Collusion & Corruption

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:

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".

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:

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:

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

turd [at] tfmetalsreport [dot] com ()


Oct 14, 2011 - 10:08am
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...

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!

Oct 14, 2011 - 10:20am


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.

Oct 14, 2011 - 10:22am

sorry ewc

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

Oct 14, 2011 - 10:23am

JPM - Hedonic Modifiers

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

Oct 14, 2011 - 10:23am


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...


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.

Oct 14, 2011 - 10:26am

(No subject)

Esquivel & His Orchestra - Sentimental Journey
Planters Tyler
Oct 14, 2011 - 10:27am

Repost Platoon - Tyler follow up

Platoon Ending Speech - Charlie Sheen
Oct 14, 2011 - 10:28am

Attempt no. 1 failed. @1,220

Attempt no. 1 failed.

@1,220 is the resistance level.

Oct 14, 2011 - 10:30am


All Algorithms......

Safehaven Run next week (Gold/Silver/Dollar/(Treasuries?))

Equities/Commodities fall (global risk off/"slowdown").

Watch the global sentiment change.

And yes, more war seems imminent too... yet in the ying and the yang.... it will bring about more peace.

Safe travels and calm minds during these stressful times.

Oct 14, 2011 - 10:30am


Since you reposted, I have to respond. All human beings come into the world untainted. Let's extrapolize to dogs for a moment. Ever notice how difficult abused dogs are, they either cower at the drop of a sound, or become threatening with little provocation. Human beings are like that and then some.

With proper nurturing (no not perfect nurturing, just enough) people grow up to be kind, respectful and considerate to each other. By the time we get to violence, rape, murder things have been wrong for a very long time and if severe irreversible. That's the short response.

Oct 14, 2011 - 10:31am

More Emperor's clothes

Add this JPM accounting sleight of hand to the mammoth list of myths that should outrage the masses, but doesn't.

Even if it was widely reported, it likely would be widely ignored. The general population seems to be operating on the ignorance-is-bliss wavelength. When confronted with such affronts, they opt not to see them, just as in the fairy tale, the people refused to admit they did not see any emperor's clothes.

Our Founding Fathers counted on an informed, involved electorate. Instead, we seem to have deteriorated into splintered special interest groups, blind to the big picture and unwilling to consider the mounting evidence that we're being duped en masse.

Can anyone who shops and consumes services really believe the official inflation rate reports? Can we honestly agree that the unemployment rate accurately reflects the state of the nation's workforce when people who drop off the unemployment compensation list magically disappear from the unemployed numbers simply because they ran out of benefits? They're still unemployed! And on. And on. And on.

When will the reality finally hit people that a lot of the numbers, private and public, are being cooked in a big way?

Oct 14, 2011 - 10:33am

Turd - Your the BEST man, Thanks and TGIF

Good morning Turd, Everyone. Good news for the PMs but pretty scary for the world at large. We all need to redouble our efforts to shine light on the truth and warn the people around us before TSHTF.

Good luck to all of us Turdlings!

Oct 14, 2011 - 10:33am

No problemo Big T

Hope you know I was just ribbing you. And the Crack Staff Much more importantly: what do you think of the Iran developments? Funny concurrence here:

Santa: Israeli mistake

Clif: Israeli mistake

my source: US blessing given to Israel to commit the mistake?

Curiouser and curiouser.

even steven
Oct 14, 2011 - 10:33am

Retail Sales

From Karl Denninger:

"The truth? The entire gain was "seasonal adjustment." All of it. In other words, in actual dollars there was not only no increase there was a net decrease in sales of approximately five percent - not annualized either, month-over-month!"

Oct 14, 2011 - 10:33am


Rate that baby a 25 out of 10!!!!!!!!!!!!!!

Now, if only PM charts could look so SWEEEEEEEEEEET!!!!

Oct 14, 2011 - 10:34am

Consumers Pay Less at Pump,

Consumers Pay Less at Pump, But More at Grocery Store - CNBC

Any benefit from lower energy prices will be absorbed by higher food and core inflation," Deutsche Bank economist Carl Riccadonna said in a recent analysis. "While some policymakers, including (Federal Reserve) Chairman (Ben) Bernanke, remain optimistic that transitory inflation pressures will recede in the coming months, we are less confident that such a development will occur."

Italian Students Storm Milan Goldman Sachs Office | ZeroHedge

Oct 14, 2011 - 10:36am

Italian Students Storm Milan Goldman Sachs Office

Italian Students Storm Milan Goldman Sachs Office

Submitted by Tyler Durden on 10/14/2011 - 10:13 Apple Goldman Sachs goldman sachs New York Stock Exchange

While hardly the explanation for why the EURUSD has surged nearly 100 pips in the past 45 minutes on absolutely no news (or, in this bizarro market, explaining it perfectly), and as the market focuses its attention on where the line of angry young protesters is longer: by the New York Stock Exchange or in front of the Apple store, Italians, once again betrayed by their politicians who were bribed by Berlusconi to vote for him in the latest vote of "confidence" (at a price of €250k per vote), have decided to make their feelings for financial innovation, and its patron saint, known, by storming the Goldman office in Milan.

Oct 14, 2011 - 10:39am

Product downsizing

From the thread last night.

Mad Magazine got it right back in 1962 - at that time a candy bar was only 5¢.

Oct 14, 2011 - 10:39am

So is SPROTT GOLD safe

I have physical but also have lot's of sprott gold. so what's the opinion. I belive it is, but is anything safe. they can come find your gold in your home, buried in the ground, etc

Oct 14, 2011 - 10:40am

The 60 minute bar just closed

The 60 minute bar just closed and so far the SPY and IWM have possible 2x tops on the 80 minute chart, these tops at times ignite or signal the end of the rally, we'll see, the day is young but the lines in the sand have been drawn.

Oct 14, 2011 - 10:41am


I hear ya, ewc. Might be time to buy some UCO again.

tmosley GoldMania3000
Oct 14, 2011 - 10:43am

@Peace Silver

No paper is safe. A confiscation event will target vehicles like Sprott FIRST.

Oct 14, 2011 - 10:43am

PS who is this they you speak

PS who is this they you speak of? If by they you mean Jack boot G-men, well if you let them come that close to your home and property that is your first mistake. If things get that bad well, The whites of their eyes comes to mind here, just saying.

Hard to give up what you don't have ( wink wink )

Be well

Oct 14, 2011 - 10:44am

Rate that baby a 25 out of 10!!!!!!!!!!!!!!

That double bottom was interesting, but I am looking for a double top for confirmation!

Oct 14, 2011 - 10:50am

nickels now dollars

throw a nickel in the drum, save another drunken bum.

salvation thru inflation

Oct 14, 2011 - 10:51am

um, nice ass but there are ladies present

I mean really.

Edit - Man you guys are fast.


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Recent Comments

by goldcom, 51 min 20 sec ago
by Turd Ferguson, 1 hour 5 min ago
by Turd Ferguson, 1 hour 9 min ago
by LP, 1 hour 15 min ago
by LP, 1 hour 16 min ago