Posts Tagged ‘Market manipulation’
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NSA surveillance, wiretapping and its impact on culture and country

“The tyranny of a prince in an oligarchy is not so dangerous to the public welfare as the apathy of the citizens in a democracy” Montesquieu

  • Change
      • Remember way back when Janet Napolitano and DHS listed conservatives, pro-lifers, ex vets, Christians as potential terrorists. Did that enable NSA to target and scrutinize the phone and computer data of people associated with those groups? Is a great question, inspired by a great post:

Obama represents the counterculture of the 1960s. The part that hated the culture and the institutions of the country. They are the ones who spit on Viet Nam vets as they came home, and chanted “Ho, Ho, Ho Chi Min, the Viet Cong are going to win” as they rioted for a communist victory in Viet Nam.

They didn’t like America. And they went on a long march through the institutions they own today: academia, the media, the press, the “permanent” government.

Pushing back, the rest of the country became more reflexively more pro-country. But that is changing thanks to the Obama administration. Now that the hard core cadres of the Left have captured the Presidency, the patriotism of the Country Class may be turning…. love is reciprocated with hate, there is a reaction…..

My admiration for law enforcement, for the military, for teachers, for trust in the basic justice of the government is disappearing. I may soon end up as part of the NEW American counterculture. After all, if the country under Obama represent the dominant culture, then those of us who were once patriots will now become what they once were.

On Reality, America and the world today

“When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it.” Frederic Bastiat

 
Dark clouds over silver market

Jesse’s Café Américain has long been all over the shenanigans in the silver market. But he has excelled himself in linking to this video. Jesse’s comment rings true:

I think that the silver shorts are still staring into the abyss and are quite concerned about their precarious market positions.

But it could have been something more ‘official.’

The recent rigging of the LIBOR market is not a bad model for the carry on effect of this market operation that I alluded to the other day. However, I think some of the participants who went along for the ride are getting set up as ‘the Big Shorts’ are trying to offset their untenable risk.

Silver looks like a ticking time bomb waiting to blow a hole in the paper markets.

The video explains the role of the bullion banks, and points out that there are some very naked shorts out there. It’s hard to argue with the view that when this market manipulation collapses silver will rise. Particularly as faith in paper currencies is weakening.  Of course, if all prices are being sucked into a whirlpool  credit destruction, then silver will not be immune. But in such a world we will all be scrabbling for what holds its value best. It’s hard to argue against agricultural land. As Marc Faber says, they are less likely to drop bombs on it than on cities.

 
Massive Market Manipulation

We have posted on the possibility of USD 15 trillion money laundering, a rogue US agency or an attempt to extort at least 50 billion. It seems so farfetched, surely it can’t be true. But is it any more unbelievable than the manipulation of the gold and silver market or that of AAA rated securities?

Gold and silver markets are manipulated in what was termed the biggest fraud in the history of the world. Gold is the biggest commodity market in the world. USD 5.4 trillion a year is traded through the LBMA and no end of derivatives hang off it. The leverage level is 100 to 1. In other words there are 100 ounces of paper gold for every ounce of physical gold. Every ounce of gold that leaves the LBMA causes leverage rates to rise. At some point the market is going to blow.

Listen to King World News Interview with Andrew Maguire & Adrian Douglas. Andrew told the CFC exactly what was going to happen to the gold price when it followed the pattern caused by the manipulation. It then moved exactly as he said it would. He even gave the CFC live commentary explaining what was happening.

The email exchange between Andrew Maguire and the CFTC is linked to at the King World News site. It includes the following:

A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? I have honored my commitment not to publicize our discussions.

I hope you took note of how and who added the short sales (I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.

It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.

The Wikipedia entry on Maguire states:

He went public in April 2010 with assertions of market manipulation by JPMorgan Chase and HSBC of the gold and silver markets. Maguire said “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 U.S. taxpayer.” “No one at JPMorgan is familiar with Andrew Maguire,” said Brian Marchiony, a JPMorgan spokesman. HSBC declined to comment….

Maguire and his wife were injured in London in a hit-and-run accident on March 26, 2010, the day after Maguire’s name came to light during a CFTC hearing on limiting gold and silver positions held by large market participants in order to prevent manipulation. Maguire believes the accident was an attempt on his life. The driver of the other vehicle was apprehended after a police chase, both on the ground and from the air in helicopters, but his name has not been released.

Think about the implications of the biggest commodity market in the world being manipulated. Of banks being even more leveraged in this than other securities. At the moment much of the manipulation may be designed to stop gold from appearing as a viable alternative to fiat currencies. But it also flags the potential manipulation in the event of a move back to the gold standard. A debate that has raged before. The Secret of Oz is a great documentary. Well worth watching for its outline of the debate between a gold standard and one which uses silver coinage as well.

We have commentated repeatedly on fraud in assorted securities market. I expect this book will detail more. If central bank manipulation of interest rates, the very price of money was not bad enough, we have the banks at it as well. Money is so central to everything that if it is too badly distorted the economy can’t fail but to destroy value, rather than create it.

It’s time to face facts, there is something rotten in the State of Denmark. Not to mention the other States of the formerly developed world. Formerly developed world is an awkward term. The “regressing world” seems a better term for describing our reality.

What is happening has nothing to do with classical models of capitalism. We now have a new form in the US, UK and perhaps other “Anglo” style economies. It can be thought of as connected capitalism. Not because the net connects us all, but because wealth accrues on the basis of connections. Not merit, not luck, but that now rather quaint concept …. corruption. Corruption on this scale will undermine the legitimacy of our system. This would be an unmitigated disaster.

Innovation represents the only hope for a beneficial black swan that will enable western governments to meet their promises. That will enable developed country citizens to have anything like the life style they are expecting. It must not be sabotage in a march to neo-luddite or pseudo-socialist alternatives. Neither they nor gangsta capitalism or its related connected capitalism will enable sufficient innovation. It really is a case of go forward fast or experience a collapse of Western civilization and much of the existing world order.

There is an interesting video here on the failure of our societies to continue to get big things done. It makes an unstated but nevertheless devastating attack on the precautionary principle. It also touches on the loss of the BS detector that Westerners used to have. We need to turn our culture around, fast.

Graphic courtesy of The Market Oracle