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.
"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
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Saturday, November 2, 2013
Please click on the following link to listen in to my regular weekly audio interview with Eric King over at the KWN Markets and Metals Wrap.