The Golden Truth: Federal Agents Investigating JP Morgan's Silver Market Manipulation

Monday, May 10, 2010

Federal Agents Investigating JP Morgan's Silver Market Manipulation

In case readers missed this, Sunday's New York Post - the only major newspaper to report this, despite ALL major media outlets having been made aware of this - reported a wide-ranging investigation into JP Morgan's silver market corruption. The Antitrust Divsion of the Justice Dept is looking into criminal behavior and the CFTC is investigating civil charges. The investigation is all-encompassing, including JP Morgan's trading activity both on the NY Comex and the London Bullion Market Association.

(click on image to enlarge - source: GATA)

The article pretty much explains the details. As we all know, there is a major disconnect between the extreme paper and derivatives short in silver amassed by JP Morgan vs. the amount of silver available to deliver should the buyers of JPM's fraudulent paper decide to ask for actual delivery of the metal, and especially if they decide to ask for private delivery out of JPM's custodial warehouses.

For the record, and to highlight the degree of cover-up here, I know that the Financial Times was invited to participate in the fact-gathering and reporting of this investigation, but pulled out at the last minute. Recall that former British PM Tony Blair is now a highly paid "advior" to JPM - no doubt he pulled strings to scare off the FT. My hat's off to the NY Post for doing its job in reporting the Truth.

22 comments:

HopiumMonday, 10 May, 2010
So, 1 Trillion evaporated in last Thursday's little glitch...One trillion is needed for this bail out. Fed opens back up swap lines. INTERESTING.
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JoeMonday, 10 May, 2010
Dave,

How credible is the NYP compared to other MSM outlets? Just asking because I am hopeful my two metal dealers will read this and just maybe not think I am such a nut after all.

Joe M.
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Dave in DenverMonday, 10 May, 2010
NY Post has one of the best business reporting units in the media business. Forget your metals dealers. Most coin brokers are no different than any other whore salesman. They only care about bid/ask spread, volumn and how much then can extract from the uninformed.
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AtticusMonday, 10 May, 2010
Since this news has come out publicly will this prevent JP Morgan from manipulating the silver market from this day forward?
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Dave in DenverMonday, 10 May, 2010
Good question Atticus. Hard to say. We'll know more in time. The answer to your question will tell us all we need to know about how deep and wide-reaching Wall Street's control of our Government is.
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AnonymousMonday, 10 May, 2010
Dave..
over here we do NOT hold the FT in much regard re financial matters.

The string pullers in the FT are basically socialist/communist in leaning. Hard to believe, I know, but there it is.

The comment re Liar/Bliar is true, the bastard is responsible for many such cover-ups, many careers ruined...

AARRGGHH, just don't get me started....
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AnonymousMonday, 10 May, 2010
Dave, shouldn't the fact that most states here in the US are bankrupt start coming to light right about now?... Now that tax filing season is over and people start realising what a horrific shape state budget's are in?
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Dave in DenverMonday, 10 May, 2010
@UK Anonymous: LOL. I will say the FT is better than the WSJ. At least the FT waited until the last minute to pull out of covering the silver manipulation story. WSJ would never think about touching it.
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RothbardMonday, 10 May, 2010
While many predicted a price explosion today, I kinda figured not much would happen. And that is definitive PROOF there is no manipulation! :rolling eyes:

Announce it, investigate it, and either a)declare them guilty (unlikely), b)Have them pay a token fine and admit no guilt, OR c) no grounds for charges.

I'm thinking B.

I am shocked the metals didn't drop more today. The nuclear option of printing 1 trillion EURO'S is so bullish for that currency and bearish for any safe havens. :rolling eyes: ....again

I guess they realized killing the EURO WAS FORCING TOO MANY PEOPLE INTO physical gold. Oops, backfire!
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anliuMonday, 10 May, 2010
Dave, "cheeky bastard" over at zerohedge makes a very interesting point:

I know im getting boring with the pimping of the swaps, but just wait until the facility becomes operational and then the secondary market buybacks of EU bonds will be in $ not EUR. QE II by proxies; FED mission accomplished. The main thing is to devalue the buck not the Euro. In short; just wait for the swap facilities and go long EUR.
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Dave in DenverMonday, 10 May, 2010
@Anonymous re: States. Most States are funding budget shortfalls from two sources: borrowing from Obama's Govt and borrowing from their State pension funds.

Ultimately the States will end up defaulting on pension fund obligations OR the Fed Govt will take them over and print money to fund them.

Tax revenues I'm sure I'm are dropping off a cliff.

The Fed punched the printing press button by re-upping the "liquidity" dollar swap lines with several EU CB's plus Canada and will soon have to start printing to fund Treasury auctions.
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Dave in DenverMonday, 10 May, 2010
anliu: the Fed is engaging in QE2 on several points. ZH points out one area. How about the Primary Dealers taking down roughly 50% of all Treasury auctions so far this year? Who funds the PD's? LOL the Fed of course. PD's borrow at least 10:1 from the Fed against tier 1 capital for whatever they want to buy.

There will be many other ways in which the Fed prints, but doesn't print according the M's (MZM, M2, etc)
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Dave in DenverMonday, 10 May, 2010
Rothbard, I completely agree about the surprisingly small pullback in gold on this EU bailout. One would have thought it would have given up at least 1/2 of what it gained over last Thurs/Fri. Extraordinarily bullish. Good observation there.
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AnonymousMonday, 10 May, 2010
The smart thing to do was to kick Greece out of the EU, since we now know they got in by cooking their numbers, and let the other members bite the bullet from Greece leaving. Short term pain, but atleast the euro might survive in such a scenario.
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Dave in DenverMonday, 10 May, 2010
On the surface I agree with you re: kicking Greece out. Problem is that Greece's problem is German and American bank debt and derivatives problem. The latter to the tune of probably Greece debt x 10.
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anliuMonday, 10 May, 2010
Boy Dave, you complain about Obummer being a 2-faced liar... What do you make of cuddly uncle Buffet now?

Moody's CEO Dumped Shares The Day SEC's "Wells Notice" Arrived -- And So Did Buffett!

Read more: http://www.businessinsider.com/moodys-ceo-dumped-stock-sec-wells-notice-2010-5#ixzz0nYyO42iZ

It's come to the point the only thing I trust now is gold and silver in my hands, lol.
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Sam....Monday, 10 May, 2010
Dave,
I'm sure you've seen this:
http://theburningplatform.com/blog/2010/05/10/the-6-mafia-families-of-nyc/

It explains so much. What's your take?
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Dave in DenverMonday, 10 May, 2010
anliu, i posted a blog piece a few weeks ago discussing what phoney scum Buffet is.
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Dave in DenverMonday, 10 May, 2010
re: the 6 mafia families of NYC. great link. thanks. the difference between La Cosa Nostra and Wall Street is that the mafia only controlled a few Congressmen and a lot of local judges and police chiefs in NYC/NJ/Philly/Boston/Vegas/New Orleans...Wall Street controls almost all of Congress, most of the Federal judges, a few of the SCOTUS judges, etc.
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JoeTuesday, 11 May, 2010
Gold close to another record and Silver still stuck in the mud. Silver should be $25 right now based on its last high in March, 2008.

Joe M.
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Dave in DenverTuesday, 11 May, 2010
silver will do a moonshot out of nowhere and spin a lot of shorts into the grave. no one is paying attention to this DOJ/JPM investigation, but it's been described to me by someone who knows as "a major sting operation." there will be consequences for the corruption.
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HopiumTuesday, 11 May, 2010
One hell of a spike Dave...Locke Ness monster like lol

http://goldprice.org/silver-price.html
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Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.