Posted on 04/11/2010 8:17:32 AM PDT by JustTheTruth
Metal$ are in the pits
Posted: 2:10 AM, April 11, 2010
There is no silver lining to the activities of JPMorgan Chase and HSBC in the precious-metals market here and in London, says a 40-year veteran of the metal pits.
The banks, which do the Federal Reserve's bidding in the metals markets, have long been the government's lead actors in keeping down the prices of gold and silver, according to a former Goldman Sachs trader working at the London Bullion Market Association.
Maguire was scheduled to testify last week before the Commodities Futures Trade Commission, which is looking into the activities of large banks in the metals market, but was knocked off the list at the last moment. So, he went public.
"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or the US taxpayer," Maguire said. <...>
"HSBC conducts an ongoing manipulative concentrated naked short position in gold. Silver is much easier to manipulate due to its much smaller [market] size," Maguire added.
<...> Also during the CFTC hearing, Jeff Christian, founder of the commodities firm CPM Group, said that the LBMA, the physical delivery market for gold and silver in the UK, has been using leverage, which is another way to depress the price of gold and silver.
Christian said that the LBMA -- the same market Maguire trades in -- has leverage of about 100-1 on the gold bars settled on the exchange. In layman's terms, that means if 100 clients requested their bullion bars be delivered, the exchange could only give one client the precious metal. ... [exerpt only]
(Excerpt) Read more at nypost.com ...
Looks like the MSM has finally picked up this story..or parts of it. NYP doesn’t make it sounds quite as bad as the article you posted from yesterday though. I don’t know enough about the markets to make a serious judgement on it either way. Hoping some expert FReepers can explain it all to us.
Inflation will occur if/when the bond and T-bill markets fail.
Why?
Because then they can no longer disguise all the checks and stuff that come out from the Federal government.
Then, they will have to print ACTUAL GREENIES to cover all those checks.
ping for later
Have YOU personally verified this? What, except blind faith, makes you think that this is true? Are there any audits available?
WARNING PING! ???
Some here have been following this story for a few days and if some of the stories are true, this could make the meltdown in the fall of 08 look like child’s play. Now that the NYP has picked up the story, it might be time to take it seriously. TCH had some very scary posts on this scandal yesterday. Not being well-versed in this stuff, I don’t know what it all means, but it sounds explosive as hell.
Maybe some smart FReeper can tell us if we are all doomed or not...LOL!
Links to some of TCH’s stuff last night in case you missed it:
http://www.freerepublic.com/focus/f-news/2490710/posts
Well we know who will be first up against the wall when the revolution comes, the heads of JP Morgan and Goldman Sachs.
Bookmark.
“Ever notice how the market rallies at the end after starting down all day?”
Yes. Very suspicious. That’s what’s kept me from getting back into the market, I don’t care how much it’s “up” from the last trough. Unless the manipulators are going to start telling me what their schedule is, I’m staying out.
Liz, Have you seen this post from Velveeta?
Your thoughts?
They are playing with a marked deck. The shills on CNBC crack me up.
.
The US dollar is inevitably going to decline against everything -- because the Federal Government has doubled the number of dollars in circulation in order to pay for it's astronomical excess spending.
Goldbug ping
Related article at zerohedge:
“Jeffrey Christian Has A Second Chance To Disprove The Gold Ponzi Scheme, Fails”
However, here’s a rebuttal from the President of iTulip.com:
“Silver price manipulation? If it looks too bad to be true, it probably is”
http://www.itulip.com/forums/showthread.php?p=156095#post156095
Mail me to get on or off the Free Republic Goldbug Ping List.
Why would they worry about the price of gold? Because there is only about half enough gold available to back all the contracts that they have out. If things crash and you have gold futures or contracts, and you go to cash them for gold in hand, there is little chance that you can get half of what you bought. It does not exist. They manipulated the market and oversold the supply. That was posted on FR recently.
"In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
"This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard."
-- "Gold and Economic Freedom", by Alan Greenspan (1987)
http://www.freerepublic.com/focus/news/2490376/posts?page=22#20
Their Greenwich homes will likely be the first looted by the rioting Obamulan hordes seeking “social justice.”
Forget the plans of our parents and other seniors across the country who counted on modest dividends to be part of retirement security.
Leni
And then it will wind up just like in Doctor Zhivago were they cram in five families into each house.
This is true.
"Gold stands in the way of this insidious process."
This is manifestly false.
Why do you think the government was forced to abandon the gold standard? Answer: because they expanded the supply of money and credit beyond the point where the issued notes could be redeemed. And this happened under a gold standard.
You are pretty close, however. The real evil is fractional reserve banking where the government and its merry band of bankster thieves can issue credit in excess of savings. And in the context of a banking system with a 100% reserve requirement a gold standard can be valuable. But redeemable currency per se solves nothing. History proves this.
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