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 ()


Mickey retireyoung
Oct 14, 2011 - 12:31pm

@retire young

I am a bit further along than you having finished college in the 60"s. 1960's.

I kind of agree, except thing will be changing. US is not longer that strong financially where it can dictate. Its part of an evolving process. We will have food and energy "issues" as population grows and oil reserves decline while we screw around trying to find alt energy.

I do think after this mess is sorted out, and we get to the "other side" for many it will be fairly good, for others, not so good. Kind of like the 1930's where some got fab wealthy, some were happy to survive.

I fear for massive war due to fights over energy and food, and a side issue of cutting back the population. There are just so many issues. Most out of my control, so I do what I can . Guns, ammo, food and PM. Looking for a "hobby" farm. Last night I held a couple of tubes of Gold eagles in my hand before storing them offsite (in a private security storage a bike ride away). Good feeling. I keep a few coins at home (including 71 oz junk bags) for an emergency. No midnight gardening for me.

That's about all I can or want to do. I also have a side strategy of what if I am wrong? All the problems are fixed (hard to see that without some real pain). So I do keep FRN's handy.

Being older does change time frame perspective. Our poor kids--which is probably a good slice, age wise, of the folks here.

Oct 14, 2011 - 12:32pm

Operation "Occupy Wallstreet" - Pretext for Police Oppression

All of this mis-directed energy all over the country/world may very well take a turn towards violence/riots in the coming weeks as the markets crash.... as the people who are peacefully protesting now will have more emotion towards the situation....

Giving reason to force oppression on the protestors to keep order.....

Which will lead to more protesting and even stronger emotions of hatred.....

Which will have even more oppressive (police-state) come as a result of that....


Every action has an opposite and equal reaction....

Find the balance and become whole for yourself. Do not fall into the divided mentality.

Harmonic Cycles indeed......

Break the cycle by shining AWARENESS (light) on the situation.


Respectfully, Humbly,

Scott J

Oct 14, 2011 - 12:35pm


"All governments suffer a recurring problem: Power attracts pathological personalities. It is not that power corrupts but that it is magnetic to the corruptible."

The most poignant of the five - and the most difficult, and why this site and others exist. Reason Ron Paul stands head and shoulders above others, no matter whether you agree with him or not on specific policies - that's a cake walk compared to dealing with the personalities of many politicians.

Oct 14, 2011 - 12:35pm

UBS Kills Latest European

UBS Kills Latest European Bailout Proposal: "Why A 50% Haircut On Greek Debt Will Not Work"

Oct 14, 2011 - 12:35pm

Oops, didn't catch that in

Oops, didn't catch that in enough time moderator.

Oct 14, 2011 - 12:38pm

@ Scott and all RE: FAZ

FAZ is ok, as long as you realize that it's slightly rigged... and NOT in your favor. This morning was a perfect example. The financials have been down all day, so you'd think FAZ is up big, right? You'd be wrong. FAZ has been in the red almost all day.

The financials are down 1.30% so in a perfect world FAZ should up 3.90%, being a triple bear for the financials. It's not. It's been in the red most of the day, currently at -.02%. So I'm not sure how this works, where they can both be down but they are.

BTW, FAZ is not a good option play because of the spread. It's better to just buy the shares.

Full disclosure: I do own FAZ, as well as the S&P triple bear SPXU

Oct 14, 2011 - 12:41pm

Evil, NOT stupid!

A story like this should be front page news! This confirms to me more than ever that the Big boy media in this country is absolutely corrupt. Why the heck is nobody hungry for a big story like this? No FOX? No CNN? CNBC? Nobody cares? And don't tell me they don't understand it well enough to report on it. That isn't even an option. It's like saying the Ben Bernank is either too stupid to understand it or he's evil. Let me just say that option 1 is not applicable. He's EVIL! The big boy media is EVIL! Not stupid... EVIL, PERIOD!


~Handmade Quality Bullion~

Oct 14, 2011 - 12:43pm

About the sprott you're in

PSLV is traded in USD only right?

Another good candidate for you guys may be CEF it has a lower premium, and is available in canadian dollar and US dollar. (my whole paper position is in CEF in USD)

Oct 14, 2011 - 12:43pm

Dr. Steve Pieczenik is not my source for the Iran stuff

but I am well aware of him. I take him into consideration but see him primarily as a Limited Hang Out info source. Not usually a dis-info guy, although that's what he's provided at times in the past. More often with Pieczenik I find it's been not enough of the full picture given, and/or the info he gives is too disjointed. There are many of these guys. Also not a Lindsey Williams fan at all.

Oct 14, 2011 - 12:47pm

Hi Mickey

Thanks for the response. I was a bit misleading with my time line since I did graduate from collegein 1966 but due to Uncle Sam and subsequent night time law school. I did not obtain my first REAL job until the late 1970's. So we are about in the same time frame.

I do agree with the observation that the current generation (whatever they are called) face tougher times than did we. Not that we had it easy (Vietman and law school are NOT easy) but pretty much if we did all the right things and kept out of trouble, we could be assured of obtaining a good job. I do not think that is true now. Many good people are underemployed or out of work. And that, I believe, just fosters the sense of "doom" that often pervades this Board (as well as Zerohedge which I also read).

I have had enough of guns--I do not have any now. I live in an earthquake zone so I have food and water but I have those items for natural disasters--not man made.

I just do not believe that the next twenty years will be that much different than the preceeding twenty years. We will have wars and we will have economic troubles, but has always been the case and always will be.

Oct 14, 2011 - 12:48pm


Can you imagine the difference in our lives, had all the wealth siphoned out of the economy by fiat currency been applied to R&D dedicated to finding new energy sources...or going to Mars. Sheesh....

We owe many of our current medical monitoring techniques to science conducted for the Apollo program. Metallurgy, chemistry and even freeze dried foods saw great leaps forward. From Tang to toothpaste ...advancements in biology, micro-electronics, miniaturization of almost everything, battery technology...all owe at least something to the Apollo program.

Something that concerns me a great deal is the belief that many scientific fronts have been advanced considerably without our knowledge, hidden behind the veil of "national security", and funded by wealth stolen from us, while the power and benefits of such new technology accrue to a very small bloc of humanity.

I won't try to justify my belief here, but I am personally positive that there is no self-aware extra-terrestrial, intelligent life somewhere "out there". Yet, there are unexplainable things in our skies that are attested to by too many highly credible witnesses. Too wild to be easily believed, too well documented to ignore.

What are they?

CERN is a very fascinating (and concerning) machine that is enabling some real R&D these days. I speculate that they may actually be probing the boundary between dimensions with their increasing power to smash things into increasingly smaller pieces. Are they probing the boundary between matter and spirit? I don't know the answer, but find the speculation plausible.

There are hints of new thinking in scalar physics, harmonics, some pretty wild sounding theories about "spin" being the real source of gravitational waves. Many of the thinkers in these realms have stories of threats and suppression ranging from denial of access to noted scientific journals to stories of major "buyoffs" and even physical threats and murders.

I'm not qualified to judge the veracity of most of the info that's out there, and I'm dead certain a lot of it is snake oil and drivel. Sorting that out isn't easy, but I am deeply suspicious that much "science" has been done in the last 60-70 years that we are not priveledged to know about.

I haven't even touched on biotech such as cloning, gene splicing and other forms of genetic manipulation. Nanotechnology is another area I suspect may have hidden branches much more advanced than is currently widely known.

Particle physics will likely remain in the province of nation states due to the incredible costs, but not so with biotech. A complete lab capable of advancing knowledge in cloning could be built from scratch for $20-30 million dollars. Barriers to entry are phenomenally low there. Bill Gates could build ten of them before breakfast and never miss his next pedicure.

I'm rambling but this sort of sums up why I've been thinking along these lines. It was true when he said it, and it still is:

Any sufficiently advanced technology is indistinguishable from magic.
Arthur C. Clarke, "Profiles of The Future", 1961 (Clarke's third law)
English physicist & science fiction author (1917 - )

I'm on the lookout for a great, mind-boggling deception that may be perpetrated on the human race in the near future, and think it might be very wise to hold what we think we know of technology very loosely. It may be much more advanced than we know, and it may be part of that great deception I'm expecting.
/ramble off :)
Oct 14, 2011 - 12:48pm
Oct 14, 2011 - 12:49pm

Just catching up a bit

Interesting conversation (and very civil) between redwood, tyler, tom and brimstone etc. Sounds like you all agree and came away with a little bit of perspective from the other person. I certainly did.

First off, let me say, I'm way out of all your league's when discussing this. Everyone has some serious credentials going for sure. Quite impressive actually and one of the best things about this site. Lots of very smart professional people and lots of smart regular folks also from all walks of life.

I agree with all of you and maybe this is to simple of a way to put it but I see it even more primitive then that. Maybe one of you has already stated it this way and I've missed the point. Emotions or labels aside, to me it almost always comes down to the primitive recognition of vulnerability and then fear and then security/fight/ defensive instincts.

If a person or society is born into and grows up with a continual reinforcement of safety or danger then their outlook is one of being defensive from feeling vulnerable and either fearful or angry defensive responses. maybe those responses are perceived as good or evil. Depends on the who's perceiving it, as you know.

But if the person or society evolves from a very relaxed or casual environment where no external threats are perceived (not vulnerable) the fear and the need for angry/defensive posturing isn't needed or displayed.

So I see just about everything from a tight set of primitive responses that might first come in play when I look at some or most situations and there origin or response.

I left greed out, which falls under my hoarding spectrum when I think of greed. Hoarding falls under the vulnerability spectrum and is part of securing enough of whatever out of fear/greed. It's a bit fuzzy right there and a lot of distinctions and comparisons can be made what constitutes what.

It's the cultural differences and geo-political locations and histories at the root of it all. The 3 core primal instincts I stated are perceived way differently by, lets say, a isolated island somewhere that a entire close knit tribe lives on that is safe and isolated with no external threats.

Then you take a country like Iran. I can't even get into what or why there belief system is what it is. But they actually think for whatever primal reason that we are the epitome of their fear because they feel insecure and very vulnerable. They are actually so fearful that they truly consider us their Great Satan. The actual satan. It's been that way for as long as I can remember and you see protests with signs of the great satan and references all the time. And that's where the fear and evil line gets fuzzy due to differing perspectives from the Iranians (or possibly all ME's).

Maybe all of that is irrelevant but that's kind of how I see it. That was not a attempt to counter anything any of you said. just my view and chance to type and chime in on a interesting topic. Feel free to educate me further unless your tired of it. I'm all eye's/ear's when I read the civil banter. I'm also out of my league on this one.

(I'm not Iran bashing, honestly. Just using a extreme (imo) example of a closed society like the Island tribe)

Oct 14, 2011 - 12:56pm


Good to know what you think ewc. Don't know enough about any of these guys to have an opinion. Just passing on what I hear.

Bay of Pigs
Oct 14, 2011 - 12:57pm


My Dad is 90 now. He says he's never seen anything remotely close to this in his life (amount of political and economic corruption/fraud). And any comparison to the 60's or 70's makes little sense to me. In many respects, things couldn't be any more different right now. The USA doesn't even resemble the country it once was back then. Today's post by TF is a good example of that.

The PM mania phase is still ahead of us. Thus, trying to make predictions is almost a fools game. I should know, I'm on the hook for $2000 gold and $50 silver by Dec 31st. Probably not my smartest call, but I'm still crossing my fingers. I am certain they will get there, and go far beyond those levels. But as they say, timing is everything.

Best wishes and good luck.

Oct 14, 2011 - 12:57pm

The spirit was upon me...

Got a rhyme in my head after reading Dr. Suess to my son last night, and with some time on a quiet Friday I had to get it out. If this isn't your thing just scroll past, with my apologies.

As Fed Chair, Ben was in a spot, he found it so frustrating. Those idiot peasants just wouldn’t spend, despite his stimulating. The economic slippage had resisted all his Easing. His Keynsian levers proved useless (and he found this most displeasing). - “The patient’s in poor health” he said “And I must keep him living: I call for larger doses of the medicine we’ve been giving”. And when that, too, proved useless, Ben began to fear deflation “I’ll print like there is no tomorrow, and manage expectation”. - The CPI was fudged, and the unemployment rate. And neatly coiffed reporters intoned “This news is really great” “Inflation is tamed” Ben proclaimed, while Timmay stood beside him. He said and said and said these words. He said them. But he lied them. - And all across the land, it seemed, the people bore the burden Of rising prices and stagnant wages, ‘till they were truly hurtin’. And pensions and paychecks shrunk in value, as dollars bought much less And where this misery would end, no one could really guess *** Someday a light-bulb will go off, amongst the huddled masses Who’ll come to the realization that Central Planners are Horses Asses. When this occurs, I suggest a trade that will surely take you far: Go long a 2x ETF of pitchforks, rope, and tar.
Oct 14, 2011 - 12:57pm

@ stormdancer

In my previous life i saw some very interesting tech get promptly pulled behind the curtain of DARPA, never to be seen or heard from again. I have seen enough to say that anything is possible but i certainly don't claim to hold the answers.

Oct 14, 2011 - 12:58pm

NWO agenda explained in 30 seconds!

Speaking about Collusion and Corruption,

I can write a long essay explaining the reality but in the interest of every one’s time, I jump to the conclusion:

It’s not that they (TPTB) have to continue printing money to pay for the government and bank shortfalls. Rather, it’s that they have to intentionally get into a continual and ever growing deficits so….. they can print more money.

Why? Because it can then confiscate your wealth and transfer it to the government which they totally control!!!

The biggest transfer of wealth is occurring now and it will not stop until the middle class is wiped out.

Keep stacking!

Oct 14, 2011 - 1:00pm
Oct 14, 2011 - 1:00pm

@ Bay of Pigs

What calls do you have? I too have January calls that I'm hoping pan out.

Oct 14, 2011 - 1:01pm

The Law in the UK

only pertinent to UK individuals, but interesting all the same. enjoy the farce.

Oct 14, 2011 - 1:02pm


Sorry, but this is not the late 70s. There are huge differences. There was no debt crisis in the 70s. The national debt was 33% of GDP not 96% as it is today. And sovereign debt is not just a US problem. Money printing, not just in the US, is much higher today than then. There was no interstate banking at that time so banking assets were no where near as concentrated as today. Now almost half of US citizens pay no federal tax and receive some government benefit. I don't know the numbers from the 70s, but I am certain it was not close to today's levels. I am a few years younger than you but old enough to start work in the 70s. I did not hear the fear of the future that I hear today. And the distrust of government was not like it is today.

And don't forget, in the 70s we were worried about the coming ice age and today it's global warming.

Oct 14, 2011 - 1:02pm

A PMs-equities post, what do you watch for a bell-weather?

**This post is not a recommendation for investment. People are expected to do their own diligence before they put their money into anything**

While Trader Dan advises a watch on NEM (Newmont Mining) for a bell-weather, I've been noticing that FNV (Franco-Nevada) seems to be a little more sensitive.

My reasoning is that every sector has a darling, and NEM seems to hold that spot. NEM will show a move first and more dramatically. Higher volumes show a higher volatility.

FNV has lower volumes, as the warrants and royalties are less understood, and there is a point to trade in it can cut out. It appears to be under the radar. I think it might bypass trader head fake, and has less machine interference.

The darling of warrants and royalties appears to be GOLD

(Thanks very much Trader Dan for helping me to understand the charts.)

I,m really glad we have our neighbors to the North.

Bachman-Turner Overdrive - Blue Collar
Oct 14, 2011 - 1:03pm
York Rite
Oct 14, 2011 - 1:05pm

@ Gorman

Yes, it's everything to do with the USD/EUR exchange rate.

Gold priced in euros began the week at €1,226 an ounce and is €1,212 now because in spite of spot gold rising by $40 in the same timeframe, the euro has increased in value versus the US dollar by a greater percentage going from 1.33 to 1.38.

Oct 14, 2011 - 1:05pm


...enjoyed your post above - joseph farrell's latest book 'Grid of the Gods' would be right up your street, I have just finished it. Cracking stuff.

Oct 14, 2011 - 1:08pm


I hope I didn't give the impression I thought I had answers :). Plenty of questions here...and not much more :)

Oct 14, 2011 - 1:09pm

Lew's America

The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. This is the quote I can not get out of my head as of late. If this is where we are, at the precipice of something bigger and better, then for my baby daughters sake I am ready to do whatever it takes. If that makes me an "America hating isolationist", just like Lew Rockwell,...wink wink, then I am proud to be a Lew Rockwell American. :)


Oct 14, 2011 - 1:10pm

Oct 14, 2011 - 1:10pm

I don't want a revolution

This is just a general comment, something that has been brewing up inside as I read various comments and see people talk about "revolution" in America.

Yeah, we have a lot of things screwed up with our current political system. Yeah, there are problems with greed and crony capitalism. Yeah, things could be better.

But they could be a lot worse.

I haven't traveled a lot outside the US, but I have been to Mexico. That was enough. In Mexico, they have armed military men with machine guns patrolling the roads. A drug war is destroying the nation. And people live in hovels, real hovels.

It angers me when I see Americans getting all excited about a revolution here, or want to see things crumbling down. Why? What on earth will anyone gain by that?

Does anyone honestly think that any of our idiot leaders of today could improve upon our current Constitution?

I'm not rich by any stretch of the imagination, but I live in extreme wealth compared to 95% of the people on the planet. I have more than I need - a closet busting full of clothes, a flat screen TV, at least four computers, a recent model car that runs great, a clean place to live with running water and climate control, and mobility - i.e, at the drop of the hat I can fly across the country to see family and friends. I can work from home and make my own hours, I have hobbies and classes I take for fun, and generally my life is pretty good compared to a lot of people in the world.

If I were in Iran, for example, I would not be able to drive a car, because I am female. I would be wearing a freakin' burkha in Aghanistan and forced to marry someone I didn't love and live as a slave my entire life.

What is the likely result of an American collapse? It's not going to be more freedom. It's more likely to be more oppression and martial law.

We talk a lot about the greed of the elite. What about the greed of average Americans? None of that housing bust would have happened if people hadn't lied on their mortgage documents and taken on loans that were too big for their budgets. I had a friend who sold sub-prime mortgages. We've all bought toys and gadgets on credit and put ourselves collectively into debt.

And then we want to point the finger at the super rich and blame them, when we are all collusive in this idea of living high on the hog for nothing.

Then, when things get a little tough, we get angry and want to destroy the entire system. How is destroying the system going to make things any better, when the average America is addicted to debt and can't even buy a car with cash?

We do need a revolution - but not a political one. We need a revolution in thinking and in doing. If Americans collectively stopped living beyond our means, maybe we'd be better role models for the people at the top. Maybe we might actually have some leverage to shift things so that the people at the top wouldn't have so much reign for abuse. This system is perpetuated because we all contribute to it.

Right now, we're all a part of the problem. And half of it is our greedy, resentful, piss-poor attitudes. We've had a good thing going here, and instead of being grateful, we've wasted our collective thought capital on shallow crap like reality TV. Given all the freedom, opportunity, and mobility we have in America, we could all be creating greater things with our lives.

But it's up to us. Don't wait for the "elite" to hand it to you on a platter. Create your own life. careful what you wish for.


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