Fri 2010-05-14 12:11 EDT

"Banging" the U.S. Stock Market

Janet Tavakoli

Chicago residents grew up to the sound of local early morning radio rundowns of pork belly futures and other exchange traded commodities. Every trick in the book from manipulation of soybeans to silver has played out in Chicago's trading pits. Every market professional I've talked to in Chicago since Thursday is of the same opinion. It makes no difference whether human beings or computers are front running and manipulating trades. The gyrations in the market last week have the look and feel of classic market manipulation...

bang; U.S. stock market.

Jesse's Café Américain Thu 2010-05-06 13:44 EDT

Control Frauds HyperInflate and Extend Bubbles Maximizing Damage - A Control Fraud at Work in the Silver Market Short Positions?

Jesse

Here is a working paper by William K. Black about 'control frauds' and how they relate to the most recent credit crisis in the United States, a breakdown of stewardship that has placed the rest of the world's financial sector at risk as well...``Control frauds'' are seemingly legitimate entities controlled by persons that use them as a fraud ``weapon.'' A single control fraud can cause greater losses than all other forms of property crime combined. This article addresses the role of control fraud in financial crises. Financial control frauds' primary weapon is accounting. Fraudulent lenders produce exceptional short-term ``profits'' through a four-part strategy: extreme growth (Ponzi), lending to uncreditworthy borrowers, extreme leverage, and minimal loss reserves...

Control Frauds HyperInflate; controls Fraud; Extend Bubbles Maximizing Damage; Jesse's Café Américain; Silver Market Short Positions; working.

zero hedge Sun 2010-04-25 14:23 EDT

Exclusive: Second Whistleblower Emerges - A Deep Insider's Walkthru To Silver Market Manipulation

A second whistleblower speaks. As the topic of physical delivery has gained prominent attention recently, it is crucial to complete the circle and show how this weakest link in the PM market is (ab)used by the big boys: Phibro and Warren Buffet. Pay particular attention to the analogues between the methods employed in the 90's commodity market and how the PM (and equity) market is being gamed currently. And to think that each new generation of traders believes it has discovered something new...As a market maker in silver options from 1989 to 2000 I was present during both the 1994 and 1997 silver events. They were seminal in my education of gamesmanship in trading and how probabilities can come up short...

Deep Insider's Walkthru; exclusive; Silver Market Manipulation; whistleblower emerging; Zero Hedge.

Jesse's Café Américain Tue 2010-04-20 10:07 EDT

"My Son..Went Inside There And Basically Saw that the Vault was Empty."

Jesse

...Apparently some banks and brokers had been selling gold and silver which they do not have. We know it happens because Morgan Stanley was caught doing it, and was even charging storage fees from unsuspecting investors...King News World Interview Regarding Lack of Physical Bullion at Large Canadian Bank

Basically Saw; empty; Jesse's Café Américain; Son; vault; went.

Jesse's Café Américain Mon 2010-04-19 15:22 EDT

Jim Rickards: Possible Run on the Gold Bank, Fed Insolvent, Currency Endgames in US Debt Crisis

Jesse

...There is obviously not enough gold and silver to cover the physical demand if holders of paper certificates in unallocated accounts demand delivery, and most likely only a small fraction could be covered with the practical supply available. Cash settlement will be enforced in the majority of cases...

Currency Endgames; debt crisis; Fed Insolvent; Gold Bank; Jesse's Café Américain; Jim Rickards; possible running.

Jesse's Café Américain Mon 2010-04-12 14:18 EDT

NY Post: Trader Blows Whistle On Gold and Silver Price Manipulation

Jesse

...The crux of the scandal is that the Banks and hedge funds have been selling what they do not have in order to manipulate the price and cheat investors, in this market as they have been shown repeatedly to have done in other markets...the players filed a motion claiming immunity because they were acting in partnership with the Treasury and the Federal Reserve...Thanks to the NY Post [whistleblower commodities trader Andrew Maguire testimony]

gold; Jesse's Café Américain; NY Post; Silver Price Manipulation; Trader Blows Whistle.

Jesse's Café Américain Wed 2010-04-07 19:14 EDT

The Case for Position Limits: What is the 'Spot Price' of Gold and Silver And How Is It Set?

Jesse

...almost all retail transactions for physical bullion in the US key off a 'spot price' that is derived from a paper market which is not based in the reality of physical supply, since the futures exchanges explicitly allow for the settlement in cash if physical bullion is not available. In fact, the vast majority of transactions are settled in cash, and are little more than derivatives bets it seems, and often hedges related to other things like another commodity or interest rates...As someone who approaches it as an amateur economist, and has been looking at its dynamics for the past few years, I may be missing something, but this seems less like an efficient market mechanism for price discovery and capital allocation, and more like a carney game.

Case; gold; Jesse's Café Américain; position limit; set; Silver; Spot Prices.

Jesse's Café Américain Wed 2010-04-07 19:03 EDT

King World Interview with Andrew Maguire the Silver Market 'Whistleblower'

Jesse

"The Biggest Fraud in the World" I do not know what to think about this, except to just offer it up to you for your own information. I am disappointed, however, that only the blogs, and almost no one in the mainstream media, have bothered to cover this story and to speak to the principals, and to either debunk them, support them, or even consider what they have to say. This really is like the Harry Markopolos story, trying to get a hearing on the Madoff ponzi scheme, and being repeatedly ignored, intimidated, and discouraged in every way possible by the establishment, and even fearing for his life... I have now listened to this tape five times, carefully. It is a bombshell. This has to be dealt with, one way or the other. Bring it out into the light of day, and let the facts be known. This is either the equivalent of the fictionalized testimony on the order of the Salem Witch trials, or one of the most damning accusations of malfeasance in office against quasi-governmental agencies, and probably US officials, since Teapot Dome...

Andrew Maguire; Jesse's Café Américain; King World Interview; silver markets; Whistleblower.

Mon 2010-04-05 15:16 EDT

Eleven lessons from Iceland

Thorvaldur Gylfason

Iceland's economic crisis has destroyed wealth equivalent to about seven times its GDP. The damage inflicted on foreign creditors, investors, and depositors amounts to about five times its GDP, while the asset losses thrust upon Icelandic residents account for the rest. These figures do not include the cost of Iceland's increased indebtedness. Iceland's gross public debt, domestic and foreign, is estimated to increase by more than 100% of GDP as a result of the collapse of the banks, or from 29% of GDP at the end of 2007 to 136% by the end of 2010. In 2009, the government spent almost as much on interest payments as on healthcare and social insurance, the single largest public expenditure item. The damage due to Iceland's tarnished reputation is harder to assess...the absence of checks and balances that had led to an unbalanced division of power between the strong executive branch and the much weaker legislative and judicial branches came to haunt the country when unscrupulous politicians put the new banks in the hands of reckless owners who then found themselves in a position to expand their balance sheets as if there were no tomorrow -- and no supervision. Politicians who privatise banks by delivering them on a silver plate to their friends are not very likely to subject the banks to stringent supervision or other such inconveniences...What can be done to reduce the likelihood of a repeat performance -- in Iceland and elsewhere?

Iceland; Lessons.

zero hedge Mon 2010-04-05 15:14 EDT

Former Goldman Commodities Research Analyst Confirms LMBA OTC Gold Market Is "Paper Gold" Ponzi

When we put up a link to last week's CFTC hearing webcast little did we know that it would end up being the veritable (physical) gold mine (no pun intended) of information about what really transpires in the commodities market. First, we obtained direct evidence from Andrew Maguire (who may or may not have been the target of an attempt at "bodily harm" as reported yesterday) of extensive manipulation in the silver market. Today, Adrian Douglas, director of GATA, adds to the mountain of evidence that the commodities market, and the CFTC, stand behind what is potentially the biggest market manipulation scheme in the history of capital markets (we are assuming for the time being that all allegations of the Fed manipulating the broader equity and credit markets are completely baseless). Using the testimony of a clueless Jeffrey Christian, formerly a staffer at the Commodities Research Group in the Goldman Sachs Investment Research Department and now head and founder of the CPM Group, Douglas confirms that the "LBMA trades over 100 times the amount of gold it actually has to back the trades."

Goldman Commodities Research Analyst Confirms LMBA OTC Gold Market; paper gold; Ponzi; Zero Hedge.

Jesse's Café Américain Sat 2010-04-03 09:48 EDT

Whistleblower Speaks Out On J. P. Morgan's Market Manipulation - Reports Violations to the CFTC

Jesse

Do we have another Harry Markopolos here, describing in detail the manipulation of the gold market by J.P. Morgan to the CFTC? How does this square with the testimony today from the CFTC Commissioners, who seem to indicate that the markets are functioning extremely well, and that investor can have full confidence in them? I am led to understand that Mr. McGuire had offered to testify before the CFTC today, and that he was refused admittance. I do not know him, or the position he is in within the trading community. I cannot therefore assess his credibility or the validity of any evidence which he may present or possess. But I have the feeling that nothing will come of this...What seems particularly twisted about this is that JPM is the custodian of the largest silver ETF (SLV). Is anyone auditing that ETF, and watching any conflicts of interest and self-trading? Multiple counterparty claims on the same bullion? If you ever wanted to see a good reason for the Volcker rule, this is it. These jokers are one of the US' largest banks, with trillions of dollars in unaudited derivatives exposure, and they seem to be engaging in trading practices like Enron did before it collapsed...

CFTC; J. P. Morgan's Market Manipulation; Jesse's Café Américain; reported violations; Whistleblowers speak.

Jesse's Café Américain Thu 2010-04-01 11:50 EDT

Brown's Bottom Is an Enormous Issue In the UK: Was This a Bailout of the Multinational Bullion Banks Involving the NY Fed?

Jesse

The bottom referred to, of course, is the bottom of the gold price, and the sale of approximately 400 tonnes of the UK's gold at the bottom of the market...There is also a credible speculation that the sale was designed to benefit a few of the London based bullion banks which were heavily short the precious metals, and were looking for a push down in price and a boost in supply to cover their positions and avoid a default. The unlikely names mentioned were AIG, which was trading heavily in precious metals, and the House of Rothschild. The terms of the bailout was that once their positions were covered, they were to leave the LBMA, the largest physical bullion market in the world...long before AIG crafted its enormous positions in CDS with the likes of Goldman Sachs, requiring a bailout by young Tim and the NY Fed, it was engaging in massive short positions in the metals markets, especially silver, and may have required a bailout by England to preserve the integrity of the LBMA....the gold sale provided a front-running opportunity for that most rapaciously well-connected of Wall Street Banks, Goldman Sachs.

Bailout; Brown s bottom; Enormous Issue; Jesse's Café Américain; Multinational Bullion Banks Involving; NY Fed; UK.

Jesse's Café Américain Tue 2010-03-09 17:51 EST

Russia Continues to Build Its Gold Reserves Ahead of the SDR Discussions

Jesse

Thanks to friend Dave at Golden Truth for this updated chart.As you know, Russia, India, China and some of the BRIC-like countries will continue to push hard for a gold and silver content in the new formulation of the SDR this year. The US and UK are vehemently opposed...One cannot have a common currency with uncommon fiscal policies and laws. While there is some room for discretion, it is sorely tried in changing economic conditions and social attitudes...This is why a one world currency, except for international trade only and at the discretion of trading partners, is so dangerous. One cannot maintain their sovereign freedom when someone else controls the supply of their money: either you cheat or you submit. All serious economists understand this; too few of the voting public do...This is the fallacy of the US dollar as the reserve currency for the world. It 'worked' as even Mr. Greenspan noted, as long as the US dollar was able to demonstrate the objective stability of an external gold standard relative to other currencies. That lasted for a few years, and the rest is foreign policy and currency wars. The time for its replacement is long past. The BRIC's understand this, and are playing their hands accordingly...

building; gold reserves; Jesse's Café Américain; Russia continues; SDR Discussions.

Tue 2010-03-09 17:33 EST

The Golden Truth: Is a Big Oil Producer in the Middle East Hoovering Gold?

Yesterday, The Gartman Letter contained a comment from a Canadian "friend" who stated that according to his sources: ...an oil producer in [the Middle East] is converting about 200,000 BPD of oil sales into gold bullion - this offtake would equal about 6% of annual gold production...the quiet flight from dollars is accelerating ...Europeans have become extremely fearful of a global systemic collapse and many wealthy people there are buying as much gold/silver as they can and taking direct possession in order to avoid depository fraud...

big oil producers; Golden Truth; Middle East Hoovering Gold.

Thu 2010-01-07 19:54 EST

Conversation with John Rubino <<; Phil's Favorites -- By Ilene

John Rubino is the co-author, with GoldMoney's James Turk, of The Collapse of the Dollar and How to Profit From It (Doubleday, 2007), and author of Clean Money: Picking Winners in the Green-Tech Boom (Wiley, 2008), How to Profit from the Coming Real Estate Bust (Rodale, 2003) and Main Street, Not Wall Street (Morrow, 1998)...``This is the end of a long era and the beginning of another that is not going to be nearly as nice.''...go to a coin dealer and buy some gold and silver coins and then store them in a safe place. And gold and silver mining stocks will go up if the dollar goes down...Clean tech is interesting...which of the twenty different possible clean tech sectors do you want to focus on first? ...The best of them is called smart grid....

conversations; Ilene; John Rubino; Phil's Favorites.

Thu 2010-01-07 19:24 EST

Precious Metals Derivatives: Louder Music, Fewer Chairs

...The weight of gold and silver represented by derivatives on the precious metals has grown so large relative to all reasonable measures of physical supply that more and more questions and doubts are being raised about not only the integrity of the price discovery mechanisms for these metals, primarily among LBMA members and on the COMEX, but also the reliability of many paper claims to the physical delivery of them.

chair; Louder Music; Precious Metals Derivatives.

Thu 2010-01-07 19:18 EST

'Greater Depression' More Bullish for Gold than 1930s -- Seeking Alpha

...The current, global financial system is in the process of coming to an end -- one way or another. History teaches us it is highly unlikely that this transition can be accomplished without economic catastrophe. As the only superior currencies in existence, it is inevitable that gold and silver will benefit, as the inferior paper currencies (which we mistakenly call ``money'') suffer the same deaths that have awaited every other fiat currency, throughout history.

1930s; bullish; gold; Greater Depression; Seeking Alpha.

Jesse's Café Américain Mon 2009-12-28 16:27 EST

Monetization: Treasury Adds $400 Billion in Bailouts for Fannie and Freddie

Jesse

What's another $400 Billion in monetization so that Fannie and Freddie can keep buying up mortgage debt? Timmy and Ben can continue to distribute dollars even as they approach a virtual insolvency because they can create them, seemingly out of nothing. The payment for their dollar debt is their creature -- dollars. But they cannot hand out endless amounts of nature's wealth, things like oil, gold, grains, and silver except as they may possess them by industry, force, or fraud.

400; Bailout; Fannie; Freddie; Jesse's Café Américain; monetize; Treasury Adds.

Jesse's Café Américain Thu 2009-12-17 10:11 EST

Is the Price of World Silver the Result of Legitimate Market Discovery?

Jesse

Ted Butler: ...the concentrated short position in COMEX silver futures is so extreme, that it is hard to imagine how it can be resolved in an orderly manner. The most recent data from the CFTC indicate that one US bank, JPMorgan, now holds 200 million ounces net short in COMEX silver futures, fully 40% of the entire net short position on the COMEX (minus spreads). As I have previously written, JPMorgan accounted for 100% of all new short selling in COMEX silver futures for September and October, some 50 million additional ounces...So extreme is JPMorgan's silver short position that it cannot be closed out in an orderly fashion...As extreme as JPMorgan's position is, there is a total true net short position of 500 million ounces (100,000 contracts) in COMEX silver futures. Try to put that 500 million ounce short position in perspective. It equals 75% of world annual mine production, much higher than seen in any other commodity.

Jesse's Café Américain; Legitimate Market Discovery; Price; resulting; World Silver.

Jesse's Café Américain Fri 2009-09-04 19:12 EDT

Hong Kong Bringing Its Gold Home From London

Jesse

"In the house of the wise are stores of precious treasure and oil, but a foolish man devours all he has." Proverbs 21:20 The People's Republic of China has been urging its citizens to convert some part of their savings into gold and silver, having recently liberalized the procedures by which individuals can obtain it. Hong Kong has built a new world class bullion vault, and is repatriating its gold reserves from the London Bullion Market Association (LBMA), where some speculate it had been committed for sale many times over. Hong Kong wishes to become its own regional Asia market maker for bullion metals. The rest of the world will rein in the Wall Street financial establishment, because the bankers have demonstrated an inability to manage their financial affairs...

Gold Home; Hong Kong Bringing; Jesse's Café Américain; LONDON.

Tue 2009-06-16 00:00 EDT

Jesse's Café Américain: Silver First Notice Day

Jesse's Café Américain: Silver First Notice Day; ``silver market has been manipulated for some time now''

Jesse's Café Américain; Notice Day; Silver.

Sat 2008-05-24 00:00 EDT

Jesse's Café Américain: Silver Price Manipulation through 'Naked Shorting'

Jesse's Café Américain: Silver Price Manipulation through 'Naked Shorting'; CFTC protecting silver short interest; crony capitialism corrupting public markets

Jesse's Café Américain; Naked Short; Silver Price Manipulation.

Tue 2008-01-22 00:00 EST

Money Matters: The Lone Ranger's Silver Bullet Rate Cuts Saves Markets

by Elaine Meinel Supkis; "When Britain and France used the Long Depression to expand their empires, both Germany and the USA used this time frame to build rail roads, ports, navies, farms, factories and educational centers. As France and England denuded their home states to increase invasive military power that took in the raw resources of the world, their people got weaker and their incomes fell and they went hungry and in rags in slums or fled their homelands to the New Worlds."

Lone Ranger's Silver Bullet Rate Cuts Saves Markets; money matters.

Thu 2007-12-27 00:00 EST

Mish's Global Economic Trend Analysis: A Safe Way to Own Gold and Silver

gold; Mish's Global Economic Trend Analysis; safe way; Silver.

Fri 2007-09-07 00:00 EDT

Majoring in Credit-Card Debt

by Jessica Silver-Greenberg, BusinessWeek (1/4); college student credit card debt

credit card debt; major.

Fri 2007-09-07 00:00 EDT

Confessions of a Credit-Card Pusher

by Jessica Silver-Greenberg, BusinessWeek (2/4); college student credit card debt

confessed; Credit-Card Pusher.

Fri 2007-09-07 00:00 EDT

The Dirty Secret of Campus Credit Cards

by Jessica Silver-Greenberg, BusinessWeek (3/4); college student credit card debt

campus credit card; dirty secret.

Fri 2007-09-07 00:00 EDT

Fixing the College Credit-Card Mess

by Jessica Silver-Greenberg, BusinessWeek (4/4); college student credit card debt

College Credit-Card Mess; Fix.

Fri 2007-09-07 00:00 EDT

Credit-Card Survival Guide

by Jessica Silver-Greenberg, BusinessWeek; college student credit card debt

Credit-Card Survival Guide.