Fascism at the FED and the NY Federal District Court? I’m Shocked, Shocked . . .

Thu, May 22, 2014 - 12:17pm

Recently, Judge Ronnie Abrams (a female), issued a ruling dismissing the whistleblower case that former Goldman Sachs bank examiner Carmen M. Segarra filed against the venerable Federal Reserve Bank of New York. The case is found on Pacer, Case Number 1:13-cv-07173-RA, captioned Carmen M. Segarra vs. The Federal Reserve Bank of New York, et al. Mr. TF asked me to weigh in on it, which I am most happy to oblige, because I am part of his cult . . .

Running a quick google search reveals the top story on it is, naturally, from the traditional media, here: https://www.reuters.com/article/2014/04/23/nyfed-goldman-lawsuit-idUSL2N...

Basically, Ms. Segarra claimed she was fired for whistleblowing, that is, for reporting bad behavior by her employer, which in this case, happened to be the Federal Reserve Bank of New York. She wanted reinstatement, some money, and for her attorney’s fees to be paid by the defendants. She also asked for punitive damages. She filed suit in the den of thieves, the US Federal District Court for the Southern District of NY.

As an aside, why would anyone suing a bank, let alone part of the evil fiat scheme, the bank of last resort, The NY Fed, EVER in a million years think for one second that a sitting federal judge in the Southern District of NY, such judge appointed by the President, and confirmed by the Senate, who themselves are demonstrably and inexorably, hopelessly corrupted by bankers who own them, ever, ever think that a fair outcome would result? I can surmise that Carmen, probably quite intelligent, is simply unable to critically evaluate the corruption inherent in the system, since her very professional existence, grotesque as it is, is hopelessly bound up within that very system. She became, simply, an irritant to the host, who promptly expelled her.

Indeed, there are salacious details of a conflict of interest, linking the judge to banking interests, and which upon even a cursory look, reveal the rotting stench of corruption permeating this entire case. Anyway, back to the story.

According to the Complaint, Ms. Segarra set forth four claims: a violation of federal law, specifically, 12 U.S.C. § 1831, a violation of state statutory law, NY Business Law § 349, as well two claims under common law for wrongful termination in violation of public policy, and breach of contract. She added two more state law claims in her First Amended Complaint. For all you Constitutionally challenged types out there, a Federal Court is limited in its jurisdiction. A plaintiff must allege a violation of federal law, or satisfy diversity requirements. Diversity did not exist, since plaintiff and defendants were both from NY. Hence, for the US Federal District Court to have jurisdiction over the case, Ms. Segarra had to allege a violation of federal law.

So, Ms. Segarra alleged the 12 U.S.C. § 1831 claim. This is a technical statute, and Ms. Segarra had to fall within its purview in order to be able to assert a claim under it.

The defense was simple: they moved to dismiss the case based on lack of federal question jurisdiction. That is, the Fed said that Ms. Segarra was not entitled to relief under federal law because the federal law did not apply in her situation. For technical reasons, too arcane, and quite frankly, too boring for me to discuss this late Wednesday night, the Fed’s lawyers successfully persuaded the corrupt District Court judge to dismiss the case. Importantly, the judge dismissed the federal law claim, but did not terminate the case in a fatal manner as to the state law claims.

Thus, Ms. Segarra’s lawsuit is not dead and buried. No, it is just going to have to be litigated in state court, or Ms. Segarra will have to appeal the judge’s ruling dismissing the federal law claim.

Remember, the federal court dismissed the case from FEDERAL COURT, finding that since the federal law cited by Ms. Segarra did not apply, then the FEDERAL COURT was without jurisdiction to adjudicate the remaining STATE LAW CLAIMS.

In the Order dismissing the case, the judge said this:

“Plaintiff invoked the Court’s jurisdiction by asserting that the FAC raised a federal
question. (FAC ¶ 10.) Because the Court concludes that Plaintiff has failed to state a claim
under 18 U.S.C. § 1831j—her only federal cause of action—it concludes that this is the “the
usual case in which all federal-law claims are eliminated before trial” such that it should
“declin[e] to exercise jurisdiction over the remaining state-law claims.” Carnegie-Mellon Univ.
v. Cohill, 484 U.S. 343, 350 n.7 (1988); see also Kolari v. New York-Prebyterian Hosp., 455
F.3d 118, 119 (2d Cir. 2006). It therefore dismisses her state law claims without prejudice.”

The Order is filed as docket entry 51, and the docket entry says this:

“CLERK'S JUDGMENT: It is, ORDERED, ADJUDGED AND DECREED: That for the reasons stated in the Court's Opinion and Order dated April 23, 2014, Defendants' motion to dismiss the First Amended Complaint is granted, Count One fails to state a claim under U.S.C. § 1831j, and the Court declines to exercise jurisdiction over the remaining state-law claims; Plaintiff's motion seeking leave to file a Second Amended Complaint is denied, as are the other requests made in Plaintiff's April 11, 2014 letters; accordingly, the case is closed. (Signed by Clerk of Court Ruby Krajick on 04/24/2014) (Attachments: # 1 Right to Appeal)(km) (Entered: 04/24/2014)”

See? The federal law claim is gone, but the state law claims can be refiled in state court.

For reasons known to them, Ms. Segarra’s lawyers filed a notice of appeal, on May 20, 2014.

Let’s see what happens, legally, stay tuned.

Meanwhile, let us not forget the MOPE about the story.

Look at the headline from the traditional media:

“NY Fed wins dismissal of lawsuit by examiner who faulted Goldman.” Story is here: https://www.reuters.com/article/2014/04/23/nyfed-goldman-lawsuit-idUSL2N...

While true, it hardly tells the story, now does it?

I would have written the headline like this:

“Fired NY Fed bank examiner’s federal claim dismissed by Judge alleged to have conflict of interest.”

See the difference? What images come to mind based on the different headlines? See how the game is played?

Also, NOWHERE in the mainstream press article, is there a single mention of the reality of the federal judge’s ruling. NY FED did not “win” anything. It was a legal ruling on a technical ground, that is dubious, made by a corrupted federal judge with a clear, and recusal worthy compelling reason to have never sat in judgment on the case at all. The “examiner” was an employee, who sued her employer, for corruption. This use of tame language like “faulted” is laughable. The law does not use terms like “fault.” It uses terms like “failure to use reasonable care,” “fraud,” and “malice.”

Look at this headline: “Heirs of deceased Nicole Brown fault OJ Simpson.” See?

If one looks, one may find an article that delves a little deeper, like here: https://wallstreetonparade.com/2014/05/a-mangled-case-of-justice-on-wall...

But for real news, with no spin, told fairly, one must search out independent viewpoints.

Keep preparing everyone, and do not be afraid to seek out the truth from independent sources.

About the Author


Dyna mo hum
May 22, 2014 - 12:21pm
May 22, 2014 - 12:27pm

They will crush her

I hope not but they play a rigged game.

May 22, 2014 - 12:28pm

And 2

more bounces will help establish things.

John Galt
May 22, 2014 - 12:32pm


Apparently not. Perhaps I shouldn't have read the post first.

Thanks CL !

May 22, 2014 - 1:25pm

Fabulous, CaL

You are an invaluable asset, Heir Attorney General. Thanks!

May 22, 2014 - 1:55pm

Fantastic CaL

I find it takes time and repetition for people to 'see' how things work with the media and all that is related to the MOPE and other deception.

Thanks for giving us another to exhibit to friends/family waking up and considering preparing in ways they know.

May 22, 2014 - 3:14pm


I think the headline writers have the most power at any news outlet?

​Often times I supply alternate headlines in the comments sections. ;-)

May 22, 2014 - 3:36pm

Maybe This Would Have Moved The Claim

She should have moved the court into common law open court of record for her claim.

I woman, Carmen M. Segarra, making claim that I have been wronged, harmed and aggrieved and I require restitution by the Federal Reserve Bank of New York.

An attorney cannot speak in an open common law court of record without first hand knowledge.....

May 22, 2014 - 3:37pm

Yup, Outrageous CaL

but business-as-usual, eh?

Great write-up .

May 22, 2014 - 4:17pm
Spartacus Rex
May 22, 2014 - 4:37pm

"Traitor Dan"...

Cannot grasp the fact that Gold is actually Anti Fiat, NOT "Anti-Dollar". Since his bread & butter is wholly dependant on trading in those Fiat terms, his Cognitive Dissonance is a matter of Survival, albeit "short term" and thus cannot see the forest through the trees. So his mantra remains to ditch hard money assets for the remaining fleeting chance to paper profit by trading fiat based paper wealth.

May 22, 2014 - 4:48pm

Once again...

People showing up on "open" threads to inform me of how Trader Dan dislikes me now.

If I may state this again as clearly as possible: I DON'T CARE WHAT HE SAYS. IT DOESN'T MATTER TO ME.

I Run Bartertown
May 22, 2014 - 5:07pm
John Galt
May 22, 2014 - 5:15pm

@ Stock and Rex re: Norcini

Yes, Norcini does seem to have a certain comfort level with continuing to play with paper, and measure his ongoing paper profits also in paper terms.

Given his association with Jim Sinclair there is one dimension to Sinclair ( which Norcini seems to share) that I find rather baffling. I have great respect for Santa, and agree with his rationale to GOTS. However, in the same breath where he says to GOTS and hold physical Santa also advocates holding things like paper in the form of mining shares in places like Tanzania. In my mind these 2 pieces of advice are contradictory, because on the one hand he's saying GOTS and with the other saying its OK to continue holding paper claims to assets.

Some time ago I emailed Santa (and he was kind enough to reply) and asked him that in the event of a systemic implosion of paper what strategy would he suggest for converting your physical into something else, say after a reset.

Sinclair's answer was simply to sell back the physical to the same place that I bought from. In my case that would be an LCS. So let's assume I have bought some gold and silver coins, lost them on a fishing trip, the system goes down and a "new and improved" fiat system in the form of SDRs comes into play. Supposedly I have protected myself from the coming haircut by being out on the system.

But at some point I grab my snorkel gear and go to retrieve my shiny. Now I want to buy some other kind of asset, or maybe even something more mundane like food.

In theory I should be ahead (or at least in the same place) because the physical I bought was via fiat which is now essentially worthless. But if I reintroduce my physical to the system by way of my LCS, which now denominates everything in the form of SDRs I would suspect that new rules and taxation will also be imposed to help the system rebuild and make whole all who got crushed when the paper system collapsed.

Sure, a hypothetical price of $55,000 per oz. of gold by that point sounds lovely. By that time the old fiat may no longer be in play and gold and silver will now likely be denominated into whatever equivalent value there is of SDRs. But the risk (and possible likelihood) is that under a new globalized IMF system maybe a 99% excessive capital gains tax gets imposed and you net out to zero. The taxes would likely get captured at source too. Or maybe the coins just get seized outright, because they are needed "for the national interest and greater good of all."

Its one thing to plan for worst case scenarios, but I'm also trying to prepare a strategy beyond that.

May 22, 2014 - 6:00pm


This is just an observation of mine. Why was TFMR started? If I recall correctly it was that you wanted a site that wasn't "negative & rude". I understand that people are taking potshots @ you, but please remember why you started this place. Have we been through trying times? Yep. Will there be more ahead for us? You can count on it. Will we be correct in our beliefs in the metals? Of this, I have no doubt.

All people go through difficult times in their lives, what defines them is how they get through them. If we disagree w/ someone, shouldn't we just say that, instead of calling them a fool? IMHO, a man is not defined on how one treats his friends/clients, but on how he treats his detractors.

When the paywall went up, I subscribed immediately for a year. I love this site, I have learned so much here on a number of topics. Will I renew my sub? Probably.

Turd, You are not just some guy w/ website that talks about metals. I would like to believe that you have become a STATESMAN that has the power to educate and share his knowledge about Fiat Currency/Precious Metals complex.

ps. In my youth I was know as a bit of a hot head, one who would open their mouth before thinking through my entire thought process. Thankfully that has changed over time, but it really didn't happen until a certain Texas politician caught my eye. Yep, Ron Paul. I admire many things about Dr. Paul, his logical thinking and knowledge of history are just two of his traits that attracted me to him. But the single most admired trait of his for me is his civility. When he disagrees w/ someone he doesn't call them bad names. He just says that he disagrees w/ them and then lists the reasons on why he disagrees w/ them. This is character, this is integrity.

May 22, 2014 - 6:05pm

Thank you....I think

I hope you are talking about people like Dan when you mention: "If we disagree w/ someone, shouldn't we just say that, instead of calling them a fool? IMHO, a man is not defined on how one treats his friends/clients, but on how he treats his detractors."

I say this because I try VERY HARD to treat others the way I want to be treated. I haven't called Dan a "fool". Anyone who successfully makes a living via trading is definitely NOT a fool. That said, he might be a delusional cyber-stalker with a Turd complex...

Les Baux
May 22, 2014 - 6:17pm


Will we be correct in our beliefs in the metals? Of this, I have no doubt.

I think that is the point Senor Norcini is trying to make. Having 'no doubt' about your financial predictions is about the worst possible affliction one could have when it comes to planning for the future.

Not that he couldn't stand to make that point a hell of a lot more tactfully...

May 22, 2014 - 7:00pm


Great article, CL. Had remembered that case from when it came out, was curious as to the outcome. I'm shocked, as well... :-)

Make of it what you will. I see a breakdown coming, when even the 'recovery to the upside' for GOFO rates will remainsunder zero. As it is, the shortest-term rate barely made it back to positive, and looks like it wants to head back down again.

Change in GLD 'inventory' and POG:

since Jan 1, 2013: GLD tonnage: -42.4% POG: -24% (EXACTLY, out to 15 decimal places... bizarre coincidence, I guess)

since Jan 1, 2014: GLD tonnage: +2.2% POG: 5.08%

So, this is a levered ETF after all...

May 22, 2014 - 7:28pm

@ turd

It was meant as a complement. I just wanted to say that the reason I support this site is the reason that it was founded upon. This site is a haven for people who want a (almost) unbiased look at the fiat/gold complex. With the attacks on you in the last few weeks, I have sensed your outrage about it in a few posts/podcasts. Don't let them win by dragging you down to their level. But at the same time, please don't allow your emotions to rule you.

Again, thx for all you do.


May 22, 2014 - 7:33pm

TF and Dan - a Comment

He is just jealous, because TF is a cult leader, with his posse of cultish followers, like me, while Dan wears a vest.

Seriously, who cares what he says? Thanks for the TA, it's fun to watch all those squiggly lines and learn cool new words and phrase like "Fibonacci retracement," but really, he has his opinion, informed or misinformed as it may be, and with all due respect, I have mine, as do all of the other folks on this most excellent blog.

Let us celebrate his opinions, and let the free exchange of ideas take place, with honest, but vigorous debate. Attacking another's point of view is pointless. Advocating one's position, defending it with persuasive logic and sound facts, is a better method.

Allowing others to lob ad hominem's merely confirms one's correct belief that the one lobbing the ad hominem's is almost certainly the one with the weaker position, and therefore NOT to be trusted.

I have learned that concept, repeatedly, in my 21 years as a trial lawyer.

Take the high road, in the end it is the ONLY road, as the low road leads to a bad place from which people never return.

Safety Dan
May 22, 2014 - 7:52pm

Over time observing, I've

Observing over time, I've noticed that when the metals are confined within a tight trading range, or there is limited 'action', the action of personalities and differences contaminate the threads with 'he said' and 'she said' posts.

It seems if someone says something about another, and then the opinions and attitudes rage.

We can let the 'disagreeable personality posts' slide on by without comment. We can 'take the high road', as CL states focusing on the important issues.

Spartacus Rex
May 22, 2014 - 7:54pm

@ Galt - "Preparing a (Winning) Strategy"

See how simple it is to miss the forest because of the trees?

What does One imagine that Santa's Get Out of The System (GOTS) means if not, 'Get Out of THEIR Matrix'?

I realize that you are Canadian, (and Central Bank Fiat Notes are a global problem) however when was the last (or even the first) time you made a purchase/transaction actually using one of those gold or silver Coins (ie Real Money) of yours, rather than simply taking such on unfortunate fishing trips?

Why is it that so many let cognitive dissonance merely assume by default that no one can possibly conduct their transactions without using the Matrix's Fiat Currency, whether in forms of Paper, Plastic, or even the latest Fiat Scam, Digital?

And anyone who still hasn't figured out that “bitcoin” was merely a trial balloon test concocted by the Int'l Criminal Bankster Cartel, Get A Clue for crying out loud.

Look at what the Banksters' academic talking head Rogoff is saying now:

Rogoff: The case to get rid of paper money https://finance.fortune.cnn.com/2014/05/21/kenneth-rogoff-paper-money/

Even the British are trying to do away with “paper” and use “plastic”:

Plastic £5 note 'first for Great Britain' https://www.bbc.com/news/business-27517606

The message: Step out of that century old paper currency technology and step into our new and improved Matrix with these new, state of the art technologies.

So, exactly what is so inherently wrong with, or inherently impossible to accomplish by, simply using actual Money itself?

It is almost universally recognized that the Banksters have ripped the People off of 98% of their purchasing power and wealth over the last Century by debasing Currency through the counterfeiting hocus pocus which they call “fractional reserves”

Even the Fed lets people see the effects of their counterfeiting right on one of their own websites, and granted, they are even using the revised and bogus CPI calculations put out by the Bureau of Lying Statistics in D.C. , but nevertheless, if one were to enter the year 1913 (The year the Fed was created) and put $1.00 in the 2nd box for Costs of Goods or Services, then in the 3rd box enter the year 2014, the Fed's calculator shows that it now takes $23.87 FRNs to purchase those same goods.

Here, try for yourselves @ https://www.minneapolisfed.org/index.cfm and look at the right for “What is a dollar worth?”

However, the Banksters KNOW that they cannot “fractionally reserve” any Gold and Silver Coin Money that We the People keep and use among Ourselves!

So what, or where is the problem?

Is everyone addicted to only transacting with Corporations, and not with independent Real People anymore?

Speaking for myself, I cannot begin to count how many times I have used Silver or Gold Coins in transactions with People rather than simply defaulting into a FRN IOU Clownbux transaction.

The sooner ALL “Stackers” come to realize that it is in their best interests to actually Spend (not merely convert back into fiat) their Silver & Gold Coins back into Circulation and thus winning back more People to Liberty by keeping and using Our Own Money, versus simply staying in the Banksters' Matrix and being complicit with Banksters Fraud by using their Fiat IOUs/ Clownbux Currency, the sooner we can ALL finally get rid of the Banksters, their Central Banks, and all of the Fraud, Misery, and Wars that they have continually inflicted upon the rest of humanity.

Wake Up your Family, Friends and Neighbors to the Fraud that is going on right under their noses!

See: FRAUD (Federal Reserve Accounting Unit Device)

Rant Off

May 22, 2014 - 7:58pm

@ Les Baux

I am not a short term trader, don't have the time nor patience. I have other things going on in my life than to look at the chart every day. With that said, I do look at long term charts and have studied enough history to be able to see the long term trend line. All Fiat Currencies go down in value (purchasing power) over the long haul. This is why I believe that I am right. Could I be wrong, sure. IMO everything in life should be based on the risk/reward ratio. Everything!

Some people may disagree on this, but lets take a look at it in varying things. Ever been in love? Ever been jilted? I would assume that you have. No matter how much pain one suffers in losing love, I would assume that most people would agree that the reward of being in love outperforms the risk of losing it. The key thing in love, it is only a 2 party transaction (no third party, ie the state).

Now lets look at PM's. History has shown that PM's have shown that they are the best store of value over time. Land could be put in that same category, except that are very dependent on the government that rules the land at the time being (ie taxes, 3rd party). Sure the any government can put a law against PM's, but this is where the black market comes in (again only a 2 party transaction). IMO, the risk/reward ratio is similar to that of love. Whenever a 3rd party enters a transaction, this is where is large risk comes in.

Island Guy
May 22, 2014 - 8:10pm

Trader Dan

I read Trader Dan's article, and I am treating it as a point of view to consider. Most people on this site claim that they do their research and consider multiple viewpoints before making decisions. That's only logical. Dan has an educated point of view, and I consider it worth considering.

What puzzles me is that everyone is acting as if Trader Dan singled out Turd for specific abuse. I don't see it. The only part of Dan's article which might be considered somewhat aimed at Turd was the comment about negative GOFO rates. However, ever since Turd discovered that connection I've seen it discussed on a number sites. It is now public domain stuff and is not identifiable solely with Turd.

Not only did Dan not directly and specifically attack Turn and his band of loyal Turdites, his advice actually seems to echo much of what Turd has been saying. Dan is aiming his advice at people trading metals. He is not concerned with "stackers" who acquire metals for insurance purposes. His blog deals with trading, plain and simple. It's even in his pen name.

Yet Turd has also repeatedly cautioned people against trading metals on their own. To roughly paraphrase him, people who trade metals without expert advice from professionals like Andy are idiots. Trader Dan is simply saying the same thing as Turd.

Granted, there are Turdites who trade metals on their own without the benefit of professional help. And they talk about it on TFMR. And I'm glad they share their views and experience. But that is what the individual Turdites are advocating. Turd's advice has never been to trade the metals on your own, or to stay in a trade that is turning bad.

People are talking about all of the bad blood between Dan and Turd, but I just don't see the negativity that people are reading into the discourse.

May 22, 2014 - 8:49pm

Great Write Up CalLaw

The Article Gives Me A Great Idea For A Bumper Sticker

Jail A Politician or Judge= Save America

Jail A Banker= Save The World


Les Baux
May 22, 2014 - 8:58pm


Well put. Gold has been excellent store of value over the very long term. I hope Dan isn't disputing that, because he's wrong.

I don't think he's talking to you, though. He's talking to people who view Gold as a good 'investment'. It's a terrible investment, with high volatility yielding zero real return (a double whammy), so it compares well against fiat currency and almost nothing else. A lot of people don't seem to get that, including some around here. It seems like you've got your head screwed on right when it comes to your expectations from Gold.

May 22, 2014 - 9:55pm

Harvey's Up! (TFMR)

Harvey's Up! https://www.tfmetalsreport.com/comment/618625#comment-618625

  • Gold is marginally higher today at $1,294.40/oz but remains in lock down in an unusually tight range between $1,284/oz and $1,306/oz this week. Gold in Singapore again traded around the $1,292/oz level prior to slight gains in London which led to gold over $1,295/oz. India's central bank, the Reserve Bank of India (RBI), eased tough gold import rules late last night,by allowing seven more private agencies to ship and import gold bullion. Industry officials and gold analysts say the easing of restrictions will increase supplies, reduce premiums and lead to increased demand in the peak wedding season. The move allows "star trading houses", private jewellery exporters which had been barred from importing gold since July 2013, to resume imports, with immediate effect.
  • GoldCore on Russia and China: China and Russia signed a $400 billion gas supply deal involving payments in the yuan and ruble. It has significant ramifications for the dollar as global reserve currency. The era of the dollar as the sole global reserve currency is gradually coming to a close. The deal secures the world's top energy user a major source of cleaner fuel. It opens up a new market for Russia as it gives itself options and the ability to cut off dependent European countries should the Ukraine crisis escalate and further sanctions be imposed on Russia.
  • Harvey: Today again for the 4th straight day, our bankers decided it was necessary to keep gold and silver under wraps as they seem loathe to let gold rise above the 1300 dollar mark and silver over $20.00. it looks to me that the bankers have a problem if gold exceeds the 1300 dollar mark due to the massive derivative underwritten. The same can be said for silver. Tonight, the GLD reported that today we had no change in gold inventory gold and stands at 776.89 tonnes. In silver, we lost 1.15 million oz and stands at 10,284.40 tonnes. Thailand officially declared a military coup has taken place. Fighting inside the Ukraine intensifies. Putin remains on the sidelines. All GOFO rates are positive. All months moved slightly closer to backwardation.
  • Julian Phillips: Gold Forecaster editor Julian Phillips earns his tin-foil hat with his new commentary, "Will Central Banks Need to Buy Gold Back from the Market?," in which he surmises that nearly all Western central bank gold has been leased and is not readily recoverable. We believe that all the signatories of the Central Bank Gold Agreements are in the same position as Germany with all their gold currently leased into the gold market. If only a portion of that gold had been leased the balance not leased could have been delivered. But instead, only 5 tonnes of gold has been delivered back to Germany. The implication can only have one explanation and that is that all of it has been leased and only five tonnes of it has been returned to the Bundesbank. Some might argue that the gold needs to be re-refined. If that were the case then re-refining this gold would have produced far more than five tonnes in the last year.
  • Julian Phillips on gold leasing: The parties to whom the central banks leased the gold are the market makers, the Bullion Banks, who then onward lease the gold into the market to various counter-parties. It is very possible that if the gold price were to take off, these counter-parties would not be able to retrieve or buy sufficient gold to return the gold thy leased. After all, China has absorbed so much of the gold available on the open market and elsewhere, particularly in the last year. So as to understand what potential situations could come about in the gold market we look back at the de-hedging process that took place among the gold mines who had hedged their production since 1985 though to 2005. Gold mining companies found such a situation after the gold price moved up through $400 levels. It was at these levels that they had hedged their gold as the gold price was falling back from $850 to its low of $275 in 1999.
  • Julian Phillips on miner hedges: With the Washington Agreement and the subsequent two other Central Bank Gold Agreements, the central banks came to the miner’s rescue through their sales of gold at 400 or 500 tonnes a year up until 2009 when the gold mining companies completed their de-hedging. That covered not just 3,000 tonnes of gold but saw the gold price run up from $400 to $1,200. In 2009 it was no coincidence that these European central banks stopped selling and all central bank selling of gold came to a halt. Central banks were wise in announcing the sales they did from 1999 onwards as this disguised the rescue of these gold miners very well.
  • Dorothy Kosich: Plaintiffs’ attorneys from Canadian law firms Koskie Minsky; Sutts, Strosberg; and Groia & Company have filed a $6 billion class action lawsuit against Barrick Gold and former Barrick CEO Aaron Regent, former CFO and current CEO Jamie Sokalsky, current CFO Ammar Al-Joundi and former COO Peter Kinver. The action was filed Wednesday with the Ontario Superior Court of Justice on behalf of Barrick Gold investors who acquired Barrick stock during the period from May 7, 2009, to November 1, 2013. “The action raises serious questions about how Barrick Gold conducted its business and affairs and the manner in which it raised capital from public markets,” said Kirk Baert of Koskie Minsky. The lawsuit claims there were misrepresentations in Barrick’s public disclosure relating to its development of the Pascua-Lama mine. “In particular, Barrick publicly referred to this being a feasible and highly economic project due to the low cost to construct and produce gold and silver from the Pascua-Lama mine.” The claim alleges that “Barrick knew or ought to have known that the significant costs to construct and produce gold and silver from this project would render it, at best a speculative venture.”
  • Bill Holter: Something is up folks, the gold backwardation anomaly should never happen in London, never happen in Chicago or anywhere else on the planet (I have read where this is also occurring in Shanghai), but it is. This to me is a clear sign that gold in large quantities is in fact quite tight. We have not seen backwardation yet in any big numbers but the fact that we should never ever see it in any fashion tells me that something is and has been happening with the supply. I also know for a fact that a physical gold shortage is not something that can be "printed" away. Once we finally get "in your face" backwardation, this will be like a bell ringing that the game is over. No, not just the "Comex game," the whole game...the entire game of Western finance. Some will say that this is overly dramatic. It is not. The gold and silver price suppression game is at the very heart of the lie. Once this is exposed...so will everything else that is hiding in the central bank shadows.
  • Tyler Durden: It appears yet again that China's "strike first" anti-terrorism policy has failed as explosions have rocked Urumqi, the capital city of China's unrest-plagued Xinjiang Uyghur Autonomous region, killing (and injuring) multiple (but unknown) people. Social media suggests 2 SUVs entered the crowded market in the center of the city ploughing down onlookers, throwing explosives from the cars, before a blast was heard. One witness noted that the cars were painted with "uighur" language slogans. Flames and heavy smoke were seen nearby, police are on the scene and the 2 SUVs are being removed. There is no official death or injury count as of yet.

All this and more on...

The Harvey Report!



Safety Dan
May 22, 2014 - 10:51pm
May 22, 2014 - 11:30pm

Congrats CL!

You won the best one of the day/week with that "while Dan wears a vest" comment. I laughed till I cried. Still chuckling. I thought that YeeeeHaaaaw .........deserved a HeeHaw! https://www.yourepeat.com/watch/?v=pjfY_gjYex0

John Galt Spartacus Rex
May 22, 2014 - 11:44pm

@ Rex re: Finding a Winning Strategy

When I used the term "paper" I was referring to the whole spectrum of currency at play in the market, be it paper, plastic, digital etc.

I agree that the system we call the Matrix is anxious to introduce a fully digital currency, of which Bitcoin could well be a trial balloon. Those that make up this Matrix, I believe, include the IMF, World Bank and all of the central banks that operate under the auspices of the BIS. What we are seeing now is a progressive move to debase and destroy all fiat currencies, and with it all wealth held and denominated in these currencies.

Right now we are all focused on the political tensions in Ukraine, while keeping an eye on Syria, China/Vietnam, #bringbackourgirls in oil rich Nigeria, the coup in Thailand etc. But in my mind these are all carefully managed and staged events - like Kabuki theatre - designed to lay the foundation for tensions, war and ultimately the wholesale collapse of markets and all fiat currencies. The ultimate plan, I believe, is to bring the people of the world to their knees to beg for salvation....which is ready to be rolled out - possibly in the form of a digital SDR, or maybe a 2 tier system of local and global currencies.

What I cannot see happening is a mass shift to using REAL money, such as gold and silver. Why? Because at the moment the masses are so dumbed down that likely 99% (certainly in the First World) would have no clue as to the relevance of real money.

But even if that was not an issue, and somehow 7.7 billion people all came to embrace and understand what real money is, I do not see there being enough supply to allow everyone to use PMs as actual currency.

Sure, maybe a digital currency like Bitcoin could be used instead and to give it legitimacy we could say that a fixed number of these currency units would be backed by "X" amount of real Gold and/or "Y" amount of real Silver. But how long would this currency stay honest? We humans are a greedy species, and anyone who had the opportunity would eventually figure out ways to make more digital currency than there was real Money to back it with. In the end we repeat the same mistakes that we have always made with any form of currency ever created.

You ask "so what, or where is the problem?" with introducing real Gold and Silver as money? The first problem I see is that most of the actual Gold is being hoarded by the central banking system that is controlled by the BIS. I highly doubt that these bankers would be eager to open their vaults and see this wealth distributed amongst the masses.

While it is true that not all Gold and Silver is under control of an elite few - especially given all the boating accidents that have happened in recent years - I don't think that there are enough of these PM crumbs lying around to build the foundation of a new global currency system of sound money.

Although you say that you have transacted many purchases with PMs, I cannot say the same. Where I am there are very, very few people who actual "get it" with respect to distinguishing between currency and money, so I continue to use fiat for as long as fiat is available and for the time being only use the PMs as savings and insurance.

Of course, even holding these PMs as savings and insurance is no guarantee of anything moving forward. While most of us "cult followers" here at TFMR honestly believe in the sound merit of holding PMs, there is a small part of me that thinks about James 5:3 from the Bible which says "Your Gold and Silver will become worthless." Although I am aware that Scripture is open to interpretation I am saying this merely to point out that all of us could be wrong about what is to come.

The money changers/central bankers have been around since long before the Bible, and I don't see we the masses shaking them off any time soon. But I hope I'm wrong.


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