More Evidence That JPM Has Cornered Comex Gold

Sat, Aug 31, 2013 - 11:36am

If I can bring all of this together, it will go a long way toward proving correct Ted Butler's theory on JPM's current corner of the Comex gold futures market.

So, let's start with Uncle Ted and his assertions. Recall that Ted is a first-rate analyst who has been trading commodities for about 40 years. He has paid particular interest to the silver manipulation for the past 20. He writes an excellent newsletter to which you can subscribe by clicking here:

Using the CFTC-issued weekly and monthly data (Commitment of Traders & Bank Participation Report), Ted has followed along over the past eight months of position changes and, over that time, the changes have been dramatic. As you know, The Bullion Banks were caught heavily short at the initiation of QE∞ last autumn. I contend that this entire manufactured correction scheme was initiated by The Bullion Banks to give them an opportunity to get out from under their naked short positions and move net long. Ted has concluded that it's not the Bullion Banks per se. Instead, the scheme was initiated by JPM solely for the benefit of JPMand, from a net short gold position in excess of 50,000 contracts last December, JPM has now transitioned into a net long gold position of more than 65,000 contracts. IF THIS IS TRUE, there can be absolutely no doubt as to:

  • The motive behind the counter-intuitive price correction AND
  • The certainty of a very large and significant UP move for gold in the very near future.
  • I did not set out to prove or disprove Ted's assertions. After following the Comex gold and silver deliveries these past 60 days, simple curiosity led me to do some research on recent delivery patterns. What I found not only piqued my interest, I think it proves Ted correct. And again, IF TED IS CORRECT, then there is most certainly a very big move coming in gold.

    So, let's start here: After taking into their house account (again, this means stopping the metal to themselves, into their own, proprietary account) 280 of 3,922 Dec12 silver deliveries, 970 of 2,526 March13 silver deliveries, a big fat zero of 3,416 May13 silver deliveries, JPM stopped to themselves 2,824 of the 3,444 July13 silver deliveries. That's 82%. For obvious reasons, this anomaly got my attention.

    As I've been chronicling here all month, this trend continued into the August13 gold delivery period. Last Thursday alone, the final day of August deliveries, the JPM house account took down 154 of the 164 Aug13 gold deliveries. This brings their monthly total to 3,151 of the 4,075 contracts delivered. That's 77.3%! What's more, after the initial surge of 1,962 deliveries on the 1st and 2nd of the month, the JPM house account claimed for itself 1,945 of the 2,113 remaining deliveries. That's 92%!

    With this as inspiration, I went back and reviewed the previous delivery months for gold on The Comex. These delivery months in 2013 have been February, April, June and now August. What I found is startling.

    Let's start with February. Before we begin, recall that for every buyer, there is a seller...and...for every person or entity taking delivery, there is an issuer from whose vaults that metal will flow. Further, keep this in mind...If you have been naked shorting paper contracts all month, you stand the risk that the entity on the other side of your trade will stand for delivery. So, it follows that, when we see one firm taking consistently taking delivery and another firm consistently issuing the metal, we can deduce who has been shorting all along and who has been buying. Does that make sense? I hope so. If it doesn't. then please re-read that info before proceeding. It is critical that you understand this.

    OK, back to February. During that month, the Feb13 contract was in its delivery period. What initially caught everyone by surprise was the sheer volume of deliveries. After just 3,253 in Dec12, a month which is usually one of the biggest delivery months of the year, the delivery total for February surged to 13,070. Of that total, the DeutscheBank house account took 5,917 and the HSBC house account took 4,879. Between the two of them, they accounted for 82% of all Feb deliveries. And just whom was issuing this metal? JPMorgan. For the month, JPM issued 7,854 of the 13,070 delivery requests. That's 60%. Also getting in on the act was Scotia. They got clipped for the issuance of 3,644 contracts. That's 28%. So, the DB and HSBC house accounts took 82% of the deliveries while the JPM (house and customer) and Scotia house accounts supplied 88%. And don't forget, this was a lot of metal! Thirteen thousand and seventy Comex contracts is 1,307,000 troy ounces, which equates to 40.6 metric tonnes.

    Suddenly, the deliveries for March surged, too. Instead of the moribund 500 or so settlements that we typically see in this "non-delivery" month, March13 saw an incredible 4,229 made...more than last December! I'm quite certain that that has never happened before. So what happened? Why was the March total about 3,000 to 3,500 more than typical and expected? Keep reading...

    After getting clipped for 3,644 deliveries in February, Scotia immediately went on to warpath to get that gold back. For the month of March, the Scotia house account took in 3,383 deliveries while at the same time issuing 179. All totaled, Scotia net deliveries were 3,204 of the 4,229 deliveries for March. That's 76% and, if you take that away, you're left with just the typical 1,025 March deliveries. (Actually, it's not that typical. The Barclays customer account took 834 of the 1,025.) Oh, you're probably wondering which firm provided the metal for all those deliveries? JPM. For March, JPM issued 1,813 out of their house account and 2,209 out of their customer account. That's a total of 4,022 or 95% of all March deliveries.

    The next month is April and, once again, it's a delivery month. The surge in total deliveries continued as 11,632 contracts were delivered to eager buyers. Of those, HSBC was again the big winner with 3,954 deliveries into their house account. Scotia took 3,292 and Barclays got in on the act with 1,276. Between the three of them, these proprietary house accounts combined for 73% of all April13 gold deliveries. And who got stuck with the bill? DB paid out 992 and Scotia paid out 595. This left the balance with none other than JPM and they issued 9,690 contracts or 83%. 5,990 came out of JPM house and 3,700 came out of their customer accounts. Again and just for fun, 9,690 Comex settlements means that JPM had to ship out another 969,000 troy ounces or 30.1 metric tonnes.

    So now it's May and, remarkably, the trend of deliveries in traditional non-delivery months continues and, whaddayaknow, it's a near-repeat of March. Of the 3,050 total deliveries in May, the Scotia house account took 1,746 or 57%. And guess who provided the metal...again? JPM. This time they got stuck providing 97% of the metal or 2,948 of the 3,050 deliveries. What's more, they issued the vast majority of this out of their customer account, which was raided for 2,781 of the 2,948 contracts. Again, "customer" gold is metal held on deposit for JPM customers. This is registered and eligible gold and, as we've seen for years, JPM is able to shift it around wherever they see fit. (And who are JPM's "customers"? Well, wouldn't you like to know?...)

    Finally, this trend repeated one more time during the delivery month of June. For the month, 9,869 contracts were delivered. Once again, HSBC grabbed the lion's share, moving 4,935 (almost exactly half) of the deliveries directly into their house account. The Barclays house account took 2,000 and, for the first time since last December, the JPM house account claimed 547 or 5.5%. Issuing? You guessed it. JPM issued 7,425 or 75% while Barclays and DB added about 1,400.

    So, through adding all of this together we get this. For the 3 delivery months of Feb, Apr and June plus the traditional non-delivery months of March and May:

    HSBC House Account: 13,768 deliveries. Total issuance: One. Yes, you read that right. One.

    Scotia House Account: 8,932 deliveries. Total issuance: 4,259

    DeutscheBank House Account: 5,918 deliveries. Total issuance: 1,746

    Barclays House and Customer: 5,384 deliveries. Total issuance: 908

    JPM Customer: 1,444 deliveries. Total issuance: 16,758

    JPM House: 547 deliveries. Total issuance: 15,181

    OK, now before we go any further, I want you to take a second and review this excellent piece by Mark McHugh from back in April. Not only had he spotted this trend, he also goes on to explain how and why the deliveries out of the "customer" account should almost always match. There should not be a significant disparity.

    Can you see what has transpired here?

    Desperate to cover and eliminate their 50,000 contract short position but not wanting to do so through the actual buying of futures contracts for fear of disrupting the building price collapse, JPM decided to eliminate most of the position by settling and closing the short contracts in physical metal, instead. They likely made this decision in the expectation of re-acquiring the metal in the near future at lower prices. So confident were they in this eventuality, they even used customer gold to settle more than half of these obligations.

    The month of June marked the bottom for the manufactured "correction" with price beginning the month at $1390 before trading down to a low of $1179 and closing out the month at $1224. Price has since continued to recover to a last of $1375.

    Not coincidentally, June was also when Uncle Ted first noticed the change of position for JPM and he reported it in early July after reviewing the Bank Participation Report changes from June. Ted got me all worked up so I did some of my own research and wrote about it here. ( The gist of it is this: After years of being net short, the U.S bullion banks were net long, so much so that on the July BPR, they were suddenly net long almost 45,000 Comex gold contracts! This trend then continued onto the August BPR ( which showed the four largest U.S. banks to be net long an astounding 59,473 contracts.

    It's important to note here that the BPR does not provide specifics. It simply aggregates the positions of the four largest U.S. bullion banks and the 20 largest non-U.S. bullion banks. So, it's impossible to say with certainty how the 59,473 contract net long position is divided. But consider this:

    On the BPR dated 2/5/13, the 4 U.S. banks had a combined net short position of 69,300 contracts. After five months of deliveries and a $500 price drop, the 4 banks had flipped to 59,473 contracts net long. Now, go back up and reconsider all of the delivery totals listed above. Can you connect the dots??? If not, I'll do it for you.

    JPMorgan decided late last year to rig the gold market lower in order to create the ideal conditions under which they could flip a 50,000 net short position to a sizeable net long position. Price, delivery notices and the CFTC-supplied reports document that they accomplished this feat by covering and delivering shorts while at the same time initiating and buying longs. They have no doubt been on the buy side of the record-setting Large Spec selling:

    And here is where it begins to come together...

    If this is the case, and JPM is now net long a massive amount of gold futures, we should expect a complete change in the recent delivery pattern on The Comex. Instead of JPM being the primary issuer, they should be the primary stopper. Additionally, instead of the other banks being the stoppers, they should now be the issuers, particularly the non-U.S. banks as the August BPR showed them to have a net short position in excess of 22,000 contracts.

    And what has happened this month? Exactly that! As stated above, of the 4,075 total contracts deliveries in August, and noting the huge dropoff from the volume of the three previous delivery months, 3,414 were stopped by JPM with 3,151 specifically designated for the JPM house account. And which firms have been issuing? Deutsche issued 1,116, Barclays has done 447 and Scotia accounted for 463. That's a total of 2026 or 49.7%. Note that all three are non-U.S. banks!

    To me, this proves that Ted is correct. Not only is JPM net long the entire 59,473 shown on the August BPR, their position is likely even higher, offset in the net total by a net short position held by the other three U.S. banks included in the report.

    And's the rub. The Big Kahuna. The Grand Finale. JPM is likely going to want back most, if not all, of the 3,193,900 ounces of gold that they delivered earlier this year. (16,758 customer + 15,181 house = 31,939 contracts = 3,193,900 troy ounces = 99.341 metric tonnes of gold) But the other banks aren't least not yet. There were only 4,075 total deliveries in August! And note that HSBC has taken delivery of 13,768 contracts so far in 2013 while delivering just ONE. And who is HSBC??? Yes, they're an English company but what do the "H" and "S" stand for? Do you really think that they are going to be in any hurry to return this 1,376,700 ounces of gold to The Comex and JPMorgan??? I'd say that this is pretty unlikely. Think about it. If HSBC would have simply played ball and handed back to JPM the 4,935 contracts that it settled to itself in June, total deliveries for August would have been at 9,000 not 4,000, a pace that would have matched February, April and June. Instead, total delivery volume came in at just 4,075 and JPM was left grasping to deliver any contract it can get its grubby little hands on as the final two delivery days saw JPM House stop 395 of the 419 remaining deliveries (19 out of every 20).

    So, most importantly, what happens next?

    Right now, the total open interest for the typically slow delivery month of October is just 23,758. Of that total, how many do you think are held long by JPM? 5,000? I'll guess we'll see when the deliveries begin next month. More significantly, the total open interest of the December contract stands at 229,838 (that's 60% of the entire Comex gold complex) and this is where JPM likely holds the majority of its net long position. If that's correct...and it most likely is...what the heck is going to happen in December? Is JPM going to simply roll into the Feb14 and the Apr14 OR are they going to stand for delivery AND, if they stand for delivery, are they going to attempt to extract 20,000 contracts or more worth of gold from the other BBs? And if the other BBs get wind of this, are they just going to sit idly by and wait to deliver or will they begin to move net long before it even gets that far? And then you're only left with Spec Shorts who don't have the capability to deliver 2,000,000 ounces of gold because they don't have it. They're just short the paper!

    All of this could and should set off a buying frenzy/short-covering spree like no one has ever seen. Not only could and should price move higher in the weeks and months ahead, it should move dramatically higher, catching nearly everyone (except the readers of this site) by complete surprise.

    Of course, all sorts of unforeseen events could come along and derail this plan so caution is always warranted. War could erupt in the MENA. Another Financial Collapse could materialize. Maybe India really will dump 200 metric tonnes onto the market. Any of these things could happen and nullify this forecast. However, I firmly believe that it is highly likely that this plays out almost exactly as I've described above.

    I hope you're ready. Prepare accordingly.


    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Sep 2, 2013 - 5:53pm

    What is to prevent someone from building in the commons?

    You say "the people actually assembling the[re]" would create the commons. But upon what ground? Who will protect the boundaries of the commons, or prevent someone planting crops there? Who will pull them out? What about over-grazing? The oceans?

    The question is the size of the collective, and how many collectives of what size can interact with what rules.

    If your needs outweigh mine, is it just a fight?

    And what about my question of the private lawsuit you mentioned against a polluter? In what court? In front of what judge? What kind of penalty? How enforced?

    We try to govern too many people over too large areas, but living without rules would be instant mayhem, and not something that humans have ever successfully attempted.

    Sep 2, 2013 - 5:57pm

    nice lead in

    Nice lead in.

    Absolutely no government is not a system that would work

    PCR piece in WKN illustrates the point. He contends that BHO would violate international rules by hitting Syria, and hence BHO would be a "war criminal", under the very law used to hang the nazis war lords. His analysis as well as most libertarians are flawed.

    As to the libertarians, the question of where to draw the line surfaces again and again, that is, what are the government rules, as without rules, it all collapses. They generally dont have the back bone to DRAW THE LINES, as liberal thinkers mostly.

    PCR is along that line. BHO is not exercising naked aggression in Syria, but rather, seeking to punish for war crimes, the use of WMD. The nazis killed 40 million, going well beyond some simple border dispute. To apply the case against the Nazi naked aggression to BHO's proposed punitive action is simply RIDICULOUS, but that is the nature of some PEACE types, and some LIBERTARIAN types.

    Lines must be drawn, reasonably so. The use of WMD, international terrorism, crimes against humanity should be those type of lines where any power can exercise humanity's right of self defense and punish the transgressor, and here, BHO appears to be justified in striking Syria for WMD use. The UN is so political, that it is a failed institution per se. To just roll over, to screech peace at any cost, to preach liberty without rules, is a shallow base, empty of back bone and resulting morality.

    Crimes against humanity is one thing, and nation building is another. Surely, the US, as a super power, has attempted to conquer the world by nation building, and has been wrong in those regards, but to suggest that BHO is without justification to punish WMD use, demonstrates the proponents of unworkable solutions, unable to fix or deal with any problem, and is merely ranting, without balancing the pro and con, and without thinking it through.


    Syria v Monsanto, is the difference between specific intent and negligence.

    US should move for a resolution before the UN for a direct assassination authorization of Assad, and really get Russkies' panties in a bunch. Maybe Colin will come out of retirement for the dog and pony show. :o


    Russia says the US has not proved its case and that it believes the attack was staged by rebels to provoke intervention in the civil war.

    A dodge, and a false flag, are used to keep russian arm sales alive. What else can one reasonably conclude?

    Sep 2, 2013 - 5:59pm

    Mr FIx....

    i like your style......but you already knew that.

    Sep 2, 2013 - 6:03pm

    re: Absolutely no government is not a system that would work

    Which is odd, considering our government as designed was based upon very similar principles. Our federal government was indeed supposed to be practically "nothing", mutual defense, interstate disputes and very limited infrastructure aside.

    Federal government was supposed to be a nothing - a guarantee that citizens could move to all other states with all legally obtained possessions at any time.

    The true genius of our system was that the states were supposed to COMPETE for our business - we the businesses and we the consumers. Supply too few services and customers will leave for better protection. Supply too many and be burdened with non-producers. In other words, people voluntarily relocate to the system that seems best to them.

    Over time, the most financially effective system will out-compete the others, which will force the other states to change their laws to become more competitive.

    Sep 2, 2013 - 6:04pm

    law and order - -

    If government is the way to stop crime, pollution etc. - they don't appear to be doing a very good job.

    Sep 2, 2013 - 6:13pm

    The suggestion was for absolutely no government

    which I contend would also be a disaster. We are grossly over governed, but that does not therefore mean that we should be totally ungoverned.

    What is to prevent people from, for example, simple wanton murder? Who is to retaliate? A mob? The victim's family?

    There are very good reasons that codes of law have been developed ... a society in which the individual always trumps the group is as bad as one where the group always trumps the individual.

    The minimal principles of a federal republic are a good start, I would contend, and as Mr Fix frequently harkens back to the constitution, I would make so bold as to suggest he too likes a framework within which to operate, not a wild west where there are no laws.

    Righting Moment
    Sep 2, 2013 - 6:14pm

    A decision of one

    @ Mr. Fix: In regards to “the needs of the many outweigh the needs of the few”, or the one. I have often found this to be a curious assertation, not because of its content, but rather due to its context. In both examples (old & new Trek) when this statement has been used it was the individual making a personal decision outside of the direction or pressure of the 'many'. And while the 'many' may experience a benefit from the individual decision, it was, and always will be, as a result of an individuals personal decision.

    We all make decisons, take actions, and (should) recognize that these may have an effect upon others. Which decisions and actions we now take, or will make in the future, is the metric by which others may measure us. I believe, as individuals, we shall not be found wanting.

    Sep 2, 2013 - 6:19pm

    A wise man once said

    "It is true that violence and civil chaos are not the philosophy or intended character of anarchy but they are the inevitable consequence. The only way to prevent the predator elements of society from plundering, enslaving, or killing their victims is for the non-predators to engage in self defense. Individual self defense is an obvious imperative, and organized self defense is necessary in the face of organized predators. When individuals delegate their right of self defense to specialists whom they hire, they create a coercive force that is inherently dangerous because, as history has shown, those who hold that delegated authority are inclined to exercise mission creep and, in the absence of strict control by their employers, eventually they become no different than the predators who they were employed to keep at bay." "Even if that were not the case, those who are hired to implement organized defense still hold the power of coercion, which makes them dangerous no matter how they are organized. Anachists often claim that, so long as they are structured as a private enterprise instead of an agency of government, it will be acceptable. However, it really makes no difference how coercion is structured. The important issue is not if it is called government or a private security company, it is the nature of its authority and activities. If it is allowed to become "positive" in its use of coercion instead of strictly defensive (the protection of life, liberty, and property) it will attract the predators of society and eventually become oppressive. The history of the Mafia is a perfect example. Initially, it began as the hired private guards of large Italian farms and estates. After only a few generations, the security guards had taken over those estates as their own. In other words, it makes no difference if organized coercion is done by the state or a private group, unless it is strictly limited to a defensive function, the result will be the same." G Edward Griffin Cipher

    Sep 2, 2013 - 6:26pm

    G.Edward Griffin - -

    G. Edward Griffin is a very smart guy. The sad truth is that our governments are not inherently good. They just commit the same evils but on a massive scale.

    Dyna mo hum
    Sep 2, 2013 - 6:47pm
    Sep 2, 2013 - 6:51pm

    re: Absolutely no government is not a system that would work

    The only justifiable reason for a government to exist is to provide for the unhindered growth of the individual.

    Or something like that

    That governs best which governs least

    Don't lie, don't cheat, and don't steal

    Solving mankind's problems is like trying to straighten a pig's tail

    The eternal story; existing out of time, here before us even

    Good to see ya again Ferd, you and Murphy and the sleepy parrot guy are a fun to eavesdrop in on team

    edit to add: did you notice the change of the blog vibe after you all said howdy and Pining's pic? refreshing

    individual's choice whether or not the needs of the many prevail for each instance of decision fwiw/mho

    Dagney Taggart
    Sep 2, 2013 - 6:52pm


    I agree. My definition of government: Self-regulation with equal-protection for all. No law is selective. I'm my own "government" with Common Law, "God's Law", as my rule book. This does make the nonexistence of government impossible. Where the problem has occurred is selective enforcement of the law by men pretending to be government.

    Regarding the Commons: Nobody gets to build on property that they do not have sole title to. It really is that simple.

    Hope my American friends, especially the parasitic color-of-government advocates, enjoyed the day with their families.

    Sep 2, 2013 - 7:03pm

    Re: ...a discussion that is worthwhile.

    Mr. Fix, are you a Louis L'Amour fan?

    You sure sound like one.

    Great post!



    Sep 2, 2013 - 7:05pm

    Been Drinkin...

    The Reformation was the foundation for democracy in Europe. With the pope giving legitimacy to hereditary monarchies, Catholicism and autocracy went hand in hand. Since the Catholic Church is Christian, I don't think you analogy is quite right.

    When Luther gave the path to salvation to the individual, he also gave self-determination. The printing press and translation of the Bible into German was the equivalent of the internet today. The status quo could not contain it.

    I'm going to eat dinner before my mind explodes.

    Sep 2, 2013 - 7:35pm

    Take Money Out of Politics If You Can

    Term limits, revise the tax codes to some form of flat rate, end the Fed, reverse citizens united, no revolving door with regulators, no revolving door with military, no corporate donations, central funds for candidates with each having equal amounts, free MSM, .....stuff like that. Then you can follow the Constitution, you can enforce Glass Steagall, you can put people in jail and you can make politics a calling and not a corrupt way to steal funds....maybe. Have to recover from this fascist state, dictatorship, corrupted farce first.

    Sep 2, 2013 - 7:46pm

    Happy Birthday Ferd!...

    I'm glad you got the cake with the tools...& it's nice to see that it only took 68 minutes...not 68 years...for your buddies to break you free from that jail!...There were no candles on the that would have been too suspicious!...Your Birthday present will follow!!!...

    Bag Of Gold

    IveBeenDrinkin Sheetrocker
    Sep 2, 2013 - 7:51pm

    Left & Right

    Left-wing & right-wing are defined by lazily understood history. "Communists are leftists", "fascists are rightist", and so on.

    The common thread uniting them is materialism and utopian thinking. The only difference being the particular vision of Utopia and the means used to move toward it.

    Leftism is energized toward Utopia by Darwin seeming to eliminate the idea of Original Sin, so making it seem possible to perfect human nature. If only people could be made to think and behave the right way, the world could be perfected.

    This automatically leads to a desire to concentrate power in an elite who will guide us to the Utopia they imagine. Due to human nature, this quickly arrives at a world where there are no consequences for bad personal, moral, or financial decisions. Of course the bad consequences keep coming, and so the leftist is driven toward ever more control and force in the quest for his or her Utopia.

    Fascists/rightists take the same lessen from Darwin, but their Utopia is based on the nation-state: my race, my people.

    The only thing that genuinely opposes these two world-views is Christianity, which understands people as being of intrinsic worth, being made in the spiritual image of God, but self-corrupted by freely choosing sin.

    Christian understanding of the world leads toward decentralized, representative government (so that power won't be concentrated in a corrupt human). It leads to capitalism, which recognizes human greed and bounds it by the mutual balance of self-interest, supply and demand. It leads to human rights (because people have intrinsic worth, being made in the spiritual image of God). It leads to a different understanding of "freedom" as being in accord with the nature of God. So while a leftist/rightist/pagan sees a 16 year with a Playboy and a bag of marijuana as "freedom", Christians recognize that as slavery, a narrowing of what he could be.

    This is why the U.S. opposed both the Nazis and the Communists, left and right; not because the country was centrist, but because it was Christian and recognized both as impossible utopian schemes based on a false understanding of the world, destined for ruin.

    The only two genuine poles in the world are Christianity vs. paganism. That which isn't Christian, including Islam, inevitably reduces to paganism.

    Without a Christian view of the world and human nature, there is no foundation for constraints on human power -- institutions inevitably drift toward paganism, whether you want to call it left or right. This is because Christianity is based on something which transcends the world.

    You can see it in the elite leadership of the Republican party (and even churches) who have forgotten their foundations for their understanding of the world, and so are drifting toward standard paganism very familiar for thousands of years of human history. This is why the political parties sound so much alike, with only slightly different rhetoric. Both are gripped in a downward spiral of false beliefs that render them unable to function in a healthy way.

    Sep 2, 2013 - 7:52pm

    Where's Motley Fool?...

    Can you find him?...

    Note: There are 2 Motley Fools!...One stays in the same place...& the other one wanders about!!!...

    Bag Of Gold

    IveBeenDrinkin opticsguy
    Sep 2, 2013 - 7:53pm

    Re: Been Drinkin...

    When converting the Roman empire, the church was itself influenced by pagan elements and ended up with an an analagous organizational structure with an emperor-like position. Many problems have resulted through the flux of corruption and reform. The Reformation was due in part to the realization the Papacy is not automatically Christian.

    The Roman Catholic Pope is human and so does not define Christianity, he only heads the organizational structure of the Roman Catholic church. Much the same way a mathematician can say 1+1=0, but does not define mathematics. It can be worth paying attention, but if its established his view is not Christian, then its not Christian. View his authority accordingly.

    I view Popes as highly educated theologians and philosophers and thinkers. I >hope< they are intellectually and spiritually sound, but am prepared to be disappointed.

    Sep 2, 2013 - 7:55pm

    Don't forget simony

    AND, look at how it is applied today, to the likes of morgue, et al. Pay the fine, admit no wrong, and go scott free. What's the diff between the simony practiced several hundred yrs ago, to excuse the "sins" of the rich/powerful, while enriching the coffers of the "delegated" authority, and it's individual members. Excommunication or damnation, both highly efficient stigmata were the alternatives, as bad press and/or jail time are now.

    The new twist is that the morgue is a person, and jamie is not responsible for his decisions. Guaranteed exemption from all corporate wrongdoing is a pretty powerful incentive for psychopaths to wish to climb the corporate bankster ladder. If something DOES go wrong, simply assign all stigmata to a non-ass-kissing subordinate. Two in one solution!

    I am certainly glad RC outlawed simony on the grand scale many, many, many years ago, but the practice in it's modern form evolved from the rise of national (royal/political) wealth through expansion (conquest), and plunder. Letters of marque, for instance, were exemption in advance, for crimes to be committed. Also noteworthy, were "enlightening the pagans" campaigns.

    I am both proud, and ashamed to be human, but will maintain the visage of the upside-down walrus, until a high ranking executive of the morgue is convicted and jailed for market manipulation related crime(s). Then, I will gleefully pop upright!

    Kind of a rough description, but this is my current perception.

    Vernon Wormer
    Sep 2, 2013 - 7:58pm

    Mr. Fix

    Very nice. It always amazes me when one speaks of limited government someone will automatically say that libertarians want anarchy. I don't want anarchy. I want a limited government. Very, very limited with an outline of what they can and cannot do. Call it a constitution or whatever but for heaven's sake follow it.

    Sep 2, 2013 - 8:00pm

    The Class-Backed Dollar

    Editorial of The New York Sun | September 1, 2013

    After disclosing some “gender undertones” in the maneuvering over the next chairman of the Federal Reserve, the New York Times is out with a new scoop — this one over the issue of class. “The most obvious topic for a Democratic Fed leader to emphasize is the sharp growth in income inequality, which many scholars think has destabilized the economy,” writes the paper’s Washington correspondent, David Leonhardt. He goes on to quote one contender for the job, Lawrence Summers, as saying he thinks “the defining issue of our time is: Does the economic, social and political system work for the middle class?”

    Mr. Summers, a former treasury secretary, is important in part because, according to the earlier dispatch in the Times, Mr. Summers is the individual who is being advanced for the job by the faction that favors a man. The reporters who broke that story, Binyamin Appelbaum and Anne Lowrey, disclosed that the individual favored by the faction that wants the next Fed chairman to be woman is the vice chairman of the Fed, Janet Yellen. At a time when the monetary debate is in a state of flux, the idea that the dollar should be based not on gender but on class is a scoop.

    Call it the third mandate. The first mandate would be your basic price stability, which mandate has obtained since the founding of the Fed a century ago. The second mandate would be your full employment, which was legislated by the Congress in 1978 in a law called Humphrey Hawkins, after two Democrats, Hubert Humphrey and Augustus Hawkins, both men. The measure was signed by another Democrat and man, President Carter. The combination of the price stability and the full employment is your dual mandate. The third mandate would be to manage the dollar in a way calculated to help the middle class.

    Why it’s the middle class that the dollar should be managed to help isn’t dwelled on by the Times. But the thinking of the Times must be that your poor people don’t have many dollars to worry about, so the question of whether their dollars hold their value doesn’t affect them as much. The rich people have so many dollars that they, too, don’t care whether the dollar holds its value. So one can start to see the outlines of how Messrs. Summers and Leonhardt are thinking. It prompted us to type into the New York Times’s search engine the phrase “rise of the American middle class.”

    One of the first cables it turned up, if sorted by relevance, is a post by Paul Krugman, introducing his Web log in September 2007. In it the columnist offers a paean to the middle class, which the future Nobel laureate says he grew up in and was created by the New Deal. He offers a chart that traces the “share of the richest 10 percent of the American population in total income,” which Mr. Krugman calls “an indicator that closely tracks many other measures of economic inequality.” It illuminates four periods in our recent history. Mr. Krugman focuses on one, which he labels Middle Class America.

    The span labeled middle class America were years when society was “without extremes of wealth or poverty, a society of broadly shared prosperity, partly because strong unions, a high minimum wage, and a progressive tax system helped limit inequality.” But the odd thing about it — about Mr. Krugman’s column — is that he fails to mention one other feature of the period. The dollar was defined as a matter of law through most of the period as being a 35th of an ounce of gold. Mr. Krugman’s chart shows the American middle class period running from the 1930s right up until the early 1970s.

    What brought that era to an end? Well stub our toe if it wasn’t the beginning of the period of fiat money. This is the period in which Congress stopped defining the dollar in terms of gold and turned to the concept of fiat money, when the dollar was whatever the Federal Reserve said it was and was, in any event, convertible into but another piece of government issued scrip. Mr. Krugman calls the period “the great divergence.” We call it the fiat years, when the value dollar has collapsed to, at last check, less than a 1,385th of an ounce of gold. So here's the real scoop: If the Times wants to recapture the era when the middle class soared, history suggests the thing to do is to define the dollar not in terms of employment or gender or class but in terms of gold.

    Sep 2, 2013 - 8:18pm

    I Believe the Wandering Motley Fool...

    ...May have visited Mongolia!!

    Sep 2, 2013 - 8:18pm

    @xty: If you are going to


    If you are going to talk about how an anarcho-capitalist society would or would not work, I would suggest you first consult the master, Murray Rothbard (, or just read the wiki:

    Courts work by the fact that any who don't respond to a summons are considered outlaws, and will not have their rights defended by others. In Xeer, the closest thing to an Ancap society currently on Earth, it is UNTHINKABLE not to respond to a summons, because as an outlaw, they could be murdered in the street, robbed, beaten, raped, ANYTHING, and no-one would come to their defense in any organized way.

    Public property would work much the same way it would today. That the property is public does NOT mean that it is owned by everyone (and therefore no-one), but rather it means that it is free for anyone's use. A good example would be a McDonald's bathroom. The bathroom is property of the owner of the franchise, but anyone can use it.

    ggnewmex George Clooney
    Sep 2, 2013 - 8:47pm

    If one believes in no Gov't

    Look no farther than Africa.

    To be sure, our current government is quite farcical, yet for all its faults, things are pretty good. Look to Africa, that is a country with unimaginable beauty,just like the USA. It is resource rich, just ask China.

    However, there is no central government, and everyone (country) is out for the individual/ richest leader. If there was a central government there, I contend that the continent would be just as rich as the USA.

    So, while I agree with much of our current government, it is still a wonderful system when there is collective good being sought.


    Mr. Fix
    Sep 2, 2013 - 8:53pm

    This seems to have turned into a worthwhile discussion.

    Hat tip to "question" who said that the only moral use of government is to protect an individual's rights.

    That's it folks, and it is the exact opposite of what we have in the world today. When I said before that the only two rules that humanity needs (don't lie, don't steal) I was being quite serious, and this would inherently disqualify all governments as currently constructed, since without exception, none of them could exist following those two simple rules.

    Violence is immoral under any circumstances with only one exception, self-defense. This by itself would eliminate war, since most of them have been started under the pretext of either taking other people's stuff, or making sure they believe in the right God.

    Most human beings just want to be left alone to pursue their own hopes and dreams, raise their own families, contribute to their own charities, and share what they have with their friends.

    Government tends to stand in the way of all of these goals, and yet it advertises that it is “for the people”.

    I don't mind the concept of private self-defense, but you better be able to defend yourself from your defenders.

    It's really that simple. What we have to contend with now is a system on the verge of collapse, and the concepts that I am sharing with the community at large have no chance of implementation in the current system, I only wanted to raise them with the collective conscious here so that they might be remembered when those who survive the collapse can work towards building a new system, one that cherishes the individual, and his rights.

    I do not believe in anarchy, and I do not believe that that would be the result of no government, although the way the current system has been arranged, yes, in a government collapse, anarchy would would be the result, because it has been carefully designed to be the outcome of a failed government.

    Because of generations if not centuries of governments encroaching on individual liberty, and creating systems that can not survive without government, anarchy from the collapse of our current system is quite predictable.

    I believe that it is survivable, at least to the extent that humanity will not cease to exist.

    The question is will humanity learned its lesson? Will people once again willingly hand over their sovereignty to other people and volunteer to serve them? Probably, but it is not inevitable.

    I believe it is a matter of education, and not the kind that you get at public school, or for the most part, most private schools.

    As a child, I was left alone a lot. I used my time to pursue my own interests, and by the time I was 12, I was an accomplished musician, and could disassemble and rebuild any car, with a complete understanding of how they worked, and most importantly, when one didn't, why.

    By the time I was a teenager, I was quite capable of earning a living by performing services for others that they were willing to pay for. I have earned a living using that simple philosophy my entire life.

    Nowadays, most graduates are incapable of living on their own, this is indisputable, and many are saddled with debts they will never be able to repay for an education in a field where there is no work.

    Maybe I am being overly simplistic, but the complexity of modern society is not necessarily beneficial to humanity, of course some people profit from it wildly, and I will admit that entertainment and communications have surpassed my wildest dreams, but is it really necessary?

    Of course I like driving my El Dorado down the interstate with the top down, at a high rate of speed with no particular place to go, mainly because I love it, it is one of my favorite pastimes.

    But if there was no El Dorado, and there was no interstate, I'm sure I would find some other way to amuse myself.

    I enjoy opening up my MacBook Pro, and conversing with the citizens of Turdville. Many of the conversations are both thought-provoking, educational, and yes, entertaining, but if this was unavailable to me, of course, I would find some other way to amuse myself, and more importantly, pass what I know onto others.

    It is entirely possible that I would be far more productive without all of these complex toys that I have for my amusement.

    To even postulate that all of my toys are good and that a government is required for them seriously messes with my belief system, that I even need them in the first place.

    I must take a little road trip now to a local mall to pick my daughter up from the movies with her friends.

    Obviously I will be using a lot of things provided for me by the government in order to perform that basic function.

    But was it really necessary to begin with?

    There are plenty of changes coming in the near future, but for now, life goes on.

    See you all later.

    Sep 2, 2013 - 8:58pm

    It'll Be De Fault Of The Government...

    ...If they spend too much time yakking about Syria.

    (Check-f'ing-mate. Regards, Vlad)

    Sloppy Goatpants
    Sep 2, 2013 - 8:58pm

    John Kerry's face of doom

    Might be off topic but it's something that's been bugging me because I have alot of experience in facial reconstructive surgery.

    John Kerry's bizzaro face is soooo creepy I just can't get past the frozen facade to even start to listen to the blatant lies anymore.

    Not only has this guy had a REALLY bad face lift (I say BAD because his facial nerve function is almost non-existent), he's also had fat injections into his cheeks (probably from his abdomen), a really skeletonizing blepharoplasty (eyelid debulking) and a bit of Botox to boot.

    It's almost something out of a B-horror flick where you're waiting for the devil's true form to melt thru the latex coating...

    How could someone with his military history ever get to this point? One wonders...

    BTW--I've been shelling my dem Senators with emails and phone calls all weekend. Wishing for some (any) type of effect on their upcoming Syria vote... I think the House could have a chance but we've got to at least try with the Senate.

    Sep 2, 2013 - 9:01pm

    FURST! (had to)

    Fiction, Fact Or Scandal Of Epic Proportions?

    I've hacked colonel Anthony Jamie MacDonald mail he is intelligence US Army Staff boss. First I hacked his Link3dIn account and got access to his mail through it then.

    Among mail Mayhem like Amazon mails I've found his correspondence with his colleague Eugene Furst. He congratulates Col. with success and gives a link to the Washington Post publication about chemical attack in Syria on August 21. Furst also mentions it was “well staged”. Holy shit. I was shocked my eyes refused to believe it. Bloody bastards they “staged” a chemical attack.

    Then a friend of Anthony MacDonald's wife Jennifer writes she was shocked seeing on TV the children died after chemical attack in Syria. Jennifer answers she saw the story but Tony calm her down saying children were alive and the scene was staged.

    Sep 2, 2013 - 9:06pm


    Nicely switched up! Don't worry Mouse and I have sniffed out MF. We will keep guard of him in the tent.

    edit: Forgot to mention I'm glad to see 66 got his Maple leaf avatar into your work of art.


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