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 ()


sam johnson
Oct 16, 2011 - 10:18am

silver price

It's more than obvious that JPM has plenty of juice. The last two take downs have been nothing short of spectacular. With this thought in mind...

My QUESTION is... why in the world did JPM let silver run so high before getting free of all of their shorts? Why would they not have gotten free long before now?

Do you think they have a plan to destroy people's emotions so that they never enter into the silver market again?

I would love to hear your thoughts.

ivarsThieving Corp.
Oct 15, 2011 - 10:44am

@Thievery Corporation

a single fundamental technology: the exponentially decreasing cost and power consumption, and ever increasing computational power of the semiconductor. Moore''s law is a power law:

And as such even if sustained IS NOT able to keep un with super ( hyper) exponential growth in the need for computing power, and thus, also in fact increasing costs to the society spend for computing.

Note the logarithmic vertical scale; the line corresponds to exponential growth with transistor count doubling every two years. Equation is wih exponent 7, but what usually presented, is the wrong graph. The true one should contain energy/per transistor or total energy per calculation, kind of combination of Moore's and Koomey' s law in 1 graph:

Koomey’s law describes a long-term trend in the history of computing hardware. The number of computations per joule of energy dissipated has been doubling approximately every 1,57 years (doubles in 18 months) . Moores law says that every year compression of transistors get 1,41 times higher per year-technological speed. Combining both in logarithmic scale law , energy per technological processing speed goes down as :

dE/dt = A*N^( 0,84) . (see comparison with mammals below). But, there is a catch: Software gets SLOWER faster than hardware gets faster ( Wirht's law).

Bill Gates made this more accurate: "The speed of software halves every 18 months" - thus, the effect on technological computing speed by Moores law is REDUCED, the new Moore/Gates law says REAL speed of computation is going down IF energy levels goes down as fast as Moore' s law predicts. The outcome for processing speed together with software is slowing down 2 times times every 6 year. What remains, is to combine this slowing down of computing speed with Koomeys' s energy law per computation, and the outcome, not suprisingly, is the same Moores law now including sofware and energy consumtion.

I will transpose the law (axis) for later, so now it reads:

Basic metabolic rate of a computer = dE/dt ( energy per computation) = A*N^( ^ln2 ) =A*N(^0,7) (software efficiency and components per volume combined in one law).

Is it good or bad?

Answer (not suprisingly ) comes from biology and human population. That is one many superexponetial processes from positive feedbacks (e.g. needs vs. resources available) that both leads to money creation and CRASH.

If only our needs would evolve exponentially (including number of people) =speed of growth of a need is at constant % rate to previous period (dF(t)/dt =A*N^k, where dE/dt is energy consumtion rate, A is initial condition , t linearly growing time) , N-component number ( transistors+soft lines, cells) - we would be able to go on on this Earth. Hyperexponential growth is nonlinear in a sense that speed of growth itself influence further speed of growth, while in exponential growth it is the accumulated level of size that influence further growth. (E(t) = (kN(t)) ^(mN (t)) is the simplest hyperexponential process-mush faster than exponential).

Unfortunately , needs, greed, etc. of HUMANS evolve super (=hyper) expontially, and such process is not sustainable - it crashes, corrects as resources are depleted or needs not met in crash like mode. The processes are non-linear and are driven into superexponetial mode by POSITIVE feedback loop.

In case of human population sustainability the cause of the problem is the HUMAN brain (not really suprising?) :

It is interesting to note that ALL mammals that have survived evolved increasing their mass,basal metabolism (Basal Metabolic Rate: BMR=Rate at which energy is used to maintain bodily functions at rest) AND

exponentially , so as organism they are sustainable- in logarithmic scales on both axis , Mammals align along around a straight line, whose basic equation is:

Rate of change in BASAL metabolic energy consumption rate dE/dt= B_o*M^(3/4) = B_o*M^(0,75)

So with bigger weight , relative BMR intensity per mass kg of consumed post DECREASES . It like energy consumption per m2 in many flat house vs. single family house. That is sustainable to have bigger mammals. Same should be true for computers ( if we disregard money , just computation speed and energy- most likely cloud computing is one of the answers, though not quite).

In that sense, if we only compare energy consumption per computation in a mammal organism (N=transistors= cells, software=brain) and computer with software, they are essentially the same ( remember, software slowing down every 18 months was more like a gut feeling of Wirth, Brin , Page ,Gates, but not exact to the second digit.)

OK, but now What about mammal brain Basal metabolism rate/mass ratio? Where does the unsustainablity of human actions come from if the total energy/cell is the same as for other mammals and even computers? Is it sustainable to have mammals with bigger brain? Computer brain analogy is sofware:

First, the ratio between mammal brain mass and body mass follow the same equation (as you can see, Humans are still nothing special here):

That suggest that for different computers, number of software line ratio to number of hardware micro computational element ratio is CONSTANT, namely:

Number of software lines running the computer of any size= Const*N^0,75 ( where N number of all hardware indiviudal information processing components.) May be instead of 0,75 its 0,7 or even ln2 for computers-may be it is related to base 2 bit usage in computer ).

So as part of human body software, human brain acts like software lines in computer. No intelligence, no poetry etc. Just processing info needed to live and survive connected to hardware. My guess is that human body ( without brain) exponent in energy consumption is closer to ln2 than to 0,75 because of inproportionally high energy consumption of mammal brain relative to its own and body mass.

Now how does brain alone performs-any experimental laws? There are some;

Given that the mass of most organs scales nearly linearly with body mass their metabolic rates should scale with body size
in the same way as whole-organism metabolic rate (dE.dt = B= M_body^3/4.)

The brain, however, is a major exception. Its mass scales Mbrain =M_body^3/4 (see the graph above).

This relationship suggests that brain neuron cell size (as opposed to neurons in other parts of the body such as superior cervical ganglion neurons) should scale as M_brain^1/4 =(M_body^3/4)^1/4= M_body^ 0.1875, and that brain neuron number should scale as M_brain ^3/4 =(M_body^3/4)^3/4=M_body^ 0.5625. This is for all mammals.

It suggests that the processing component part of computer (software and hardware) is dived so that software line length in symbols increases with total number of software+hardware processing units as N^0,1875, while hardware processing smallest unit number grows as N^0,5625.

Now what about brain itself ?(brain in computer are those processes responsible for appearance/changes in software). Not surprisingly:

The brain is metabolically one of the most active of all organs in the body. This consumption of O2 provides the energy required for its intense physicochemical activity. The most reliable data on cerebral metabolic rate have been obtained in humans. Cerebral O2 consumption in normal, conscious, young men is approximately 3.5 ml/100 g brain/min (Table 31-1); the rate is similar in young women. The rate of O2 consumption by an entire brain of average weight (1,400 g) is then about 49 ml O2/min. The magnitude of this rate can be appreciated more fully when it is compared with the metabolic rate of the whole body. An average man weighs 70 kg and consumes about 250 ml O2/min in the basal state. Therefore, the brain, which represents only about 2% of total body weight, accounts for 25% of the resting total body O2 consumption. In children, the brain takes up an even larger fraction, as much as 50% in the middle of the first decade of life.

From computer perspective, those people who make/write software use 25-50% (50% in a new model) of total computer costs/energy spent, with the rest taking remaining 80%-50%. 20/80 rule again.

Since brain mass scales as M_brain= A_o* M_body^3/4, and Basal metabolic rate for body is dE/dt = B_0* M_body^3/4,, we can say that basal metabolic rate dE/dt is in principle proportional purely to BRAIN mass.

so dE/dt = C_o*M_brain...for computers it means, that the energy/cost is proportional purely to software processing unit number ( for normal ,surviving species of computers).

What is the HUMAN perspective on computers? Today computers are just like mammals. To become like humans, and continue to grow as exponentially effective, only 2% of total computational decisions shall be carried out by software, 98% by hardware in their central processing unit. But, 20-50% of energy/cost will go to feed those who create these 2% of software decisions.

Elsewhere, on average, to continue the exponential trend of reduced energy consumption per calculation , 56,5% of computation power has to sit in hardware transistors ( binary gates) , while 18,5 % in software binary choices.

Our large brains are energetically expensive, yet paradoxically our overall metabolic
requirements are similar to those of any comparably sized mammal. Consequently,
humans expend a relatively larger proportion of their resting energy budget on brain
metabolism than do other primates or nonprimate mammals.

That was interesting, but somewhere I got lost- how would these humanization of computing lead to unsustainable superexopenential expectations and even with exponential computability growth resulting crash was my initial question. Hope You do not mind if I return to it later

Oct 15, 2011 - 12:06am


yep, put that on the list with about 100 other practical changes that we could implore. Collectivists (both right and left) are the enemy from within, the cancer that is eating away at our homeland.


Oct 14, 2011 - 11:54pm

an interesting political suggestion


i know it's unlikely in the extreme to happen, but imagine if senators and congresspersons were paid by the states they supposedly represent, rather than the federal leviathan.

i realize this is waaaaay impractical - would require an amendment or two, but i think it would make things a lot more interesting.

Oct 14, 2011 - 8:48pm

I noticed a pattern

I have been watching metal prices for a few years now and noticed that when the metal prices close higher on the after market trading than the NYSE close price on a Friday, then expect much higher prices on the following Monday. Well see if I'm right Monday : )

Thieving Corp.bbacq
Oct 14, 2011 - 7:45pm


a single fundamental technology: the exponentially decreasing cost and power consumption, and ever increasing computational power of the semiconductor.

I will comment on this in the latest thread.

Oct 14, 2011 - 7:06pm

But Monedas

Dropping White Phosphorous on innocent civilians is not a joke. And I sure wasn't joking. Nothing funny about it, or anyone who'd authorize or commit an inhuman act of such supreme cruelty and violence. Have you ever seen what happens to human flesh that "willy-peter" does its thing to? Good God, the stuff makes Napalm look like a day at the beach. And yet some crazy-ass IDF psychopaths were dropping it on entire neighborhoods... Funny how we didn't get too much of that particular bit of war coverage here in the good 'ole USA, eh?

Ya think we would have seen just a wee bit more if the White Phosphorous hit on the other foot? Spielberg would already have 3 movies and a documentary in the Can. The NYT would have a "Special Section" up for a year now, devoted to ongoing coverage of the brave survivors and yes, even their recovering scorched pets. Individual wounded and those who acted with selflessness and bravery in the onslaught of fiery death would surely be household names by now. Can't ya just see the crap? It should be pretty familiar.

Having done it for so long now, I really love (hate) to watch the MSM paint things one way or another, depending on who gets blown to pieces or melted into an oozing pile of ex-flesh. The victims of hideous violence are either celebrated wildly or totally ignored, their ongoing suffering and pain not so much as an afterthought to those who try to tell us who to feel our pity towards.

Now how sick is this system?

Oct 14, 2011 - 6:33pm

Bibi Explains It All!

Including what Islam is? Or any aspect of it, including the silly Western-ginned up "Mahdi"???.... Oooh, that's so scary! How helpful of you Mr. Netanyahu, 'cause you've always been seen as an honest broker in all things.

No I don't think so Bibi. What you are is a serial, serial murderer and bloodthirsty criminal who has even used White Phosphorous on innocent civilians and then lied about it for the next 6 to 9 months while wielding the now stupid "anti-Semitism" smear and using it liberally along the way to attempt to taint those who really did have the goods on you and the IDF. So THAT is you Bibi, now take a nice bow mate.

Ultimately Israel got held to account. But Israel only admitted to this barbarous act after the international community left them no choice. But what happened to Bibi for authorizing these attacks? Nothing. As usual. Dude can kill whoever whenever wherever for any reason. Or none really. Yup, even here in the USA, a citizen could get whacked by Bibi's Posse. You can look it up.

And now, it sounds like Benny Nets is more than ready to kill lots more humans! More accurately, ready for the USA to bump off more regional rivals for him. Mostly it would be great if American kids could continue to be put into the meat grinder to accomplish Likud's ultimate foreign policy goal of the realization of Eretz Israel. A Southwest Asia completely denuded of any possible competitor to the nascent (and nuked-up) Israeli Empire.

And so what might be the term for anyone who still might be listening to anything this ultra-nationalist crazy person has to say? I mean much less about Islam? I am at a loss to come up with the proper term for the sufferers of such an advanced condition of self-hatred.

Like the other poster has said, Mr. Almond Joy has about as much juice in Iran as Owebombya really has in what the hell is going on in DC and Wall St. Does that do it for you?

Apparently, Bibi has more juice than either of 'em... Last time in DC, he sent the great Mr. Obama scurrying away in his own White House. Bankster's idiot was overheard muttering, "now what was THAT all about?" as he slinked away from Mad Bibi. What Barry, didn't they explain that part before Uncle Benny dropped in on you?

Let's ask it this way: if Mr. Ahmedinejad and Iran is really a problem for the USA and its People (dubious at best, but whatev's, for the sake of argument at least), please answer me this...

Just WTF does that make Mad Bibi and Israel?

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

Oct 14, 2011 - 6:31pm

Boy these Austrians

come right out with it, no?

Loved it!

Oct 14, 2011 - 6:29pm

Grousing - just a bit

Comment moved to the following thread.

Subscribe or login to read all comments.


Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 7/6

7/6 9:45 ET Markit Service PMI
7/6 10:00 ET ISM Service PMI
7/7 10:00 ET Job openings
7/9 8:30 ET Initial jobless claims
7/9 10:00 ET Wholesale inventories
7/10 8:30 ET PPI for June

Key Economic Events Week of 6/29

6/30 9:00 ET Case-Shiller home prices
6/30 9:45 ET Chicago PMI
6/30 10:00 ET Consumer Confidence
6/30 12:30 ET CGP and SSHW to Capitol Hill
7/1 8:15 ET ADP Employment
7/1 9:45 ET Markit Manu PMI
7/1 10:00 ET ISM Manu PMI
7/1 2:00 ET June FOMC minutes
7/2 8:30 ET BLSBS
7/2 10:00 ET Factory Orders

Key Economic Events Week of 6/22

6/22 8:30 ET Chicago Fed
6/22 10:00 ET Existing home sales
6/23 9:45 ET Markit flash PMIs for June
6/23 10:00 ET New home sales
6/25 8:30 ET Q1 GDP final guess
6/25 8:30 ET Durable Goods
6/26 8:30 ET Pers Inc and Spending
6/26 8:30 ET Core inflation

Key Economic Events Week of 6/15

6/16 8:30 ET Retail Sales
6/16 8:30 ET Cap Ute and Ind Prod
6/16 10:00 ET Chief Goon Powell US Senate
6/16 4:00 pm ET Goon Chlamydia speech
6/17 8:30 ET Housing Starts
6/17 12:00 ET Chief Goon Powell US House
6/18 8:30 ET Initial Jobless Claims
6/18 8:30 ET Philly Fed
6/19 8:30 ET Current Account Deficit
6/19 1:00 pm ET CGP and Mester conference

Key Economic Events Week of 6/8

6/9 10:00 ET Job openings
6/9 10:00 ET Wholesale inventories
6/10 8:30 ET CPI for May
6/10 2:00 ET FOMC Fedlines
6/10 2:30 ET CGP presser
6/11 8:30 ET Initial jobless claims
6/11 8:30 ET PPI for May
6/12 8:30 ET Import price index
6/12 10:00 ET Consumer sentiment

Key Economic Events Week of 5/25

5/26 8:30 ET Chicago Fed
5/26 10:00 ET Consumer Confidence
5/27 2:00 ET Fed Beige Book
5/28 8:30 ET Q2 GDP 2nd guess
5/28 8:30 ET Durable Goods
5/29 8:30 ET Pers Inc and Cons Spend
5/29 8:30 ET Core Inflation
5/29 9:45 ET Chicago PMI

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Forum Discussion

by SteveW, 2 hours 46 min ago
by TexasTonto, 4 hours 3 min ago
by ja1920voo, 9 hours 44 min ago
by tork311, Jul 10, 2020 - 3:17pm