing acquirer of gold bullion (in Q2 and Q3 at 26 tons of gold), even ahead of Khazakstan. But I digress….
Leadership at tier 1 Firms, then would have known this for much longer. Long enough to know that in order to maintain any serious edge would mean OBFUSCATING PRICE DISCOVERY of spot bullion, from the paper traded on the futures markets. This would need to occur at the start of a silver rally such as now of course, when silver is within 2 similar patterns(one small & one much larger cup & handle pattern).
Just yesterday the chief investment strategist at Saxo Markets was quoted as saying “Liquidity is already thin, so even a brief halt can distort price discovery in treasuries, FX and commodities.”
So…. wait for the precious moment – the breakout.
The short of it is that this “cooling issue” occured right when this breakout occurred and then ended exactly when the FED releases 24bln in liquidity 10 hrs later. Image below of this Fed Liquidity injection :
The long of it is a bit more complex, but even further illustrates how this is not simply occams razor. There are many factors at play here, and they all coalesced to paint the picture clear(er) for those with the experience to see.
8.3% of of physical silver inventory was transferred out of CME HQ on Nov 26. This is from CME’s own data, and something @profitplusId has written about in the past couple days. See below :
Once again : Let’s be clear, our firm is a US business, that supports US natsec interest and the US petrodollar. I hear rumors sometimes, as it is the nature of the cybersec world.
Additionally, there was a rumor out of China that an AP was set to take delivery of the largest amount of physical silver amongst all market participants causing the CME to DEFAULT on it’s obligations. See image below :
By midnight friday to market close on Friday Comex SI1 futures would rally another 5.3%.
And here’s where it gets personal…I’m well known in my community…in fact almost to a slightly uncomfortable extent. One night before the event occurred I was given a threat involving this event that I did not recognize at that moment. This individual stated in short that the metals used for coins has changed over the years and that said metals were also in fact used in bullets…..
If this is the price of being right all the time, then so be it, for when I am right I don’t have to go to any lengths prove it..
….And, here’s the crucial detail buried in the painting here…
What’s the likelihood of you the trader, American, Canadian or even North American citizen or banker/investor or simple law abiding citizen,…that you get to know some modicum of detail about what the true price discovery – and hence value – of your paper silver, actually is.
You likely won’t….
This post will stay open until it’s fully completed with further relevant facts and data…..
Stay tuned….
Leave a Reply