The Golden Truth: Could This Be The Start Of "The Big One?"

Thursday, May 10, 2012

Could This Be The Start Of "The Big One?"

JAMIE DIMON'S TEMPEST IN A TEAPOT

I wondered why the SPX futures crapped out right after the market closed. JP Morgan disclosed that it has lost $2 billion on synthetic credit derivative bets in its Chief Investment Office division. Not sure why JPM had to wait until the market closed. Surely they knew about this before the market closed. LINK

Rest assured that the true magnitude of losses is several multiples of this "mark to fantasy" disclosure. Also note that the Chief Investment Office is the division in which JPM conducts its precious metals trading/manipulation activities.

I have to believe, given that Wall Street is monkey see, monkey do, that several other Too Big To Fails have similar problems with their credit derivative portfolios. But don't lose sleep over this because the SEC, CFTC, FINRA, FASB and the Justice Department will see to it that Wall Street will never have to honestly disclose its true financial condition. The big collapse that eventually ensues will be used to cover the mess and they'll blame everything on Europe or Iran.

This is what I envision: Jamie Dimon gets on tv and says "we didn't see this coming, but some rogue dressed in white Islamic rags wearing a Star of David around his neck, gold coins falling out of his pockets and speaking Italian came rushing onto our trading floor and detonated a bomb stuffed in his underwear. Our systems blew up and Wall Street collapsed - sorry dudes."

6 comments:

Armageddon HalThursday, 10 May, 2012
Can't be--JPM passed the stress tests recently and Bennie Bernanke said things are improving in the financial community, right?

Define improving and define the criteria of a stress test. That test could have been similar to the draft board physical I took in 1970. Breathe--you pass.

$3 billion huh? I go nuts if I cannot account for a $10 bill.
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AnonymousThursday, 10 May, 2012
Things are getting worse over here in Canada:

Mask ban bill penalty doubled to 10 years

http://www.cbc.ca/news/politics/story/2012/05/10/pol-cp-masks-bill-penalty-doubled-mps.html

"MPs studying a bill that would make it illegal for rioters to cover their faces have doubled the proposed penalty to 10 years."

@Dave in Denver: If you and I are ever in the same "re-education" camp....I call top bunk!!!

-Sicilian Gold
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Edward LondonThursday, 10 May, 2012
A Jewish patsy pretending to be a Muslim? That's a good one that happens over in the Israeli areas (in the Palestinian areas, Jewish ops dress up as religious Jews and shoot blanks at defenseless palestinian villages to vilify the religious settlers). Anyway...that's a good scenario there, though :-)
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jasaFriday, 11 May, 2012
But but but Blythe said that no one at JPM makes or manipulates markets!
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PM BugFriday, 11 May, 2012
...
Bloomberg News reported in April that a single JPMorgan trader in London, known in the bond market as "the London whale," was making such large trades that he was moving prices in the $10 trillion market.
...

http://www.cnbc.com/id/47377555

Yeah, JPM never manipulates markets. Suckers.
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AnonymousFriday, 11 May, 2012
Shocking!
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Add comment

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.