The Golden Truth: Bank of America Dies and JP Morgan Calls For $2500 Gold By Year-End

Monday, August 8, 2011

Bank of America Dies and JP Morgan Calls For $2500 Gold By Year-End

Wow. What a day. The Fed didn't step in to support the stock market to the extent that I expected, but then again who knows how much intervention it took to prevent the Dow from falling 1000 points...Now the corporate and municipal bond ratings downgrades will pile up like paper marks during the Weimar period in Germany, beginning with downgrade of Fannie Mae and Freddie Mac debt to AA+ (this is, after all really Treasury debt) and Warren Buffet's Berkshire Hathaway put on watch for further downgrade. Isn't this fun? (It is if you own physical gold and silver).

Now Bank of America is on death watch, as bankruptcy rumors are starting to circulate. Here's why:

(click on the chart to enlarge)

Here were my thoughts on BAC to some colleagues earlier this morning:

BAC was set up to be the garbage disposal for all of Goldman's and JPM's fraudulent mortgage and derivatives underwritings related to Countrywide plus to cleanse the footprints of Merrill Lynch and the people who made $10's of millions ripping off investors in that area. I know from someone who worked at Lehman at the time that MER's balance sheet was as ugly as Countrywide's and MER was working on securitizing all of it and dumping it into their high net worth account base (that should make all of you who trust your financial advisor and big Wall Street brokerages feel good!). It's no coincidence that John Thain was moved from Goldman to MER in order to merge MER into BAC. I mentioned in one of my blog posts 2 years ago that BAC was set up as an entity designed to wash Wall Street's dirty laundry and cover up the footprints of fraud left by Goldman, et al. Next on deck: the taxpayers will monetize BAC's balance sheet.

Rest assured, fellow Taxpayers, Tim Geithner, Ben Bernanke and William Dudley (NY Fed President and ex-Goldman partner) will devise a way to move all of Bank of America's liabilities - and all of the related legal liabilities of those running Bank of America who made $10's of millions off of that fraud - onto the Taxpayer balance sheet. They did it with AIG and all of the Too Big To Fail Banks in 2008 and it worked so well with no public opposition that there's not reason to think that it won't happen again...

And the most "precious" news of the day: the biggest illegal manipulator of silver, JP Morgan, has now revised its year-end target for gold from $1800 to $2500, as reported in zerohedge.com:

Before the downgrade, our view was that cash gold could average $1800 per oz by year end. This view will likely now prove to be too conservative: spot gold could drive to $2500 per oz or higher, albeit on very high volatility LINK

It doesn't get any better than that! I don't think the master of the English language himself - Shakespeare - could create a farce this beautiful...

4 comments:

builderMonday, 08 August, 2011
"BAC was set up to be the garbage disposal for all of Goldman's and JPM's fraudulent mortgage and derivatives underwritings related to Countrywide plus to cleanse the footprints of Merril"

I always thought this too. Remember Ken Lewis testifying before Congress that BofA effectively forced (by Hank Paulson et. al.) to 'aquire' Countrywide???

There were many reasons for this, this being one. To contain the bad assets under a fall guy: BofA.
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AnonymousMonday, 08 August, 2011
(Dave)

Absolutely. I was thinking my phrase covered it all but you are right.
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AnonymousMonday, 08 August, 2011
It's no coincidence that John Thain was moved from Goldman to MER in order to merge MER into BAC. I mentioned in one of my blog posts 2 years ago that BAC was set up as an entity designed to wash Wall Street's dirty laundry and cover up the footprints of fraud left by Goldman, et al.

Nah. Never attribute to malice what can be attributed to stupidity. At one time, Ken Lewis was lauded as one of the great CEO's; they loved him at the time. Now it appears that he was just a moron... along with lots of others.
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AnonymousMonday, 08 August, 2011
...and where did all their winnings go?...and you ask what holds up certain real estate markets?

Listen to this...if your honest you should care!

Nicholas Shaxson takes a critical look at offshore tax havens which cost the U.S. $100 Billion in lost tax revenue each year. From the Open SocietyFoundations in Washington, DC.

http://www.c-spanvideo.org/program/Treasure
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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.