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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  243 Comments

Shill
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.

zerohedge.com

Mudsharkbytes
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¢.

GoldMania3000
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

Shill
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.

ewc58
Oct 14, 2011 - 10:41am

UCO

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

tmosleyGoldMania3000
Oct 14, 2011 - 10:43am

@Peace Silver

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

Shill
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

johnboatcat
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!

Patrancus
Oct 14, 2011 - 10:50am

nickels now dollars

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

salvation thru inflation

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