The Gold Spread and Wall Street Banks

Thu, Apr 24, 2014 - 11:32am

It is so obvious, and so apparent, that I wonder why commentators have only now seen fit to say something.

“It” of course, being the prounoun referencing the gold spread and the insane, short-term profits the Wall Street Banks have been reaping right before our eyes. Let’s talk about it.

From Wikipedia: Arbitrage:

“In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.”

When does arbitrage arise?

“Conditions for arbitrage - Arbitrage is possible when one of three conditions is met:

(1) The same asset does not trade at the same price on all markets ("the law of one price").

(2) Two assets with identical cash flows do not trade at the same price.

(3) An asset with a known price in the future does not today trade at its future price discounted at the risk-free interest rate (or, the asset has significant costs of storage; as such, for example, this condition holds for grain but not for securities).

Arbitrage is not simply the act of buying a product in one market and selling it in another for a higher price at some later time. The transactions must occur simultaneously to avoid exposure to market risk, or the risk that prices may change on one market before both transactions are complete. In practical terms, this is generally possible only with securities and financial products that can be traded electronically, and even then, when each leg of the trade is executed the prices in the market may have moved. Missing one of the legs of the trade (and subsequently having to trade it soon after at a worse price) is called 'execution risk' or more specifically 'leg risk'.

In the simplest example, any good sold in one market should sell for the same price in another. Traders may, for example, find that the price of wheat is lower in agricultural regions than in cities, purchase the good, and transport it to another region to sell at a higher price. This type of price arbitrage is the most common, but this simple example ignores the cost of transport, storage, risk, and other factors. "True" arbitrage requires that there be no market risk involved. Where securities are traded on more than one exchange, arbitrage occurs by simultaneously buying in one and selling on the other.”

But, conditions for arbitrage, at least in non-manipulated markets, normally lead to Price Convergence -

“Price convergence - Arbitrage has the effect of causing prices in different markets to converge. As a result of arbitrage, the currency exchange rates, the price of commodities, and the price of securities in different markets tend to converge. The speed at which they do so is a measure of market efficiency. Arbitrage tends to reduce price discrimination by encouraging people to buy an item where the price is low and resell it where the price is high (as long as the buyers are not prohibited from reselling and the transaction costs of buying, holding and reselling are small relative to the difference in prices in the different markets).”

So, let us apply this knowledge to the price of physical gold, as referenced by the Comex spot pricing, and most interestingly, with respect to Indian gold demand and their market conditions.

There is a dramatic price difference with respect to gold priced in USA federal reserve notes as compared to the price of gold in Indian rupees. The situation is so readily apparent, that smugglers have taken to swallowing gold in quantity in order to profit from the price difference.

Of course, the price difference is caused by excessive government meddling, in this case, massive import taxes:

“The gold bars are valued not just by the owner but by the Indian government. In total they’d command an import duty of $17,000 dollars. It’s little wonder some people would go to extreme lengths to try to avoid that.”



Is price manipulated to allow for western banks to profit in the short term?

Let us just examine the naked facts of the divergence in price between our western physical gold price, and the Indian physical gold price.

In the normal course of events, that huge price difference would lead to price convergence, that is, the price of Indian gold should fall, while the price of western Comex gold should rise. Indeed, this is what is expected from the academics: “The speed at which [divergent prices converge] is a measure of market efficiency. Arbitrage tends to reduce price discrimination by encouraging people to buy an item where the price is low [increase in demand causes prices to RISE] and resell it where the price is high [increase in supply causes prices to FALL].”

We can easily see that the so-called “markets” are neither markets nor efficient, because there is NO movement lower of the spread. Instead, efforts are taken by Indian authorities to KEEP the prices artificially high through import restrictions and taxes. But why? Think hard on that one and the answer is IMMEDIATELY clear. (Think in terms of incentives, of both sides to these transactions).

Let us also not forget about this assumption: “as long as the buyers are not prohibited from reselling and the transaction costs of buying, holding and reselling are small relative to the difference in prices in the different markets.” Well lookey there . . . Bingo!

Indian import restrictions/taxes, i.e., “transaction costs,” on gold have lead to ARTIFICIALLY high prices, thereby encouraging arbitrage by preventing price convergence. This is page one from the HUGE, multiple volume treatise entitled “Central Planning Failures.” And, naturally, the question arises as to who benefits from this?

So, now that it is obviously apparent there exists a massive risk-free arbitrage opportunity, wouldn’t you expect the big Wall Street Banks to be right in the thick of it? Of course!

From the article, here:

“[T]here’s evidence that Wall St smuggled a HUGE amount of gold from GLD into India to make huge premiums and fast money and that the amount of gold smuggling in India over the last 4 months was more than in the last 10 years prior to the Indian government doing stupid legislation!”

Really, now, you don’t say? Gold has been secured at low prices from the western banks/gld scam, sold into the Indian markets for huge, short-term premiums, prices have NOT converged AT ALL, and we all wonder whether western gold prices are artificially low through manipulation? No chance of that, none at all, right?

And finally, there is this:

Now why on earth would the CME want to establish an eastern futures market for gold?

Perhaps because there is lots of gold in the east, dwindling amounts in the west, if at all, and the world’s capital engine for growth is shifting inexorably east in real time, right now? What better place to open a futures market, no?

This last development should put the nail in the coffin on manipulation deniers. It is fast time to prepare, please do so before it is too late.

About the Author


Apr 24, 2014 - 4:15pm

I sure don't want to hijack the thread...

But here goes. I doubt anyone here really knows Bundy well enough to say whether he IS or IS NOT a racist. I'm not going to accuse or defend the man. But what in the world does it matter if someone is racist? It's an opinion. Odd opinions may make someone a social pariah, but when did we criminalize opinions? Back to looking for my stack. Hoping it hasn't been Shanghai'd and on a steamer to Hong Kong.

Apr 24, 2014 - 4:16pm

Awww man

Dagney typed her similar thoughts while I was out looking for my stack

Apr 24, 2014 - 4:26pm

End game thesis

I watched the History channel documentary last night. Yes it good to see the manipulation story get some exposure, but the real story there may have been the questions about US gold. three things stood out to me 1. That the "tunnel" between the Fed and JPM (China) is used for a shell game to show the same gold bricks where needed. 2. That the gold salvaged from an 1804 shipwreck was awarded to Spain, bu a US court, in violation of international salvage laws. Now why is that gold so important? 3. that Germany wasn't the only country asking the Fed to see its gold. All were denied. And now CA Law points out the new Asian gold exchange as move in response to gold shifting from west to east? And western banks are arbitraging gold in India illegally? Sounds to me like the gold is nearly gone and they are making every dollar they can from it. We really are close to the end, no? Evidence is stacking up for the end game thesis.

John Galt Doctor J
Apr 24, 2014 - 4:27pm

@ Dr. J. Re: Bundy

I think you nailed it. Bundy is now at the losing end of a propaganda battle that is designed to rally public support behind the State. There is a vested interest to trigger a battle in Nevada, likely as a pretext to usher in the real items on the agenda. Bundy needs to be painted as the enemy to ensure public support for use of force.

It was sickening to watch John Stewart skewer Sean Hannity on the Daily Show last night, over the Bundy situation. The sock puppets on MSM are doing their job to back the State, and as you say Bundy needs to wise up and stop handing them free ammo.

Apr 24, 2014 - 4:35pm


Was Silver switched to autopilot @ 10:30 EST?

Apr 24, 2014 - 4:38pm

It's not about turtles & land...

It's about losing our freedom & rights!...This pretty well sums it up!!!...

Video unavailable

Bag Of Gold

Apr 24, 2014 - 4:46pm

Re : Bundy

My take away from all this BLM bull sh!t and now the racist accusations against Mr. Bundy is that freedom of speech is very nearly a dead duck.

It's interesting that 100 years ago, "racist" was not even in the unabridged Funk & Wagnall's dictionary. Neither was "anti-Semetic" or "white supremacists". Negro was defined as "a member of a sub-human race."

A 100 years from now, being a "blue haired munkalfunker" could be punishable by death.

We are so screwed.

Apr 24, 2014 - 6:36pm

I am not prejudiced

I hate everyone Equally. Do I need to put sarc or is it a given?

Apr 24, 2014 - 6:42pm

Willie time!

Here you guys go. Hope alls well!! GUY

Apr 24, 2014 - 6:49pm


Racist got rights too.. under the law!! If racist don't have rights to be racist then all of our rights are in jeopardy. Not saying he is racist, just saying that argument is a non-starter with this American!

Apr 24, 2014 - 6:57pm


That is quite funny, actually. Your comment reminds me of many a case where my client sues for harassment. Sometimes the defense takes the position that the harassment did actually occur, but it was not gender or race based, because they say the harasser is an asshole to everyone.

I have never had one of those cases get to a jury, because ultimately, the lawyer for the asshole harasser always feels the heat and settles out before the jury gets to decide.

In a sex harassment case, as opposed to a discrimination case, I always wonder why the harasser does not demand a trial. If the dumb ass who made the sexual comments just owned it, and said he was overcome by hormones because he was horny from not getting any at home, there is no jury around that would fault the guy. But, the guys always deny the harassment ever occurred, and the lawyer takes the pious route, always ending in agony for the harasser.

Your comments are quite refreshing!

El Gordo
Apr 24, 2014 - 7:36pm

Just a battle of wits...

...and both sides are unarmed.

Apr 24, 2014 - 7:41pm

Just blame this racist

garbage on Pat from the earlier thread of Turd's pod cast where I posted another video lesson from Brother Nate, because Pat doesn't care if he is labeled a racist by any progressively racist shithaid. There is a new video interview circulating today in my email about this whole Clark County Nevada distraction given by a long time real estate expert from the Las Vegas area who has studied the public record and the ground in this area of the desert for over 20 years, in fact it is likely that nobody alive today knows more about the area excepting for the torti than this fella, I will look for it and put it up for the rest of the experts and you know what else, this expert happens to be a black man.

Apr 24, 2014 - 7:52pm

What are if not prejudiced?

Given two secretaries of equal talent - give me the hot steamy one any day. given a black or a white; give me the most efficient - hot one There are more asians than enough here in Vancouver, generally had working and efficient, I have no problems. then there are the stuck up wannabes here in Kitsilano, I think they are very sad in their obvious insecurity Folk who will not help themselves, I have no time for. People who think they have authority over me because of some position that some wanker awarded them. Teachers come to mind, One needs to remind them that it is they who are in my employ - yet they wrongly believe that they have the ultimate currency, and hence control - called grades. They have prejudices towards students. Prejudice is just an outward manifestation of insecurity or incompetence, I detest them all!

Apr 24, 2014 - 8:09pm

Rusty Hill, BLM whistleblower

I watched Rusty Hill interview earlier today on my smart phone though now tonight I am not able to find a working copy to post. He has been a land broker in the area for many years, if any are familiar with researching the public record at the recorders office you will understand what Mr. Hill has discovered might be condsidered by those in real estate highly irregular. Maybe the video has been scrubbed by Harry's henchman, if somebody else has a way in to post, would be very informative in light of all the speculation about the whole matter.

What If Dagney Taggart
Apr 24, 2014 - 8:16pm


Right on point-

Apr 24, 2014 - 8:20pm

Rusty Hill, BLM whistleblower

I went to my phone and forward the link to my email, then took the link and reposted above, it still does not open for the interview, very strange. I do not know if it is something that I am missing or the video has been scrubbed from view. You cannot argue with the facts Mr. Hill has presented about the land in question @ Bunkerville they facts are what they are, all one needs to do in order to verify is to research the public land records in Clark County Nevada in this area of the county. He mentions the irregularities with regard to parcels changing hands over the years involving the BLM, private landowners, and the name REID. Taking question to the public record officials in the land office and says they just look at him with glazed eyes and schrug their shoulders. Has anyone else looked at this?

Mr. Fix
Apr 24, 2014 - 8:26pm

I wonder what this means, and if they are done yet?

U.S. Exports A Record Amount Of Gold To Hong Kong In January

Submitted by Tyler Durden on 04/24/2014 - 20:03

The figures are out and it looks like the United States exported a record amount of gold to Hong Kong in January. Not only is this 3 times more gold exported than January 2013 (17 mt), it was 84% more gold than the record month set in August (31 mt). As we can see, gold bullion is fleeing the U.S. and heading to the East. Again... that 57 mt figure is just gold bullion. As the West continues to play games with Monopoly money and Derivatives manufacturing, the East accumulates as much gold as it possibly can. While Main Stream Media and its Banker cohorts release bearish $1,050 price targets for gold, the Asians and Indians smile as they build the largest amount of gold stocks in the world.

Apr 24, 2014 - 8:31pm

NY Times apparently falsified Bundy quote

I would recommend listening to Alex Jones interviewing Cliven Bundy on his radio show today - it is in the first half-hour. Not only is it clear that Bundy is not a racist, but he said that the NY Times got his quote wrong and he never said anything about picking cotton.

This comes right after the NY Times was caught photoshopping Russian troops into pictures from the Ukraine to make the Russians look bad.

I am also reminded of how NBC edited and distorted George Zimmerman's 911 call to make him appear to be a racist - despite the fact that he's got more black blood in him than Obama does.

Don't assume Bundy was fueling the media - we have a media right now that will take any small thing they can, and twist and distort and outright lie until they get the results they want.

PS One of the black militia guys has been protecting Bundy's house. Cliven was going to see if he wanted to talk to Alex Jones - I have not heard the rest of the show yet so I don't know if he got on air or not.

Apr 24, 2014 - 8:35pm

Rusty Hill, BLM whistleblower interview

has been scrubbed from view. Sorry if you missed this one the best ones always seem to get washed Spic & Span within a few hours. Mr. Rusty Hill might be dashing for some very tall grass right about now.

Apr 24, 2014 - 9:07pm

Rusty Hill, BLM whistleblower interview

I have held a real estate license for over 10 years and have been an active investor in real estate for over 20 years. When I watched this interview today which still plays on my phone tonight I am encouraged that it took Mr. Hill a real property expert only few hours time navigating the recorders land records to uncover the soiled nature of these Clark County real property transactions, and more than discouraged that it took even less time by something or someone else of a more than soiled nature to scrub it all down the drain. We are in some serious trouble here folks.

Apr 24, 2014 - 9:22pm

Rusty Hill

Is this the interview you are referring to?

BLM Whistleblower: Reid Bunkerville and the Military Industrial Complex at Bundy Ranch
Apr 24, 2014 - 9:28pm

Collapse Of Western Ponzi

Collapse Of Western Ponzi Scheme To Send Gold Skyrocketing from Merit Gold: Today, Grant Williams, one of the most highly respected fund managers in Singapore claimed in an interview that the collapse of the Western Ponzi scheme will send the price of gold skyrocketing. Williams also discussed the coming implosion of the Western scheme as well as how the Russians and the Chinese positioning themselves ahead of this collapse. Brian covers highlights from the interview on today’s show and offers his perspective on Williams’ claims.

Apr 24, 2014 - 9:29pm

Pure and unadulterated Harvey

Pure and unadulterated Harvey at:

  • Koos Jansen: I believe that China has a role in the gold price manipulation. The United States and China are sort of in a marriage. It’s becoming a bad marriage but they can’t really live without each other at the moment. Effectively, it can control the value of the US dollar. So, these people probably talk on the phone about gold every day and I think, the agreement is — what happened in 2013, in April, is that in Western gold markets, the price of gold was forced down and this allowed China to accumulate gold, which has obviously happened. I can not only show it by the SGE numbers but also, I analyzed all the customs data from the UK, Switzerland, Hong Kong, and so forth. You see all this gold from the West, mainly from the UK, going from the UK through Switzerland. It’s being refined in Switzerland into 1 Kg .9999 bars — from Switzerland to Hong Kong and from Hong Kong to Shanghai. At the moment, you see not only the power moving from West to East, you see not only the dollar crumbling, but you can really see the physical gold is moving towards the East. I think, it’s a cooperation between the West and the East to manipulate the price of gold at this moment and I think, it will be in the interest of both. If China has accumulated enough gold, it’s in the interest of both to let the price of gold to slowly rise.
  • Koos Jansen: I don’t think in 2014 demand will be as high as in 2013 because it was a really special year. And, looking at the numbers now, I don’t see these peaks that happened in 2013 happening in 2014. So, it will be less than in 2013. In 2013, it was 2200 tons. I think, it will be about 1800 tons non-government demand for physical gold in China.
  • Tyler Durden: Initial jobless claims surged from 304k to 329k this week, the biggest weekly rise since mid-December. From exuberance at new cycle lows, we swing to the average of the last 8 months. This is the biggest miss to expectations in over 2 months. Continuing Claims dropped further to new cycle lows at 2.68 million (beating expectations) - its lowest since Dec 2007. So this is as good as it gets for continuing claims - America is back at its best!
  • Eric Sprott: I think more and more writers are taking it seriously because most everything that’s been suggested was manipulated, proves to be manipulated, and I don’t think gold will be an exception. What this has caused to happen is the price of gold, from a manipulation point of view, has been released. You don’t see the selloffs that we’ve had before because the manipulators know they are being watched. I’m sure all of the internal audit departments of those banks are all over trying to figure out what their boys were doing to try to limit the size of the lawsuits. So I think gold has very much had the ceiling taken off of it (in terms of price). Had there been no manipulation we should be at $2,100 gold today and we should be at $2,400 gold by the end of the year.
  • Marc Faber: We had a huge run up in prices between 1999 (255 USD) to early September 2011 (1920 USD). We have been in a correction period. Now I think the correction period was partly justified because there was too much enthusiasm and speculation, leading to the peak of 2011. But I think that there has been some market manipulation. It could be. My sense is that the correction has probably come to an end, because if anything the fundamentals are much better today than they were at that time. But the price is down. Every investor understands the principle buy low and sell high. When prices are low, nobody wants to buy. We also had very negative sentiment recently. I am not so sure about asset markets, as we could also one day, after this colossal asset inflation of the last 20 to 30 years, have asset deflation. When I compare gold shares and the price of gold to the S&P 500, the S&P is up substantially since 2011 and gold is down.
  • Sprott Money Blog: Up until now, the only way investors could get any indication of how much gold China was accumulating was from the monthly release of export data from Hong Kong, which last year supplied $53 billion worth of gold to China last year. All that is about to change. China has announced that it will begin allowing gold imports directly through its capital, Beijing. China would have no obligation to release or disclose its import numbers, thus making its accumulation of gold even more discreet. The true gold holdings of China is a national secret.
  • Harvey: Today, gold and silver were whacked pretty hard early this morning at 7: 05 am in a very thin market. This is their usual modus operandi. However demand for metal in London became fierce which caused our banker boys to try and cover many of their shorts. Gold and silver recovered but again gold was held in check by Comex closing time. Gold and silver equity shares were whacked again today despite gold and silver's rise. The bankers never allow gold/silver to rise the day after an outside day reversal which is what we had today. The lousy performance of the equity shares seals gold/silver fate for tomorrow. Also it is options expiry so the chances that gold and silver will rise tomorrow is about zero. Today, pay special attention to the story that the low values of the Chinese yuan is causing a massive unwinding of trades due to massive losses as global investors borrowed heavily in dollars (short dollar/and bought yuan asset or real estate assets in China or other instruments. This bubble has no doubt began to burst. For the 13th day out of 14 trading days, GOFO rates are negative and thus we have backwardation. Today, the 6th month and 12th month rate moved closer to the negative, but still they are out of backwardation. All other months moved slightly towards the positive. GLD: Gold was unchanged at 792.14 tonnes. SLV: Silver was unchanged at 10,282.78 tonnes.
  • Michael Snyder: For most of Canada's existence, it has been regarded as the weak neighbor to the north by most Americans. Well, that has changed dramatically over the past decade or so. Back in the year 2000, middle class Canadians were earning much less than middle class Americans, but since then there has been a dramatic shift. At this point, middle class Canadians are actually earning more than middle class Americans are. The Canadian economy has been booming thanks to a rapidly growing oil industry, and meanwhile the U.S. middle class has beensteadily shrinking. If current trends continue, a whole bunch of other countries are going to start passing us too. The era of the "great U.S. middle class" is rapidly coming to a bitter end. In recent years, I have been up to Canada frequently, and I am always amazed at how much nicer things are up there. The stores and streets are cleaner, the people are more polite and it seems like almost everyone that wants to work has a job.
  • Mark O'Byrne: Silver coins with the face of Russian President Vladimir Putin are being minted in Russia. The coins weigh one kilogram (1kg - 2.2lb) and are being launched by the Art Grani foundry to mark Crimea’s reincorporation into Russia. The private mint that produces the coins said it is planning to present some of them to the Russian leadership. The coins are commemorative in nature and are a limited edition of 500 silver coins initially. The factory states that some of the coins may be sold, but they won’t be used as currency. Putin's face is on one side of the coin while the other shows a map of the Crimean Peninsula, Moscow daily Komsomolskaya Pravda reports. Factory director Vladimir Vasyuhin explains that by bringing the Crimean peninsula "back home", Putin had "demonstrated the qualities of a wise strategist and politician". "Crimea's reunification with Russia was a historic event which we decided to embody in a souvenir collection of coins,"
  • Tyler Durden: When the Republic was founded, there were three federal crimes listed in the Constitution: treason, piracy, and counterfeiting. Today the number of laws, codes, and regulations is astounding. It is a federal crime, for example, to knowingly make a false statement to a federally insured bank. (Naturally, though, banks can lie through their teeth and defraud their customers with impunity) Not to mention, there are hundreds of federal agencies as innocuous as the Fish and Wildlife Service which have gun-toting police forces to kick down doors and throw people in jail. The government doesn’t rule with the consent of the governed. They rule through fear, intimidation, and threats of violence. They spy. They deceive. They steal. So you can probably appreciate the irony and arrogance of the President signing this new law which bars spies and terrorists from entering the country. The entire notion is so absurd, it’s like Barack calling the kettle black. And technically speaking he has just legally banned himself from being in the Land of the Free.

The Harvey Report!


Apr 25, 2014 - 1:04am

bankers don't smuggle gold, smugglers do

Some thoughts: The excise on gold import in India is to fix the trade deficit or to stabilize the Indian rupee which was falling rapidly against the dollar. The smuggling is not happening for the first time. It happened before 1990 all the time when Indian economy was still not liberalized.There are known underworld Dons working from Dubai/ middle east who run the smuggling syndicate, including Dawood Ibrahim, Chhota Rajan etc.. Now Western banks might be helping to launder their money..but there is no way they can take the smuggling business away from them.. Its the same as saying that drugs are smuggled into US from Mexico/Cuba by the western banks to take advantage of the arbitrage in drug prices. Of course, banks get a piece of that, but cartels run the business. It's their bread and butter. To deduce that western banks are exporting gold from gld to take advantage of the arbitrage is just shooting in the dark in my opinion. But again, people like conspiracy theories, don't they?

Apr 25, 2014 - 1:35am

From BrotherjohnF channel

WillBird April 24, 2014 - 10:59 pm A friend of my cousin's wife is in The National Guard. He was told to report Monday for 30 days of training and that he would then be sent to Russia. Guy was given notice so he had the weekend to get ready and say bye to his family. He was refused info on what kind of training or where in "Russia" he would be going.

Apr 25, 2014 - 1:37am

Will they get Putin

Introducing the Altyn: Russia Accelerates Plans to Launch New “Gold” Eurasian Currency from Silver Doctors: Several Russian News outlets have reported that Russia, Kazakhstan and Belarus, that currently form the Eurasian customs union, will sign an agreement in May to accelerate the formation of an economic union and a joint currency: the Altyn. Russia’s economy is eight times smaller than the US, but by forming a new ‘empire’ on top of a vast amounts of resources, this economic block will be a serious threat for the US petrodollar. Russia is now speaking openly about getting rid of the US dollar for trading energy, building its own payment system and closing gas export deals with China – the other Asian empire. The Eurasian Economic Union will be a powerful stab at the US dollar hegemony. By the way, the meaning of the Turkish word “Altyn” is… gold. Read More @

Apr 25, 2014 - 1:52am

Russia, Kazakhstan and Belarus to have new joint currency by 202

Russia, Kazakhstan and Belarus to have new joint currency by 2025 In May 2014, presidents of Russia, Kazakhstan and Belarus will sign an agreement on the establishment of the Eurasian Economic Union. Sections 9 and 11 the agreement, the draft of which is available on the official website of the Russian Ministry for Economic Development, are devoted to the joint monetary policy and financial markets. During the first stage, it is planned to set up an advisory board of the heads of central banks of participating states. The banks would be responsible for the rate of national currencies, regulation of banking and insurance activities and the harmonization of the securities market.

Apr 25, 2014 - 2:02am


Washington is humanity's worst enemy

How does Washington get away with the claim that the country it rules is a democracy and has freedom? This absurd claim ranks as one of the most unsubstantiated claims in history.

There is no democracy whatsoever. Voting is a mask for rule by a few powerful interest groups. In two 21st century rulings (Citizens United and McCutcheon), the US Supreme Court has ruled that the purchase of the US government by private interest groups is merely the exercise of free speech. These rulings allow powerful corporate and financial interests to use their money-power to elect a government that serves their interests at the expense of the general welfare.

The control private interests exercise over the government is so complete that private interests have immunity to prosecution for crimes. At his retirement party on March 27, Securities and Exchange Commission prosecutor James Kidney stated that his prosecutions of Goldman Sachs and other "banks too big to fail" were blocked by superiors who "were focused on getting high-paying jobs after their government service." The SEC's top brass, Kidney said, did not "believe in afflicting the comfortable and powerful." In his report on Kidney's retirement speech, Eric Zuesse points out thatthe Obama regime released false statistics in order to claim prosecutions that did not take place in order to convince a gullible public that Wall Street crooks were being punished.

Democracy and freedom require an independent and aggressive media, an independent and aggressive judiciary, and an independent and aggressive Congress.The United States has none of the above.

Paul Craig Roberts

Apr 25, 2014 - 2:36am

Suspect accused of chucking shoe at Hillary Clinton

June trial set for suspect accused of chucking shoe at Hillary Clinton

By Sun Staff (contact)

Thursday, April 24, 2014 | 4:59 p.m.

Metro Police

Alison Michelle Ernst

Hillary Clinton Speaks at 2014 Institute of Scrap Recycling

Launch slideshow »

The woman accused of throwing a shoe at former first lady Hillary Clinton during a speech earlier this month in Las Vegas will remain in custody for the time being.

Alison Michelle Ernst, 36, Phoenix, appeared Wednesday in U.S. District Court in Las Vegas, where she was arraigned on two misdemeanor counts accusing her of trespassing and violence against a person.

Ernst pleaded not guilty to the charges.

Magistrate Judge Cam Ferenbach and ordered that Ernst continue to be held in detention set a bench trial for June 25 before Magistrate Judge Peggy Leen. Additionally, Ferenbach directed the U.S. Probation Office to prepare a report for the court detailing Ernst’s criminal history.

Ernst is represented by two federal public defenders, William Carrico and Elisa Vasquez.

On April 10, Clinton was a few minutes into her keynote address at the annual convention of the Institute of Scrap Recycling Industries at Mandalay Bay when Ernst approached the stage and threw a Puma soccer cleat at the former secretary of state, said Brian Spellacy, special agent in charge of the Las Vegas office of the Secret Service.

Clinton ducked the shoe and was unharmed.

“Thank goodness she didn’t play softball like I did,” she quipped to loud applause.

Ernst immediately walked out of the ballroom and was surrounded by security personnel and Secret Service agents.

According to the arrest report, Ernst carried the shoe inside her purse before throwing it overhand at Clinton.

Ernst, whose booking photo shows her with short, reddish-brown hair, wore a long, platinum blond wig during the incident.

A spokesman for the recycling institute said Ernst did not have credentials for the event and slipped past security and into the ballroom where Clinton was addressing more than 1,000 people.


Hillary Clinton manages to have 4 marines killed and this woman gets detained for 2 1/2 months for throwing a shoe? One day I hope justice prevails.


Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Recent Comments

by WeWillWin, 1 hour 32 min ago
by AngryCitizen, Apr 23, 2019 - 11:27pm
by lakedweller2, Apr 23, 2019 - 10:39pm
by infometron, Apr 23, 2019 - 9:14pm
by Marcus, Apr 23, 2019 - 8:16pm