The CFTC and the sad joke of "Regulation"

93
Mon, Sep 16, 2013 - 3:05pm

By now, everyone in the precious metals investing arena has read the confirmation of what we have known for years. On Friday, September 13th 2013, well-known metals trader Andrew Maguire went public with knowledge he had held closely for over a year- that the Commodities Futures Trading Commission had been informed more than a year earlier, by two separate inside whistleblowers directly involved in the operation, that J P Morgan has been deliberately manipulating precious metals markets. The whistleblowers gave the CFTC direct confirmation of these illegal activities, including account numbers in foreign countries, records of transfers of funds, and records of specific trades.

What is particularly telling is that these whistleblowers provided this information to the CFTC more than one year ago, yet the CFTC has seemingly done nothing to either call JPM to account, or to even curtail these activities on the part of J P Morgan. If the allegations are true, there are millions of victims of this ongoing fraud. Any person whose retirement account includes an index fund owning gold or silver mining companies has been defrauded as a result of these actions. Any investor who owns gold or silver has been defrauded by these actions. Any person who, in desperate times, has had to sell gold or silver at a “cash for gold” shop has been defrauded by these actions. Though the CFTC will undoubtedly attempt to defend themselves by claiming that the investigation is “ongoing”, the fact remains that nothing has been done to curtail this fraudulent trading activity in the twelve long months since they first received this information. Indeed, highly questionable market action strongly suggests that it is still being done today.

At what point does the continued inaction of the CFTC indicate that they are acting less as the regulator in this case, and more as an enabler of an ongoing fraud? At what point should the CFTC, having full knowledge of what is being done and in possession of sworn testimony indicating the extent of the fraud being committed yet failing to act, be considered a co-conspirator to this ongoing criminal activity? At what point should the CFTC be considered nothing more than a bad joke? Well, they already are, and have been for some time.

People on the outside of the precious metals investing world might be amazed that this information was such common knowledge, shared so widely for such a long time by so many people, that the “JPM fraudulently manipulates the metals AND the CFTC knows and does nothing” meme has been a long-running joke on this site. Please note that for humor to work, the audience must understand the underlying premises of the joke and believe me- the audience understood these jokes, and the situation, all too well.

The Criminal Fraudsters:

J P Morgan CEO Jaime Dimon and former head of commodities trading Blythe Masters are the two figures most closely associated, whether rightly or wrongly, with the general knowledge that JPM was routinely manipulating commodities. The current whistleblower revelations appear to corroborate small investors views of these two individuals, and they were given a central role in my joke photoshop assemblage over time.

Here’s Jaime Dimon as a “Bill Lumberg from Office Space” character, blandly requesting market manipulations as easily as TPQ reports.

On a particularly bad day for the metals, I envisioned Dimon as ‘Buffalo Bill’ from Silence of the Lambs, ritually abusing investors. “It sells its shares so I can win, or else it gets the hose again”.

Very rarely, I would use these photoshops as a bit of fantasy wish-fulfillment, day-dreaming that someone, somewhere, would actually enforce the law and see that justice was done to right the wrongs perpetrated on small investors by these people. Hey, I did acknowledge that this was pure fantasy, didn’t I? We have a better chance of seeing moonwalking leprechauns throwing Skittles at the Loch Ness monster than seeing this:

Still, the idea of Jaime going out all Scar-face style in a cocaine-fuelled blaze of destruction was more than a little enjoyable to imagine. Look at the newspaper headlines I placed on his desk, and think about the whistleblower revelations from this weekend… this was made six months ago.

Blythe Master, former head of Commodities trading, has also been quite prominently features in my joke photoshops. Here is Blythe as “Honey Bunny” in Pulp Fiction, done during a particularly brutal beatdown to keep my mind off of my trading account:

People generally knew, or at the very least had a strong suspicion, who was largely behind the blatantly manipulative selling that occurred at specific points in the chart- people joked “Here comes Blythe” when large numbers of contracts were dumped to drive price down.

Blythe insisted on a CNBC interview that rumors of JPM manipulating silver were completely bogus, famously proclaiming “We only hedge on behalf of our clients”. This movie poster send-up of Blythe was posted 16 months ago on the 1 year anniversary of the “May Massacre”, a particularly egregious manipulative event in the wee hours of the morning of May 1, 2011.

Blythe’s ability to stop a rally in the metals dead in its tracks (usually capped at 1%, and never EVER allowed to rise more than 2% in a single trading day) was legendary, proving her complete control over the matrix, errrr, I mean the “free market”. It’s funny because it’s true.

The CFTC- Bumbling imbeciles or just plain crooked?

If we in the general public were aware of what was going on for such a long time, then it was almost incomprehensible that the regulators at the CFTC didn’t know. In fact, well before the recent information came to light we all assumed that since everyone could see how blatantly the metals were manipulated, then the CFTC surely knew it too. The fact that they continued to do nothing while investors were defrauded time and again left us with only two options: either the CFTC was the biggest group of incompetent morons since the Three Stooges, or they were simply on the take. Rightly or wrongly, when making my joke photoshops I generally placed Bart Chilton in the former category, and Chairman Gary Gensler in the latter. Here’s one of Chilton as the bumbling Inspector Clouseau, earnest but utterly clueless:

And here is a silly one illustrating the suspicion that Gary Gensler, a TBTF bankster man to the core, was aware of what the JPM “desk monkeys” were doing, but chose to look the other way because of, well, let’s call it “self interest”. And if you think this is a bit harsh, let me ask you two questions- 1. Why has Gensler stonewalled the 5+ year investigation into silver manipulation and ignored the whistleblower information serving up JPM on a platter, and 2. What do you think the odds are that Gensler, when his chairmanship is up in the next few months, will be rewarded for his ‘fine public service’ with a really fat multi-million dollar salary from one of the TBTF banks whose trading desks he was supposed to have been regulating? Anyone want to bet me on that? (crickets chirping) That’s what I thought.

The spectacle of market regulators being so deliberately obtuse in the face of obvious manipulation inspired me to create this one, picked up by several PM websites:

This one was done nearly six months ago… that is half a year before the whistleblower revelations and news of CFTC inaction were made public by Maguire. You could say I am a visionary, but that would be wrong. I did this because WE ALREADY KNEW this was going on, the recent revelations have only confirmed it.

This picture more or less illustrates the core of our situation today: CFTC commissioners speak no evil, see no evil, and hear no evil… while JPM chief Jaime Dimon pulls the strings for yet another manipulated take-down in the metals, and (former) JPM Commodities chief Blythe Masters sees to the, uh, details of the operation. Kinda funny, right?

Well, please note that this humorous ‘spoof photoshop’ was posted 18 months ago in March of 2012. That is half a year BEFORE the two whistleblowers stepped forward, and 18 months before their allegations and the CFTC inaction were made public by Maguire. Yet even back then people thought this was really funny and hat-tipped the hell out of it. You know why? Because we fucking knew. Everyone knew. This spoof was funny because it was true- I just had the poor taste to render, in visible form, what everyone already knew was going on. Speak no evil, see no evil, hear no evil… Public serpents indeed.

. . .

I’m going to tell you two things; one impossibly cynical, the other irrationally hopeful. The impossibly cynical thing is this- we already know that in the “too big to jail” economy, nobody is going to do time for defrauding investors of millions (and possibly billions) of dollars. This is the reality of our pathetic situation, so deal with it.

But here’s the thing: we also have an exceptional opportunity here! We have a brief, fleeting chance to actually do something other than bitch and moan ineffectually (or make silly photoshops to make ourselves feel better about our helplessness). There is a very small window of opportunity associated with an event like this, so we better make the most of it because they do not come around very often.

WE HAVE A CHANCE TO EMBARRASS THE HELL OUT OF THESE PEOPLE. We have a chance to make their dishonesty, their stonewalling, their perfidy a matter of public knowledge and maybe... just maybe... the light will shine bright enough to stop them from doing it. Wanna see freely traded markets? It's not going to happen while this stuff remains insider knowledge and on the fringes of public consciousness. But we can change that.

Each and every one of you needs to get up off your lazy whining ass and take five minutes of your time to do something to publicize these revelations and try to shine as much light on these insectile vermin as we possibly can. I have written a generic draft of a letter below, and I would like to ask every one of you to copy it, modify it, or write your own, and email it to both Senators of your State, your District member in the House of Representatives, and/or to any media personality whose show you listen to.

What would happen if the staffs of House members started contacting the CFTC asking what the hell is going on? What would happen if a Sean Hannity, Andrew Wilcow, or Mark Levin (all of whom have sold physical gold to their listeners over the years, so they should be damn well concerned with this issue) started making noise about this on their shows? It would make things damn uncomfortable for the people involved, that’s what. In fact, it would be the first time that I can remember where the people who do these things with impunity might actually start sweating over their crimes/inaction/fraud/complicity.

I am going to repost this letter into a Forum in the Everything Else forum under “JPM / CFTC”. If you receive any reply from a representative, a media personality, etc., I would ask you to copy and post it to that forum. Let’s see if we can make some noise, folks. If you don’t do it then nobody else will. If you sit back and let this chance to tall them out slide, then there won't be another.

.

Senator XXXXXX:

I wish to call to your attention recent public revelations that J P Morgan Chase has been fraudulently manipulating the price of Gold and Silver. This information was provided to the Commodities Futures Trading Commission, which deposed two separate whistleblowers from within J P Morgan, both of whom provided detailed and specific testimony regarding these criminal trading activities. The account of these facts can be found here: https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_Morgan_Whistleblowers_Confess_Bank_Manipulates_Gold_%26_Silver.html

In particular, I wish to inform you of the fact that these whistleblowers provided this information to the CFTC more than one year ago, yet the CFTC has seemingly done nothing to curtail this activity on the part of J P Morgan. Though I am sure the CFTC will attempt to tell you that the investigation is ongoing, the fact remains that nothing has been done to curtail this fraudulent trading activity. Indeed, highly questionable market action suggests that it is still being done today. At what point does the continued inaction of the CFTC (in full knowledge of what is being done and in possession of sworn testimony indicating the extent of the fraud being committed) indicate that they are acting less as the regulator in this case, and more as an enabler of an ongoing fraud? At what point does the CFTC become a co-conspirator?

There are millions of victims of this fraud, including millions of investors in your own state. Any person whose retirement account includes an index fund which includes gold or silver mining companies has been defrauded as a result of these actions. Any investor who owns gold or silver has been defrauded by these actions. Any person who, in desperate times, has had to sell gold or silver at a “cash for gold” shop has been defrauded by these actions.

I would like to request that your office contact the CFTC and question them closely regarding the details of this case and their continued inaction on this matter. I am particularly interested to see if you are concerned that your constituents are being defrauded. The actions you and your office choose to take in this matter will certainly answer that question.

Sincerely,

XXXXXXX

About the Author

  93 Comments

SilverSurfers
Sep 16, 2013 - 5:22pm

Oh Yeah

lets dog pile the CFTC, like, what do you expect, with undue influence from the wall street banksters greedsters?

"MAGUIRE with prediction-interference is apparently keeping his discovery close to chest, that is a first important clue. MAGUIRE then goes to the CFTC which would be before same corrupt DC court, which is a second major clue. ..... Something is wrong. MAGUIRE is going down a proven wrong road while keeping his discovery close to chest. This is very strange."

Proposal to End Bullion Manipulation

Strange Brew -- Cream (the)
Tales of brave ulysses

A wall street - government conspiracy going right to the top.

Video unavailable

reserve gold leveraging heading for the crossroad

Cream Crossroads

And to think we once complained about the hulk Olga at the olympics.

https://www.buzzfeed.com/mjs538/the-10-most-shocking-olympic-gender-scan...

zman
Sep 16, 2013 - 5:28pm

@meegoreng1

"nothing will change until PHYSICAL DEMAND OVERWHELMS SUPPLY"

Thank you, no one can manipulate the physical silver market when there is only $8 billion worth of investable silver mined each year for the whole globe. $8 billion is a drop in a ocean of fiat money, if real money ($50-100 billion) entered the physical silver market, the price would sky rocket, but the money only enters the paper market.

I wish people would stop complaining about the paper markets, physical demand can overwhelm any paper marker, it hasn't happened. Investors that go long silver futures contracts are NOT silver investors, so why should anyone expect the silver price to go higher on their paper speculation? I don't.

The CFTC isn't going to bail out the silver price, it's going to be more buyers.

Sneed Hearn
Sep 16, 2013 - 5:30pm

Minor variation of Pining's letter

Representative or Senator XX:

I wish to call to your attention recent public revelations that J P Morgan Chase has been fraudulently manipulating the price of Gold and Silver. This information was provided to the Commodities Futures Trading Commission, which deposed two separate whistleblowers from within JPM, both of whom provided detailed and specific testimony regarding these criminal trading activities. The account of these facts can be found here as well as at many other online sites:

https://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/9/13_M...

In particular, I wish to inform you of the fact that these whistleblowers provided this information to the CFTC more than one year ago, yet the CFTC has seemingly done nothing to curtail this activity and continues to sit on its hands in a touching display or "what, me worry?" Though I am sure the CFTC will attempt to tell you that the investigation is ongoing, the fact remains that nothing whatsoever has been done to curtail this fraudulent trading activity. Indeed, highly questionable market action suggests that it is still being done today, literally "as we speak." At what point does the continued inaction of the CFTC (in full knowledge of what is being done and in possession of sworn testimony indicating the extent of the fraud being committed) indicate that it is acting less as the regulator in this case, and more as an enabler of an ongoing fraud? At what point does the CFTC become a co-conspirator? When does it become an obvious inference that JPM is doing the work of the Fed and/or the treasury department and therefore of the government itself in rigging markets?

There are millions of victims of this fraud, including many in Colorado. Any person whose retirement account includes an index fund which includes gold or silver mining companies has been defrauded as a result of these actions. Any investor who owns gold or silver or shares in mining companies has been defrauded by these actions. Any person who, in desperate times, has had to sell gold or silver at a "cash for gold" shop has been defrauded by these actions.

I respectfully request that your office contact the CFTC and question them closely regarding the details of this case and their continued inaction on this matter. I am particularly interested to see if you are concerned that your constituents are being defrauded. The actions you and your office choose to take in this matter will certainly answer that question.

Sincerely,

usk
Sep 16, 2013 - 5:33pm

Truckers To Shut Down America

The American people are sick and tired of the corruption that is destroying America! We therefore declare a GENERAL STRIKE on the weekend of October 11-13, 2013! Truck drivers will not haul freight! Americans can strike in solidarity with truck drivers!

https://www.facebook.com/truckerstoshutdownamerica?ref=stream

benque
Sep 16, 2013 - 5:37pm

In the letter

Don't forget to mention the impact on the mining companies themselves, the job losses, and secondary effects on those communities where miners live.

ancientmoney zman
Sep 16, 2013 - 5:40pm

@zman, meegorengi re: silver paper markets . . .

"nothing will change until PHYSICAL DEMAND OVERWHELMS SUPPLY"

------------------------------------------------------------------------------

Zman, I usually have a different viewpoint from yours--but not on this issue. I agree COMPLETELY.

There is one very good reason that SLV was created by the bankers. To draw demand away from phyzz. SLV is the silver investors' worst nightmare.

SLV investors send their hard-earned money to SLV, who then takes the money, and buys silver for the banks to control and own. The investor gets back fiat dollars when he sells his SLV shares. The AP-banks can own the silver, initially bought with OPM, which the banking cabal created from nothing to begin with.

Taking phyzz away from the banks is the onliest way to defeat this fraud, as the regulators seem to treat the fraud as proper, and free-market actions as fraudulent.

Watcher
Sep 16, 2013 - 5:48pm

********************9/16/13-

There's not going to be justice or truth or anything approaching fairness. There will continue to be theft until the ponzi scheme with fiat currency collapses. IT may be soon. But before anything or anyone will pay for their crimes, a cyber attack will occur and wipe out all evidence but more than that will create a situation that will surpass bringing criminals to justice.

********************

9/16/13-- V'S EMERGENCY UPDATE-Alert. It's Not A Coincidence, It's Not A Glitch/

I will keep this to the point. For many months I have been warning that there will be a banking/financial cyber attack that will put the economy on it's back. This was one of the scenarios that the banksters have been wargaming/simulating for years.


I became privy to it once it was revealed to me that not only are the banks open to it, but that they are doing nothing to prevent it. No real investments nothing in protecting vital banking infrastructre. I have in past alerts notified many as to the hacks that have syphoned billions from investors/depositors.

Over the last few weeks we have seen massive interruptions from online banking to exchanges shutting down for hours at time. This is not just a mere coincidence, when one takes into account the large scale of these disruptions. It becomes clear that something is fundamentally wrong.

From payroll problems in the private sector to now the very same issues affecting the public/federal sector. This problem seems to be mounting and I believe the culprits are two fold.

One, there is an anomaly that is moving through the system. This is causing an incredible amount of "glitches" and fail safes to trigger. This is true and it is happening. Time will tell what this anomaly is though followers of this site and of mine know what it really is.

Two, the sudden issues in exchanges as well as payroll are symptomatic of the massive liquidity crisis that we are facing. I have illustrated to many over the months the absolute insolvency of the US financial system. I have documented many of the biggest banks in this country are borrowing as little as $10,000 from the FED window as they simply are short and do not have the funds to pay their expenses.

Add all this and the continued bellicose musings/rants from the politicians in this country of now wanting to attack Iran and we can see where this is all going. Whatever manifests in the next few weeks is something that is the progeny of NOT one event but multiple. A flock of Black Swans are looking to nest where an Eagle once flew.This is your last warning--V-

Sep 16, 2013

Dyna mo hum
Sep 16, 2013 - 5:50pm

Pining I need your opinion

Does this pic look photo shopped? >

zman
Sep 16, 2013 - 5:55pm

@ancientmoney

I find the people (many on this site) that blame the paper markets for the depressed prices have no real hope for a higher price, the reason? They truly think that despite strong physical demand (I disagree), the price can remain low.

They can only manipulate a market when there is still plenty of supply available, and that is the case for both gold and silver.

If every PM dealer was only buying silver at $23 oz, and is not a seller, then we can say that the price is "out of wack", but that is not the case.

If the price of PM's move higher, it will happen because the demand is much stronger than it is today, for that reason, I believe the price can move higher despite the games in the paper market.

ancientmoney Watcher
Sep 16, 2013 - 5:55pm

@ Watcher re: cyber attack . . .

Yes, that tactic seems quite likely. They have been practicing for quite some while, now.

It would also serve to smooth the path to a government takeover of all pensions, IRAs 401-k's, etc.

After all, the shutdown would cause panic as people would be stripped of everything (digital)--at least until the govy rides in on the white horse and offers to fix things--for a price.


Sep 16, 2013 - 5:59pm

Dyna-mo

No way, dude. That's totally legit.

ancientmoney zman
Sep 16, 2013 - 6:03pm

@zman . . . we are starting to disconnect. . . .

This one phrase you wrote undermines what you said earlier about physical demand being the lynchpin of ending the fraud:

"I believe the price can move higher despite the games in the paper market."

If we had true, free markets, I would agree with your phrase. But that is laughably untrue. The paper markets are used by the BBs/CBs to control silver and gold prices.

What surprises me is that they have been able to come up with the silver needed to meet physical demand for as long as they have. I can only surmise that the supply must be nearly exhausted, as my on-line dealer reports delays in ASEs of 3 weeks, silver Maples have 2-weeks delays. But, no delays for gold products, which we know central banks can release from their stocks stolen from the people.


Sep 16, 2013 - 6:11pm

Kcap

The company our relatives lost money to was "Zeek Rewards." Everything was wonderful for a few months. the B-in law doubled down and talked a bunch of friends into joining. Then it went bad.

Dagney Taggart
Sep 16, 2013 - 6:16pm

Here's another sad joke.

Police, FBI: Shooter reported in military building at Washington Navy Yard; multiple victims

https://www.kelownadailycourier.ca/world-news/police-fbi-shooter-reporte...

Notice the publication date:

Sunday, 15 September 2013 23:31 Eric Tucker And Brett Zongker, The Associated Press

See what happens when criminals employ sheep? Someone shoots their own toe off.

Unconspiracy theory this please, peckerwood or xty. I need a laugh before I go home to take my meds.

usk
Sep 16, 2013 - 6:21pm

JPMorgan. Again.

So LIBOR, FX fixes, Aluminum, gold, silver... and now RINs? So glad we bailed them out five years ago... JPMorgan Accused Of RINs Manipulation

https://www.zerohedge.com/news/2013-09-16/jpmorgan-accused-rins-manipulation

As we explain below, the NY Times notes that the recent surge in the price of this little-known financial instrument - which was in large part responsible for the rise in the price of gas at the pump, could have been manipulated by JPMorgan. As they note, the market in ethanol credits is exactly the kind Wall Street loves: opaque, lightly regulated and potentially very lucrative; and the ability for a major player to build a stockpile of these credits (effectively cornering the market) is relatively straightforward given the lack of detailed regulation. As Senator Thomas A. Coburn, Republican of Oklahoma, notes "When you see something change as rapidly as this, somebody’s hoarding them, somebody’s buying them, somebody’s making big bucks."

SilverSurfers
Sep 16, 2013 - 6:24pm

guilty

1h

admits guilt, pays $700 Mil in case . trying to figure out how a whale got in a teapot.

==

If JPM has 350B$ in cash, how would 700m$ fine significantly impact them? and exactly how much money did they make over 20 years rigging libor? And this is a "high profile" win for the sec. yeah right.

Right Said Fred - I`m Too Sexy (The Original)

Next post: These guys were writing about how snake diamond got tagged 700m$, then switched to the bigger head lines, without updating the time line.

wonderer Dagney Taggart
Sep 16, 2013 - 6:28pm

This is very strange.

I do not know if this is a reliable source, nor do I know how they date their posted articles.

But, it is truly in the "weird" column.

edited to add; from Dagney's post just two above this one.

Hammer
Sep 16, 2013 - 6:32pm

Repost from last

Repost from last thread

CFTC's Chilton: Derivatives Regulators Need More Information on Banks' Commodities Holdings

By Jamila Trindle

WASHINGTON--Regulators who oversee trading in commodity futures markets need to know how many oil tankers and power plants banks like J.P. Morgan Chase & Co. (JPM), Goldman Sachs Group Inc. (GS) and Morgan Stanley (MS) own, Commodity Futures Trading Commission member Bart Chilton is expected to say in a speech Saturday.

Mr. Chilton, in prepared remarks viewed by The Wall Street Journal, said it's "nearly impossible to figure out exactly what banks own." He said the CFTC can see what banks are trading in derivatives markets tied to commodities, but doesn't know what physical assets like oil tankers and aluminum they hold.

"Unless we can see that, we can't reasonably and responsibly protect against market manipulations," Mr. Chilton, a Democrat, plans to say in speech to a business association in Michigan Saturday.

The CFTC has been investigating firms that store and deliver aluminum, including Goldman Sachs and J.P. Morgan, after complaints from companies that use the metal. Beer and soda companies, can makers and other end users said firms that warehouse aluminum inflate prices by holding onto it for longer than necessary.

Banks that trade commodities have come under fire from government officials, companies and consumer groups who say they exert too much influence over markets for some raw materials.

Mr. Chilton plans to raise that concern in the speech, saying banks that own commodities and trade in derivatives based on the prices of those commodities have a potential conflict of interest.

"The prices of commodities are supposed to be based upon supply and demand," Mr. Chilton plans to say. "However, what if you control, or have significant influence upon, the supply or the demand?"

Mr. Chilton also is expected to say the public should be able to "easily locate and click on a link to find out" what physical commodities banks own. He will also call on lawmakers to rein in banks' role in the buying and selling of physical commodities and not leave the decision to the Federal Reserve.

The Fed is considering limiting the ability of banks to own physical commodities. Some financial-industry executives expect the Fed to issue guidelines as soon as this month scaling back bank participation in physical-commodities businesses, the Wall Street Journal reported Tuesday.

The Fed collects information from banks on their physical commodities holdings such as oil refineries and metals warehouses.

A Fed spokeswoman declined to comment. A spokesman for the CFTC didn't immediately respond to requests for comment.

https://online.wsj.com/article/BT-CO-20130913-707527.html?
zman
Sep 16, 2013 - 6:34pm

Delays in meeting silver demand

Delays in meeting silver demand is a good sign, if it's wide spread it's even better.

If there is no silver available anywhere at $23 oz (dealers are only buying and not selling), then the paper boys would be in trouble, so the disconnect would be short lived in my opinion.

Having no supply, huge delays, and a low price is not sustainable for very long, it hasn't happened yet, so maybe we will see who would be correct in this scenario in the near future.

Thanks for the discussion ancient.

Dagney Taggart
Sep 16, 2013 - 6:38pm

This will help

https://imgur.com/6yYTPjq (Stolen from ZH)

PS. Nice art, Pining.

Nephi
Sep 16, 2013 - 6:49pm

Thanks Pining

E-mailed my Sen. Mike Lee!

Turlock
Sep 16, 2013 - 6:52pm

Pining

Great summary. Hard to believe just how broke and corrupt America has become. There is an old saw about not fighting the FED. It references interest rates. Now that we know that the central banks and TBTF institutions have rigged LIBOR rates it is crystal clear that the PM market, which is tiny compared to bond and currency markets, can be manipulated easily. It is also clear, as Pining has so illustrated, that the Gov. and, especially, the regulators are in on the fix. Chilton and Gensler are weak and criminal men. Simply disgusting.

AlienEyes
Sep 16, 2013 - 6:53pm

Pining, Excellent Work !!!

One point for clarity : insectile vermin = fecal filled cockroaches and one omission : you forgot to call them “unwashed maternally incestuous, illegitimate rodents". What the hell, everybody already knows that anyway. As for a class action suit, I'm in. What a great idea.

SilverSurfers
Sep 16, 2013 - 7:11pm

someone

is mistaken. Rump Ranger does not appear on Geitner's resume. Could be clue why the moscow round up. Just a clue.

Don Henley - The Boys of Summer (Live at Farm Aid 1985)

class action suit? :o

audi
Sep 16, 2013 - 7:24pm

What If...

Blythe Master's famous quote:" We only hedge on behalf of our clients." is true.

And the client is China. That would explain the non action of the CFTC. They

may not be able or willing to go after China, as China has all the trump cards.

Our government could have made a deal with them in regards to gold and silvcr;

namely, not to do anything until a certain amount of both is bought cheaply and

stockpiled there. In return, China would not be too aggressive in dumping our

treasuries.

After all, they need great amounts of gold for the balancing of their currency, and silver for their industry (electronic/wind/manufacturing) and cannot do it soon enough to

fulfill their quotas through mining.

Just speculation on my part; playing a devil's advocate, so to speak.

Audi.

silver foil hat Dagney Taggart
Sep 16, 2013 - 7:50pm

@Dagney

check out the "Inspect Element" function on Firefox:

h2 class="contentheading clearfix"> … /h2>div class="article-tools clearfix">div class="article-meta">span class="createdate">

Sunday, 15 September 2013 23:31
/span span class="createby"> … /span>/div>div class="buttonheading"> … /div>

only edit I made was to remove some "<"s so it could be posted without being html compliant and therefore hidden behind the code.

¤
Sep 16, 2013 - 8:54pm

America's Gold

A video about gold is never a bad idea.

Video unavailable
Video unavailable

For the first time, National Geographic takes you inside the heart of the money machine to places that you're not allowed to bring a camera ...straight into the vaults of some of the world's largest stashes of what you want, need and bust your butt to get: Money.

Hidden deep under the streets of New York City, hundreds of billion dollars in gold bars are tucked away in a bunker that is anchored to the bedrock of Manhattan Island itself.

In the latest in a string of high-profile hacking disclosures, the Federal Reserve confirmed on Wednesday that one of its websites was broken into by cyber hackers in a breach that reportedly leaked the contact information of thousands of bankers.

While the central bank said the incident didn't "affect critical operations" of the Federal Reserve System, the disclosure is sure to fuel concerns about the cyber security of government websites and critical financial infrastructure.

The Fed hack appears to be tied to an Anonymous group that published on Twitter the credentials of more than 4,000 commercial bankers early Monday morning. The group, Operation Last Resort, said it received the documents "via the FED."

¤
Sep 16, 2013 - 8:56pm

How deep is an endless spiral?

Analysis: Japan faces record-long trade deficit, little sign can reverse trend

TOKYO | Mon Sep 16, 2013 7:55pm EDT

TOKYO (Reuters) - Japan is on course for its longest run of trade deficits, effectively marking the end of the nation's decades-long reliance on exports from the likes of electronics giant Sony and automaker Toyota as a driver of growth and income.

Trade figures due on Thursday are likely to show that Japan produced its 14th consecutive deficit in August, matching a 1979-1980 record run during the global oil shock. Economists say the deficits will continue.

When Prime Minister Shinzo Abe's reflationary policies weakened the yen after he took power last December, many economists had anticipated a so-called J-curve effect, where a spike in import costs would over time be more than offset by gains in exports.

But a closer look at trade statistics shows that the currency's 15 percent decline since the beginning of this year has failed to produce the export turnaround needed to bring the trade balance back into the black and there is little indication it will do so in the future, posing new policy challenges.

"I cannot tell when the trade deficit will end," said Norio Miyagawa, a senior economist at Mizuho Securities Research & Consulting Co. "What's worrying more is that Japan's export competitiveness may be waning."

With trade acting as a drag rather than an engine of growth, there is more pressure on Abe to reform the domestic economy. But so far, the structural reform part of the prime minister's "Abenomics" policy agenda has disappointed, unlike his radical monetary easing and fiscal stimulus, which have buoyed the stock market and business mood.

Persistent trade shortfalls are likely to swing the current account to deficit as soon as three years from now, meaning that Japan will start chipping away at its vast pool of domestic savings, increasing the need to start reining-in its ballooning public debt. Ramping up more foreign investment, so far low on the list of priorities of the world's top creditor nation, may also become a necessity.

Abe's policies are designed to revive an economy from years of low-grade deflation and sluggish consumption. The exports industry has been the main base underpinning the economy.

"We're going through the process of reducing our heavy dependence on exports," said Takeshi Minami, chief economist at Norinchukin Research Institute. "But for now, the country has no choice but to depend on exports until it exits deflation and domestic demand plays out more in the economy."

After the 1979-1980 oil shock, Japan bounced back smartly, exporting millions of its cheap, durable and fuel-efficient cars and iconic electronic gadgets such as Sony Corp's (6758.T) Walkman. Today, however, there is no turnaround in sight.

Even though increased fuel imports since the March 2011 Fukushima disaster have been a major drag on trade, restarting all of Japan's nuclear reactors would not bring it back into the black, estimates suggest.

The only one of Japan's 50 reactors in operation was shut for planned maintenance on Sunday, with no firm date for bringing back an energy source that had covered about a third of the country's electricity needs.

Restarting nuclear power would bring Japan more than 3 trillion yen ($30 billion) in annual savings, RBS Securities estimates, still well short of a trade gap that reached a record 4.8 trillion in the first half of this year alone.

"I think Japan's trade deficit will last forever even if nuclear reactors are restarted," said Hiromichi Shirakawa, chief economist at Credit Suisse.

HOLLOWING OUT

Shirakawa calculates that a 10 percent-or-so fall in the yen's value adds only 1 percent to export volumes over two quarters, half of the effect it had in the period before the global financial crisis.

That is because of the "hollowing out" of Japanese manufacturing as firms shift production and procurement overseas. Years of yen strength contributed to that shift, but the currency's retreat failed to reverse the trend as the desire to move closer to faster growing markets, tariffs, lower taxes and labor costs all played a role....(cont.)

https://www.reuters.com/article/2013/09/16/us-japan-economy-trade-analysis-idUSBRE98F0XR20130916

Zoltan
Sep 16, 2013 - 9:06pm

Pining Masterpieces

My avatar (Blythe, the chain smoking Chupacabra) is another of Pining's fine works.

I have always maintained, and continue to believe, that the CFTC will never do anything about the PM markets manipulations.

It is government policy to support the dollar and the CFTC is a co conspirator.

Z

Blankone
Sep 16, 2013 - 9:14pm

Outstanding Work, Pining

Got letters fired off to my senators already...And bought 2 gold eagles to celebrate...

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