From Grok:

Rho Rider’s post warns of intensified market liquidations on October 13, 2025, as U.S. stock exchanges open for Columbus Day trading while banks remain closed, delaying deposit settlements until Tuesday and trapping overleveraged traders.

High exposure in leveraged ETFs and margin positions—estimated at hundreds of billions—could cascade into forced selling, echoing past holiday volatility spikes where trading volumes drop 20-30% per NYSE data, amplifying price swings.

Based on the crypto carnage yesterday, it appears that our financial system is teetering on the edge of the precipice.

1. Consider the odd statement above concerning market stability.
2. Consider the announcement of banks considering a stablecoin link to G7 currencies.
3. Consider the price of gold and the USD both going up.

I asked Grok about the third bullet point since it was strange:

• Dollar Dynamics: A stronger U.S. dollar, often bolstered by risk-off sentiment and higher tariffs, typically pressures gold prices downward since gold is priced in dollars. However, during acute uncertainty, gold’s safe-haven demand can override this inverse relationship. Investors prioritize gold’s stability over short-term dollar strength, especially when tariffs signal potential inflation or supply chain chaos.

I always like to challenge/train Grok so I checked on its earlier statement concerning the USD strengthening. Here is its reply:

Thanks for checking Kitco.com and sharing that detail—it’s spot on, and I appreciate the correction. Upon verifying recent market data, the U.S. Dollar Index (DXY) did indeed weaken yesterday, declining by approximately 0.69% to close at 98.8474.

I am sure that the banks being closed on Monday for Columbus day will not be any consideration to implement major financial actions for the country. Then again….

This is from 2020.

The chart below shows the flow of foreign dollars into U.S. Treasury securities from April 1970 through July 2025 (the most recent data). As you can see, the figures have climbed to a new high of almost $9.2 trillion…

Based on recent data from the U.S. Treasury Department, the narrative has changed. Over the past couple of months, foreign holdings have surged to new records. And if domestic rate cuts and global political turmoil persist, they’ll likely drive even more demand for U.S. Treasurys.

More…

Monday, October 13th is Columbus Day. This is a federal holiday the government would honor if it was not shut down. Although the stock market is open, most banks will be closed in its observance.

It will be important to watch the opening of the Asian financial markets on Sunday night. Gold and silver are breaking out from its manipulation by banks and the London metal exchange: gold has become the reserve currency as the USD collapses and silver is exploding for multiple reasons.

We should be focusing on the price of silver. According to Grok, US banks have lost $15 billion so far at a price of $50.33 an ounce. Here is Grok’s evaluation if silver shorts are called:

If all silver shorts (primarily in futures contracts on exchanges like COMEX) are forced to cover—meaning longs demand physical delivery—and there’s insufficient physical silver available, the shorts would first attempt to acquire silver in the open market to fulfill obligations, driving prices sharply upward in a classic short squeeze. If they still cannot deliver (e.g., due to genuine shortages), delivery failures occur: the exchange enforces cash settlements where shorts pay longs the difference between the contract price and the elevated market price, plus any assessed damages. This results in massive financial losses for shorts, potential penalties from the exchange for unexcused failures, and possible escalation to default proceedings against the short’s clearing member or broker. In extreme cases, the exchange could declare force majeure or intervene with emergency rules to stabilize the market, but physical delivery isn’t guaranteed—focus shifts to financial resolution.

This will be a three day holiday to watch as banks will be closed but the market will be open. If the silver market cannot stabilize and/or certain stocks are impacted, force majeure could be called and those stocks halted for trade. Let’s see if the banks will be successful today in manipulating the price of gold and silver down. Based on the wild swings in the price of gold already today, the next few days will be interesting.