Posted on 2010 03, 31 by duo
P. J. O’Rourke quotes Ronald Reagan on the way Democrats treat those who produce rather than consume:
There’s a joke President Reagan told about the way collectivist politicians treat rich people: A traveling salesman stays overnight with a farm family. When the family gathers to eat there’s a pig seated at the table. And the pig has three medals hanging around his neck and a peg leg. The salesman says, “Um, I see you have a pig having dinner with you.”
“Yes,” says the farmer. “That’s because he’s a very special pig. You see those medals around his neck? Well, the first medal is from when our youngest son fell in the pond, and he was drowning, and that pig swam out and saved his life. The second medal, that’s from when the barn caught fire and our little daughter was trapped in there and the pig ran inside, carried her out and saved her life. And the third medal, that’s from when our oldest boy was cornered in the stock yard by a mean bull, and that pig ran under the fence and bit the bull on the tail and saved the boy’s life.”
“Yes,” says the salesman, “I can see why you let that pig sit right at the table and have dinner with you. And I can see why you awarded him the medals. But how did he get the peg leg?”
“Well,” says, the farmer, “a pig like that–you don’t eat him all at once.”
Thanks to streiff at RedState.com for finding this little gem
Submitted by Tyler Durden
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.”
Christian, who describes himself as “one of the world’s foremost authorities on the markets for precious metals” yet, in the words of Gary Gensler, said “that the bullion banks had large shorts to hedge themselves selling elsewhere- how do you short something to cover a sale, I didn’t quite follow that?” and proves that current and former Goldman bankers are some of the most arrogant people alive, assuming that everyone else is an idiot and will buy whatever explanation is presented just because the CV says Goldman Sachs. Yet Christian confirms that the gold market is basically a ponzi: “in the “physical market” as the market uses that term, there is much more metal than that…there is a hundred times what there is.” And there you have it: as Douglas eloquently summarizes: “the giant Ponzi trading of gold ledger entries can be sustained only if there is never a liquidity crisis in the REAL physical market. If someone asks for gold and there isn’t any the default would trigger the biggest “bank run” and default in history. This is, of course, why the Central Banks lease their gold or sell it outright to the bullion banks when they are squeezed by high demand for REAL physical gold that can not be met from their own stocks” and concludes “Almost every day we hear of a new financial fraud that has been exposed. The gold and silver market fraud is likely to be bigger than all of them. Investors in their droves, who have purchased gold in good faith in “unallocated accounts”, are going to demand delivery of their metal. They will then discover that there is only one ounce for every one hundred ounces claimed. They will find out they are “unsecured creditors”.
A London trader walks the CFTC through a silver manpulation in advance
Submitted by cpowell on 04:41PM ET Thursday, March 25, 2010. Section: Daily Dispatches
Additional Statement by Bill Murphy, Chairman
Gold Anti-Trust Action Committee
to the U.S. Commodity Futures Trading Commission
Washington, D.C., March 25, 2010
On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.
In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.
On February 3 Maguire gave two days’ warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC’s Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.
It would not be possible to predict such a market move unless the market was manipulated.
In an e-mail on February 5 Maguire wrote: “It is common knowledge here in London among the metals traders that it is JPM’s intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC’s allowing by your own definition an illegal concentrated and manipulative position to continue.”
Expiry of the COMEX April call options is tomorrow, March 26. There was large open interest in strikes from $1,100 to $1,150 in gold. As always happens month after month, HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted by GATA, the manipulation started on March 19, when gold was trading at $1,126. Last night it traded at $1,085.
This is how much the gold cartel fears the CFTC’s enforcement division. They thumb their noses at you because in more than a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM’s cocky and arrogant traders in London are able to brag that they manipulate the market.
By GoldSubject on March 20, 2010
A significant number of people are convinced that there are evil factions consisting of members of the elite who conspire to achieve world domination. The example that comes to mind is the New World Order (NWO), which conspiracy theorists believe has been plotting to form a one-world government for more than a century.
These folks think that the NWO has been patiently plotting and conspiring over several generations, deliberately engineering World War I, World War II, various other conflicts and finally this economic meltdown just so that they can achieve world domination or some other unspecified sinister objective.
By Jeffrey Lord on 3.16.10 @ 6:09AM
“There’s a crime called misprision of a felony. Misprision of a felony is when you don’t report a crime. So you’re getting into pretty deep areas here in these considerations.” – U.S. Senator Arlen Specter on March 12, 2010
“Right now, they’re doing the ‘I won’t confirm or deny,’ and for us, it leaves two possibilities. One is the promise of transparency in this administration is just shot. The second one is even worse, which is either Sestak is lying or the administration has done something wrong and is covering it up…” – U.S. Congressman Darrell Issa on Friday on March 12, 2010
“The ‘stonewall strategy’ functioned from the very first episodes of the cover-up. It was instinctive, from the very top of the Administration to the bottom. It was also ad hoc, developed in small reactions to the flurry of each day’s events…we found ourselves trying to hold a line where we could.” – Nixon White House Counsel John Dean in his Watergate book Blind Ambition
Here we go again.
Even as the drama of health care carries the headlines, beneath the surface, visible now, the iceberg of scandal ripples.
First, the timeline on the blossoming scandal upon which we will now officially fix the dreaded “gate” descriptive. Jobsgate.
Posted on 2010 03, 23 by duo
If you’re just waking up and wondering what has gotten into the current set of representatives we have in Washington, let me give you a little history lesson.
The following paragraph is an excerpt from the September, 1972 issue of ”Guns & Ammo” magazine. It was written in response to the efforts under way at that time to slowly make gun ownership illegal but it is as fresh as if it were written today:
Ours is supposed to be a government of, by and for the people. For whatever grounds, it is becoming increasingly more difficult for the American people to get authentic representation in the various levels of government. One big reason for this sad fact is that the large majority of citizens have allowed it to happen. Too many people are too deeply immersed in their own complicated everyday lives to be currently politically aware. As a result, far too many elected officials are encouraged to reign rather than represent. It is a condition commonly called, on the Federal level, “Potomac Fever.”
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