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 ...
Nam Vet
And others would disagree. What is certain is that there is volatility in the precious metals markets. What is not certain is the extent of the manipulation of those markets, whether the manipulators can control them, and which way they will turn. With governments worldwide nearing the end of how much confidence-game money they can issue, precious metals look to be a safer investment than many other potential investments.
EXCERPT The logic of the conspiracy theorists in this regard is, of course, impeccable: Goldman alumnus Josh Bolten runs the Bush White House, while his former Goldman boss, Hank Paulson, runs the Treasury. They both speak regularly to former Clinton Treasury Secy Bob Rubin, now at Citigroup (later an Obama advisor), who ran Goldman before Paulson and who keeps Paulson and Bolton dangling like puppets on a string.
They all supposedly touch base with the heads of the Italian and Canadian central banks—both Goldman alumni—and with ex-Goldman Robert Zoellick, head of the World Bank.
Paulson is now getting his advice on how to handle the crisis from Ken Wilson, recently retired Goldman partner and financial-institutions M&A banker, who Paulson just recruited to Washington to help him out. Already at Treasury were Goldman alumni Dan Jester, Anthony Ryan, David Nason and Bob Hoyt, the department's general counsel.
And—--the conspiracy crowd can't help but point out—Neel Kashkari, 35, a former Goldman VP who Paulson recruited as his Assistant Secretary of international affairs in 2006, has just been appointed—by-Paulson—to run, on an interim basis, the $700 billion TARP bailout fund." END EXCERPT
The BIG question is----how much did they pocket from "Wall Street cornies" for blanketing them with billions and billions of tax dollars with virtually no accountability. NOTE we may never know if Paulson and Kashkari bailed out their friends and cronies but I'll betcha wire transfers offshore musta been going 24/7.
The $700B TARP Bailout is now being called, "A MASTERFUL DECEIT." I'm not saying Paulson, et al, didn't pull a fast one when he testified in favor of the TARP before Congress----but I'm a bit puzzled by Congress' phony outrage. If HR 1424 was a 'MASTERFUL DECEIT' then CONGRESS didn't do its job.
TITLE I—TROUBLED ASSETS RELIEF PROGRAM (required 'Congressional Oversight' sections listed)
Sec. 101. Purchases of troubled assets.
Sec. 102. Insurance of troubled assets.
Sec. 103. Considerations.
Sec. 104. Financial Stability Oversight Board.
Sec. 105. Reports.
Sec. 107. Contracting procedures.
Sec. 108. Conflicts of interest.
Sec. 111. Executive compensation and corporate governance.
Sec. 116. Oversight and audits.
Sec. 118. Funding.
Sec. 119. Judicial review and related matters.
Sec. 121. Special Inspector General for the Troubled Asset Relief Program.
Sec. 125. Congressional Oversight Panel.
Sec. 127. Cooperation with the FBI.
Sec. 129. Disclosures on exercise of loan authority.
In HR 1424 there's enough rules, regs and CONGRESSIONAL OVERSIGHT REQUIRED that not one Dime should have been 'misspent'. So if anything funny did go on Congress should look in a mirror. They dropped the ball -- again. And the same bunch of jerjs will run our healthcare.
==========================================
CIRCA Sept 15, 2009 A SHOCKING DISPLAY OF OBAMA'S THIRST FOR POWER
FOX News' Judge Napolitano notes: if implemented, the unconstitutional proposals Obama urged in his Sept 2009 speech to Wall Street will amount to a final coup d’état by banksters, their technocrats and enforcers, at the Federal Reserve (*the privately-held bankster cartel that masquerades as a government agency).
Obama's "reforms" would install a dictatorial regulatory power controlled by international bankers over the entire US economy — down to the local grocer and hot dog vendor on the corner.
It will control our lives down to the smallest detail. It will require us to ask permission for the most mundane and routine of financial transactions. IT MUST BE BE RESISTED AT ALL COSTS. VIDEO LINK AVAILABLE Judge Andrew Napolitano On Obama/Bankster Takeover
“The Fed’s middle name is “manipulation.” That’s their job, really. As for JP Morgan... So what? They were just doing their client’s bidding”
JP Morgan is not the Fed’s client, it is the Fed’s owner:
http://www.lawfulpath.com/ref/federal_reserve.shtml
People on the outside who don't follow these things or participate in these markets always point fingers and say" Ya seee! It's all manipulated!" People are getting rich! yaddayaddda.............
Free markets are highly regulated as to certain behaviors, and if there is any real way to manipulate them, it is from the regulatory side. The more that ignorant people scream bloody murder about something they don't even claim to understand, the more the government takes advantage of their regulatory powers to neuter the profitability of a market and thus destroy it, and along with that destruction goes a chunk of capitalism. Without free capitalism, the chances of getting a job from a free rich person becomes nil and the only place left to go is government.
In case you have not noticed, this is exactly what Obama wants and why this article and articles like it keep appearing in the press in both right and left newspapers and various out;ets.
The ignorant right wingers see it as a great populist idea, and the ignorant left sees it a anti-trust, anti rich income fairness.
Both sides are being taken for a ride by this anti=capitalist manipulating piece of crap administration.
EXCEPT....
They've multiplied like rabbits and the paper/physical limits that were in effect 30 years ago are out the window now. There's one big thing you just don't grasp yet though......
You don't make fortunes in the gold, you preserve wealth and purchasing power. Fortunes WILL be made in silver though.
Nam Vet
When are we going to shut down this criminal enterprise? (the fed)
This reminds me of all the people who said there was no speculation pushing oil prices into the stratosphere. That didn’t even require a conspiracy theory, just a few hedge funds pumping prices and a few full supertankers parked offshore.
Yes, these things do happen. I don’t trust the government or their lackies or financiers or banking interests further than I can spit a baseball.
Speaking of silver, I've purchased the majority of it through independent sources... no paperwork involved. It is getting HARD to find rounds and bars, not to mention the outrageous spot, from these sources in recent weeks...
Reports are that there has been no audit of the U.S.gold at Ft Knox for going on 50 years. Would the Govt permit that behavior of private businesses?
With the Govt, where there is stink, there is nearby cr*p.
Dollars to donuts, there is an incredible and corrupt story re. the Ft Knox gold.
“.... but I dismissed it as satire.”
“If we believed that one, we might also believe that Obama is actually an elaborate plant by the vast right wing conspiracy. His mission was to govern as an ‘in your face’ communist dictator,destroy our economy and so scare the normal, sane and good people of this country, that a democrat would never be elected as president, a senator or congressman again. Thus saving capitalism from a communist coup for all time and putting us back on the road to fiscal sanity.
Naw...it couldn’t be that..could it? LOL!”
Well, the voting record of the American voting public shows such a plan would work only for the duration of the memory of the voting public....or about 10 months.
If this is true, or if the markets believe it MIGHT be true, then I envision a run up in gold prices and a rush to treasuries. I am not sure that there would be a large impact on any other markets. I don't follow your logic entirely -- please explain. Thanks.
Nam Vet
There is no logic coming from my end...LOL...I don’t know squat about this stuff. The link below was the thread that started it all last night(and it sounded pretty scary). You might want to read it and if you can make sense of it and explain it to me..please do!! I am a complete moron when it comes to financial markets....LOL!
http://www.freerepublic.com/focus/f-news/2490710/posts
Just one of those things to make you go hmmmm for the the conspiracy buffs.
How many claims are there against that Gold?
And therein is the issue, they have borrowed against it several times over, if all the claims were called at once the market would collapse for lack of delivery.
Thusly the Metals markets are manipulated to keep that from happening.
I could see people selling their gold positions thinking they have nothing -- causing prices to drop. I could also see a lot of folks that want gold realize they have none, which could cause gold to go up. This is have an impact. But I do not see it spilling over and causing any stock meltdowns.
I don’t understand the complaints.
If a cabal were conspiring to keep the price of a gallon of gas at $1.00 would you be upset?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.