"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

Trader Dan's free work will soon be available at www.traderdan.biz

Saturday, November 2, 2013

Feds Falling out of Love with JP Morgan?

The following story ( click to read the article) caught my eye this morning for reasons that many in the gold community will easily understand. Ask most of those who believe that the feds closely monitor the price of gold and work to tame any price rallies when the metal is in a bullish uptrend, just who are the agents employed to actively short the metal at the Comex and you will always get two names, Goldman Sachs and JP Morgan.

I find the following article both interesting and revealing therefore as it introduces something which I have not heard from any who adhere to this view - namely an apparent falling out between the political authorities and the latter of these two banks, J P Morgan.

I also find it interesting, and have remarked about this many times of late, that the largest stopper of gold during the Comex delivery process in recent times has been JP Morgan for their HOUSE account. In other words, they are LONG gold at the Comex in order to take delivery of the physical metal ( I explained this when I was attempting to debunk the silly notion of bullion bank caused "FLASH CRASHES" that is currently circulating through the halls of the gold community edifice.

It sure does make one wonder does it not what is going on behind the scenes when Morgan is being targeted by federal power? Have the feds lost one of their purported allies in the gold suppression scheme?

Either way it is very interesting reading and certainly lays bare the methodology employed by the current administration which uses tactics of intimidation against all those who dare defy it.

You know that this is brazenly arrogant when even Barney Frank seems to be taken aback by this concerted federal effort being used to harass J P Morgan.

Those of you who have been reading my comments for many years know full well that there is no love  lost between myself and either of these two megabanks. I have seen enough of their antics in the commodity markets over the years to have lost any sympathy for what might happen to either or both of them. Still there is something very unseemly in this episode which smacks more of a government shakedown rather than a pursuit of unbiased justice and fair play.



  1. Thanks Dan,
    While I certainly have zero sympathy for JPM I think to a certain degree they and the other financial giants are a product of the system we have created. The massive financialization of the US economy over the last 30-40 yrs has been something to behold. It may be hard to stomach sometimes but I would wager that most of us here have benefited from this explosion of paper wealth. To a certain degree "we have met the enemy, and it be us".

    Regarding this post it would not surprise me at all that the Obama administration would go after one of it's "enemies". It also would not surprise me if JPM was guilty of every fucking thing (and then some) that they have been accused of. The only way out of this mess is to continue to paper it over. The Fed will print (eventually real paper money) and Ben's helicopters will be deployed. Hyperinflation will fix this mess.

  2. Anybody betting against JPM and MS got their heads handed to them the last few years. So far, I see no technical damage whatsoever on those charts.

    Short them at your own peril.

  3. I had the gut feeling, that the mortage-fraud payments could be action against JPM because of beng long Gold and probably delivering the Gold to Asia and making money on the arbitrage.
    With these facts this seems even more likey.

    I expect Ben Bernanke and Janet Yellen to convince Washington with all their expertise, that the government should be glad that JPM is sending the useless barbaric relic over to Asia.
    The USA is hoarding among all nations the most of the barbaric relic which is quite embarassing for people with knowledge about the new progressive order of the world. And since Ben doesn't understand Gold anyway it can't be wise to hoard 8000 tons of such a relic, that doesn't pay any interest and is not even understood by the FED chairman! Obama should invite GS to follow JPM's example and do the same, instead of punishing the progressive visionary view of Jamie Dimon. Is Obama a reactionary goldbug?

  4. "The Saga of the JPM Funeral is ongoing and unstoppable. The casket is prepared. The old man is dead on the floor. The quick move from 1.65% on the TNX in May to 2.95% in September was sufficient to wreck the entire Interest Rate Swap derivative structure, kit & kaboodle. No minced words here, IRSwap structure dead and destroyed, barely limping along. The added piece of evidence to support the claim was the September event whereby the USFed led a round robin of flash trading to overbid the USTBond with the collusion of Wall Street banks. They might not have been eager to comply, but they were forced to do so. If the Interest Rate Swap machinery still functioned, there would have been no need to resort to such obvious tactics in the open, in full view. The IRSwap machinery that serves as the flying buttress to the USTreasury Bond Tower of Babel is broken. Big movements up or down in the TNX, the 10-year bond yield, are capable of wrecking the delicate extremely high leveraged derivative apparatus. It is managed by the Exchange Stabilization Fund under the USDept Treasury aegis, with JPMorguen CIO operational management. The exacerbation has come from the Big US Banks reversing their bond carry trade, which has badly depleted their capital. The capital is urgently needed to defend the USTreasury Bond Tower, and to supply the Interest Rate Swap derivative machinery. The capital is gone. They lack liquidity and are insolvent. Death awaits"


  5. wonderful imagination that jim willie; just another letter writer with a colorful gift of gab; sparks

    1. Honestly, I don't have a clue. I put the link because it's a recent letter and describes JPM, and as I'm a newbie in this field, he sounds to me quite knowledgeable because I don't understand half of it, lol :)
      I'll leave it to everybody's opinions, I'm not pushing one way or another...

    2. Jim Willie was calling for the collapse of Morgan Stanley by Christmas......last year. Didn't happen. But ya JW is another gold pumper that seems to make a good case for it, but no results.

  6. Just MHO but....
    This all just drama and show. There is absolutely no way the Fed or Gov't would allow JPM to go down or to even be a little bit hurt.
    The fines against JPM is like you or I getting a speeding ticket when our income is 1000 times the price of the ticket.
    The Fed directly supports the JPM trading machine.
    All of this talk about collapse is outright nonsense. For the forceable future the Fed can print all it wants...and you know what?....they will get away with it.
    Start to worry...maybe...when the Fed balance sheet hits 200 trillion.

    No financial entity on Wall Street will be allowed to fail...none..not even the small ones. The DOW will not be allowed to even correct more than a few % let alone collapse. You are witnessing the pillaging of an entire nation (world actually) by a handful of elites in NY, they are unstoppable and above the law.

    The sooner we get this through our thick skulls the better off we will all be.

    1. Not sure, I think GS and JPM simply hate each other.
      Dimon is partially out, Blythe heading for Brasil...
      Maybe the sharks are just starting to eat each other?

  7. Those calling for a huge collapse in the TBTF bank stocks and telling those to exit the system have quite possibly dispensed one of the worst pieces of investment advice the last 6 months

    Combine that with the calls to load up on gold and ditch the dollar made a bad investment even worse.

    One day these guys will be called to the carpet to explain themselves.

    If anything, it will be necessary to save their battered reputations.

    1. What will you do then Mark? You have made your point a hundred times or more. I mean what else do you have to say is that it?

    2. Mark
      Not a one of them could give a shit about their reputations. Only chumps like us think that integrity means something.
      Bad advice in the last 6 months? try the last two years.

    3. A black Swan cannot be timed with accuracy. Is it about investment, or about insurance? Again, you are mixing two different things imho. I'm not asking my insurance to bring me the best monthly profit. I'm asking it to protect me in case the black swan occurs and dollar drops to the abyss.

    4. Then gold is the most expensive insurance policy. It's in a bear trend and any black swan will cause huge paper redemption. The real large private owners use it to shield assets. "Insurance" is further down the list. Lack of debt and leverage and cash to take advantage of "black swan" is the best insurance.

    5. It's an endless debate between deflationary and inflationary arguments.
      I mean, you have sound arguments on both sides.
      Most are based on black swans.
      Which one will come to happen first is anyone's guess.
      I'm not sure you can say that every potential event in the world is only deflationary, and bearish on gold.

  8. I don't doubt that JPM is guilty of all the charges. then again so are all the mega banks so what is behind just going after JPM? it would be interesting to know the rest of the story. still until somebody goes to jail it's all just for show. and the show must go on-old Chinese proverb. lol.

  9. Chart updated.
    I see 1275 horizontal and 1290 pitchfork as main supports on the daily time unit.


    Meanwhile on another blog, a guy who sold all his houses and bet everything he had on silver when it was above 40 dollars is now warning about Jim Sinclair, because after days of research, he found out that his family bloodline was linked to a family close to the Rotschilds some 150 years ago. Think he would have minded spending some of that research time simply trying to get to know the man or contact him? You have to like some bashers really. I guess the suspicion stops after 10 générations, lol.

    1. Hubert

      All true (I think) I would also think that Mr. Sinclair is still very much connected or involved somehow in the Bank families, they do not just disappear.
      The wealthiest in the world are people you have probably never heard of.
      How does Mr. Sinclair fit into this?
      I really do not know, maybe someone else here does.

    2. Dean,
      I'm not saying Sinclair is not connected.
      How could he not be via his father?
      All I mean is, does it make him automatically a bad guy with a hidden agenda?
      How do you judge people?
      On what they do with their actions, or on who their ancestors were connected with??

    3. Hubert

      Quite the contrary, I think Jim's intentions are good.
      Given his connections, experience and pedigree I just don't understand why he is doing this (trying to help us).
      I am sure the hassle and abuse he has had to take hardly makes it worthwhile no matter what his reasons. I am sure he has better things to do.
      It would be interesting to know where he fits in the Banker family org. Black sheep or Top Gun ?

    4. From what I understood from Jesse's American Cafe, WS guys are a kind of family of narcissist sociopaths, think Gordon Gecko cloned 1000 times :)
      So, that would probably make Sinclair in the middle as discreet as Gandalf the white among a tribe of orcs lol. Reasons for handling hassle depend how much you believe in karma and such sort of things like ethics, and what makes a life really worth living for.

  10. Okay...this is a little out there, but...
    How does the Gov't get money without constantly borrowing or the Fed buying the bonds?
    Taxes and fines, that's how.
    Ben funnels billions to the TBTF, Gov't commences non-stop show trials and starts collecting billions from the TBTF in fines.
    The Gov't makes it look like they are teaching the Banksters a lesson but in actual fact it is nothing more than money laundering.
    You know what else? the fines are a tax deduction to JPM.

    This is a rigged game, and every market on the planet is gamed by the Fed and their goons.
    The Fed/Washington will never ever turn on their goons.

    1. Not all that far out there Dean. Whether cause and effect can be proven is meaningless. The game is rigged but the rest of the world is nearing the point where they won't play anymore. That is when the people like Mark quietly go away.

    2. Dollar's strength also owns also a lot to the Petro Dollar and what Kissinger and co did via Saudi Arabia, Opec... to counter De Gaulle's move in the 70s. It was a chess game about the dollar becoming the world reserve currency or not. US won, of course, ans petro dollar is a center pillar of dollar's strentgth.
      Middle east is a cornerstone of dollar strength / weakness, so I'm watching what all those countries will decide to do in terms of currency swaps or selling their oil in other currencies than dollars.
      Those who tried before paid the price (Iran, Irak, Lybia...).
      US are the number 1 military power by far and won't give up on this privilege easily. I have no cristal ball to foresee what will happen, but it seems to me that most countries understand now where the US are weak and why, and are taking actions in order to become more independant from the US dollar system and debt. I don't think US can oppose this trend for long, even with the threat of military power. We saw what happened regarding Syria. BRICS are starting to say "no more!"
      Let's see...

  11. I think what happened in Cyprus changed the world a lot for Jim. Instead of gold going higher as a result of QE and the debt, and the inflation that will follow, it became get out of the system completely, because the Cyprus model will happen everywhere. If one follows that to it logical conclusion, the system will collapse. But is Cyprus the model? Its such a massive situation that would disrupt life on earth as we know it. So does the debt get taken care of , in some sense, by inflation and a devalued dollar, or just get taken care of by stealing all the money in all the bank accounts, and all the funds. If stealing is in the cards, then its get out of the system. If its inflation, stay in the system with more hard assets. Certainly would like to hear what anyone thinks about this unbelievable situation.

    1. "I think what happened in Cyprus changed the world a lot for Jim."
      I agree on that one. I think he didn't believe in the possibility of a massive bail-in before Cyprus. Before that I think he was considering massive bailout as the main probability. Cyprus changed the priority of his messages.

  12. We all have to prepare for the "Black Swan" we foresee. For me that means owning physical gold, Being long google will not help when the next crisis occurs, I also have no debt, some cash on hand, freeze dried foods, water purification, etc. It seems crazy to some but it helps me sleep well. Put your biases (baggage) aside and ask yourself why central banks have been accumulating gold? Why has the Fed launched QE to infinity? How do you "stay in the system with hard assets"? I say get your hard assets out of the system.

  13. Just read the Jim Willie piece, very similar message to what Paul Craig Roberts delivers.
    We may very well be headed for a financial armageddon but the message is starting to fall on deaf ears.
    The message of imminent collapse (or only weeks away) as been trumpeted for years now (far too many times)
    We are all starting to look like a bunch of tin foil fools.
    Meanwhile...the rest of the planet appears to be enjoying a economic recovery that we are being told does not exist.

    I really do not know what to think or believe anymore.

    1. What is more important? The timing or the trend?
      Is the trend going better or worse?
      If the trend is getting worse and gives ground to Willie and Sinclair, by all means is the timing so important? One week, one month, or one to 3 years?
      If every month you throw a dice, and the odds that a systemic collapse occurs are going higher every time, should you get rid of your insurance?
      I don't care to know exactly when this will happen, provided that I am confident that :
      - it is likely to happen in the years to come
      - it will be too late to buy gold when it happens, just as it was too late to sell one's shares after october 29 krach.

  14. As a counter to JW and the multitude of others we read, here are some snippets from another newsletter:

    We follow the work of many economists and strategists, and among the best is the John Hook of Hook Ana- lytics. We were recently pleased to see the following points of analysis from John about the correlation between durable goods orders and capex spending plans, and their correlation with job growth. His conclusions are bullish for job creation throughout the next two or three years. Stronger jobs growth will be correlated with stronger GDP growth, and as our readers know, stronger GDP growth leads to stronger corporate profits, while increasing corporate profits lead to higher stock prices.

    We are bullish on the outlook for the U.S. economy; we expect slow and steady progress in Europe, and a
    continued opportunity for the markets to improve in Japan.
    We believe that developed economies are progressing better than emerging economies, although emerging economies will recover as Europe and the U.S. recover.
    In our opinion, commodities are in a base-building period, and demand for them will increase as China, India, and the developed world continue to grow and demand raw materials.
    We expect global GDP to grow at about 5 percent in 2014. We are also aware that if banks begin to lend again, now that many overhanging bad loans have been written off, the resumption of lending by banks in developed countries could stimulate economic growth at a more rapid rate. We hope that we will be able to increase our economic growth expectations in 2014.

    Are the two articles referring to the same planet? in the same solar system?
    Any votes on who is telling the truth? cause I sure as hell don't know.

    1. Five percent GDP, in a present deflationary spiral. You read Armstrong, we cannot have it all ways Dean. The market is going up for the reasons that Mark ad nauseum never stops harping about QE. Growth you have got to be kidding! Look around you.

    2. I know Concord.
      The above analysis comes from a newsletter very familiar to all of us..part of Jim Sinclairs inner circle. This is no CNBC stock pumper.

      I cannot believe this individual could possibly be so off.
      This is what has me so confused.

      Who is telling the biggest lie right now ?
      Is there really a crisis?

    3. Whoever this guy is if we have a global GDP of 5% gold will crater below 1000. I see an economy that is treading water as asset prices are being driven to unsustainable levels. I have bought stocks but feel completely uncomfortable about it.

    4. Concord

      The same analyst also still advises to buy gold/silver on dips.

      I agree, 5% global GDP seems incredible.

      Really don't know what to think.

      The same article goes on to state that consumer confidence numbers are not an accurate gauge of economic activity/health.

    5. Concord,
      You bought stocks and that's OK as long as you have a mental stop loss somewhere and can get quickly out of the market if things go wrong.
      This bull market could go on and on for many more months.
      Just be ready to run to the exits quickly.
      What are your criteria for going out or at least sell half of your position?
      You should have some, right now.

    6. Hubert,
      I am in a variety of stocks some which have done well but were somewhat extended when I bought them. I think what may be wise is buying the indexes like the spiders and being able to pull the trigger when the air comes out of this bubble. I am concerned and just do not see things getting better. Your comments to Mark below were very good. The majority of the people in the world are getting poorer and poorer. Key expenses like healthcare and education even for successful people have put their retirements in jeopardy with nothing in sight to change that.

    7. Hubert

      I also have bought US stocks. Nothing but green on that part of my screen. Kind of amazing, they just go up day after day.
      Armstrong says 32k on the DOW, don't know about that.

      I have not set a sell point, DOW 20k , 25k?
      I always keep in mind that we all thought we would have 2500 gold by now, this is Dejavu . All kinds of analysts basically promising blue sky profits with no downside risk..uh..right.
      What do you think?

  15. The level of disappointment by the Tin Foilers and the Armchair Armeggeddites expecting the system to collapse "Any Minute Now!" is unprecedented.

    So what if people lose 20% of their savings if their accounts are Cypressed?

    Heh, if you had stayed in stocks, you have already made more than 20% this year only, and the one-time "Tax" would not really be felt at all.

    However, if you "Got Out of the System" and parked your money in gold, you have already lost 20% and then you risk outright total confiscation.

    So it appears that the message is clear.

    You must stay in the system, stay fully invested in common stocks and the U.S. recovery, because that is the only way you will be able to survive the upcoming "bail in".

    Don't think for a minute that your gold is safe anywhere, someone is going to find it, tax it, or confiscate it, one way or another if you try to sell it.

    1. Mark - Gauleiter for the Thought Police?

  16. Retail index marking new lifetime highs as we speak.

    Commodity index getting ground and pounded to new lows.

    Charts don't lie, that's just a fact.

    Bottom Line: The Fed's $85 billion a month printing campaign has created a boom of epic proportions in retail and consumer plays, and a world class bear market in gold, oil, and soft commodities.

    The boom and prosperity created by the Bernanke Fed is second to none.

    1. A boom in retail and consumer plays?
      You know what WalMart answers to your supposed boom? :)

      Looks like your hate of gold makes you lose your sense of reality.
      Some mantras are dangerous to repeat.
      The middle class is being crushed, in the US, in France, and in most western countries.
      Social unrest is rising.
      There will be no prosperity with the crushing of the middle class.
      The vast majority of people is not benefitting from your "boom".
      It won't end well imho.
      Meanwhile, the party is still on in the SP500 boat, true enough, and I won't argue it could reach 1800, 1900...

    2. Mark, you are generally quite clever with the use of embellishment and disparagement to support your views, I will grant you that. But tell me something, when did the current "world class bear market" in oil begin and what exactly are the indicators of such a "world class" trend?

  17. Prosperity unless you work for:
    Oil Company, Drilling company, Oil service company, Railroad, any kind of Mining company, Farming, fertilizer company, Farm equipment company.
    All really crap paying jobs in the above.
    On the other hand if you work for, Best Buy, Walmart, Target,Starbucks,Disneyland or sling drinks at Vegas...you are just rolling in the dough.

  18. "A drop in the dollar’s value can occur in one of two ways. The way most people think of is via monetary inflation... However, in our current situation, the excess dollars are in the banks...The banks are keeping large reserves in order to meet demands that can arise from their uncovered derivative bets, and the banks are using some of the money that the Federal Reserve is making available to them to speculate on stock market futures, thus pushing stock prices to unrealistic levels...The other way through which the dollar can lose value is via its exchange rate to other currencies. Foreign holders of dollars, watching five years of dollar creation in order to finance federal budget deficits and seeing no end, can come to the conclusion that their dollar holdings are being diluted. If they make this decision, they will decide to get out of dollars or to reduce their exposure to the US dollar. "

    At least it's cristal clear.

    Paul Craig Roberts.

  19. The comment below was taken from Martin Armstrong article dated August 04th 2012.
    Hmmm...bit of a different attitude today...no?

    It is time we start paying attention to what is really unfolding before the hype misleads many and discourages most from buying gold when they should. Don’t worry. It is not fiat, lead bars in Fort Knox, not HYPERINFLATION we need to worry about. How about plain old fashioned extinction of society as we know it today? It is time to have some physical gold – just don’t listen to the nonsense.

    Now he makes fun of those who did buy and calls them fools.

  20. Oops
    I forgot to include the title of his August 04th 2012 Article

    "We are on the Verge of a Very Profound Systemic Global Meltdown
    Why We Need Gold in Times like This"

    Shucks Martin...you almost sound like the hucksters and doomsayers you presently seem to despise so much.
    What a difference a year and a nasty correction makes !!

    1. Armstrong speaks from both sides of his mouth. You can think and find many things about Sinclair and I definetely do, but his message is the same and will remain the same untill the end of this bullmarket. If Jim would have stayed away from the trading calls, he would be flawless.

  21. 50 DMA approaching 200 DMA downways in the general market. Gold and like doing opposite, anyone for sector rotation!

  22. Trader Dan:

    How do you feel right now about this Janet Yellen and what if any change do you think she will bring to the market sectors? Also I notice some foolishness going on in the "silver community" (whatever that is) with a recent high profile silver promoter bashing Jim Sinclair. Do these leakers want to make war on gold? I've been watching some of this and I think that GOLD and SILVER bullion advocates alike have and continue to do their own damage to their own interests and investments. Perhaps if they would have kept their mouths shut it would help their own cause?

    1. Weather Unit;

      If I understand Yellen correctly, I think she will make Ben Bernanke look like a hawk by comparison. I think she is the consummate liquidity provider.

      In regards to "the silver community" - some of those guys are even more far out there than the more bizarre among the gold bugs.

      As far as I am concerned, silver is going nowhere until signs of inflation or SOLID economic growth emerge. right now I see neither of those to be honest. If we do, silver will outperform gold to the upside but as to when that might happen, who the heck knows?

      In regards to my friend Jim Sinclair, I do not understand why some people feel the need to bash a man who is as deeply convicted about gold and the state of the global economic system as Jim is. One may or may not agree with Jim, but he is a man who deeply believes that the current system is seriously flawed.

      I agree with you about those who constantly want to take pot shots at those out there who are not bashful about laying out their convictions. The problem that exists in the gold and silver communities is that both are filled with very small, petty individuals who seem to take some sort of sadistic delight in trashing those who are advocates for honest money.

      Like I have said before, even those whom I respect in the gold community would be much better served by refraining from all manner of calls as far as price and time predictions. It really serves no useful purpose and only opens them to criticism and mockery. Better just let the market speak and try to read what it is saying and be content with that.

    2. Sorry Dan

      I posted Armstrong's article just to show that although he takes great delight in bashing some the people we read, yet he is really no better as far as shocking headlines and a good dose of scare.

      I like many others often confuse trading with long term investing.

    3. Dean;

      My last comment was not meant to reference you but those who keep bashing Jim Sinclair.

      I have no problems with folks expressing differences of opinions or pointing out contradictions in the predictions of others. Heck, I sometimes will read a market one way and two days later the entire complexion of the thing can change. It is just par for the course.

      What does bug me however is when folks keep making time/price predictions. No one, and I repeat that, NO ONE, knows with any certainty future events. If they did, they would be God and that ain't gonna happen.

      The best we can do is to look at the past and try to extrapolate from that but even at that, this time around we are in untrodden ground and not one person alive has ever lived through anything quite like this.

      That means some humility should accompany all of us those boldly make predictions.

    4. Thanks Dan

      I have read until my eyes look like those joke glasses with the eyeballs on coil springs.

      The divergence in outlooks is simply unexplainable. Everyone is right but probably wrong.

  23. like I always say, "if you buy Smith's tips, you must sell Smith's tips"; there are letter writers and there are players; swb in sparks

    1. Steve
      Is there any players that are also writers?

    2. Some few real traders also take some time to write.
      I myself don't trust the majority of pure technical analyst, because a TA doesn't mean you are going to make any money regularly and on the long term, which is the only criteria one should take into account regarding credentials.

      In the French community, I'd say Gilles Leclerc ("Johnlee") is quite a good trader with an urge to teach and share as well. You can see a few of his analysis on "Le billet du trader".
      I think he is spot on about money management and main goal being saving one's capital.
      I heard of some others, but I didn't have time to follow them too much.

  24. It Ain't no .gov shakedown - sorta the opposite

    by Pining4theFjords at TF Metals Report:

    "“I’m doped-out, gangsta. As set-trippin Banker

    And my Homies are down, so don’t arise my anger.”

    -Coolio, Gangsters Paradise

    It is not a surprise that rampant and widespread criminality is the norm. Most people don’t realize that this was essentially announced as official policy by no less than the Enforcement Director of the SEC, Robert Khuzami. In 2009 at a financial industry conference in New York, Khazami spoke to a room filled with 1,500 people from all of the top Wall Street financial institutions. Amazingly, in this speech he described the process that the government would use to give Wall Street a free pass to commit crime on a massive scale:

    Khuzami, the SEC's director of enforcement, talked about a new "cooperation initiative" the agency had recently unveiled, in which executives are being offered incentives to report fraud they have witnessed or committed. From now on, Khuzami said, when corporate lawyers like the ones he was addressing want to know if their Wall Street clients are going to be charged by the Justice Department before deciding whether to come forward, all they have to do is ask the SEC.

    "We are going to try to get those individuals answers," Khuzami announced, as to "whether or not there is criminal interest in the case — so that defense counsel can have as much information as possible in deciding whether or not to choose to sign up their client."

    Aguirre, listening in the crowd, couldn't believe Khuzami's brazenness. The SEC's enforcement director was saying, in essence, that firms like Goldman Sachs and AIG and Lehman Brothers will henceforth be able to get the SEC to act as a middleman between them and the Justice Department, negotiating fines as a way out of jail time. Khuzami was basically outlining a four-step system for banks and their executives to buy their way out of prison. "First, the SEC and Wall Street player make an agreement on a fine that the player will pay to the SEC," Aguirre says. "Then the Justice Department commits itself to pass, so that the player knows he's 'safe.' Third, the player pays the SEC — and fourth, the player gets a pass from the Justice Department." (Link)"


  25. Some gold companies are profitable and are down 45% this year. NEM. Gold is down a ton as well as silver. There are billions and billions of dollars out there for investment. If it is all about paper gold vs physical gold, someone must know exactly how much gold is stored at comex and how much money it would take to take delivery of it all. That would cause gold to soar and make for one of the greatest investment plays of all time. Its out there. Why hasn't anyone done it yet?

    1. Arnie,
      I have a friend who spoke of the same thing months ago. It seems more possible now due to gold's lower price. I am sure some here will can explain the obstacles in doing so. Although I think you are right. Maybe someone will do this when the price gets knocked even lower as many have predicted.

    2. Comex is a rigged game.
      There is no such thing as busting the Comex.
      If someone stood for delivery of all the gold they would change the rules to cash only settlement and Bernanke would provide unlimited liquidity with a few key strokes.
      They would then proceed to destroy the perpetrator.
      He who owns the printing press makes the rules.

  26. another terrifying collapse in the gold mining sector

    they are trading like 1930 depression era levels, biggest sector crash ever recorded

    1. Mark

      Oh c'mon now...the HUI is down 1.3%....terrifying collapse?
      For the gold miners that doesn't even count as a minor pull back...mice nuts....yawn.

    2. Most juniors are down 90% and the relentless selling continues. I call that a "Terrifying Collapse". No other market in history has been brutalized as badly as the HUI the last 2 1/2 years. No other bear market has been longer, either, except Japan. Remember how the Nasdaq crashed starting Labor Day 2000 and the market bottomed in July 2002, less than 2 years and then a vicious rally commenced that lasted until 2007.

    3. Mark

      That means the Juniors are a great buying opportunity.

  27. So, I am still testing this indicator, but that it is going down in both lines usually is not a good omen.
    So my expectations would be unfortunately that prices keep going down as long as those two lines are simultaneously in the red...let's see if this indicator is worth anything, lol.


  28. Oil down another dollar, at this pace it might be hitting $60 by January. Think that would confirm a commodity bust. Hopefully that will be the bottom.

    1. $ made on the way down is just as good as $ made on the way up; sparks


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