Friday, December 9, 2011


Gold is cheap relative to the idea that you could have a life’s fortune on a statement from a clearing agent [your brokerage account] and find out that you don’t have a penny left anywhere.  Which should you have had, physical gold or that clearing house statement?  Gold is cheap because of the condition of other things 
                                                   - Jim Sinclair

How can you have your money anywhere...and expect and feel certain that this money will be returned to you when you see the inner workings of finance and Wall Street through the eyes of the collapse of MF (Global)?  LINK


  1. Ain't that the fucking truth. I've been front running gold and silver for two years.

  2. MF Global Customer Losses may be Soros's Gain - WSJ Gets it Wrong

    This WSJ headline is not correct: "Corzine's Loss May Be Soros's Gain -"The headline needs to read "MF Global Customer Losses may be Soros's Gain" If there was an illegal conveyance to MF Global Holdings from customer segregated accounts customers then Soros may bet the beneficiary with customers being once again victimized. A finding that there was an illegal conveyance would mean that the assets now being sold off in distressed fashion and for pennies on the dollar may belong to customers such as myself. In a way George Soros just purchased $2 Billion dollars of fenced goods potentially owned by MF Global customers including Gerald Celente and I. Preventing this from a happening was a major goal of the commodity customer coalition. The Trustee Giddens and the Court are not protecting retail consumers; the structure of the bankruptcy is such that there are two bankruptcy proceedings one being managed by Giddens and the other by FBI directory Louis Freeh. This has put customer interests at distinct disadvantage. Rushing the liquidation of assets has also been to the detriment of customers. The WSJ and the media want to make Corzine the victim.. He is not. Corzine, Soros, and other players benefit at the expense of the general public. I go on to explain repo and reverse repo's with an analogy about cars in longterm parking at the airport.

  3. Corzine got runned over by a EURO reindeer

    Walking home from Lloyd's house Christmas Eve.

    You can say there's no such thing as negative Alpha,

    But as for me and Blankfein, we believe.

    He'd been drinkin' too much Keynesian eggnog,

    And they'd begged him not to so.

    But he'd lost his trader medication,

    So he stumbled out the door into the EURO sovereign snow.
    When they found him Christmas mornin',

    At the scene of the attack,

    There was a note pinned on his forehead,

    That said give us all our segregated monies back.

  4. The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold

    That paper gold, in the form of electronic ones and zeros, typically used by various gold ETFs, or anything really that is a stock certificate owned by the ubiquitous Cede & Co (read about the DTCC here), is in a worst case scenario immediately null and void as it is, as noted, nothing but ones and zeros on some hard disk that can be formatted with a keystroke, has long been known, and has been the reason why the so called gold bugs have always advocated keeping ultimate wealth safeguards away from any form of counterparty risk. Which in our day and age of infinite monetary interconnections, means virtually every financial entity. After all, just ask Gerald Celente what happened to his so-called gold held at MF Global, or as it is better known now: "General Unsecured Claim", which may or may not receive a pennies on the dollar equitable treatment post liquidation. What, however, was less known is that physical gold in the hands of the very same insolvent financial syndicate of daisy-chained underfunded organizations, where the premature (or overdue) end of one now means the end of all, is also just as unsafe, if not more. Which is why we read with great distress a just broken story by Bloomberg according to which HSBC, that other great gold "depository" after JP Morgan (and the custodian of none other than GLD) is suing MG Global "to establish whether he or another person is the rightful owner of gold worth about $850,000 and silver bars underlying contracts between the brokerage and a client." The notional amount is irrelevant: it could have been $0.01 or $1 trillion: what is very much relevant however, is whether or not MF Global was rehypothecating (there is that word again), or lending, or repoing, or whatever you want to call it, that one physical asset that it should not have been transferring ownership rights to under any circumstances. Essentially, this is at the heart of the whole commingling situation: was MF Global using rehypothecated client gold to satisfy liabilities? The thought alone should send shivers up the spine of all those gold "bugs" who have been warning about precisely this for years. Because the implications could be staggering.

  5. Latest Release from Martin Armstrong dated December 9, 2011

    Trading wiTh oTher people’s money
    The Collapse of the - WORLD Financial System
    Why MF Global is worse than Europe

    The shocking collapse of MF Global with the amount of missing client funds now rising to $1.2 billion, is so devastating, we are at the precipice of complete financial disaster. The United States boasts far too much of its greatness and “liberty and justice for all” but its actions reveal nothing but greed, distain, and contempt of the rights of man that include his right to property. Jon Corzine was a bond trader at Goldman Sachs and has been known as an aggressive trader all along. He intervened at the SEC and changed the direction of MF Global. What is at stake now is exposing the political corruption of the New York media, courts, Justice Department, Commodity Futures Trading Commission, Securities Exchange Commission, and political process has come together in such a way that the fate of the nation is truly hanging in the balance. Why do I make such a bold statement? The failure of the clearing houses to step up and honor the trades is devastating. The conduct of the SEC and CFTC is despicable and how can you place ANYONE at the helm of either “regulator” who would EVER be in a position to have to recuse himself as the Commodity Futures Trading Commission’s chairman, Gary Gensler has done for being ex-Goldman Sachs?

  6. Is this quote in Armstrong's latest the reason that they hold gold/silver in the UK?

    The SPDR Gold Trust ETF (GLD) holds a proportion of its gold in allocated form in London at HSBC,

    "In the UK, there is unquestionably no statutory limit whatsoever on the amount that can be re-hypothecated. In fact, brokers are free to re-hypothecate all and even more than the assets deposited by clients is truly astonishing. However, at least there it is up to clients to negotiate a limit or prohibition on re-hypothecation whereas in America it is not even disclosed. Therefore, US broker-dealers have an advantage when opening a UK operation allowing them to bounce back and forth exploiting both systems. Why do you think that AIG was operating in London? This irregularity of rules between the two markets enables exploiting the UK regime very attractive to international brokerage firms to employ European subsidiaries to create pools of funding for their U.S. operations, without the bother of complying with U.S. regulations even if they did bother to enforce them."

    Anyone know? Thanks..

  7. Coincidence?

    Graham Tuckwell Brings On Goldman Sachs To Sell ETF Securities (SGOL, AGOL)

    According to the Financial Times, “One of the pioneers in the exchanged traded fund market has put his company up for sale with a potential £1bn ($1.6bn) price tag that comes as the opaque sector has been thrown into the spotlight by a recent trading scandal at UBS. Graham Tuckwell, the founder, majority owner and chairman of ETF Securities, has mandated Goldman Sachs to run a sales process for the London- and Jersey-based group, two people close to the situation said.”

  8. Eurozone banking system on the edge of collapse

    The eurozone banking system is on the edge of collapse as major lenders begin to run out of the assets they need to keep vital funding lines open.

    The European Central Bank admitted it had held meetings about providing emergency funding to the region's struggling banks, however City figures said a "collateral crunch" was looming.

    Many banks, including some French, Italian and Spanish lenders, have already run out of many of the acceptable forms of collateral such as US Treasuries and other liquid securities used to finance short-term loans and have been forced to resort to lending out their gold reserves to maintain access to dollar funding.

  9. TFMR Podcast #8 - Mike Krieger

  10. I don't what you guys are all moaning on about. Here's Skeletor aka 'Saint Gary Gensler' explaining to a Congressional Committee that pillaging customer accounts is a civil matter subject to 'fines' as far as the CTFC is concerned. Unfortunately some ill informed lawyer on his staff points him in the direction of some irrelevant statute that show it to be criminal. Clearly an irresponsible briefing from a man with no future in tommorrows commodity community.

    Look at the fluency Skeletor has with law and precise and pointed way he deals with transgressors. Obviously as Ted Butler says Skeletor is the best CTFC chairman ever, the Elliot Ness of commodities.

    How could you possibly think your late night crammings for your Series 24 exams give you a greater understanding than a legal genius like Skeletor or Corzini? Wake up in the New America looting customer accounts is a civil matter subject to fines which have the advantage that under the no blaim rules pleading guilty to a minor fine prevents civil litigation.

    This is the discipline of steel that Skeletor is here to bring you with the new commodity codes and rules. Clearly even the most disrespectfull among you can realise that Skeletor is going clean up the commodity complex because he's finished with it is going to be impossible for a participant of the CTFC's inside board to committ a crime . Job done, Ted Butler.

  11. There is a new scientific study that actually explains why congressional hearings yield no results ....this study may also apply to the SEC, the CFTC,and the justice dept!

    Rats Will Work to Free a Trapped Pal, University of Chicago Study

  12. Fried calamari anyone?

    Goldman Sachs Group Inc. (GS) plans to issue four certificates of deposit linked to stocks as record low interest rates drive investor demand for the potentially higher-yielding CDs.

    In other words in the event of a big rally in the market on the month Goldman will keep much if not most of the profit. In the event of a big crash, you will eat the loss.

    Why would anyone buy such a product? There's no reason to do so, and if there's any sort of fiduciary responsibility associated with the seller I'd love to see their argument justifying how this isn't a raw violation of that responsibility.

    Since this is listed as a "CD" I presume it falls under FDIC coverage if Goldman fails.

  13. Shadow Rehypothecation, Infinite Leverage, And Why Breaking The Tyranny Of Ignorance Is The Only Solution

    however, we will point out the two key messages: on one hand we get a definitive explanation of why not NY but London is true hub of financial engineering and infinite leverage (recall that the UK is in fact the most levered nation on a GDP basis in the world when one takes into account all outstanding debt, not just sovereign - a fact well known to S&P and explaining why the UK will be the last to be downgraded as this would bring attention to the last domino in the chain) as follows: "Mathematically, the cumulative ‘collateral creation’ can be infinite in the United Kingdom" - that's from the IMF basically telling everyone that courtesy of no rehypothecation haircuts one can achieve infinite shadow leverage. And the other one comes from Gorton who explains why haircuts are the functional equivalent of information arbitrage: "Increases in repo haircuts are withdrawals from securitized banks—that is, a bank run. When all investors act in the run and the haircuts become high enough, the securitized banking system cannot finance itself and is forced to sell assets, driving down asset prices. The assets become information-sensitive; liquidity dries up. As with the panics of the nineteenth and early twentieth centuries, the system is insolvent."

    And the punchline: "Liquidity requires symmetric information, which is easiest to achieve when everyone is ignorant. This determines the design of many securities, including the design of debt and securitization."

  14. Greg Hunter

    System collapses if you can't trust your counterparties....oops

  15. Jefferies Bond Trader Claims MF Global Lied to get Bonds Issued

    While we wait for an army of MF Global’s regulators to figure out how and who transferred trading clients’ money into the firm’s house accounts there is another issue that needs equal scrutiny.

    How did international brokerage house Jefferies convince institutional investors to buy over $600 million of secured and unsecured MF Global corporate debt this summer?

    Five days after the Corzine led firm filed bankruptcy I posed this question to a senior vice president of debt securities at Jefferies. We’d been introduced through a social friend at a popular New Canaan watering hole and, me being the enterprising reporter took the opportunity to look him in the eye and ask my most pressing question:

    What in heck possessed you guys to sells hundreds of millions of MF Global secured bonds in August?

    Without hesitation he looked right back at me and said, “MF Global lied to us”.

    A little taken back I gave him a slight smile and said, “Really? About what? The health of the balance sheet?”

    “Mr. Jefferies” shot right back with a slightly frustrated face, “Yes they lied.”

    As we watch traders go on CNBC today casting doubt on the legitimacy of Corzine’s congressional testimony – He claims to not know where his clients $1.2 billion is – I’m wondering what else was this CEO is possibly misleading people about. And does my Mr. Jefferies bond executive’s accusations have any meat to them.

  16. Ron Paul Proposes Interesting Salary For Himself As President

    Washington bureaucrats, Paul says now, "would like it to be complicated, and that we have to accept this complex monetary system of the Federal Reserve. But it's no more complicated than two little kids talking ..."

    It's not complicated, he insists. These are the themes he has been addressing, consistently, since he entered politics in 1974, over the course of 12 terms in Congress, through his third bid for the White House: Free markets are good. The Federal Reserve is evil. The gold standard should be restored. Government is the cause, not the cure, of the nation's troubles.

    "If it tries to make us virtuous and it tries to make us better people and fairer people and make us more generous and make sure that nobody's richer than the other person, redistribute your wealth, the ONLY way they can do that is the undermining of our personal liberties," Paul told a raucous crowd of several hundred supporters during a recent "Restore Liberty Rally" at the Greenville Convention Center.

    "And that isn't the purpose of government. The purpose of government is exactly the opposite. The purpose of government is to protect our liberties."

  17. Jeffrey Sachs: 'That's not a free market, that's a game'

    The controversial economist talks about the collapse of the global financial system and how to end the crisis.

    How can the global financial crisis be solved? What went wrong, and what are the stakes? One of the most controversial economists of our time talks to Al Jazeera's Sami Zeidan about the debt crisis, what caused it and how to fix it.
    "The banks have said, leave us deregulated, we know how to run things, don't put government in to meddle. Then with that freedom of maneuver they took huge gambles, and even made illegal actions, and then broke the world system. As soon as that happened then they rushed out to say 'bail us out, bail us out, if you don't bail us out, we're too big to fail, you have to save us'. As soon as that happened, they said 'oh, don't regulate us, we know what to do'. And they almost went back to their old story, and the public is standing there, amazed, because we just bailed you out how can you be paying yourself billions of dollars of bonuses again? And the bankers say, 'well we deserve it, what's your problem'? And the problem that the Occupy Wall Street and other protesters have is: you don't deserve it, you nearly broke the system, you gamed the economy, you're paying mega fines, yet you're still in the White House you're going to the state dinners, you're paying yourself huge bonuses, what kind of system is this?

    When I talk about this in the United States, I'm often attacked, 'oh, you don't believe in the free market economy', I say, how much free market can there be? You say deregulate, the moment the banks get in trouble, you say bail them out, the moment you bail them out, you say go back to deregulation. That's not a free market, that's a game, and we have to get out of the game. We have to get back to grown-up behaviour."

    Jeffrey Sachs, Columbia University

  18. Pimco Fund Repo "Problems" Gerald Celente Strategy CME

    I examine two Pimco high income Closed End Funds to reveal the use of Repo's or Reverse Repo's. I chose those funds because they are 70-80% overvalued as vulnerable retiree's seek income without seeing hidden risk. I had a talk with Gerald Celente who a great resource to me in terms of getting the story of the CME out in the open. Gerald turned out to be a great guy. I talk about a recent article by the
    financial times that stated the CME is a DSRO. This was the first time I have seen a major media outlet talk about the issues and concern I raised. I go on to talk about leadership and why its may be lacking at the CME. I urge people to review the contents of all their money market mutual funds, ETF's, CEF's, and Mutual Funds to assure they do not contain junk dumped on retail consumers.