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 - 4:45pm

Andy checks in...

RANTING ANDY - I’m a bit bleary-eyed this morning, having played two LATE soccer games last night, and frankly having a hard time getting inspired. I have my daily litany of “horrible headlines” staring me in the face, but no single, cohesive theme has emanated…YET. The title of this RANT relates to a topic I will discuss later on, after I get through “cleaning up this morning’s garbage.”

To start, I wanted to harp once more on just how important it is for the government to manipulate financial markets, in my view the ONLY remaining weapon in their “official” arsenal, other than to PRINT MONEY, of course. But then again, the only way to manipulate markets is to PRINT MONEY to inject into them; in other words, one and the same.

Read More

Oct 14, 2011 - 4:39pm

Taking off for a period TF,

Taking off for a period TF, have a few errands to do and taking the wife out for a few cocktails at the local watering hole. I love it when the sheeple congregate and talk as if they have a clue. But its good too jump back in the matrix once and a while and just listen and nod.

Kind of like a bobble head you just nod, and hope they go away. Or my famous last words

" What? what was that? oh I don't pay attention to those things " works every time.

In the mean time some weekend reading, do enjoy.

Income and wealth distribution with some additions


Be well

Oct 14, 2011 - 4:38pm

Short term forecast day 18 holds-getting a tiny bit boring?

Here is the original prediction:

And what it said:

I will try one shorter term prediction on Silver and Gold (on 2-3 months scale) , as suggested from the same charts

Gold prices 2011-2013

Silver prices 2011-2013
with some corrections to upside peaks- let us see what happens:

1) Silver may fluctuate around 30 USD (+- 3?) for 1 month or so (except very short sharp peaks, perhaps) , then move up sharply about 5 USD to 35-40 and drop again, now to little higher level of 33-35 +-5, and not change much anymore this year. So the bottom will be kind of close from time to time during October.
2) Gold, on the contrary, seems to be posed for relatively steady growth till 1800 in November, around which level it should fluctuate for few months (+- 50 ?) .
Kind of suggests may be more commodities will have relatively flat period from Oct-Nov till the end of the Year.
But this is short term, so must be wrong.

May be there are other things to get excited about than short term 10% swings in PMs? I have not had time lately to produce any more meaningful graphs, but something will be coming soon. I am starting to transfer EUR's into USD.

GoldMania3000Titus Andronicus
Oct 14, 2011 - 4:35pm

Scary comparison of 2008 silver crash to today!

maybe it just rhymes and not mimics exactly

Oct 14, 2011 - 4:33pm

London/US price management scheme is there for all to see

Dunno if this has already been posted. Apologies if it has... Anyhoo, from :

Here's a chart that Nick Laird and I worked on for many months back [he did the work, I was the consultant on the project] in early 2010. As the graph states, the average gold price has been obtained from four years of data...from March 2006 to March 2010...approximately 1,000 trading days.

When you are using this much data over such a long time period, the rally going into the London open, the price capping at the London open, the drop at the London a.m. fix...and the big drop at the London p.m. fix...cannot be hidden. The London/US price management scheme is there for all to see. This is a big graph, so the 'click to enlarge' feature comes in real handy here...and it's worth a few minutes of your time.

(Click to enlarge)

donbillTitus Andronicus
Oct 14, 2011 - 4:30pm

Great post !!!!

Long term comparison of gold and silver COT reports

This is a great very informative post projecting the significance and value of the COT reports in forecasting the direction of the PM markets. This is the kind of post I knew was out there and is a great example of using raw data to make a point and draw conclusions. Thank you titus adronicus

Oct 14, 2011 - 4:30pm



"From Bloomberg: "The European Central Bank advised Belgium not to backstop Dexia SA’s interbank deposits and to avoid providing guarantees on debt maturing within three months because it risks interfering with the central bank’s monetary policy." "

Oct 14, 2011 - 4:27pm

Tyberious I agree, but every

Tyberious I agree, but every time I think what should happen don't. Sill holding XLF Nov Puts, and TBT Nov calls.

Oct 14, 2011 - 4:23pm
Oct 14, 2011 - 4:19pm

Enjoyed your post bbacq

I tried to study a bit on Chaos theory but it drove me to drinking.

I grew up working for my father in the hardware lumber retail business. I remember the first TI-994A digital calculator. We got 10 of them, and they were larger than any of todays cell phones. Anyway within two weeks we had 6 left and the price had to be dropped from $275.00 to $199.00. It was soon down to $99.00 and we had 4 left. 4 years later we had used one up behind the lumber counter (A return that did quite display a seven reliably.) and had one left for sale @$69.00.

At any rate the power went out and since the cash register had an emergency hand crank, we then had to pull out the last one and load the batteries in it for the lumber counter. The calculator, while being neato and everything taught me the value of pencil and paper for calculations. That and the fundamental knowledge of what the answers should be previous to making the calculation.

I'm surprised I have a trust in the electronic trading account, let alone digital currency

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