Just In: Acquittal - Real Fraudsters were the Banksters!

Wed, Aug 27, 2014 - 4:12pm

Real estate flippers avoided criminal conviction because they argued, and persuaded the jurors, that the REAL criminals were the banksters!! No way!!!

“In an unprecedented trial, four people charged with mortgage fraud were acquitted Friday by a jury in Sacramento federal court after defense attorneys argued the real culprits are the so-called victim lenders.” https://www.sacbee.com/2014/08/22/6648529/sacramento-federal-court-jury....

Let’s do a little background.

We all know of the real estate boom, and bust, particularly in California, and specifically localized in massive numbers in California’s Central Valley. Essentially, some of us have correctly pointed out that the root cause of the onset of the bubble, were criminal bankers, beginning with Blythe Masters of JPMorgan, who conjured up the scheme of securitized finance for home mortgages. The scheme was simple: the big banks would write loans, using investor money, and none of the banks’ own money. Once the loans were made, the banks would in turn package a thousand loans or so, and bundle them up, then sell them as a whole to investors, as a security. Investors getting first dibs at repayment streams [upper tranches] were paid less interest, than investors who were last to be paid [lower tranches]. The whole theory was that out of the pool of the thousand home loans, not all would default and go bad. Since in the aggregate, most of the loan payments would be paid on time, then those investors at the upper tranches were not risking non-payment as compared to the investors and the lower tranches. The interest rates were balanced against this risk, and the securities were marketed and sold off to investors.

The problem, though, crystal clear to anyone with a brain, from the inception of the whole scheme, is in the incentive structure of the whole mess.

Not a single participant in the scheme had a single incentive to scrutinize the deal. The prospective home loan applicant, wanted a home, and inflated the income and other figures on the application. None of the bankers cared about the fake applications, because the bankers were only going to bundle the loans and sell them off, having no skin in the game and having massive incentives to get more and more loans bundled regardless of the underwriting standards or risk of default.

The investors at the upper tranches cared not. They were guaranteed first payment from the income stream. Their risk of loss was near zero. The lower tranch investors cared not either, as they were getting astronomically high rates of return, and on balance, the risk to them of defaulting payment streams was outweighed by the lucrative returns, much like unsecured credit cards. They figured there would be defaults, but the high interest rates made it, on balance, perfectly acceptable.

The various middlemen in all the transactions, like appraisers, real estate agents, escrow companies, and all the durable goods manufacturers filling all those new homes with shiny new appliances cared not one bit either. Local governments, always desperate for tax dollars, care not one bit either that the mortgage applications were filled with false incomes, and outright lies.

Then, of course, the incentive structure, understood as it was, created a new class of opportunists: the flippers and fraudsters.

These criminals, correctly realizing that there existed NO incentive by any of the participants to scrutinize mortgage applications, began scheming with straw buyers to flip properties.

In Sacramento, this type of fraud was particularly rampant.

Here is where the story gets fun.

The basic crime details are set out here:

“According to prosecutors’ filings, Charikov, a 42-year-old real estate agent who lives in West Sacramento, used straw buyers to purchase properties in a declining real estate market and then immediately resold them to another straw buyer at fraudulently inflated prices. To qualify for the mortgage loans, prosecutors contended, the defendants submitted fraudulent loan applications to lenders, falsely stating the straw buyer’s income, liabilities, and intent to occupy the home as a primary residence.

“The indictment alleges that Charikov recruited his loan officer wife, Romanishin, 32, of West Sacramento; Tuzman, 42, of Citrus Heights; and Talybov, 32, of Antelope, as straw buyers in transactions involving the sale and purchase of two West Sacramento properties in 2006 and 2007.

“After the first set of straw buyers obtained the proceeds from Talybov’s fraudulent purchases, they allegedly split the take with Charikov. Subsequently, Talybov defaulted on loans for both properties.

All four were charged with fraud that resulted in alleged losses to the lenders of at least $710,000. Charikov and Tuzman were also charged with laundering their ill-gotten gains.”

Got it so far? The United States Attorney, in a hard-hit part of California, used its massive massive, taxpayer-funded resources, and made the decision to charge the low-level fraudsters, and none of the bankers. No plea deals were reached.

Instead, in an act of incredible lawyering, the defense attorneys turned the case on its head by arguing the real criminals were the banksters! Unbelievable.

Remember, to prove fraud, one element is reliance. That means the banksters, who lost the $710,000, had to prove that they relied upon the statements in the loan application to lend the money. The criminal defendants showed that the loans would have been made anyway, whether the application information was true or completely false. Thus, there was no reliance, an essential element, and the jury acquitted the criminal defendants. Brilliant, simply brilliant, and my hat is off to those fine lawyers who advocated a winning position. It was a risky move, too, one that drew sharp objections from the prosecution:

“In this trial, U.S. District Judge Lawrence K. Karlton, over the government’s strenuous objection, allowed testimony meant to show that the lenders in the two transactions at issue – Aegis Wholesale Corp. and Greenpoint Mortgage Funding – didn’t care whether information on the applications was true or false. Under those circumstances, the defense argued, the information was not material because, either way, the loan would have been approved.”

As an aside, I am a bit miffed that the criminals got away with fraud, as this now sends a message that prosecuting low level fraud may not achieve the desired convictions. This now creates a MOPE problem for the Feds. That means those idiots and criminals in Washington have to dream up a new class of criminal defendants to pursue. Who knows what the next set of criminals will be? Maybe us bloggers who dare to challenge the government spin machine? Perhaps returning war veterans who dare to criticize the inept commander in chief? Stay tuned on this one.

Anyhow, back to the story.

In a statement given after losing a sure winner, the US attorney, Benjamin Wagner, did not mention his own office’s lack of pursuing the real criminals, the banksters:

“U.S. Attorney Benjamin Wagner, in a statement issued at The Sacramento Bee’s request, said:

“Criminal trials are inherently uncertain endeavors. We have had tremendous success in convicting scores of persons in mortgage fraud cases over the last several years, but it is unrealistic to expect that we will get the outcome we are seeking in every single case.

“We respect the criminal trial process, and accept the jury’s verdict in this case. It will not dissuade us from pressing forward in the many other mortgage fraud cases currently pending in this courthouse.”

What is telling here, is the UA attorney’s reliance on PAST success, attempting to foreshadow future success: “An acquittal in Sacramento federal court is rare, regardless of the charges. But with respect to mortgage fraud, it is virtually unheard of. There was little or no difference between the mail fraud charges against Yevgenity Charikov, Vitaliy Tuzman, Nadia Talybov and Juliet Romanishin and charges brought against hundreds of other defendants prosecuted by the U.S. attorney’s office in the Sacramento-based Eastern District of California. The office has often described the Central Valley as “ground zero” for mortgage fraud, and noted it has been a national pacesetter in pursuing the perpetrators.”

The winning defense attorney, naturally, highlighted the real issue:

““The big banks and other lenders made as many loans based on patently false information as they could, packaged them as securities and passed them up the chain to Wall Street’s investment and management bankers, who peddled them to an unsuspecting public,” said defense lawyer Tim Pori after the verdict.

“No bank executives have been prosecuted,” Pori said. “Sure, there have been multibillion-dollar settlements with some big banks, but none of their officers – the ones who really pulled the strings – will ever see the inside of a cell.”

“In the week when details of the United States government’s $16.5 billion civil settlement with Bank of America was disclosed, I hope the jury’s verdict causes the U.S. attorney’s office to readjust its priorities and investigate criminally the true culprits of our country’s financial collapse, the mortgage lenders’ officers who committed the real fraud – not those who allegedly lied on the industry’s ‘liar’s loans,’ ” said defense lawyer John Balazs.”

The star defense witness, none other than William Black, chimed in as well:

William Black, who boasts long academic and regulatory careers, was a key expert witness for the defense, again over Coppola’s objection. Black is an associate professor of economics and law at the University of Missouri, Kansas City, and the “distinguished scholar in residence for financial regulation” at the University of Minnesota’s School of Law.

His testimony purportedly connected the fraud in the Sacramento case directly to the lenders, and he explained to the jury why the false information on the applications had no bearing on lending decisions.

“This is the first time that the overwhelming fraud at the banks has been discussed in a criminal courtroom by the person with the greatest expertise on the issue, William Black,” said defense lawyer Toni White after the verdict.

“Prosecutors have refused to criminally prosecute the elite bankers responsible for the mortgage crisis that decimated our economy. The jurors heard shocking testimony from ‘control fraud’ expert William Black that regular people who got loans they were unable to pay back did not (defraud) the banks. The elite bankers commit the fraud while prosecutors look the other way and prosecute the wrong people.”

If Rand Paul wins the presidency, he could do no better than to appoint William Black as Attorney General. Will we see that?

Prepare accordingly.

About the Author


Aug 27, 2014 - 11:56pm

Dear Mr Fix

Dear Mr Fix, take your time making a thread, I very much look forward to it. Oddly, from my personal experience, your writings are some of the closest to the "expected future" that I have come across. Today I paid via paypal for 1 month vault. It should run 28AUG-28SEP.

Any other takers out there?

Be well.

P.S. Cal-a most excellent and amazing post. Yes, I am truly guilty of wandering completely off topic.

P.P.S. Mr Fix you certainly don't "have" to do anything; but please enjoy painting with your daughter, life is precious, we need to live the here, the now. What really counts?

Safety Dan
Aug 28, 2014 - 12:03am

What Would You Say To Your Spouse -


If You Didn't Recognize Your Spouse After a Surgery, What Would You Say to Them

Aug 28, 2014 - 12:10am

Discussion of "conspiracies" on other thread . . .

Where are we in terms of what should be the mode of communications re: the current, abhorrent state of the U.S. government and western financial system?

Should we pussy-foot around, and try to sugar-coat reality in order to convince others of the matrix?

Or, is it too late for that kind of pandering?

I can understand being somewhat careful when trying to explain the current state of affairs to a teen-age girl who wonders aloud in a movie theater about inflation.

I think it is too late for trying to use kindly, psychologically gentle arguments for what this government conspiracy is attempting, and so far succeeding in doing.

While the media/journalists in prior times would long ago have sounded the alarm, the elites were early-on shrewd enough to buy up all the major media outlets, to control the messaging.

Many people have awaked a bit; they know stuff is wrong, and the video linked earlier today in a post by ag1969 should be jammed in front of every person age 13 and older, ASAP.

It is getting very late; the dollar hegemony is under severe attack, and the western elites are running out of options.

We need regime change. Now. Not just Obama, but a clean sweep. Or else I fear the neo-con oligarchy now in control may kill us all in a desperate attempt to maintain their control and push to a NWO.

Strongsidejedi ancientmoney
Aug 28, 2014 - 12:12am

@ancientmoney- congo story

Tracking this story


Police in Nairobi have arrested five people over exportation of 350 kilograms of gold believed to have been smuggled into the country from DRC Congo.

A kilogram of gold is trading at around $41,133 (Sh3,619,704) according to https://goldprice.org/.

The five include three Congolese nationals, a Kenyan who runs a logistic company in Nairobi and a man said to be an agent of a gold buying company based in Hong Kong.

The five were arrested at JKIA on Thursday afternoon after a man identified as Phillipe Ndagano stormed into the offices of a clearing agent and caused a stir.

The agent is believed to be working with senior Government officials and enjoys protection. Police recovered documents used in other export related transactions. Police sources say Ndagano has in the past been involved in similar transactions.

Police said Ndagano, a miner in DRC, claimed that he had entered into an agreement with Asia Resources Hong Kong LTD for selling their gold but the agent decided to export the gold without his consent.

The agent was arrested as he prepared to leave the country.

Documents recovered from the agent by the police indicate that a consignment of 350 kilograms of Gold was to be shipped to a company called Asia Resources based in Hong Kong.

The documents indicated that the consignment was to be received by Asia Resources and addressed to Leigh Peric as the recipient on behalf of the company.

Efforts to get a comment from JKIA head of security Eric Kiraithe were futile as he did not receive our calls and text messages.

However sources who requested anonymity said police have opened investigations into dubious gold smuggling syndicate from DRC Congo.

There has been a lot of smuggling of gold from Congo to the extent that President Joseph Kabila in 2011 flew to Kenya where he met retired President Mwai Kibaki to tame the theft.

Police also conducted a search at the agent's house in Kileleshwa where he is said to have been keeping documents relating to other gold exports.

Top detectives are currently in a meeting to discuss the way forward.

Aug 28, 2014 - 12:14am

Now we must fight the rebels we armed to fight Assad . . .

"Exactly one year ago Obama proposed to take Bashir Assad to the woodshed because he had allegedly unleashed a vicious chemical attack on his own citizens. That was all pretext, of course, because even the CIA refused to sign-off on the flimsy case for Assad’s culpability at the time—-a reluctance corroborated since then by the considerable evidence that hundreds of Syrian civilians were murdered during a false flag operation staged by the rebels with help from Turkey. The aim of the rebels, of course, was to activate American tomahawk missiles and bombers in behalf of “regime change”, which was also the stated goal of the Obama Administration.

Now the White House is threatening to bomb Syria again, but this time its “regime change” objective has been expanded to include both sides! In 12 short months what had been the allegedly heroic Sunni opposition to the “brutal rule” of the Assad/Alawite minority has transmuted into the “greatest terrorist threat ever”, according to the Secretary of Defense.

So Obama has already unleashed the drones and surveillance apparatus to identify targets of attack that will help bring down a regime in northern and eastern Syria—the so-called Islamic State—which did not even exist a year ago. And a regime that is now armed to the teeth with America’s own latest and greatest weaponry as previously supplied to the disintegrated Iraqi army and the Syrian rebels trained by the CIA in Jordan."


Aug 28, 2014 - 12:29am

Banco Azteca

In Mexico City Banco Azteca have upped their price on Libertads by about a dollar fifty. They have always been the best place to go to buy 1 oz´ers but now they´re charging the same price as the official mint.

Don Salinas Price whats the story buddy?

Aug 28, 2014 - 12:47am


everything is mysterious about the Libertads this year! do you know when the 2014 were finally made available for international wholesale? now! normal would have been December 2013. I have ordered a couple of 2014s but am still waiting.

Aug 28, 2014 - 2:08am

Chris Hedges

Via a post at ZH.

What a speech. Please listen.

Full Spectrum Dominance Powerful Speech by Chris Hedges


Aug 28, 2014 - 4:20am
Safety Dan
Aug 28, 2014 - 7:59am

Great Post Of Banksters - Fed... US $.. A Ponzi Scheme?

The US dollar... a Ponzi scheme? Having trouble viewing this email? Click here

The case of the US dollar… a Ponzi scheme?

There’s a politician in Russia trying to ban the dollar, calling it a Ponzi scheme.

20 years ago this would have been considered blasphemous. 10 years ago it would have been laughed at. Today, it’s taken seriously. And with good reason.

If you dive deep into the Federal Reserve’s balance sheets, you can see for yourself.

Just like any other bank, the Federal Reserve has assets and liabilities. The difference between the two of these is the bank’s capital. And in general, the higher the capital, the stronger the bank.

One way to measure a bank’s capital is as a percentage of its assets– higher is always better.

You may recall, for example, that when Lehman Brothers went bankrupt in 2008, the firm’s capital (or equity) was about 3% of its total assets.

In early 2013, the Fed was at 1.93%. By August of 2013, its capital had fallen to 1.53%. Today it’s even lower.

So the Fed’s balance sheet is clearly deteriorating quite rapidly.

This is critical to understand

…because the dollar is ultimately the Fed’s currency. The Fed has monopolistic control over the US money supply. So as the Fed deteriorates, so does the dollar.

Take a look at that dollar in your pocket. It says ‘Federal Reserve Note’. ‘Note’ is just an accounting term for a liability. So by printing money, the Fed is really just creating more liabilities and eroding its balance sheet.

As they do this, the Fed’s capital shrinks. This puts the Fed… and the dollar… in precarious financial condition.

Given that the Fed’s assets are so closely tied to the finances of the US government, the outlook should concern independent, thinking people.

If the Fed go bust, the value of Federal Reserve notes (i.e. ‘dollars’) is going to plummet… along with the paper wealth of anyone holding them.

Now, when the dollar reaches its intrinsic value in British Thermal Units is anyone’s guess.

Maybe it happens tomorrow. Or in the next decade. No one knows… And that’s why it’s important to find a solution that is suitable in either scenario.

Here’s one option to consider:

Own the Hong Kong dollar

Fundamentally, the Hong Kong dollar is MUCH stronger than the US dollar. Hong Kong’s central bank is nearly 20-TIMES more capitalized than the Federal Reserve, and the Hong Kong government has a minimal debt level.

But more importantly, the Hong Kong dollar is pegged (for now) to the US dollar. It trades at 7.80 Hong Kong dollars per US dollar in a very narrow band.

This essentially eliminates currency risk. You can freely convert between Hong Kong and US dollars without taking a bath.

And if the US dollar surges temporarily with respect to other currencies, the Hong Kong dollar will also do well.

But should the US dollar collapse, then the Hong Kong Monetary Authority would simply de-peg from the US dollar… or at least revalue it.

In other words, by holding Hong Kong dollars, you can capture the benefits of US dollar exposure while protecting against downside risks.

There may be options at your local bank for holding Hong Kong dollars. But the best option is to go straight to the source– open a bank account in Asia, preferably in Hong Kong or Singapore where you can own Hong Kong dollars directly.

The banks are much better capitalized in this part of the world, and you would substantially reduce your counterparty risk by holding the funds directly.

Safety Dan
Aug 28, 2014 - 8:00am
Safety Dan
Aug 28, 2014 - 8:02am

Koos Jansen: Comparison of

Koos Jansen: Comparison of Chinese silver price is complicated by 17% tax

Gold researcher and GATA consultant Koos Jansen reports that silver prices reported from Shanghai have been including a 17-percent sales tax, complicating their comparison to prices outside the country. Jansen writes that he'll be investigating this subject.

His commentary was posted on the Singapore-based Internet sitebullionstar.com Internet site at 5:00 p.m. local time on their Tuesday afternoon

Safety Dan
Aug 28, 2014 - 8:03am

Absolute change needed to

Absolute change needed to mine Wits basin’s stranded 1.1 billion gold ounces

South Africa’s Witwatersrand basin contains another 1.3-billion ounces of gold, almost as much gold as has been mined there since 1886 – but miners can only get to another 200-million ounces of it using today’s mining methods.

If the industry does not come up with a new way of mining, more than a trillion dollars worth of gold will not be mined, because the 1.1-billion ounces in question are either below the cutoff for the current mining method, or they are at depths where there are no technical solutions to get to mine those ounces.

Moreover, safety has reached a plateau and unless significant change is made to what creates this plateau, death and injury in mines will continue, which is totally unacceptable.

There is thus an absolute need to change – and senior VP technology and projects Shaun Newberry is at the forefront of an AngloGold Ashanti move that could result in all three billion Wits basin ounces being mined and not merely 1.9 billion of them.

Safety Dan
Aug 28, 2014 - 8:04am

London Metal Exchange

London Metal Exchange dismissed from U.S. price-fixing lawsuits

A judge has dismissed London Metal Exchange Ltd as a defendant from U.S. antitrust litigation accusing banks and commodity companies of conspiring to drive up aluminum prices by restricting supply, hurting manufacturers and purchasers.

In a decision made public on Tuesday, U.S. District Judge Katherine Forrest in Manhattan concluded that the LME was an "organ" of the U.K. government, and therefore immune from the lawsuit under the Foreign Sovereign Immunities Act.

Forrest acknowledged that her decision may at first glance seem "somewhat surprising and counterintuitive," noting that the LME is a privately-held, for-profit company subject to extensive regulation. But she said the relevant case law "tips decidedly" toward a grant of immunity, noting that the LME is required by law to perform "the decidedly public function of market regulation".

Safety Dan
Aug 28, 2014 - 8:10am

Russian Central Bank prepares

Russian Central Bank prepares bill to create SWIFT analog in Russia

The Russian Central Bank and the government’s financial and economic departments have prepared a bill to create a Russian analog of the SWIFT international financial message system, Deputy Finance Minister Alexei Moiseyev said on Wednesday.

“We have prepared a bill. We have consulted with the banking industry and the Central Bank,” Moiseyev said.

Russia will go ahead with the bill as soon as it becomes clear that the Central Bank is technologically prepared “to transfer all operations to internal processing inside Russia.”

Central Bank First Deputy Chairman Georgy Luntovsky said in July that SWIFT was discussing a possibility with the Russian regulator to establish an operational center in Russia. SWIFT Director for Russia, CIS and Mongolia Matvei Gering confirmed this information at that time.

Safety Dan
Aug 28, 2014 - 8:12am

Financial Times still can

Financial Times still can only hint at market rigging by central banks

In the conclusion of a series of articles about "asset bubbles," Wednesday'sFinancial Times shows that it is fully aware of market manipulation by central banks but still can't bring itself to put those words together in the same sentence, nor to mention gold in that context.

From yesterday's article, written by the FT's Ralph Atkins:

"Investors have seen central bankers suppressing market volatility; the VIX index of expected U.S. share price movements, known as the 'Wall Street fear gauge,' is at a seven-year low. ...

"With their massively expanded balance sheets, central banks have come to dominate many markets, replacing the private sector. ..."

Too bad that the series ends short of any specification of the most sensitive market central banks are dominating. But mainstream financial journalism in the West can go only so far. Apparently mere hints are supposed to be considered heroic.

Aug 28, 2014 - 8:14am

Harvey's site

Has Harvey been updating his site? Both on laptop and phone I only get last Friday's blog.

Does anyone have a link that goes to the most current page?

Sorry if this has already been covered

Safety Dan
Aug 28, 2014 - 8:32am

Visualizing the Vanishing

Visualizing the Vanishing Money Velocity Vortex

Under the imposition of StealthFlation, the Velocity of Money lies dormant while increasing Inflationary risks build below the surface.

Safety Dan
Aug 28, 2014 - 8:38am

A Brief History Of US

A Brief History Of US Money by Adam Taggart

A Brief History of US Money - Crash Course Chapter 9

The rules get changed (a lot)

Chapter 9 of the Crash Course is now publicly available and ready for watching below.

Looking at the past 100 years of the US dollar's history, one theme becomes abundantly clear: in times of crisis, the US government has no issue with changing its own rules or breaking its own laws. And those "temporary" emergency measures have a nasty habit of quickly becoming permanent.

Among the more notable milestones of the past century, the Federal Reserve was created (and soon after took possession of most of the nation's gold reserves), the Bretton Woods agreement made the US dollar the world's reserve currency granting it extraordinary advantage (which America quickly began abusing, continuing to do so up to today), and Richard Nixon ended the currency's convertibility into gold.

Nixon's turning the dollar into something backed only by the "full faith and credit" of the US government ushered in a new era for our country. The fiat dollar we use today for trade and investment is really only an experiment a little more than 4 decades old. We don't have a national experience to draw from in knowing how well it will work over time.

But as we see the US money supply exponentially accelerating since the 1970s, and the Federal Reserve more than tripling its balance sheet since 2008, it's only prudent to ask the question: Without constraints, are we in danger of destroying the purchasing power of our currency by making too much of it?

For the best viewing experience, watch the above video in hi-definition (HD) and in expanded screen mode

Coming next Friday: Chapter 10: Quantitative Easing

For those who simply don't want to wait until the end of the year to view the entire new series, you can indulge your binge-watching craving by enrolling to PeakProsperity.com. The entire full new series, all 27 chapters of it, is available -- now-- to our enrolled users.

The full suite of chapters in this new Crash Course series can be found at www.peakprosperity.com/crashcourse

And for those who have yet to view it, be sure to watch the 'Accelerated' Crash Course -- the under-1-hour condensation of the new 4.5-hour series. It's a great vehicle for introducing new eyes to this material.


Before we move on to current events, it’s vital that we know how we got here.

I will now present an extremely shortened version of recent US monetary history.

The purpose of this section is to show you that in the past the US government has radically shifted the rules during times of emergency and that our monetary system is really a lot younger than you might think.

After the great financial panic of 1907, when private banker J.P. Morgan stepped in as the lender of last resort, banks began agitating for a government solution.

What was finally decided upon in 1913 was a … read more

Aug 28, 2014 - 8:45am

Yup! Fraudster banksters cornered in rat bastard

foaming frenzied gnashing of teeth exposure. Just stay away from huge crowds, malls, and financial centers all September. megalomaniacs care not who is slaughtered in collateral damage to bury the truth. What falls down, blown up, or vaporized will be 911 related. As building 7 came down in sympathy, people still falling dead from the heights of twin towers of fraud perpetrated upon Americans by their own government; financed by criminal central banksters. We'll protect you for a price! Total mob rule shake down globally. You don't like our cartel bankstering fraudster gov goon platooning criminal extortion? We'll blow up the entire world in a scorched earth policy. Simple as that.

Aug 28, 2014 - 8:55am

Not distraction from Craig's technical analysis, but an addition

The little pops in silver look good, but copper is weakening a bit today. We'll see.

SLV is a reasonable proxy many investors use for the silver chart, and should be examined for what the general investing public sees.

On the weekly SLV, remember the upper channel resistance in yellow is a strong indicator of the trend breakout.

Zeroing into the daily chart, I've inserted 3 ellipses to mark particularly interesting spots. The yellow trend resistance is in the upper right corner, and the first ellipse highlights that the resistance price is now well within price from the recent June rally.

The second ellipse marks the convergence of the 100 dMA with the 200 dMA. A golden cross here will signal investors that it's go time.

The third ellipse marks the imminent crossover in the MACD, likely to be completed today. Note that a crossover does not necessarily indicate rising price, as seen from April through May.

Watching these 3 indicators together should tell us when we reach the point of no return. Until then, remember that sub $20 silver is cheap.

Safety Dan
Aug 28, 2014 - 9:34am

Are You Eating Meat Glue?

Fraud is ripe everywhere. See what Microbiologist say...


This white powder sold by the kilo, is the meat industry's dirty little secret. It's called "meat glue." It makes pieces of beef, lamb, chicken or fish that would normally be thrown out stick together so closely that it looks like a solid piece of meat.

Aug 28, 2014 - 11:27am

COMEX silver OI for September contract . . .

Ed Steer expects about 6000 or so contracts to stand for September delivery, which is 30,000,000 ounces.

As of today, there were a bit over 12,000 open Sept silver contracts, so he expects half of them to roll over to next delivery month.

It seems the real phyzz silver game, however, is in Shanghai, where the inventory has been dropping for months, especially August, like a hot knife through butter.

A snippet from Ted Butler:

"Try to imagine for a moment that the warehouse movements were occurring, not in silver, but in another commodity, like gold or copper. If the equivalent of two full days of world production were being moved weekly into and out from the COMEX gold or copper warehouses, as is the case in silver, would anyone notice?

I would think that if 550,000 oz of gold came into and out from the COMEX gold warehouses on a weekly basis for years, that movement would be a prime topic of conversation. No, check that – tongues would be wagging in trying to discern why so much gold was being physically moved. Likewise, if 100,000 tonnes of copper (2 days world production) on average came into and out from the COMEX warehouses on a weekly basis, all would be astounded (especially seeing as total COMEX copper inventories are around 26,000 tonnes).

Since gold is not primarily an industrial commodity, it’s hard to imagine the motivation investors would have in physically moving so much metal in and out. And even though copper is very much an industrial metal, it’s almost impossible to imagine that much copper being moved. Then what the heck is going on in COMEX silver? If it isn’t extreme tightness, I don’t know what it is. And I hope no one asks that if silver is experiencing such tightness due to demand then why is the price so low? - Silver analyst Ted Butler: 23 August 2014


Aug 28, 2014 - 11:59am

A young man's future . . .

"Kevin and his friends are at the beginning of their adult lives. Their hopes and dreams haven’t been shattered. It isn’t 1986 anymore. They face much greater challenges, have far less opportunities, and will be left with the financial ruins created by their elders. This is why I could never become one of the mindless consuming zombie horde. The choice is between accepting the way things are and the way things should be. I cannot in good conscience stand idly by while a few evil psychopaths pillage this country and enslave us in the chains of debt at the point of a gun. I believe the next fifteen years will be a time of peril, when the country could be destroyed or saved. It pains me knowing that my kids will be at the forefront of this battle, but I’ll do everything I can to win the battle for liberty, freedom and a restoration of our Constitution.

I don’t know how much time I have left on this earth and I don’t know what the future holds, but I do know that I want my three boys to have a chance at a decent life. I can’t change the course of history, but I can try to be a better person, better husband, better father, and better citizen. I am deeply saddened by the death of my on-line sidekick AWD, but I’m still hopeful for my sons’ future, and I’m going to fight to my last breath to ensure that future. I can’t force others to fight to improve this universe, but I can try to improve my one small corner of that universe."


dannyhaha NW VIEW
Aug 28, 2014 - 1:15pm


Try slicing some squash into thin slices and cook with onions in some butter.

Use a pan with a cover.

Fantastic. And healthy.

Aug 28, 2014 - 2:30pm


Peel and seed 4 tomatoes ( crosscut the bottom ( like a small x) put in boiling water about 1 minute until the skin splits, cool and peel) cut into pieces and reserve strained juice.

Chop 1 medium large onion.

Cut squash in about 1/2 to 3/4 inch chunks and seed if seeds are large, you can peel if you wish. Any squash will work......

Heat about 3 Tablespoons olive oil in skillet over medium heat, add onion cook about 5 minutes until softened, add minced garlic 1-2 teaspoons and cook to release the flavor do NOT let brown. Add tomatoes with juice and squash to the skillet, season with oregano, 2 teaspoons sugar (to cut the acid) and place lid on. Stir every few minutes cook until all vegetables are tender and liquid is almost gone. Finish with salt, pepper and grated parmesan to taste.

You can use any seasonings you like, sweet basil, cumin, chili flakes, etc....

You can also batter and deep fry, serve with a side of creamy horseradish sauce.

You can batter fry many vegetable, onions, squash, green beans, asparagus, cauliflower, pickles, green tomatoes, okra, mushrooms, etc....

Aug 28, 2014 - 3:09pm

Rule of Law

doesn't exist anymore. However, this post, and the comments proved to the extent that rule of law does not exist, to the point I stopped reading halfway on the comments and decided to say that, "As soon as law and order reverts to the state or even county levels upon collapse of America and/or states, get execution laws passed of known financial mob characters (including CEOs of financial companies on down) and carry them out."

To present members of the Financial Mob - if you currently work as a stock broker, trade stocks for a living, and otherwise participate in the activities of the Financial Mob (you know who you are), keep your mouth closed as you roam the country side in search of a safe haven post-collapse, because we will execute anyone upon admission of such activities. Do NOT tell anyone that you worked for JP Morgan, HSBC, Bank of America, etc., and hope that you are not discovered eventually. Remember that "I was just following orders" did not save the Nazis from justice. There will be a "[insert name of city or region] trials" similar to the Nuremberg Trials in the future.

But, sadly, as long as America exists as a country, you are safe, and there isn't anything we can do to accomplish justice in the manner described. We must behave and obey the laws to stay out of trouble.

Aug 28, 2014 - 3:41pm

@ Erewenguy

That is a great post, and some excellent indicators to watch- thank you!

Aug 28, 2014 - 4:22pm

I Want to Add This Concept, Too

I did not want to add a new post on this subject, but it dovetails in with the fiat scheme and the effects of all that free money flowing around.

Because the fiat is conjured up from thin air, loaned to the government, essentially giving govt a blank check, well, the consequences of all this free money is that big corporations are constantly at the trough looking for more fiat dished out by the govt. There exists a natural, predictable outcome of cronyism as a result.

For all of that free money, flowing from banksters to the politicians, to the corporate teat-suckers, remember too, that there are HUGE law firms that get paid HUGE, GROTESQUE hourly rates to litigate and protect the banksters, the politicians, and the big govt corporations. This is all part of what is now the USA crony capitalistic society, which I simply call fascism.

One demonstration of this is a case just out today in California:

Parrish v. Latham & Watkins (2014) , Cal.App.4th
[No. B244841. Second Dist., Div. Three. August 27, 2014.]
WILLIAM PARRISH et al., Plaintiffs and Appellants, v. LATHAM & WATKINS et al., Defendants and Respondents.

(Superior Court of Los Angeles County, No. BC482394, James R. Dunn, Judge.)

(Opinion by Klein, P.J., with Kitching, J., concurring.)


Eagan Avenatti, Michael J. Avenatti and Scott H. Sims; Panish, Shea & Boyle, Brian J. Panish, Adam K. Shea and Kevin R. Boyle; Esner, Chang & Boyer and Stuart B. Esner for Plaintiffs and Appellants.

McKool Smith Hennigan, J. Michael Hennigan and Michael Swartz for Defendants and Respondents.

For those of you who do not know, Brian Panish is a trial GIANT. He has obtained BILLIONS of dollars in verdicts against big companies, like Ford, GM, etc. He is a legend in trial attorney circles in Southern California.

Anyhow, he is counsel for a few former employees of a big corporation. The employees had left to start their own firm, but the former employer lawyered-up with one of LA's biggest law firms, Latham Watkins, a firm I especially loathe for their arrogance. Anyhow, Latham Watkins concocted a hairbrained lawsuit against the former employees. The plan was to bully the former employees, out of an anti-competitive effort to suppress the former employees from creating a competing business.

Years later, after millions and millions of dollars in attorneys' fees, costs, trial and appeals, the former employees now are poised to hand a definitive victory to the former employees against Latham Watkins. How sweet is that!

See, all the free fiat floating around, gets handed over to big law firms, which are just bullies doing their masters' dirty deeds. If the fiat stops flowing, not only will the govt collapse, but all those that rely upon first access to the fiat will suffer and hopefully collapse too, like the big firm, arrogant lawyers who use their resources to logistically outlast their opponents who have no such deep pocket, free fiat backing.

Sound money will fix all this, no doubt. But, understand that the problem of fraud, corruption, all of it, centers directly upon the elite banksters who are the source of all of the turmoil.

Aug 28, 2014 - 4:47pm


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