Collusion & Corruption

I have several items that merit your attention today but first, here's an update of the charts.

I'm still hopeful that a rally is coming. The technical picture remains positive and the open interest numbers continue to trend well. I'll also be interested to see the CoT numbers when they come out later today. For now, the charts a virtually unchanged from earlier this week.

paper_10-14amsilv.jpgpaper_10-14amgold.jpg

OK, onto the news. This first item is truly disturbing. I must admit that I saw these headlines but never had a chance to go back and delve deeper. Well, thankfully, Dave in Denver took the time to digest and interpret the situation. All of the sordid and disgusting details are plainly laid out for all to see here. Please take time, right now, to leave this site by clicking on the link below. Read Dave's article and then return:

http://truthingold.blogspot.com/2011/10/legalized-fraud.html

So, let me see if I've got this straight. JPM reports "earnings" of $1.02/share for the quarter, well ahead of the $0.92/share expectation. The media reports this as great news and proof that the banks and overall financial system continue to recover and improve. However, of the $1.02, 29 cents came from an accounting gimmick. Without the gimmick, JPM would have reported just $0.73/share, which would have been a complete disaster.

That's bad enough on its face but let's go back and re-visit, courtesy of the plain-English supplied by Dave, how they "found" the 29 cents in the first place. Here's how this works:

1) JPM issues bonds (debt) at 100 cents on the dollar. At maturity, these bonds must be retired by repaying principle to the bondholders at 100 cents on the dollar.

2) These bonds are currently trading at 80 cents on the dollar.

3) Because, theoretically, JPM could buy back all of the bonds at the current price and retire the issue prematurely, JPM theoretically could save themselves 20 cents on each dollar. Theoretically.

4) Never mind the reasons the bonds are trading at a discount and never mind that JPM has neither the cash nor the intention of purchasing and retiring the debt in question.

5) Regardless, simply because the bonds are trading at a discount, JPM is allowed to claim the theoretical advantage of retiring the debt at 80 cents on the dollar as actual earnings!

6) This is an outright and upfront fraud akin to the accounting of Social Security or some other insulated-from-scrutiny government program.

7) Perhaps more disheartening is the collusion of the unindicted co-conspirators in the financial media who report these "great numbers". You're left with only two choices:

   a) For whatever reason, the media is purposefully misleading the public.

   b) The media that reported these numbers are utterly and completely clueless regarding the subject matter.

   Which is it? It has to be one or the other?

In the end, all of this simply continue to fit the narrative here. The great Government-Financial Ponzi is coming to an end. It is inevitable regardless of how long the lies and distortions continue.

Next up, another story that I've had minimized on my screen for a while. Like Venezuela, Mexico is discovering that the gold that they think they own in unallocated accounts, may not actually be there for delivery. As more and more sovereign nations realize that they have been scammed by the LBMA/Comex system, a "run" on the bullion banks will develop. Once again, this only proves the adage: "the only gold you truly own is the gold you hold in your own two hands".

http://www.gata.org/node/10487

Also, one of the main guys behind this Mexican effort is Hugo Salinas-Price. Mr. Salinas-Price is a tireless advocate of sound money and he was one of the feature presenters at Ned Naylor-Leyland's conference back in January. If you haven't yet seen his presentation, I urge you to take some time to watch it. Linked below:

http://www.cheviot.co.uk/sound-money-conference/presentations/how-to-monetize-silver-so-that-it-can-circulate-permanently-in-parallel-with-paper-and-digital-money

Lastly, I found this little ditty on ZH a couple of days ago. I know that many of you are concerned about confiscation. As you know, I think that, in this age of instant information and communication, a gold confiscation plan would be nearly impossible to implement. However, what the hell do I know? That's just my opinion. I could be wrong so, therefore, I urge you to read this:

http://www.sovereignman.com/expat/gold-confiscation/

OK, that's all for now. The metals are trying to move higher so maybe we can end the week on an UP note. We'll see. Keep the faith!  TF

243 Comments

Patrancus's picture

nickels now dollars

throw a nickel in the drum, save another drunken bum. 

salvation thru inflation

GoldMania3000's picture

they are

depends where you live. New York City, Iowa, LA, there are neighborhoods in different places..where "they" will come no mater what in desperation. not knowing you have gold or not.."they" as defined as broadly or narrow as you'd like, could stumble upon matters of the coin.  That's why I have a mix of assets. confiscation ...not my topic of expertise, but many have commented on it already...there's a mix of perspectives.  In 10 years we can come back and have the confiscation conversation.  I don't think they will. There would be a run outside of the US to get the gold as it would signal major trouble. 

Unit951's picture

FASB

Don't forget that the banks also mark their assets to fantasy.

silver foil hat's picture

The sad part is....

every trick will be used to prop the ponzi rather than letting the system fail and reset with minimal damage. That point has LOOOOOOONNNNNNNGGGG since passed.

Lowering rates in the 1990's.... (when they should have been increased)....  DONE. Minimal Damage fix not enacted at that time.

Fail to raise margin requirements the the equities markets in the 1990's.... DONE. Minimal Damage fix for the markets not enacted either.

Fix the problems created as a result of those failures.... Lowering interest rates.... DONE. Temporary extension of the ponzi scheme.

QE1, QE2, QE3.... DONE (QE1 TARP)

Buy own Treasurys (Monetize the debt).... DONE

Operation Twist... DONE (more desperate measure)

When the LAST card is played, the system will CRASH HARD and SUDDENLY.

They're running out of schemes to "fix" the system (they have no intention of fixing it though) .

Be prepared.

stained white shirt's picture

Confiscate Sprout First

Sprout is located in Canada. The government can confiscate and sell your brokerage account but they have no jurisdiction over the gold. There is a reason why Sprout and Central Fund of Canada are not located in the U.S.A.

ScottJ's picture

$SPX:$Copper Warning Sign

Shill's picture

This should solve the EU

This should solve the EU problems....You think there are riots now.

EU considering massive cuts to food aid for poor - Yahoo! News

We haven't  seen anything yet.

survivalwstyle's picture

gOOd stuFF

after taking a solid 6 days away from my computer it is fair to say things are changing. nothing has changed. the break was nice, thanks mrF for that advice.

got some last minute aFFairs in order. i fEEl much more alive and suPPort when i engage. this is a big wEEkend. bolts on a bye so my usual sunday preoCCupation wiLL instead be fiLLed by joining the rest of the 99 downtown. i nEEd to sEE this for myself. 

preps are done. water suPPly secure, 1st garden is a go for spring launch. time to get up close and personal. we are the people. got a birthday coming up so any dip under 30 wiLL be treated a gift, no sweat if i dont get it, can think of a few other things to do with this fiat.

like it or not, the wind of change has blown upon us.

Nathan's picture

my two cents...

NoSuckerNoBloodsucker's picture

DVA Accounting...

...more like DVDA accounting HEY-O!  surprise

ewc58's picture

Cap'n Hank

Seems to me that what was once "money" has been cloned by the dark side and morphed into Debt. This to me is the greatest example of the dark side's corruption of all the creator's genuine articles. But this one? This one is BIG. What was to be is not what things have become. The whole thing is built on a false premise, that there is value in what is in truth valueless. Just another Big Lie from the Biggest Liar. However,  many elements of the Real and Uncorrupted remain, so it's no wonder we see the occasional outbreak of truth in what is an otherwise highly corrupted Human experiment.

In the corrupted world, Debt is the key enabler of the ability to influence and Control. Control in turn is a product of the Power to enforce it. Where does Power come from?

Debt + Usury + A Rigged Game + Best Military = Power

Power applied to Global Elite Planning = Control. The ability to bring the entire planet along according to a private agenda that the ordinary Joe Blow does not get the courtesy of knowing. An agenda that he and Jane most assuredly would not be down with if they did know. Ever hear of the Mushroom Treatment?

It's when you're kept in the dark and cow shit is shoveled on top of you. Up until you're picked and processed that is.

Senseosensei's picture

First post

Thank you Turd for the time and effort you put into this site, daily.

I am in the silver camp, meaning i have invested 100% in physical silver. It can take a week, year or decade. but eventually this investment will shine.

redwood's picture

Page numbers are missing. 

Page numbers are missing.  Any reason?

¤'s picture

Thanks Big Kahuna with the big hat

Lots of thoughts and links to digest.

It would actually be a little funny (to me at least) if we knew you were wearing the Big Yellow One every time you posted, no matter where you might be at the moment.

Here's another guy who likes big yellow hats and given the oil price action lately....

https://www.tfmetalsreport.com/forum/1218/bonanza-bunny

Green Lantern's picture

Thanks again Turd for

Thanks again Turd for bringing truth to the surface.   I don't know about anybody else but I feel like Alice In Wonderland.  I went down the rabbit hole and discovered the world around me is filled with lies, deceit, illusion and ineptitude.   I'd vote that the media and the average financial journalist is just inept with no true intellectual curiosity but I don't totally rule out deceit.  I'm even beginning to believe that we don't have free elections in this country and it's all rigged.    The people around me from the mailman, the grocer, the Starbucks customer drinking their latte's are all living a lie and any attempt to tell them differently makes me a fool.   Some days, i feel like taking the blue pill and waking up but I realize that ignorance is not an option.

I know one day that my persistence and convictions about the merits of gold and silver will pay off as I will have protected my family.   There will be a part of me that will want to go around and stick it people's faces and say I Told You SO, you bumbling idiot.  But being a I told you so is never polite especially when they are hurting.   But I realize that ignorance is just a defense for seeing the truth requires courage.   The sheeple are really just trembling lambs.   Keep on marching forward!!!

joe rocker's picture

Tyler...why does it have to

Tyler...why does it have to be labeled "good and evil"?  It's just our nature, sometimes we're generous, and sometimes we're greedy as hell.  It's not good and evil...those are lables that TPTB put on your emotions to control you.  Think about it...manly, rough and tough, competition, it's all considered "evil" or "bad".  While feminine, koom-by-ah, let's all get along and share, is considered "good".  Why?  Because being "manly" and getting what you can...is competition for them.  Sitting around waiting to be fed, being taken care of, is not...and it's what they want.  That's why the "real men" are sent to war or prisons...quietly disposed of...so TPTB can work in peace.

Hatred is learned...fool me once, shame on you...fool me twice...shame on ME for falling for it again!  Want to be treated equally?  Pull your weight equally.  Personally, I think the coup de gras was the 60s and civil rights.  THAT was the pivotal moment where America changed into a piece of shit unable to take care of itself.  It's when we went to quotas and affirmative action.  It's when the jobs started moving away.  It's when government started REALLY running everything.  Because it HAD to be fair and government was the ONLY thing that could make it fair.  I hope you're happy with that "change" too.

Case in point...at the beginning of the thread there WAS another picture...a real ass...a ladies ass...covered in more than they usually wear at the beach.  Scroll up and see WHY it was removed.  The "feminizing" is EVERYWHERE.  The CHANGING of the truth to "protect" us is EVERYWHERE.  The moral of my story?  Trust nobody...EVERYONE sells out at some point.  Political correctness has a nasty habit of sneaking into EVERYWHERE! 

tyberious's picture

good read

The Illuminati and the House of Rothschild
Johnny Silver Bear

During the American Revolution, the House of Rothschild brokered a deal between the Throne of England and Prince William of Germany. William was to provide 16,800 Hessian soldiers to help England stop the Revolution in America. Rothschild was also made responsible for the transfer of funds that were to pay the German soldiers. The transfer was never made. The soldiers were never paid, which may account for their poor showing. The Americans prevailed. At this point Meyer Rothschild set his sights on America.

Meanwhile Benjamin Franklin, having become very familiar with the Bank of England and fractional reserve banking, (see goldsmiths above), understood the dangers of a privately owned Central Bank controlling the issue of the Nation's currency and resisted the charter of a central bank until his death in 1791. That was the same year that Alexander Hamilton pushed through legislation that would provide for the charter of The First Bank of the United States. Ironically, the bank was chartered by the Bank of England to finance the war debt of the Revolutionary War. Nathan Rothschild invested heavily that first bank. He immediately set about to control all financial activity, between banks, in America.

There were a couple of problems, though. The U.S. Constitution put control of the nation's currency in the hands of Congress, and made no provisions for Congress to delegate that authority. It even established the basic currency unit, the dollar. The dollar was Constitutionally mandated to be a silver coin based on the Spanish pillar dollar and to contain 375 grains of silver.

This single provision was designed to keep the American money supply out of the hands of the banking industry. The Bank of England made several attempts to usurp control of the U.S. money supply but failed. Still, through their Illuminati agents, they continued to enlist supporters through bribery and kickbacks.

http://www.silverbearcafe.com/private/rothschild.html

RickyBobby's picture

Going forward, but first, up or down?

RickyBobby's picture

Going forward, but first, up or down?

Tyler's picture

Redwood

Just to clarify, you're saying we are inherently neither good nor evil, but in an ideal society we would be raised to the "good" side? 

Keg's picture

Ashamed

Although I only spent a very small part of my career in public practice, as a CPA I am ashamed of the profession.    Whatever happened to lower of cost or market?  How could AIG get a clean opinion just before going bankrupt?  When the government pressed for bad accounting rules to cover up how bad things are CPAs should have said hell no.   Enron was nothing compared to what has happened since then.

OC15's picture

Repost from last thread

Here's one of the interviews where he talks about timelines. This interview was July 5. Around 13 minute mark of the second segment he says Gold will go up atleast 20-25% from the last week of August through December. Just one example.

http://lindseywilliams101.blogspot.com/2011/07/lindsey-williams-dr-deagl...

I do like Williams though.

I'm listening to Williams interview on Goldseek right now from 10/11. He's saying elite's plans are 3 months behind because of Gaddhafi. So this rise in gold and silver and oil won't occur until beginnigg of 2012 I'm inferring. I'm about half way through.Rep

Green Lantern's picture

@typerious

According to Wikipedia, the first bank of the united states was chartered by Congress, not the bank of England.   It says that Hamilton got the idea from the Bank of England but that's all.

http://en.wikipedia.org/wiki/First_Bank_of_the_United_States

http://www.usnews.com/opinion/articles/2008/09/18/past-present-alexander-hamilton-and-the-start-of-the-national-debt

I realize that the founders were not perfect men especially Hamilton had a vile tempor.  It's probably why he got himself killed in a gun fight.  But I hate to think that they were working with the Rothschilds that soon.

Shill's picture

  This Occupy Wall Street

 
This Occupy Wall Street protest looks eerily similar to the 1968 Democrat National Convention in Chicago. We all know the end result of that debacle.
 
Or I guess one could compare it to the  30s demonstrations for the same reasons, The wealth gap is now the worst it has been since the 1920s in the US .
cdellis's picture

"No paper is safe.  A

"No paper is safe.  A confiscation event will target vehicles like Sprott FIRST."

Is Sprott not Canadian, is not the physical and the fund based in Canada? How do they go about confiscating something that in not in the USA except with world wide collusion?

redwood's picture

Tyler

Human beings have been blessed with a superior brain to their animal counterparts.  This has its profound advantages and disadvantages.  The advantages are obvious, the disadvantages less so.

The truth is human beings are delicate things.  They need a considerable amount to grow well, because many things can go astray: biologically, emotionally, socially, spiritually and to a  lesser degree materially, like proper nourishment, adequate housing etc.

Even under "ideal" circumstances humans will always have a lot to contend with in their lives.  But there are elements that make them more resilient and this is where the role of the parent can have a profound affect.  Studies have shown time and time again, that one of the most important aspects of human resilience, even in the face of many adversities, is the protective role of parental care.  ScottJ talks of empathy as a key ingredient.  Empathy in the earliest days of life, has a profound effect on the psychological well being of an individual.  Maternal and/or paternal severe neglect and/or abuse in the first months and years of life will lead to serious psychological disturbance expressed later on as violence, hatred etc. toward others. 

I don't want to simply this too much because there are other parameters to consider, but in essence this a critical component that can't be ignored.

Every one has heard the adage "it takes a village to raise a child".  But it also takes a village to sustain a human being in every facet of the human life cycle. 

So to answer your question, with good care on many levels, and especially early in life, much hatred and violence can be reduced, not eliminated fully, but significantly reduced.

Brimstone's picture

@ TL

I am an engineer by trade & education, so take my point of view into consideration.  I don't necessarily disagree with your general points of view, just see them through a different lens.

I also think that our "animalistic" nature that drives us to focus on the here and now is also rapidly becoming our greatest weakness as our technology advances.  As we become more advanced, long term stability of our societies becomes ever more dependent on long term planning.  That is not necessarily the same as central planning either.  I am referring to a more general case of the average joe becoming more forward thinking.  This is certainly doable but would require the average joe to actually receive a functional education that taught them to think critically.  Alas such an average joe would make a very poor consumer so is unlikely to be selected for by the governments at large.

One last point regarding engineers & thinkers.  There is actually very little engineering that occurs anymore since those who have the money to finance R&D and engineering no longer want to "waste" money on that.  Most engineers are now stuck reapplying old methodologies and acting more as advanced maintenance men.  Most real engineers would love to be given new problems to solve.  What's holding us back is consumerism.

real engineering and R&D is expensive and pays dividends that will probably not be seen for years.

backseatdriver's picture

Coming Unglued

Rant:ON

Yep. The current monetary system is coming unglued when JPM has to pull stunts like that in the wide open. We have all been riding on the gravy train with biscuit wheels.

The cracks have been in the system for some time now, soon we will start witnessing large blocks fall off at any moment. I am ready for a new beginning if you will. This whole thing Sucks.

Rant:OFF

BSD

Brimstone's picture

Tyler Funnily enough my years

Tyler

Funnily enough my years of studying advanced mathematics and thermodynamics has led me to a sort of Yin/Yang philosophy.  A philosophy where one extreme has no meaning without the other.  No life without death, no good without evil, etc. 

One point i have kept coming back to is that the broader ideas of good/evil , positive/negative have a very interesting symmetry to the relationship between energy and entropy

what i take from all of that is that life is a balancing act. and that both positive and negative aspects of life have their respective parts to play.  The key is to find an individual balance.

....steps off soap box

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