Tag Archives: anti-gold terrorism

The Comex Is One Big Lie

The total amount of ALL gold held by ALL market participants at ALL the Comex warehouses, whether it is on offer or not, is about 218 tonnes. That is less than one month’s demand for physical bullion in China and India and India alone. And by far the vast majority of that gold is not for sale AT THESE PRICES. And given the leverage of paper claims everywhere, not just Comex but at the more important LBMA, and one can see that a misstep by the gambling goofballs of Wall Street could lead to quite a messy market situation. This also is what Peter Hambro said.  – Jesse’s Cafe Americain (must read article)

In fact, the United States itself has become the biggest lie in history, but that’s for another day.   For some reason there’s a debate raging about whether or not a shortage of bullion – gold and silver – really exists.  That in an of itself is a fatuous endeavor because nearly every ounce of gold ever mined still exists.   Furthermore, there will always be a fiat currency price level at which a holder of gold or silver will be willing to exchange their bullion for paper currency.

Even more silly is the fact that the paper bullion market apologists point to the published Comex warehouse stock of gold and silver and use that as their “proof” that there’s plenty of bullion available.  I’m not sure why the argument uses the Comex as the point of focus. Maybe because, in theory, it has more “transparency” than the LBMA.

However, there’s one small problem in using the Comex as data a proof of existence:   “The information in this report is taken from sources believed to be reliable: however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness. This report is produced for information purposes only.”

This disclaimer showed up mysteriously without any formal news release on the daily Comex warehouse reports in June 2013.  The legal translation of that one sentence goes like this:  “this report shows numbers which represent quantities of gold and silver which may or may not exist and the CME hereby is legally immune from any legal claims against it should those numbers be fraudulent.”

My point here is that the Comex is a big lie.  It’s the precious metals market equivalent of Enron.  The trade and inventory data are cleared, accounted for and reported by the big banks that operate the Comex.  Do you trust the banks to report accurately and honestly the data in that report with an air-tight legal disclaimer attached to it by the CME’s lawyers?

Anyone can see that the Comex is nothing but a paper bullion trading exchange.  The amount of gold represented by the paper gold open interest is now well over 200x the amount of alleged gold that has been designated as available to be delivered.  As of today, the paper gold o/i is more than 6x greater than the total amount of gold reported to be held in Comex vaults (see the disclaimer again).

The entire matter could be settled with an independent audit made available to the public.  It should be required by law because if myself and many others are right, if and when the Comex defaults the the CME will likely look to the Government for a bailout.  Here’s why:

41 million ounces of paper gold – the current open interest in paper gold – is valued right now at around $45 billion.  If and when the Comex eventually defaults, the only card it has to play is the force majeur clause in Comex contracts, which enables the Comex to settle paper contracts in paper currency. But as of its latest 10Q, the CME had only $1.5 billion in cash and $21 billion in book value (which assumes its assets are properly marked as to their worth).

My friend and colleague, Craig Hemke, offered some compelling arguments today in response to neanderthal analysts who were out and about serving up half-truths, distorted trusts and willful omission of facts in the commentaries regarding the current supply and demand of gold and silver.  Please take the time to read his work here:  Attack of the Comex Apologists.

Back to half-truths, distorted truths and willful omission of facts.  This chart was making its way around the internet in an attempt to prove that the Comex paper to reported physical ratios are not out of whack vs. historical highs:

ComexCrapThe facts that have been willfully omitted are these: In 1998, the Comex only reported total ounces, not registered vs eligible. Second, the total amount of gold reported at the time was only 1 million ounces. Finally, the comment in yellow was added by me. This denotes the infamous “Brown’s Bottom” when the Bank of England dumped 400 tonnes of gold on the market, marking what turned out to be the bottom of the bear market in gold.

About 5 years later, a hearing was conducted to find out why Gordon Brown unloaded half of England’s gold on the market.  This stunning full-truth with regard to the paper short position of the bullion banks vs. the available supply of gold to deliver into those contracts was revealed (Eddie George, BOE Governor):

“In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999. Mr. George said “We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.

Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K.”

When you shine the light in the right places, the truth emerges. Now we know that the Bank of England bailed out the Comex and LBMA in 1999. It will be interesting to see if a bailout is possible this time around, because the western Central Banks have been drained of most of their gold and the paper to physical leverage numbers are significantly larger by several factors than they were in 1999.

Wax On, Wax Off – Interest Rate Hike On, Interest Rate Hike Off

Non-farm payroll report comes out and Spoos [SPX futures] go down 32 handles. Gold starts off up $4, now down $6. This is totally rigged. I’m going to Vegas, at least the tables are more level then these markets and I get free booze and some really hot chicks.  – reader comment after employment report hit the tape

Despite the rhetoric coming from the Richmond Fed’s Lacker, there will be no interest rate hikes in September.  It’s not about the fictitious and indisputably managed and manipulated non-farm payroll report, it’s about the catastrophic degree of leverage in the banking system.

All along, despite the disingenuous pretenses of helping “main street,” the Fed’s money printing has been targeted specifically at keeping the big banks from collapsing and to enable them the continue sucking wealth out of the U.S. economic system.  Secondarily, it’s enabled the U.S. Treasury to continue issuing debt obligations that will never be repaid.

There will be no interest rate hike in September, or in 2015 for that matter.

In order to support this intended monetary policy, the Fed has to discourage investors from converting fiat paper money into real money – gold and silver – by creating shock and awe terror in the paper precious metals markets (hey, it worked with 9/11 and we got the Patriot Act, Detainee Bill, Homeland Security Act and an unfettered NSA).

Here’s what this anti-gold terrorism looks  like in the paper gold trading market – click to enlarge – the time-scale on the x-axis is MST:

Untitled1As you can see, after a quick initial move up, an avalanche of paper selling hit the paper market, driving the paper price of gold below where it was when the report hit the tape. We would have expected a big move up in gold as the logical response to a jobs report which badly missed Wall Street’s consensus estimate, and thus convincing the hedge fund algos once and for all that there would be no rate hike in September.

Between the 8:30 a.m. (EST) report release and 9:00 a.m., over 42,000 paper gold contracts traded, most of them “sell” orders.  This is 4.2 million ounces, or the equivalent of 122 tonnes of paper gold.  122 tonnes is more than the amount of gold that India is said to have imported in August – Business Standard, Mumbai

Of course, this action in the paper gold markets on Fridays, especially non-farm payroll report Fridays, has become standard operating procedure for the Fed.  With all of the physical gold trading markets closed for the weekend, the Fed is free to operate unfettered from the pressure that physical demand exerts on the paper gold pornography.  In fact, China has been closed for the past two days, which has alleviated temporarily China’s inexorable demand for physical gold that is delivered in to China.

To give you an idea of the extreme degree to which the bullion banks – backed by the Fed and the U.S. Treasury – have gone in order to keep a lid on the price of gold using paper, you’ll note that the ratio of paper gold outstanding to the amount of gold being reported as available to deliver has spiked back up to 126:1:

Untitled

I sourced this graph from Jesse’s Cafe Americain and recommend reading the the accompanying commentary:  LINK

In any other commodities market on the CME, if the ratio of the amount of paper to the amount of available underlying physical commodity approaches anywhere near even a 2:1 ratio, the CFTC cracks down the “manipulator.”  For some reason the paper gold and silver markets have the dubious distinction of existing free from any legal regulation by the U.S. Government and the bureaucracies that exist that are supposed to enforce the rules governing market manipulation.

Meanwhile, retail demand for U.S. mint gold and silver eagles surged this summer.  From June to August silver eagle purchases were up 126% over the same period last year.  And gold eagle purchases tripled from Jun-Aug this year vs. last year (data source:  SRSRocco Report).

I won’t go into the flow of gold from west into India and China.  Imports into those two countries will hit all-time record highs this year.  That’s a lot of Pet Rocks being bought with U.S. fiat currency.

Without question the extreme intervention in the paper precious metals markets – NYC and London – is serving the purpose of hiding the fact that the Fed will not be raising interest rates this year, or next.  In fact, the next policy move will be more money printing.  Or “QE4” if you want to call it that.  But until the Fed sells its Treasury and mortgage holdings, for now what is occurring is pure money printing.  And more of it is coming.

WaxOnWaxOff

The Trading In Paper Gold Reflects Sheer Desperation By The U.S. Government

I got this comment in my email from John Embry this morning in reference to the blatant paper attack on gold after London closed this morning (see graph below):

How do you like these antics after the London close today? I still believe that to be this blatant they must sense real trouble.

I replied:

John this is pure desperation.  An incredible amount of gold was delivered into the SGE the past two weeks. Everyone follows “withdrawals” because that’s what “prince” Koos has them conditioned to watch.  But you can’t “withdraw from” without first “delivering into.” You can get delivery numbers daily at the SGE website.

Did you see this:  http://www.zerohedge.com/news/2015-08-14/alarming-indicator-back-level-last-seen-10-days-bear-stearns-collapse

Also this report hit the wires today:   Chinese Gold Premium Spikes, Indian Imports Surge.

There was also a report out yesterday showing a huge increase in non-performing loans at the big banks in Q2.  I really think the economy hit a wall the last two months.  That industrial production report was purely a function of the big downward revisions in May and June that made the “increase” in July look relatively healthy.  The IP number was a product of auto industry inventory build-up – cars that won’t get sold.

John, they can try to cover-up the carnage to the economy by pumping up the stock market and smashing the metals, but they can’t hide the coming sub-prime driven debt implosion OR the massive gold-buying going on in China.

GOLD

Anti-Gold Propaganda Reaches Bubble Proportions

The anti-gold propaganda spewing forth from all corners of the media is greater and more intense than I’ve ever seen any investment propaganda.  Every time I turn on Bloomberg, FoxBiz or CNBC there’s a discussion of how useless gold is.  It’s beyond surreal – it’s criminal.  – Investment Research Dynamics

There’s a new bubble in town.  It’s anti-gold propaganda.  I prefer to reference it as “anti-gold terrorism.”  It’s to the point at which it’s become silly – outright preposterous.  This Orwellian-derived antagonism toward gold reached its apex – at least I so thought – with the “gold is a pet rock” article in the Wall Street Journal:  Let’s Be Honest About Gold:  It’s A Pet Rock.

The article and analysis – or poor excuse for “analysis” contained therein reads like the work of a drunk five-year old.  Shame on Jason  Zweig for attaching his name to it. He can no longer be taken seriously in any regard as a journalist.  Shame on the Wall Street Journal for publishing that fermented piece of scatology.  If Jackson Pollack had produced a painting using fecal matter which lampooned the anti-gold terrorism coming from the media, that’s what it would have looked like.

Perhaps today the absurdity has reached the apex of its crescendo with this utterly ridiculous “letter to gold bug” published by Marketwatch:   It’s time to surrender and let the yellow metal fall to its bear market low

Seriously?  Here’s an open question to Howard Gold:   How can any market be said to be in a “bear” market when the forces driving it lower are Central Banks and Governments who wake up in fear every day over the possibility that gold might exploded higher and reveal the truth about the size of the lie our entire system has become.  Including YOU, Howie.

There are no markets anymore, only interventions (Chris Powell, Treasurer of GATA). Definitionally, the trading of gold can not be termed “a market” because it is not allowed to trade in a legitimate bid/ask exchange.  The “ask” side is nothing but fraudulent paper.  Therefore, it is completely invalid to reference gold as being in “a bear market.”  How about that, Howie, your “letter” is completely invalid – by definition.

What is it that the elitists fear so much that they have resorted to flooding the airwaves and internet with thoroughly foolish propaganda and lies?   I think anyone reading this knows the answer to that rhetorical question.

It’s far worse to be disappointed than pissed off.  I’m no longer pissed off about the unfettered criminality that has engulfed our system.  I’m disappointed by it.  These people have rendered useless and meaningless the efforts of anyone who attempts to conduct their affairs legally and morally.  If the elitists running the system are above the law, why should the masses abide?

The gloves are off.  I would urge everyone who reads this to “tweet” it at Howie:  @howardrgold.   He’s too much of a coward to list an email address on Marketwatch.com.

Of course, all of these so-called “experts” on the gold market in reality know nothing about it.  In fact, the propaganda will likely be for naught.  India a couple weeks away from it’s strongest seasonal period for importing gold.  The country has already imported significantly more gold YTD than 2014, contrary to the fraudulent media reports from Reuters and the UBS research department.

And then there’s China.  China is currently importing gold at a run-rate that exceeds the annual amount of gold produced by mines globally.  It too is getting geared up for another strong seasonal buying period.  It’s interesting that an “object” into which China is converting billions of dollars into has been summarily dismissed as “a pet rock” by Jason Zweig, Rupert Murdoch and the puppets who publish the Wall St. Journal…

Jay Taylor: Turning Hard Times Into Good Times

I will be making my first appearance on Jay Taylor’s “Turning Hard Times Into Good Times” internet radio show – Voice of America – on Tuesday, July 21 at 3:25 p.m. EST/2:25 CST/12:25 PST. You can access the live link or the podcast on demand here: Jay Taylor/Voice of America.

JayTaylor

U.S. Financial Markets Have Lost All Credibility

The Fed no longer has credibility, and you can see that. The divergence between the futures markets and the Fed’s own projections about what they’re going to do about interest rates—this is a huge problem,” he told CNBC’s “Squawk Box.”  – Senator Pat Toomey on CNBC

Sorry Pat, the entire U.S. financial system has lost all credibility.  While the economic condition of the United States continues to deteriorate rather quickly, the S&P 500 and Nasdaq continue to push insanely higher on a historically unprecedented tidal wave of printed money.

“Printed money” is electronic money that is created BOTH by the Fed’s electronic printing press AND the electronic printing press that creates debt certificates.  Why the latter? Because debt behaves like money until that debt is repaid.  Simply printing money to repay existing debt while printing enough to issue more debt is not the definition of “repayment.”   This process in fact forces even more “printed” electronic money into the system.

This is why the broad measures of the stock market are moving higher despite deteriorating real economic fundamentals and it’s why housing prices have soared, despite mediocre transaction volume and a recent influx of supply.  All of that printed money is going into paper financial assets.  After all, with the financialization of mortgages, the housing market itself has become “financialized.” Just ask the Fed, it’s injected $1.7 trillion of printed money into the housing market via financialized mortgage paper.

Today’s action on the Comex is emblematic of the complete loss of legitimacy of the U.S. financial markets.   Gold and silver were slammed hard when the housing starts and permits data was released at 8:30 a.m. EST – click to enlarge image:

COMEXGOLD

Here’s the problem with the highly questionable housing report: The big spike in housing starts occurred in multi-family units. Even if this this number is legitimate, the expansion in apartment buildings is occurring as a massive influx of rental buildings that have been in process over the last year are hitting the market.

In other words, the apartment rental building market is in the midst of a bubble that is bigger than the mid-2000’s bubble.  Not only can I confirm this fact in Denver – almost all new buildings, though not advertised, will give new tenants two free months as a move-in incentive – but I have been getting flooded with emails from readers from other large cities who are confirming the same dynamic in their area.  I will have a lot more on the housing market later.  What I have discovered is stunning.

If anything, the housing market data today should have received a very bearish response from the equity markets and a very bullish response from the gold and silver market.  Instead, the Fed is working overtime to prop up stocks and it dumped close to $350 million of paper gold onto the Comex in the span of one minute.

But not only was the housing market report bearish for the system, we learned right before that report that more layoffs are coming in the oil industry;  we learned right after that report that U of Michigan’s measure of consumer “confidence” dropped and missed Wall Street’s expectations by the most since 2006.

Furthermore, how can the price of silver be declining when the U.S. mint acknowledged last week that these is no supply for it to mint silver eagles?   This after huge spike in silver eagle sales in June.

So you see, Pat, its not just the Federal Reserve that has lost all credibility.  It’s the entire U.S. financial system.   The financial markets have become a complete fairytale.  In fact, the Fed lost all credibility back in 2012 when Ron Paul asked Ben Bernanke if gold was money, to which Bernanke replied, “no” after he uncontrollably flashed a facial expression which “tells” he’s about lie.  When further asked why Central Banks continue to buy and own gold, Bernanke flashed that “I’m about lie” expression again and stuttered, “out of tradition.”  Were we watching the modern version of “Fiddler On The Roof?”

At that split moment in time Bernanke’s hubris prevented him from responding with a credible answer. Anyone with any remaining shred of faith in Bernanke’s/the Fed’s credibility – his ethics, morals and spirituality – had their hopes nuked by hubris. It was perhaps the most fraudulent statement ever issued by a Central Banker.

After all, It sure seems like China, Russia and India are converting a lot of paper U.S. dollars into something that was summarily dismissed by the head of the Fed as being a “tradition.”

Comex Paper Precious Metals Open Interest Is Going Parabolic

Since the end of May open interest has risen 14.23% while gold basis the stock market close has fallen 2.69%. Gold has been battered by a powerful short-selling campaign. MKS Geneva last night furnished the colorful remark:  “Shorts grew 12% last week to a new all time high. The position is about 3.6 times the size of the last 20 years average!!” – from John Brimelow’s Gold Jottings Report

The price level and trading activity in the precious metals market – gold and silver specifically – has reached mind-blowing absurdity.  Make no mistake about it, the fact that the U.S. mint had to suspend sales of 1 oz Silver Eagles until at least early August is definitive evidence that the natural market function of price as a mechanism to balance supply/demand has been completely destroyed by the western Central Banks using the big bullion banks as their agents of manipulation.
As we already know, the silver open interest on the Comex has soared to preposterous levels to an open futures level which far exceeds the amount of silver produced by mines globally in a year:

Silver OI 062415 As you can see from this graph to the left, the open interest in silver is historically correlated with the directional price movement of silver.  This correlation blew up and the amount of paper silver open interest on the Comex began to go parabolic last summer, while the price continued to head south.  This is direct evidence that that Comex paper silver is being used to push down the price of silver.

In fact, as we all know from the work by SRSRocco, India finds the price of silver so attractive that it is on track to import a record a amount of silver this year.

The gold paper open interest on the Comex has now begun to go parabolic.  As recently as April 3, the total gold paper open interest on the Comex was 382k contracts, or 38.2 million ounces of gold.  As of yesterday – July 14 – the open interest in paper gold had soared to 462k contracts, or 46.2 million ounces.  This is a 21% increase in the amount of paper gold. In fact, China finds the price so attractive that it is on track to “consume” a record amount of gold this year.

To put the gold paper open interest in perspective, as of yesterday Comex vault custodians were reporting an alleged 482k ozs of gold in the “registered” account and 7.8 million in total gold.  The open interest just for the August front-month gold contract is 235k, or 23.5 million ounces.  This is 48x the amount of physical gold that has been made available to back the August open interest.  The total open interest in paper gold on the Comex is 600% greater than the amount of total gold that could potentially back that open interest.

To describe as “absurd” this imbalance between the paper gold and silver contracts on the Comex and the condition of the global supply/demand for physical gold and silver is an insult the word “absurd.”  This is nothing less than complete criminal and fraudulent manipulation of the gold and silver markets by elitists and bankers who are now officially above all Rule of Law.

As my friend and colleague, John Titus, has concluded after pouring over several transcripts from the 2009 FOMC meetings around the time that QE started and which were recently released at the beginning of 2015:

The more I learn, the more I realize that the Fed is nothing but a criminal enterprise and the guys at the top know it.   Everyone within breathing distance of top slots at the NY Fed is a criminal. Remember, the NY Fed shares space with the ESF even though the latter’s formally part of the Treasury.

The real underlying issue with this manic and blatant manipulation of gold and silver is yet to be determined.  But when Janet Yellen announces that the Fed is on track to raise interest rates this year, when the economic reports released daily show an economy starting to collapse, and when an obscure and opaque “military exercise” across the United States begins on July 15, 2015 – yes, Jade Helm begins today – and the S&P 500 spikes higher while the price of gold and silver are slammed – then you know your system is doomed.

It’s pretty obvious by looking at the numbers above that the bullion banks – JP Morgan, Scotia and HSBC – are using paper futures to loot the gold and silver on the Comex.  If that’s not the case then I would urge them to allow us to conduct a physical audit of their vaults.  Otherwise please explain how the mint can run out of silver.   It’s also quite obvious that the Comex is headed for a force majeur cash settlement of the open interest.  There is no other explanation.

Several years ago a good friend and colleague of mine and I both asserted that we would know they’re ready to let the system collapse when they let the Comex default.  I would suggest that we drawing close to that time.

When you see that trading is done, not by consent, but by compulsion–when you see that in order to produce, you need to obtain permission from men who produce nothing–when you see that money is flowing to those who deal, not in goods, but in favors–when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.  – Ayn Rand, “Atlas Shrugged”

 

The U.S. Financial Markets Are The Biggest Joke In History

As would be expected after the Greek public voted down down the terms of the Troika bailout offer, the S&P 500 futures gapped down 30 points yesterday evening when global electronic trading of the markets commenced after the Greek “NO” vote. Gold popped up $8. The rest of the evening and overnight session was spent pushing the S&P 500 back up:

SPXfutures

And gold back down:

ComexGold

The Shanghai Stock Exchange is down nearly 30% since mid-June. A veritable crash resulting from a crumbling Chinese economy which could no longer support Chinese stock market bubble valuations. The Chinese economy is tanking because exports to it China’s two biggest import countries are tanking. For evidence of this look no further than the Shanghai Containerize Freight Index – LINK – which is down 32% since late 2014.

If exports are not leaving Shanghai, it’s because of weak demand from Europe and the U.S. I have written several articles demonstrating that the U.S. economy is continuously growing weaker.

European stock markets are all down 1.5-2% today in response to the Greek vote.  Only time will tell how this Greek Tragedy will play out.  But if the Troika compromises with Greece, it will likely be forced into even larger compromises with Italy, France, Spain and Portugal.

The point here is that the global economy is falling apart  – quickly.  And the only markets in which that fact is not being reflected is in select U.S. stock indices and in the Comex paper gold and silver market.   As I started to write this, the Plunge Protection Team has pushed the S&P 500 into a gain from Thursday’s close.  It has since faded back into negative territory.

Many sub-indices and stock market sectors are reluctantly reflecting the underlying fundamental economic realities.  The financial guarantee stocks, which were one of the primary omens of the 2008 market collapse, are down 20% – 40% in the last eight trading days.  These stocks reflect the extreme financial risk embedded in the system. The Dow Jones Transports are down 11% since late November.  This huge divergence from the S&P 500 reflects the deteriorating condition of the U.S. consumer.

The only indices not reflecting reality are the Dow and the S&P 500.  These also happen to be the only stock indices that are reported to the public by mainstream media.   The only conclusion that can be drawn is that the blatant and interminable market intervention in these stock indices is a definitive reflection of the Government’s overt attempt to impose total control over our system and our lives.

Not only are the markets a complete joke, but they have become symbolic of the U.S. Government’s creep into a system of totalitarian control.   Once the TPP Agreement has been signed and ratified, our country will be changed forever.  THAT’S what the action in the stock market today is telling us.

Don’t Panic, The Fed Is Control Of The Markets

There’s no such thing as markets anymore – only interventions.  –  Chris Powell, co-founder and Treasurer of GATA

If today’s market action does not convince the last skeptics that the U.S. financial markets are completely rigged, nothing will.

The action in the U.S. markets today after the Greece/EU situation hit a wall today demonstrates the degree of control the Fed and the U.S. Central Planners have over the markets now.    The S&P 500 futures opened down 30 points when global electronic trading opened Sunday evening.   Gold and silver spiked up.  Both markets began to reflect some degree of the risk to the global financial system posed by Greece’s potential financial collapse.

Of course, as has been the case since the 1987 stock market crash, the Fed/Treasury – collectively the plunge protection team (PPT) – went to work containing the damage to the paper markets.  This entailed methodically working the S&P 500 higher during the course of the night and methodically pushing gold/silver back down – click to enlarge:

SPX1Gold

The manipulation of the markets reflected by these overnight trading charts of the SPX and Gold futures epitomizes the extreme degree of market intervention by the PPT. Ever since 1987, and since Reagan signed the Executive Order which authorized the PPT to prop up the stock markets, there’s been market intervention “creep” in this country. Robert Rubin’s role as Secretary of Treasury was to transition the Working Group on Financial Markets (PPT) from its stock market propping function into a full-fledged, all-encompassing market intervention mechanism.

A colleague of mine this morning remarked that after today the market intervention going on should become blatant to everyone.  I scoffed at this notion.  Most people in this country are either not aware of what’s going on in DC and Wall Street or don’t care.  I was watching CNN this morning and the Greek Tragedy was not even reported.  If you only get your news from CNN you have no idea that the EU could fall apart.  Therefore, you have no reason to believe that the stock market should be falling off a cliff and gold should be going parabolic toward the sky.

The markets have become unimaginably imbalanced in the degree to which the paper derivative securities misrepresent the underlying financial, economic and political reality. Yes, stocks and bonds are nothing more than simple derivatives in that they are pieces of paper which are supposed to “derive” their value from underlying entities that issue them. But the underlying entities are nothing more than cesspools of accounting fraud, criminality and Ponzi schemes designed to suck wealth out the system.

The financial markets – and specifically the U.S. financial markets – have become collectively the biggest Ponzi scheme in the history of the universe.  This condition has been made even worse by the fact that the people running these markets and our Government have become completely immune from prosecution or even indictment. They are criminals who are above the law.

Examples of this are becoming limitless, but consider that an open felon who, as Secretary of State, sold U.S. foreign policy to the highest bidders for her own personal gain is now the front-runner candidate to be the next President.  The only way that our system can become more distorted, debauched and depraved than that will be when the Government begins to herd malcontents and critics into “internment” camps.  Don’t think for moment that is not in the playbook…

…when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you–when you see corruption being rewarded and honesty becoming a self-sacrifice–you may know that your society is doomed.   –  Ayn Rand, “Atlas Shrugged”

 

TPP, The Comex, Greece/EU, The Bond Market: The Final Solution Redux

The naked short interest in Comex silver is potentially building to the mother of all short squeezes and I think the fact that they are piling on more and more naked interest on the Comex tells us that they’re losing control of this.  – Investment Research Dynamics on The SGT Report

The TPP Agreement is going to be the final nail in the coffin of the middle class in the United States (and for the middle classes in all the signatory countries).  The TPP outright usurps the sovereignty of the signatory countries and hands rule of law over to the large transnational corporations.   This means that under this Agreement, the Constitution and all Federal/State laws can be nullified by “legal” decisions imposed under the TPP Agreement.

The Final Solution 2.0:  The Murder of the Middle Class

I was on the SGT Report this week to discuss the ways in which the wealthy and political elitists are implementing an end-game which involves completely destroying the United States and sweeping every last crumb of middle class wealth off the table and into their own pockets.  I actually predicted this would happen back in 2003, when people who saw this coming were considered to be extreme conspiracy theorists.

In fact, a very good friend of mine in NYC told me back then that I was “seeing black helicopters.”  He called me up one day in 2008 and said:  “I can’t believe how right you’ve been this whole time.”

If you think I’m exaggerating, consider this: Right now the leading Democratic front-runner for the Presidency is a woman who used the office of the Secretary of State to sell her influence to the highest bidders abroad for her own personal gain. Not only that, she openly committed felonies including abuse of power and destruction evidence.  The crimes against the people of the United States committed by Nixon look like petty theft from a lemonade stand compared to the crimes the elitist are committing openly now with no consequences.

Not only should be be under detainment and indictment for several crimes, she committed to treason. Instead, she’s gleefully running for President, secretly laughing at all the idiots who slavishly support here.

Try to enjoy what you can, as much as you can, while you still can. Sooner or later these criminals are going to pull the rug out from under you and there’s nothing you can do about it at this point.