Andrew Maguire on Max Keiser

166
Tue, Sep 24, 2013 - 11:16am

Our friend and ally, Andrew Maguire, appeared on The Keiser Report today and provided additional details regarding the two JPMorgan whistleblowers who came forward to the CFTC last year.

All I have to add is this:

As far as I can tell, everything that Andy mentions here is 100% accurate and true. How do I know? Because I was fortunate enough to be an intermediary, helping to connect Andy with the first whistleblower who came forward last spring. I want to make it absolutely clear, though, that I was not privy to any of the actual documentation nor have I had any discussions with this individual or Andy regarding what happened next. However, as he stated in a recent interview on King World News, Andy immediately directed this particular individual to a law firm in Washington, D.C. that specializes in Dodd-Frank "whistleblower" cases so that the information could be legally submitted directly to the CFTC.

The only question that remains is whether or not your public servants at the CFTC will ever do the right thing and act against JPM to end the manipulation. Though it's likely that, being firmly entrenched in the back pocket of the TBTF banks, the CFTC will only choose to ignore, delay and obfuscate, we can always hope that one day their collective consciences might get the best of them. Regardless, in the end it won't matter as the sheer weight of the supply/demand distortion will collapse the entire manipulation scheme eventually. In the meantime, just continue to add to your physical stack of metal, taking advantage of the discounted prices brought about by this deliberate bullion bank price manipulation scheme.

TF

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  166 Comments

flyinkel · Sep 24, 2013 - 8:49pm

Robski

Ben Swann video--thanks for sharing. What an outrage! Unbelievable, just simply unbelievable.

Mr. Fix · Sep 24, 2013 - 8:58pm

Thank you for the answers to some questions:

 Early this afternoon, I raised the question “in the event of a currency collapse, what would the government pay its employees with”.

 Dark Purple Haze, answered with dollars, that the dollar will be around far longer than anybody imagined possible,

 while I Run Bartertown answered that the government goons could simply steel the property of the populace, with impunity. ( Quite frankly, I think they already do that now).

While I was working this afternoon, it occurred to me that they would have to pay with dollars, just like they have paid with dollars to buy DHS billions of bullets, thousands of armored personnel carriers, militarizing all of the local police departments, so on, and so on.

 This is one of the many reasons that I theorize that the Fed is already printing far more money than it is publicizing.

 I have concluded that Dark Purple Haze is probably closer to the truth, in that they are going to need to keep the dollar alive to pay the people to use all those toys that DHS has purchased to consolidate its grasp of power over the populace.

 Many have speculated that the currency collapse would be the impetus for declaring martial law, and without thinking it through, it seemed to make sense because it is so inevitable.

 But in raising the question of how do you pay the government goons, it creates the prospect of not being able to.

I would imagine that a massive amount of government employees would simply not show up for work if they were being paid for their services with a currency that had collapsed, therefore, it will be put off a while longer,

 until the events transpire that the government can use as an excuse to bring about martial law.

 Once the government has an ironclad grip over the populace, and all resistance to a police state has been stomped out, then the powers that be should be able to maintain control with a far smaller enforcement arm.

 Plus by this time, most of the populace will be flat broke, so they will be largely unaffected by a currency collapse, since they will not have much money anymore anyway.

I'm just speculating wildly, I know that. I'm just entertaining the idea that a complete societal collapse may need to occur prior to the currency collapse, for the powers that be to maintain control.

 Things I daydream about.wink

Occasnltrvlr · Sep 24, 2013 - 9:06pm

Miscellany

About paying government employees, including militarized zombies: (I think) It will be in USD, until it is in "the" new currency.

Remember, TPTB do not want violence - they want us to accept our chains willingly, even thankfully. They're prepared for violence, but they will strive mightily to deflect blame for currency collapse on Eastasia and Eurasia. SDR's? Sure, maybe. Some gold- or partially gold-backed currency? Sure, maybe.

Slow grind, greater dependence, world-wide reset, "we're all in this together" attitudes ("all" being Oceania), "We'll all have to accept this updated Constitution to make this work", "Please, we're hungry, we need to work together", Boom Ding Ow.

And, about the 10-year, remember Jim Rickards says he could see it going to 0.7, "Just like Japan".

Hammer · Sep 24, 2013 - 9:12pm

loool

Yesterday – with the ballot boxes still warm – Salvador Draghi told the EU Parliament, “We are ready to use any instrument, including another LTRO if needed, to maintain the short term money markets at the level that is warranted by our assessment of inflation in the medium term”. If ever there was the sort of Premiership obfuscatory bollocks that the late and much-lamented George Carlin would’ve just loved to get his razor-sharp teeth into, then that was it.

So for Carlin fans everywhere, let me just translate that into English:

“The ECB is willing to offer unlimited loans against any old form of horse-dung collateral you want to suggest, at ludicrously low interest rates, to any f**ked up eurobank that wants them, at any time, and anywhere.”

I mean, c’mon: let’s get real per-leeeez. Maintaining short term money markets at a level warranted by an assessment that is medium term in nature. Or to put this into a real-life commercial parallel:

“If I say that next Sunday is the previous Tuesday – based on my insanely optimistic fantasy about Sunday really being equal to Tuesday in all respects except the spelling – then that is the case, so help me Godraghi”.

The Italian piss-and-wind-blown galleon has had to put out this nonsense because the US Fed finally admitted that QE hasn’t worked for the 93.5%. Therefore, Uncle Ben’s Mice are going to keep on doing it because the 6.5% folks it worked for don’t like the idea of it not working for them any more. If you follow.

https://hat4uk.wordpress.com/2013/09/24/48-hours-after-merkels-triumph-i...
Occasnltrvlr · Sep 24, 2013 - 9:15pm

And In Other News

Lindsey Williams says the debt ceiling will be eliminated.

He was right about Geithner, The Bernank, and Hillarious all leaving their posts. If the debt ceiling goes away, Hillarious heads the World Bank, and the Clintons leave the US, the Chaplain is gold. (Highly amusing in his explanations, but gold nonetheless.)

Hammer · Sep 24, 2013 - 9:23pm

Oh, So The Fed NOW Talks

Oh, So The Fed NOW Talks About Cheating? The Market Ticker ® - Commentary on The Capital Markets Posted 2013-09-24 11:48
by Karl Denninger 
in Editorial 
Ignore this thread Oh, So The Fed NOW Talks About Cheating?

The Fed now cares about Nanex's report that trades on the "release" of the decision happend before the speed of light made it possible?

Gee, who leaked from the lockup? Obviously someone.

So now The Fed is "asking" eh?

Why are they asking anything of anyone? Go to the exchange and subpoena the identity of the traders who placed the trades, then charge them criminally and civilly. 

If a financial institution is implicated charge that institution criminally as well.

That which is physically impossible is physically impossible.

If the traders would like a 50% reduction in their prison time they can rat out the "news" entity that gave them the information.

These guys think they were cute in programming their computers to wait until exactly 2 PM.

They forgot that it takes 7 milliseconds for light to travel from Washington DC to Chicago, and the trades went off in that window.

That's physically impossible -- unless you had the information before 2 PM.

https://www.market-ticker.org/akcs-www?singlepost=3277725

Hammer · Sep 24, 2013 - 9:25pm

links in with zerohedge story

links in with zerohedge story which would seem to mix it all up as now being possible but the Fed itself put the info out or am I missing something ?

https://www.zerohedge.com/news/2013-09-24/tip-box-fed-made-it-possible-m...

A reader, who shall remain anonymous, provides some much needed color on today's Fed data-leaking fiasco du jour, reported previously on at least two occasions by Zero Hedge.

I knew of the Fed decision and growth forecasts around 5-6 minutes before 2 pm last Wednesday, even though I was not there. I work at a news organization represented at the Fed statement “lockup” and the Bernanke press conference last week. This was in no way secure the way the Labor and Commerce Department lockups are.Those in the Fed statement lockup were able to communicate by text message and email after they received the statements and before 2 pm. Those in the room awaiting the press conference also were able to communicate electronically after the received the statement, several minutes before 2 pm. Everything was honor-based, but anyone in their respective newsrooms could have gotten the information early from them and passed it on. Given the large number of reporters involved, there are many ways the decision could have gotten into the market several minutes before the announcement. I am truly surprised it was only seen in gold trade. The fact is, though, the Fed made it possible for many people to leak it.

¤ · Sep 24, 2013 - 9:33pm

Lew Warns Investors About Optimism

Lew Says Investors May Be Too Hopeful on Debt-Limit Debate

By Ian Katz & Jeanna Smialek - Sep 24, 2013 6:36 PM ET

color-debt-ceiling-web.jpg

U.S. Treasury Secretary Jacob J. Lew said investor confidence that a deal can be struck to raise the debt limit is “a bit greater than it should be” and the government probably will have less than $50 billion in cash by mid-October.

Lew, who spoke at the Bloomberg Markets 50 Summit in New York today, repeated that President Barack Obama won’t negotiate with congressional Republicans on increasing the $16.7 trillion ceiling on the nation’s borrowing authority.

Lew told Congress in an Aug. 26 letter that lawmakers need to raise the limit by the middle of October, when he expects that the Treasury Department will have about $50 billion left to fund the government. That figure is probably smaller now, he said today.

“I think that if you look at the calm out there, which I think is a bit greater than it should be, there’s a sense that 2011 was a terrible experience, and nobody would do that again,” Lew said.

The U.S. was stripped of its AAA ranking by Standard & Poor’s in August 2011, a move that partly reflected an impasse in Congress over raising the debt ceiling as well as the government’s lack of a plan to rein in its debt load.

While the downgrade didn’t result in investors charging the U.S. more to borrow, as 10-year Treasury yields slipped to record lows in July 2012, the move contributed to a global stock-market rout that erased about $6 trillion in value from July 26 to Aug. 12, 2011.

‘Short Period’

“People have to take seriously the fact that Congress has a lot of work to do in a short period of time,” the Treasury Secretary said.

U.S. stocks fell for a fourth day amid concerns over budget talks and economic growth as investors weighed prospects for easing tensions in the Middle East. The Standard & Poor’s 500 Index fell 0.3 percent to 1,697.42 at 4 p.m. in New York. The S&P 500 has declined 1.6 percent over four days after reaching an all-time high of 1,725.52.

Treasury 10-year note yields fell to the lowest level in six weeks as investors bet the Federal Reserve will maintain monetary stimulus as it awaits a pick-up in economic growth, stoking demand for government debt. The benchmark 10-year note yield fell five basis points, or 0.05 percentage point, to 2.66 percent at 5 p.m. in New York....(cont.)

https://www.bloomberg.com/news/2013-09-24/lew-says-investors-may-be-too-hopeful-on-debt-limit-debate-1-.html

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

dph: Pretty amazing no one in the MSM back then (Aug. 2011) was openly making the obvious correlation that the Federal Reserve was actively buying US Treasury notes as less debt was bought by other foreign or domestic investors. The Fed and their POMO buddies weren't about to charge themselves a much higher rate based on a credit downgrade (as is usually the case) because they're satisfied with skimming a fairly small % from some very large bond auctions repeatedly. The fact the MSM doesn't make more out of the direct monetization by the Fed through the US treasury and the skimming and market mechanisms that take place how the POMO is set up and what they do is pretty incredible.

I think everyone (MSM and/or US DOJ or any countries DOJ) is pretty much afraid to crash their respective systems by making too many large repetitive waves. Everyone's got skin in the game and few want to see their everyday life change significantly from a major disruptive financial reckoning if it can somehow be managed or delayed by the use of mere balance sheet numbers and different accounting standards and more available dollars. It's been going on for decades except that the big numbers are now becoming worrisome to some.

Too many zero's is an oversimplification of the problem but it kind of boils down to perceptions and previous monetary boundaries of perception and I think once CV's and people in general become used to hearing the trillion word instead of billion word (and 1 more zero) that these current boundaries of fear will somewhat subside as TRILLIONS won't concern people as much as many hundreds of BILLIONS never really did.

Here's a question to ponder and maybe respond to...what difference would it truly make if the US totally eliminated their debt ceiling while at nearly the same time they're still making a concerted and determined planned effort to monetize as much of their current and future debt as possible in a bid to eventually own all of it?

Consider the current Govt. and market environment where many other countries are also using stimulus to purchase assets. Might we see a blind eye scenario develop where everyone more or less is doing the same thing because they need to?

Speaking long term, would eliminating the debt ceiling be a big deal except for the short term news cycle attention it would garner?

Hammer · Sep 24, 2013 - 9:34pm

Interesting comment from the

Interesting comment from the responses link from the article two posts above,

Most press releases are reviewed by the legal department and outside counsel before they get released, at least for the publicly traded companies I've been involved. I can't imagine the Fed doing a press release without a legal review. I wouldn't be surprised if this leak came out of a law office.
Hammer · Sep 24, 2013 - 9:37pm

Nanex ~ 24-Sep-2013 ~ CIA and

Nanex ~ 24-Sep-2013 ~ CIA and The Fed

Within a millisecond of the 2pm release of the September 18, 2013 FOMC Meeting Announcement, the stock market exploded, trading nearly $400 Million worth of stock in a tenth of a second (a blink of an eye is 3 times longer), and almost $1 Billion worth in 2 seconds. Over in Chicago, futures trading also exploded, with about $5 Billion trading in a tenth of a second and more than $10 Billion in 2 seconds. The speed of this reaction stood out in stark contrast to previous FOMC (Federal Open Market Committee) releases. To get a sense of how unusual the September 18 reaction was, we pulled data from the two previous FOMC releases (June 19, 2013, and July 31, 2013) for comparison. It's hard finding superlatives to describe just how unique September 18 was.


Incontrovertible: FOMC News was in Chicago and New York Trading Centers before 2pm.

Nearly $800 Million worth of futures contracts traded in Chicago about 7 milliseconds before the official release time of the FOMC News (when it is 2pm in Washington DC). That's because it takes 7 milliseconds for information to travel from Washington (where news is released) to Chicago, mostly due to the speed of light. Pease read Einstein and The Great Fed Robbery where we present incontrovertible evidence that FOMC news had to be present in Chicago and New York trading centers before 2pm. This surprise revelation leads to many questions such as: how many computers had access to this information? Who had access to those computers? Why is the information allowed to be transmitted outside of the Fed lock-up room? Who else is allowed to do this? Can anyone start a news service and compete? How much are the news services paying? How much are they charging? Why was this not clearly disclosed? Why have a lock up room at all?

Covert Information Asymmetry (CIA)

When one group of traders has information that others don't, it creates what is known as information asymmetry. A recent, well known case of information asymmetry involved the 2 second early release of the Michigan Consumer Sentiment data to an elite group of high frequency traders. We noticed over the years, that significant market moving events occurred at exactly 9:54:58 on certain days. We found few people knew what was causing the market to move at these times. 


Getting early access to news is much more profitable, if done in secret.

When the May 17, 2013 Consumer Sentiment news impacted the market 25 milliseconds earlier than expected, we wrote a paper about it which got noticed by CNBC. After CNBC reportedon the 2 second advantage, the practice became widely known and ever since, there has been no significant market impact from Consumer Sentiment at 9:54:58. Which confirms what we have suspected for a long time: that getting early access to news is much more profitable, if done in secret. It is interesting to note that in the minutes before 9:54:58, uncertainty still creeps into the market causing a significant drop in liquidity.

Physically Impossible

Which brings us to the market reaction to the FOMC news on September 18, 2013, which came earlier than physically possible due to the speed of light, and was therefore unexpected by many market participants. The end result will be an increase in uncertainty, which will lead to an even larger decrease in liquidity during the next FOMC announcement. Hopefully, the market won't need the extra support.

for more........

https://www.nanex.net/aqck2/4437.html

Mr. Fix · Sep 24, 2013 - 9:39pm

I see and hear stories like these daily. And it's getting worse.

20 Ordinary Americans Take About Their Economic Despair

Submitted by Tyler Durden on 09/24/2013 - 20:07

Yesterday we highlighted the plight of Tom Palome and his cohorts as they face a need to work well into once-thought-retirement age. However, there are hundreds of formerly prosperous communities all over America that are being steadily transformed into rotting, decaying hellholes. The good paying middle class jobs that once supported those communities are long gone, and they have been replaced with low paying service jobs if they have been replaced at all. When you visit those communities, it is almost as if all of the hope has been sucked right out of the air. The following are 20 quotes from ordinary Americans about the economic despair that is rapidly growing around them.

DayStar · Sep 24, 2013 - 9:49pm

Harvey's Up!

Bloomberg: Gold will be supported by physical demand in Asia which should pick up due to China’s Golden Week. ‘Golden Week’ begins October 1, and typically sees increased coin and bar purchases from store of wealth Chinese buyers.

Bloomberg: The wealthy Asian city state of Singapore which has become one of the world’s most important financial centres in recent years continues its push towards making Singapore a global gold hub to rival New York and London. Singapore has been trying to persuade Thailand's top five gold traders to establish footholds in the city-state as it aims to become a centre for gold price referencing in Southeast Asia before the ASEAN Economic Community (AEC) takes shape in 2015, according to the The Nation.

Bloomberg: In October 2012, in a shrewd move, the Singapore government removed a sales tax on gold and silver. Already, there are significant flows of gold into the city state as wealthy investors, ultra high and high net worth individuals and family offices are opting for Singapore as a safe location for gold storage.

Jim Rickards: Confidence is going to have to be restored in currencies somehow. And there are really only two ways. One is the SDR, which no one understands. So maybe they can re-liquify the world by printing SDRs and that will create massive inflation, but no one will really understand where it is coming from. And the other way is gold, which would restore confidence. But to have a non-deflationary price of gold, you are looking at $7,000 an ounce – very possibly higher, maybe as high as $9-10,000 an ounce.

Michael Snyder: There is a reason why every fiat currency in the history of the world has eventually failed. At some point, those issuing fiat currencies always find themselves giving in to the temptation to wildly print more money.

Tyler Durden: Following a massive, 50%+ selloff, there comes a time when even gold miner stocks become attractive to those with deep pockets filled with reserve fiat. For someone like China, that time may be now. The WSJ reports that China's largest gold company, China National Gold Group Corp., has talked to Ivanhoe Mines "about buying a stake in or asset from the company."

Tyler Durden: Following UMich confidence's biggest miss on record, the Conference Board misses expectations printing at its lowest since May 2013 as the last data was revsied higher. This is thelargest MoM drop since March. A sharp rise in mortgage rates has a negative feedback loop to consumer confidence. Oil prices have been rising since the summer began. the appointment of a new Fed Chairman and the upcoming budget/debt ceiling debates are likely to bring added volatility. In Europe, many of the structural problems related to the single currency union have not actually been addressed and the peripheral countries could still create turmoil going forward. Emerging Markets are still not out of the woods yet as growth has been weak relative to expectations and countries with current account deficits are beginning to feel pressure in their FX and Bond markets. Overall, the weak economic backdrop, poor housing recovery and potential for tail risk events over the next few months suggest that we have topped out in Consumer Confidence, a warning sign for equity markets. 

All this and more on....

The Harvey Report!

https://www.tfmetalsreport.com/comment/606947#comment-606947

DayStar

Hammer · Sep 24, 2013 - 9:50pm

Wasn't me - I didn't do it

Wasn't me - I didn't do it game starts.....lol

Working off of a list provided by the Fed of news organizations participating in last week's lock up, CNBC contacted each of the news organizations that offer low latency data services to ask whether they transmitted any data out of the Fed's lockup room. A key question is whether or not any organization transmitted information out of the lockup room and into its own computer system before 2 p.m. If that was done, the data could have been moved to computer servers near Chicago before 2 p.m. and publicly released the information from there at precisely 2 p.m. – enabling subscribers of that data service to get the information milliseconds before others in Chicago relying on transmissions from the Federal Reserve in Washington to arrive.

It is not clear whether that would violate the Fed's rules. The Federal Reserve declined to tell CNBC whether or not it would be a violation of their rules to transmit information out of the lockup room before 2 p.m., if that information was pre-loaded into servers in Chicago for release at 2 p.m.

A spokesperson for Dow Jones declined to say whether or not the organization transmitted data out of the lock up room before 2 pm., instead emailed a statement to CNBC saying, "We will continue to work with the Fed cooperatively to report in full accordance with their desires."

Similarly, a Thomson Reuters spokesperson emailed a statement to CNBC saying, "We distributed the news per the Fed's embargo process. We did not release prior to the 2pm embargo." The spokesperson also declined to answer questions about whether the organization transmitted information out of the lock up room before 2 p.m.

Two other organizations said that they did not transmit data outside the lockup room before the deadline. A spokesperson from Bloomberg News said that organization did not transmit information before 2 p.m. And Michael Scarchilli, Editor-in-Chief of the publication The Bond Buyer, also said his organization did not transmit information before the deadline.

https://www.cnbc.com/id/101056168 https://www.youtube.com/watch?v=75fyFAh29XY
kryton619 silver66 · Sep 24, 2013 - 9:54pm

Silver66

I'd love to see a picture of the ring you had made!

DayStar · Sep 24, 2013 - 10:00pm

RE: Collapse

The collapse may start off as "merely" martial law, but it will proceed rapidly to depopulation. Once the collapse happens, the banks will close, and money will cease to flow, and people will not be able to access funds. If there is no money, people will have to go to camps or die, because there will not be enough food in the cities to feed people. At first, the game may be control, but ultimately they want depopulation, and there will be a war with the new generation of WMDs (scalar weapons) to rid the world of the pestilence of humans--at least from the perspective of TPTB. We get economic crash followed by war and depopulation followed eventually by an invasion. The dollar won't matter much after the crash. There won't be much way to use it, even if you have some.

FWIW,

DaySTar

DayStar · Sep 24, 2013 - 10:03pm

RE: Economic Dispair

I see people with very little, but when I offer them opportunity to do something, they turn it down. They are afraid and have little ambition. Cowering, shivering hoping nothing happens, but enjoying their tax funded leisure while they wait.

DayStar

¤ · Sep 24, 2013 - 10:36pm

Invasion by whom?

"We get economic crash followed by war and depopulation followed eventually by an invasion."

You left out the alien abductions and medical probing before, during and after. Was your comment from a movie or radio script?

Good luck hiding from the people harvesters. wink

https://www.youtube.com/watch?v=OzC3Fg_rRJM

On Halloween eve in 1938, the power of radio was on full display when a dramatization of the science-fiction novel "The War of the Worlds" scared the daylights out of many of CBS radio's nighttime listeners.

Dyna mo hum · Sep 24, 2013 - 10:48pm

Something else to ponder in a collapse situation

We have a prison population of about 1.5 million give or take. Who will make sure the criminals will stay in the jails? Looks like a big issue seldom pondered. https://www.cbsnews.com/8301-201_162-57595508/u.s-prison-population-falls-for-third-year/

DeaconBenjamin · Sep 24, 2013 - 10:52pm

85-year-old school bus driver charged after Chesterfield wreck

 Tuesday, September 24, 2013 3:16 pm | Updated: 5:30 pm, Tue Sep 24, 2013.

An 85-year-old Chesterfield County school bus driver has been charged with failing to yield the right of way after police said he triggered a minor crash Tuesday morning on Courthouse Road. Ira Cromer Jr. was charged with failing to yield the right of way, police said.

The wreck occurred about 8 a.m. when Cromer, driving a county school bus, pulled out of Central Baptist Church onto Courthouse Road. Police said after Cromer failed to yield the right of way, a car traveling south on Courthouse struck the bus. The car was partly wedged under the bus. The car’s driver sustained minor injuries and was transported to VCU Medical Center. Cromer wasn’t injured and there were no students on the bus.

Chesterfield schools spokesman Shawn Smith said the division has no age restriction for its bus drivers or any employee, as required by federal law. "Chesterfield County Public Schools does not unlawfully discriminate on the basis of sex, race, color, age, religion, disability or national origin in employment or in its programs and activities," he said in a statement. “As long as a driver possess a valid DMV driver’s license, passes the appropriate DMV checks and passes an annual physical, he/she can be employed,” Smith said.

https://www.timesdispatch.com/news/local/crime/year-old-school-bus-driver-charged-after-chesterfield-wreck/article_d093f314-254d-11e3-ab15-001a4bcf6878.html

Hammer · Sep 24, 2013 - 11:27pm

Interesting read once you get

Interesting read once you get into the crux of it a few paragraphs in.

https://www.thedailybell.com/28980/Anthony-Wile-John-Browne-Explains-The...

Hammer · Sep 24, 2013 - 11:42pm

No idea if this has been

No idea if this has been posted before so forgive me if it has but it does mention Mr. Maguire.......

According to Andrew Maguire, on Friday, April 12, the Fed’s agents hit the market with 500 tons of naked shorts. Normally, a short is when an investor thinks the price of a stock or commodity is going to fall. He wants to sell the item in advance of the fall, pocket the money, and then buy the item back after it falls in price, thus making money on the short sale. If he doesn’t have the item, he borrows it from someone who does, putting up cash collateral equal to the current market price. Then he sells the item, waits for it to fall in price, buys it back at the lower price and returns it to the owner who returns his collateral. If enough shorts are sold, the result can be to drive down the market price.

A naked short is when the short seller does not have or borrow the item that he shorts, but sells shorts regardless. In the paper gold market, the participants are betting on gold prices and are content with the monetary payment. Therefore, generally, as participants are not interested in taking delivery of the gold, naked shorts do not need to be covered with the physical metal.

In other words, with naked shorts, no physical metal is actually sold.

People ask me how I know that the Fed is rigging the bullion price and seem surprised that anyone would think the Fed and its bullion bank agents would do such a thing, despite the public knowledge that the Fed is rigging the bond market and the banks with the Fed’s knowledge rigged the Libor rate. The answer is that the circumstantial evidence is powerful.

Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.

Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?

What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means

for more..........https://www.paulcraigroberts.org/2013/04/13/assault-on-gold-update-paul-...

Hammer · Sep 24, 2013 - 11:50pm

Oops. US consumer confidence

Oops. US consumer confidence slumps to a 4 month low so stocks take a hit. Quelle surprise ? And euro weakens due to similar concerns regarding European recovery......

Mr. Fix · Sep 24, 2013 - 11:52pm

"There is 0% chance this ends well."

Peter Boockvar: "There Is 0% Chance That This Ends Smoothly"

Submitted by Tyler Durden on 09/24/2013 - 17:53

CNBC just aired a fascinating segment that pitted anchors Mandy Drury and Brian Sullivan (squarely in the markets-are-going-up-and-the-world-must-be-rosy camp) against a more skeptical Herb Greenberg and an awfully fact-based reality agent - Peter Boockvar. Well worth taking the time to witness the cognitive dissonance of believing the market strength is unrelated to the Fed and yet a Fed unable to Taper even a few billion for fear of repercussions... as Boockvar notes, "there is 0% chance this ends well."


Mr. Fix · Sep 24, 2013 - 11:55pm

Chinese Housewives vs. Goldman Sachs:

Chinese Housewives vs. Goldman Sachs: No Contest

Submitted by Tyler Durden on 09/24/2013 - 21:55

Goldman Sachs is once again predicting that gold will fall, setting a new near-term target of $1,050. Never mind the schizophrenic gene that would be required to follow the constantly fluctuating predictions of all these big banks. Sure, the too-big-to-fails can move markets - but they say things that are good for them, not us. As an example, while Goldman Sachs was telling clients and the public to sell gold in the second quarter, they bought 3.7 million shares of GLD and became the ETF's 7th largest holder. When we visited China, guess who no one was talking about? Goldman Sachs. Since January 1, gold ETF holdings have fallen by roughly a quarter (26%, according to GFMS). But Chinese housewives aren't refraining from buying and certainly aren’t selling...

tmosley · Sep 24, 2013 - 11:57pm

Re: things taking more time than expected

1930's not so much. We were still on a limited gold standard. 1970's, yes. And it worked out quite well for them then. In fact, those who didn't trust the government in the 30's and held onto their gold actually did quite well, with the "one-time" revaluation increasing their dollar wealth by quite a bit, assuming they could get their gold out of the country or find a black market exchange.

Esquaredx2 · Sep 25, 2013 - 12:12am

How is this for today's topic and a coin ring to match?

Here is a Coin Ring for ya

First post and a Big Thanks for all you provide Turd!

Cheers,

e

Hammer · Sep 25, 2013 - 1:05am

Never ???? !!!!! Who'd a

Never ???? !!!!! Who'd a thunk............video included on link.

World's wealth set to shift to Asia from US and Europe

4 hours ago

The world's wealth has typically been concentrated in the US and Europe. But according to a new report, Asia is set to overtake the West as early as next year.

In the last year the number of wealthy individuals in Asia increased by about 9% to 3.7 million people. While their wealth rose by more than 12% to reach $12 trillion.

India, Hong Kong and Indonesia saw the highest growth rates.

So what is behind this global shift? Barend Janssens from Royal Bank of Canada Wealth Management, which co-authored the report, explains.

https://www.bbc.co.uk/news/business-24236451

Hammer · Sep 25, 2013 - 1:09am

and another "who'd a

and another "who'd a thunk..." Good video attached to link.

Hundreds of millions of people around the world are escaping poverty and becoming middle class. The explosion of new consumers in China, India and other economic powerhouses is changing the global balance of power.

To launch a season of reports on the New Middle Class, BBC News invites you to take a trip around the world to see where the new middle class is emerging.

Read more about why these changes are happening - and whether they will last - from our chief business correspondent Linda Yueh.

https://www.bbc.co.uk/news/business-22951558

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