Collusion & Corruption

243
Fri, Oct 14, 2011 - 9:59am

I have several items that merit your attention today but first, here's an update of the charts.

I'm still hopeful that a rally is coming. The technical picture remains positive and the open interest numbers continue to trend well. I'll also be interested to see the CoT numbers when they come out later today. For now, the charts a virtually unchanged from earlier this week.

OK, onto the news. This first item is truly disturbing. I must admit that I saw these headlines but never had a chance to go back and delve deeper. Well, thankfully, Dave in Denver took the time to digest and interpret the situation. All of the sordid and disgusting details are plainly laid out for all to see here. Please take time, right now, to leave this site by clicking on the link below. Read Dave's article and then return:

https://truthingold.blogspot.com/2011/10/legalized-fraud.html

So, let me see if I've got this straight. JPM reports "earnings" of $1.02/share for the quarter, well ahead of the $0.92/share expectation. The media reports this as great news and proof that the banks and overall financial system continue to recover and improve. However, of the $1.02, 29 cents came from an accounting gimmick. Without the gimmick, JPM would have reported just $0.73/share, which would have been a complete disaster.

That's bad enough on its face but let's go back and re-visit, courtesy of the plain-English supplied by Dave, how they "found" the 29 cents in the first place. Here's how this works:

1) JPM issues bonds (debt) at 100 cents on the dollar. At maturity, these bonds must be retired by repaying principle to the bondholders at 100 cents on the dollar.

2) These bonds are currently trading at 80 cents on the dollar.

3) Because, theoretically, JPM could buy back all of the bonds at the current price and retire the issue prematurely, JPM theoretically could save themselves 20 cents on each dollar. Theoretically.

4) Never mind the reasons the bonds are trading at a discount and never mind that JPM has neither the cash nor the intention of purchasing and retiring the debt in question.

5) Regardless, simply because the bonds are trading at a discount, JPM is allowed to claim the theoretical advantage of retiring the debt at 80 cents on the dollar as actual earnings!

6) This is an outright and upfront fraud akin to the accounting of Social Security or some other insulated-from-scrutiny government program.

7) Perhaps more disheartening is the collusion of the unindicted co-conspirators in the financial media who report these "great numbers". You're left with only two choices:

a) For whatever reason, the media is purposefully misleading the public.

b) The media that reported these numbers are utterly and completely clueless regarding the subject matter.

Which is it? It has to be one or the other?

In the end, all of this simply continue to fit the narrative here. The great Government-Financial Ponzi is coming to an end. It is inevitable regardless of how long the lies and distortions continue.

Next up, another story that I've had minimized on my screen for a while. Like Venezuela, Mexico is discovering that the gold that they think they own in unallocated accounts, may not actually be there for delivery. As more and more sovereign nations realize that they have been scammed by the LBMA/Comex system, a "run" on the bullion banks will develop. Once again, this only proves the adage: "the only gold you truly own is the gold you hold in your own two hands".

https://www.gata.org/node/10487

Also, one of the main guys behind this Mexican effort is Hugo Salinas-Price. Mr. Salinas-Price is a tireless advocate of sound money and he was one of the feature presenters at Ned Naylor-Leyland's conference back in January. If you haven't yet seen his presentation, I urge you to take some time to watch it. Linked below:

https://www.cheviot.co.uk/sound-money-conference/presentations/how-to-monetize-silver-so-that-it-can-circulate-permanently-in-parallel-with-paper-and-digital-money

Lastly, I found this little ditty on ZH a couple of days ago. I know that many of you are concerned about confiscation. As you know, I think that, in this age of instant information and communication, a gold confiscation plan would be nearly impossible to implement. However, what the hell do I know? That's just my opinion. I could be wrong so, therefore, I urge you to read this:

https://www.sovereignman.com/expat/gold-confiscation/

OK, that's all for now. The metals are trying to move higher so maybe we can end the week on an UP note. We'll see. Keep the faith! TF

About the Author

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turd [at] tfmetalsreport [dot] com ()

  243 Comments

Vincent
Oct 14, 2011 - 10:08am
ewc58
Oct 14, 2011 - 10:16am

Jeez Turd, what's a guy gotta do for a shout out around here?

You can check- - I posted Dave's piece on your blog yesterday bro.

Let me know if you need me to slow down a bit for ya...

Strongsidejedi
Oct 14, 2011 - 10:17am

Oil is liquid gold

Look at the West Tex crude oil chart over the last 10 days versus the DXY. Now compare to gold and silver. The margin on WTI vs. GC making the diff?

Daedalus Mugged
Oct 14, 2011 - 10:18am

There you go again....

There you go again, focusing on reality. MOPE. Management of Perception...reality is irrelevant, they are managing perceptions. Bullish!

Tyler
Oct 14, 2011 - 10:20am

Repost

I spend much time wondering about the true nature of humanity. Are we good or evil, or somewhere in between? I would like to think that the great atrocities that have occurred on this planet were initiated by a very small group of people looking to reap huge gains and increase their power.

Man is guilty of ignorance and laziness, but I don't think hatred and violence are naturally occurring qualities. This is an acquired response, in my opinion.

ewc58
Oct 14, 2011 - 10:22am

sorry ewc

My crack staff and I can only stay on top of so many items at once...

beach_bum
Oct 14, 2011 - 10:23am

JPM - Hedonic Modifiers

Sounds like Hedonic Modifiers for Banks. Nice trick. And we are surprised why?

ggnewmex
Oct 14, 2011 - 10:23am

corruption

Read an article in Forbes magazine today about the plan "Operation Fast and Furious", then one looks at the whole of this complete Iran/ Saudi mess, then you look at the financial BLATANT corruption, and NO ONE knows or cares, ( they do know the dancing with the stars tho, or whatever those bone-head shows are) then you look at Solyndra,////It is no wonder that these things will continue to get worse.

I am strong relative to the phyzz market.... and believe adage about holding phyzz, I read the article about Banico(?) and their unallocated gold.... I just shake my head in wonder. How many people in positions of power are clueless.... and why this level of corruption can go on becomes obvious.

One must understand that the clock is ticking. A bank/ gold run must be coming, simple logic and human nature. The first money/ gold in hand is the best..... the leftovers will be worthless. If I was an unallocated phyzz person.... I would be doing whatever I could to get mine today. I have to feel that as an average american, I am not the only one...

Unbelievable

Captain Hank Murphy Tyler
Oct 14, 2011 - 10:23am

Well, they do say the love of

Well, they do say the love of money is the root of all evil. I would think the love of power is up there as well.

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