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 - 10:51am

um, nice ass but there are ladies present

I mean really.

Edit - Man you guys are fast.

Oct 14, 2011 - 10:52am

they are

depends where you live. New York City, Iowa, LA, there are neighborhoods in different places..where "they" will come no mater what in desperation. not knowing you have gold or not.."they" as defined as broadly or narrow as you'd like, could stumble upon matters of the coin. That's why I have a mix of assets. confiscation ...not my topic of expertise, but many have commented on it already...there's a mix of perspectives. In 10 years we can come back and have the confiscation conversation. I don't think they will. There would be a run outside of the US to get the gold as it would signal major trouble.

Oct 14, 2011 - 10:52am


Don't forget that the banks also mark their assets to fantasy.

Old Major
Oct 14, 2011 - 10:56am

still waiting for a bottom

Hope we'll see (or have seen) the bottom in October...

Mod Note: Inappropriate image removed from public forum. There are female Turdites, who do not need to be subjected to blatant male chauvinism.

stained white shirt tmosley
Oct 14, 2011 - 10:56am

Confiscate Sprout First

Sprout is located in Canada. The government can confiscate and sell your brokerage account but they have no jurisdiction over the gold. There is a reason why Sprout and Central Fund of Canada are not located in the U.S.A.

silver foil hat
Oct 14, 2011 - 10:56am

The sad part is....

every trick will be used to prop the ponzi rather than letting the system fail and reset with minimal damage. That point has LOOOOOOONNNNNNNGGGG since passed.

Lowering rates in the 1990's.... (when they should have been increased).... DONE. Minimal Damage fix not enacted at that time.

Fail to raise margin requirements the the equities markets in the 1990's.... DONE. Minimal Damage fix for the markets not enacted either.

Fix the problems created as a result of those failures.... Lowering interest rates.... DONE. Temporary extension of the ponzi scheme.

QE1, QE2, QE3.... DONE (QE1 TARP)

Buy own Treasurys (Monetize the debt).... DONE

Operation Twist... DONE (more desperate measure)

When the LAST card is played, the system will CRASH HARD and SUDDENLY.

They're running out of schemes to "fix" the system (they have no intention of fixing it though) .

Be prepared.

Oct 14, 2011 - 10:57am
Oct 14, 2011 - 10:57am

This should solve the EU

This should solve the EU problems....You think there are riots now.

EU considering massive cuts to food aid for poor - Yahoo! News

We haven't seen anything yet.

Oct 14, 2011 - 10:59am

gOOd stuFF

after taking a solid 6 days away from my computer it is fair to say things are changing. nothing has changed. the break was nice, thanks mrF for that advice.

got some last minute aFFairs in order. i fEEl much more alive and suPPort when i engage. this is a big wEEkend. bolts on a bye so my usual sunday preoCCupation wiLL instead be fiLLed by joining the rest of the 99 downtown. i nEEd to sEE this for myself.

preps are done. water suPPly secure, 1st garden is a go for spring launch. time to get up close and personal. we are the people. got a birthday coming up so any dip under 30 wiLL be treated a gift, no sweat if i dont get it, can think of a few other things to do with this fiat.

like it or not, the wind of change has blown upon us.

Oct 14, 2011 - 10:59am

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