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Guest Post: JP Morgan Wins: CFTC Position Limits Do Not Apply (To Them)

Tyler Durden's picture


Submitted by Chris Martenson

JP Morgan Wins: CFTC Position Limits Do Not Apply (To Them)

Speaking of changing the rules...

Gold and silver are now down hard over the past two days and the reason may have something to do with the fact that the CFTC utterly caved to JPM in their long-awaited decision on position limits in a 4-1 vote.

While position limits will eventually be set, maybe, someday, the course of action taken by the CFTC grandfathers in JPM's (and HSBC, et al) current outlandish positions.

Here's the background (emphasis mine):

On July 21, 2010, the Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. Among other things, the Dodd-Frank Act amended the Commodity Exchange Act to:

  • Require the Commission, as appropriate, to limit the amount of positions, other than bona fide hedge positions, that may be held by any person with respect to commodity futures and option contracts in exempt and agricultural commodities traded on or subject to the rules of a designated contract market (DCM).
  • Require the Commission to establish position limits, including aggregate position limits, for swaps that are economically equivalent to DCM contracts in exempt and agricultural commodities (collectively, economically equivalent swaps). Such limits must be imposed simultaneously with limits on DCM contracts.


The only wiggle room in the Dodd-Frank bill is for "bona fide" hedge positions which, I should state, I think is not a good idea because the exact definition of a 'bona fide hedge' is elusive.

For example, you and I could decide to engage in a massive short-hedged position where you short a commodity but buy calls from me. Your 'hedge' is only as good as my credit. Or perhaps you decide that oil and natural gas have enough negative correlation that you are 'hedged' by being equally short and long both substances. What if your correlation blows out? You're not hedged is the answer to that question.

Continuing into the meat of the new position limit ruling, we find these discomforting items:

The Commission’s proposed regulations call for:

Position limits to be placed on 28 core physical-delivery contracts and their “economically equivalent” derivatives.

Establishment of position limits on physical commodity derivatives in two phases:

  • Initial transitional phase: spot-month position limits only, based on deliverable supply determined by and levels currently set by DCMs.
  • Second phase: spot-month position limits, based on the Commission’s determination of deliverable supply, and position limits outside of the spot month.

Translation: Only the front month of any contract will be subject to the position limits initially. Later, at some undefined point "early next year", out months will be included.  But for now it's just the spot month.

Impact: Watch out for crazy out-month behaviors as JPM et al. seek to skirt this rule.

Okay, that's not too terrible.  

But this is:

Spot-month position limit levels set at 25% of deliverable supply for a given commodity, with a conditional spot month limit of five times that amount for entities with positions exclusively in cash-settled contracts

That's just horrible.

For anybody like JPM that has no intent of taking physical delivery, they are prevented from accumulating a position that is 125% of the total deliverable supply.  What sort of a limit is that??  That's like trying to limit the damage from auto accidents by limiting freeway speeds to 'no more than' 175 mph.

Also, anybody who might want to actually buy the physical is limited to 25%, so any potential Hunt Bros. need not apply. The outer limits of this game have been exclusively reserved for speculators and manipulators.

That's not even remotely the outcome I was hoping for. This 'ruling' tantamount to saying "carry on!"

And what does 'deliverable supply' mean?  Does it refer to COMEX warehouse deliverables in current storage  or can special players receive additional preferential treatment by including 'deliverables' available to them via contractual arrangements with the LBMA?  Lots of questions are emerging for me here.

But it gets worse:

Exemptions for bona fide hedging transactions (based on the Dodd-Frank Act’s new requirements for such transactions) and for positions that are established in good faith prior to the effective date of specific limits adopted pursuant to the proposed regulations.

Translation: "JPMs silver position is in complete violation of even these generous new 'rules' so we're just going to let them keep it."

Impact:   Just check the price behavior of gold and silver for the impact.  The gold and silver markets have traded upwards of late in part because of the thought that JPM would finally be forced to play fair and reduce their outlandish precious metals short positions.  Nope. Guess not.

Once again, all sense of fair play has been abandoned in the interest of giving a special handout to a set of large banks that are reporting near-record earnings. When, I must ask, is enough enough?

The message that I receive from this ruling is that US markets are now hopelessly and irrevocably captive to the behind-the-scenes wishes of the banking class, for which "everything and then some" seems to be not quite enough.

Worse, an already battered faith in the markets has been kicked again.

Here's my prediction: someday the US commodities markets will experience a very painful set of failures, big banks will be caught on the bad end of that experience, and they will simply, once again, lobby to have the rules changed in their favor.

To everybody who hopes to make money by being on the opposite side of that trade, good luck collecting your winnings. They will simply be rule-changed right out of your hot little hands.

Thank you for playing sir, and sorry about your luck; would you care to try again?

The CFTC is now playing the role of Lucy holding the football. If you don't wish to be Charlie Brown in this story, I'd advise that you take delivery.

Here's CFTC Chairman Gary Gensler describing the rationale, such as it is, for the CFTC's ruling [with my reactions inserted in-line]:

Position limits help to protect the markets both in times of clear skies and when there is a storm on the horizon. In 1981, the Commission said that “the capacity of any contract market to absorb the establishment and liquidation of large speculative positions in an orderly manner is related to the relative size of such positions, i.e., the capacity of the market is not unlimited.” [So far so good!]

Today’s proposal would implement important new authorities in the Dodd-Frank Act to prevent excessive speculation and manipulation in the derivatives markets. The Dodd-Frank Act expanded the scope of the Commission’s mandate to set position limits to include certain swaps. [Still good]

The proposal re-establishes position limits in agriculture, energy and metals markets. It includes one position limits regime for the spot month and another regime for single-month and all-months combined limits. It would implement spot-month limits, which are currently set in agriculture, energy and metals markets, sooner than the single-month or all-months-combined limits. [Okay, spot-month goes first, before single-month and all-months combined.  Got that.  With the grandfather and 'bona fide hedge' exemptions of course.  Left that part out...]

Single-month and all-months-combined limits, which currently are only set for certain agricultural contracts, would be re-established in the energy and metals markets and be extended to certain swaps. These limits will be set using the formula proposed today based upon data on the total size of the swaps and futures market collected through the position reporting rule the Commission hopes to finalize early next year. ["Will be set?" Early next year? Isn't that a year from now?  Why so long?]

It will be some time before position limits for single-month and all-months-combined can be fully implemented. In the interim, if a trader has a position that is above a level of 10 and 2 ½ percent of futures and options on futures open interest in the 28 contracts for which the Commission is proposing position limits, I have directed staff to collect information, including using special call authority when appropriate, to monitor these large positions. [For silver, this amounts to some 5,300 contracts.  Well above the 1,500 contracts Ted Butler called for based on the 1% of world production limit.  It's too high.]

Staff will brief the Commission and make any appropriate recommendations based upon existing authorities for the Commission’s consideration during its closed surveillance meetings at least monthly on what staff finds. [Oh, so this is not a regulatory action, but a fact-finding mission? It's rather unusual to find a government body that takes care to under-interpret a congressional mandate for regulatory power, but we seem to have one in the CFTC.  Odd that such a loss of regulatory nerve only seems to occur when the interests of big banks are on the line...] 


Let's close with a statement of regret by Bart Chilton who tried very hard to do the right thing, but couldn't get the other four commissioners to see things his (and my/our) way.

Statement of Commissioner Bart Chilton at the 9th CFTC Public Meeting on Rulemaking under the Wall Street Reform and Consumer Protection Act

January 13, 2011

As regulators, I think we have one key mission. It is embodied in the Commodity Exchange Act. We have a singularity of purpose to ensure efficient and effective markets and to prevent and deter fraud, abuse and manipulation. Quite frankly, I think we can do better. We can because the new Wall Street Reform and Consumer Protection Act requires that we develop what many of us consider to be some fairly precious parameters.

Today, I am hopeful we will move forward to propose a position limits rule, a most precious parameter that we should have proposed much earlier in a way that would have implemented the provision as Congress intended. That's not happening.

Yesterday, eight U. S. Senators told us to move forward on limits. That follows two other senatorial letters from last month.

This is a Commission of five individuals, a group of people who make these decisions. That pretty much ensures no individual will get their way all the time. I'm certainly not getting my way on position limits, nor are the Senators who wrote to us.

I am thankful that we will have position points in place as a kind of glide path to position limits. As I've said repeatedly, points are not limits. However, they will help us learn more and do better as we go forward in further developing important—and precious— parameters.


Thank you for trying Bart, I am grateful for your efforts.  I wanted to give Gary Gensler, the former Goldman Sachs executive, the benefit of the doubt and I did that.  All benefit and all doubt now removed.  Once a squid, always a squid I guess.

I am still trying to get my arms around this ruling and its likely impact on gold and silver prices going forward.  Long-term this changes nothing except to reinforce my conviction that I have no interest in playing in rigged markets.  

Further, given the opportunity to do the right thing in an open and transparent manner, the CFTC, quite predictably, caved to large interests - the same large interests that are helping to shape, if not drive, current fiscal and monetary policy.  

For more on rule changing, please read yesterday's piece "Don't Worry, They'll Just Change the Rules". I guess I should append the following to that title "...or decline to enforce them.'


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Fri, 01/14/2011 - 16:22 | 877177 egdeh orez
egdeh orez's picture

wow! WTF!!!

Can't all ZH readers get together and do something about this (and I don't mean death threats to GG)?

Honestly, this fucking corruption is so fucking blatant.  CFTC and SEC, designed to protect the public, is working to screw the public. 

Fri, 01/14/2011 - 16:29 | 877219 Cheesy Bastard
Cheesy Bastard's picture

Can't all ZH readers get together and do something about this

Yeah, we can all buy physical silver and take delivery....Nevermind.  That would only work if there was a rule of law.

Fri, 01/14/2011 - 16:31 | 877230 Pladizow
Pladizow's picture

"The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth becomes the greatest enemy of the State." 

-- Dr. Joseph Goebbels, Nazi Propaganda Minister

Fri, 01/14/2011 - 18:30 | 877644 Mark Medinnus
Mark Medinnus's picture

Ok, who's the lapwing flagging insightful comments? 

Sat, 01/15/2011 - 03:09 | 878411 Triggernometry
Triggernometry's picture

Damn that quote looks familiar.

Oh yeah, I posted it earlier.

Mon, 01/17/2011 - 09:51 | 881324 Kobe Beef
Kobe Beef's picture

Dear Triggernometry,

You might find the below of interest, then, too.

"As civilization has become more complex, and as
the need for invisible government has been increas-
ingly demonstrated, the technical means have been
invented and developed by which opinion may be

--Edward Bernays, Propaganda


Fri, 01/14/2011 - 16:33 | 877235 tmosley
tmosley's picture

No, it will still work.  The LBMA and the COMEX will cease to be functioning exchanges by doing so.  They can play their paper games all they like.  All it will do is cause everyone else to ignore them.  They will have all the effect of the Zimbabwe Stock Exchange on world markets in the end.

Fri, 01/14/2011 - 16:42 | 877271 Cheesy Bastard
Cheesy Bastard's picture

They will cease functioning and pay out in fiat, then move on to the run the next shell game  a few blocks down.  

Fri, 01/14/2011 - 20:05 | 877901 breezer1
breezer1's picture

i believe that this may be a defining moment in the demise of the greenback.

Fri, 01/14/2011 - 18:12 | 877581 Red Neck Repugnicant
Red Neck Repugnicant's picture

I told you guys a month ago... don't bet the devil your head - you'll lose it. 



Fri, 01/14/2011 - 18:20 | 877621 Cheesy Bastard
Cheesy Bastard's picture

The game isn't over...Until it is.

Sat, 01/15/2011 - 07:46 | 878505 Chappaquiddick
Chappaquiddick's picture

RNR - this looks like win:win to me.

If anything this latest development will exacerbate the backwardation in the physical market and possibly lead to a paper/physical disconnect.

The physical market is ultimately about the delivery of physical metal from supplier to consumer.  If that supply is exhausted by an incorrectly priced paper market fuelling a larger than supportable demand for the physical then the physical markets will seize.

If this happens and irrespective of the price of the paper the physical will be priced according to the real supply / demand which exists, while the paper market will become just like the MBS farce - backed by nothing.

Following the trend to its conclusion both sides win:  the physical market will be priced according to supply and demand of the physical free of the paper market and the paper market will collapse.  If you are a small time Joe holding physical - you win, prices to the moon.  If you're a big time bankster you win as the paper market implodes and your short position turns into a giant winner.


I will keep buying into this rigged and suppressed market as I know I am buying value.  Let them keep suppressing it.  They can't keep this going forever - they are tearing these markets apart and at some point the markets will disconnect on price.  The obvious moves now at State level on PM collection as an option for taxation are another pointer to massively higher PM prices.  If they reinstate the Gold Standard then we're already looking at close to $60K/oz on gold and that's assuming they actually do have the 8000 tonnes of Au they say they have.  If they don't get a move on and there's less gold than they claim then when they eventually do reinstate the gold standard we could be looking at a 10^4 devaluation in 40 yrs $35:$350000 / oz 1971:2011. 

Sat, 01/15/2011 - 15:27 | 878885 The Fonz
The Fonz's picture

This is an interesting viewpoint, thank you Chappa :)

Sun, 01/16/2011 - 00:57 | 879496 TheGoodDoctor
TheGoodDoctor's picture

Chap that is all fine and dandy until they issue an new currency. Then what?

Sun, 01/16/2011 - 17:47 | 880380 Chappaquiddick
Chappaquiddick's picture

Then we'll get screwed all over again.

I'm focusing on silver as I see it as a positive hold whichever way the market moves.  Its money so in deflation everything will deflate against it.  It's an inflation hedge store of value.  It's an industrial metal with wide application and growing demand and its finite and non-renewable.  I think 8-10 years from now it'll be as rare as rocking horse shit and people will be paying large amounts for it in whatever currency comes next - even if that currency is gold.

Fri, 01/14/2011 - 16:33 | 877236 malikai
malikai's picture

No wonder people are going berserk and threatening to kill people from the .gov.

Fri, 01/14/2011 - 18:09 | 877586 Mark Medinnus
Mark Medinnus's picture

Insensitive to some, perhaps, like the princess who flagged you, but I agree.  As the storm nears, rats'll start jumping ship while rogues'll be shootin' shit.

Fri, 01/14/2011 - 16:37 | 877249 Quixotic_Not
Quixotic_Not's picture

The 'MeRiKan Sheeple approve of blatant corruption!

It's a similar human trait to Genghis Khan or Timur recruiting mercenaries that only get paid from the rape, looting and pillage of conquered peoples...that is, until the looters themselves are defeated.

Plenty of Lotto culture out there looking for money from nothin', chicks for free...everybody wants to be a pigman!

No worries, the last laugh will be on the blood lust mouth breathers, when the USofA will no longer be able to export inflation to BRIC countries and we start turning on each other!

Until then, Toodle-oo...

Fri, 01/14/2011 - 16:49 | 877304 nasa
nasa's picture

Have pitchfork, will travel

Fri, 01/14/2011 - 17:54 | 877535 Spigot
Spigot's picture

More and more it seems to me the USA is ruled by a criminal cartel. They are so confident of their immunity that they do this sh!t in broad daylight without a concern that they will be run down.

One day, my sweets, one day. The fire will not go out for a very long time.

Fri, 01/14/2011 - 19:36 | 877830 e_goldstein
e_goldstein's picture

yeah. get out of all paper markets and anything that has a counter-party risk and go 100% into physical assets. 

for perpetuity.

Sat, 01/15/2011 - 01:23 | 878339 Turd Ferguson
Turd Ferguson's picture

With the silvergoldsilver bears as inspiration, I created this today for fun and laughs:

Sat, 01/15/2011 - 02:39 | 878397 strannick
strannick's picture

Turd; Im one of your 20000 hits per day, but even guys in big yellow hats gotta upkeep their dignity.

How about a little less advertizing on ZH. This is our Rivendale, gotta keep the glacial spring crystal clear.

Fri, 01/14/2011 - 16:21 | 877178 RobotTrader
RobotTrader's picture

Yep, as I predicted.

JPM "the house" wins.

Never fight the house.

Just look at the stock today.

Fri, 01/14/2011 - 16:24 | 877190 Spalding_Smailes
Spalding_Smailes's picture

.... "Spot-month position limit levels set at 25% of deliverable supply for a given commodity, with a conditional spot month limit of five times that amount for entities with positions exclusively in cash-settled contracts. " ................


Fri, 01/14/2011 - 16:33 | 877232 One Ton Lady
One Ton Lady's picture

Don't worry about it numbnutts. We will just keep buying silver and gold. The truth of this matter will win out , soon.

Fri, 01/14/2011 - 16:41 | 877267 AnAnonymous
AnAnonymous's picture

Never fight the house.


Until the house starts to fight you. At that moment, you discover that you have no other option than fighting the house but  the house has grown so powerful thanks to your relentless supportive efforts that fighting is useless. And you never fought the house. 

Fri, 01/14/2011 - 16:53 | 877326 Bill Lumbergh
Bill Lumbergh's picture

"Just look at the stock today."

I am looking and all I see is a stock putting in a nice shooting star.

Fri, 01/14/2011 - 16:53 | 877327 Cdad
Cdad's picture better check that JPM chart again at the EOD.   Looks like trade over.

Fri, 01/14/2011 - 17:37 | 877479 Arkadaba
Arkadaba's picture

Not an expert on these things but really weird spike down, up and down again at closing bell.

Fri, 01/14/2011 - 19:37 | 877836 e_goldstein
e_goldstein's picture

you don't have to fight.

you just don't play.

Sat, 01/15/2011 - 07:50 | 878506 Sudden Debt
Sudden Debt's picture

To take you example "the house" wins like in casino's, there it is the rule that the house must have enough funds in it's vault to ensure the payout of all the bets made.





But why do you think these rules are set in place?

To make it "fair"? The world isn't fair. If you want something you got to take it from someone else, so it's not that.



It's like playing russian roulette with the safety on. As long as the safety is on, the risk of getting shot is like ZERO.

Remove the safety, and you get a totally different game with MUCH HIGHER RISKS!



Now that they removed the restrictions, removed the safeties, THIS GAME IS SET TO GET INTERESTING.

Why? Their game is a paper game. You can have all the paper you want but if doesn't follow demand/supply the game gets very dangerous and can explode at any time.

Demand for silver will stay high for AT LEAST another 5 to 6 years if we can believe Benny B. that it will take 5 years for the job market to recover and we can really start talking about a recovery.



And if "the house" enables me to keep buying the real stuff at a low price, I should actually send "the house" a thank you letter :)

Fri, 01/14/2011 - 16:22 | 877183 Xibalba
Xibalba's picture

'Open for public comments' means...."now taking bribes"



Fri, 01/14/2011 - 16:49 | 877306 malikai
malikai's picture

Nah, it means: "Now ignoring you silly plebs"

Fri, 01/14/2011 - 18:11 | 877593 Mark Medinnus
Mark Medinnus's picture

You're both right.  They multitask.

Sat, 01/15/2011 - 06:15 | 878474 Al Gorerhythm
Al Gorerhythm's picture

Open for public comment, eh?

Let me say what Theodore Buttler might say to Gary Gensler:

Gensler, you misserable piece of snake shit! Yoo have betrayed my trust in you, and as well have betrayed your countrymen and your country. 

You have shown who you pledge your loyalty to. You are a "Grimer Wormtongue", a Quisling, and from this point in time going forward, may you deservidly attract the disgust of the nation.

Your banking background should have been the telltale but I was blind-sided by your sociopathic slick tongue and feigned sincerity. It is now openly advertised as to who you have devoted your weasle fealty to.

You are on the public payroll and yet place yourself in the service of bankers. You are a treasonous cur and deserve the collective disgust of the citizens of the United States.

May you go down in the history of this fine country, as one of the most obvious, bought and paid for regulators ever to have disgraced the office to which you have pledged your loyalty. You cur. You are a traitor. May you be held in contempt by every citizen who comes to study the history of that treasonous entity known as the FED and its satellite banks and supporters.

You image should be placed on every silver coin, as a reminder to the nation as to who sold them down the river.

Sun, 01/16/2011 - 01:03 | 879507 TheGoodDoctor
TheGoodDoctor's picture

I am very interested to see how Ted Butler responds. The CFTC's response is basically a middle finger to him. And Ted tried to be very polite in his assessment of Mr. Gensler.

Fri, 01/14/2011 - 16:23 | 877186 Pladizow
Pladizow's picture

The USA is easily the most corrupt nation in history!!!!

The country is doomed - the sheeple are asleep and will be rightfuly slaughtered.

Fri, 01/14/2011 - 16:54 | 877330 BobPaulson
BobPaulson's picture

On the corruptometer, it's getting high but there is a lot of competition out there. Currently I'm living in Mexico; let me assure you that honesty is the anomaly, not corruption.

Fri, 01/14/2011 - 18:12 | 877595 Arkadaba
Arkadaba's picture

And it has been going on a long time. I lived for a year in Mexico as part of my misspent youth years ago. Was very naive going in and a lot less so a year later. But I did meet some wonderful people. Also loved the food - atole, corn on the cob with mayonaise and cheese, enchildas verde, chilaquiles ...

Fri, 01/14/2011 - 16:56 | 877331 BobPaulson
BobPaulson's picture

Sorry, double post from internet hiccup trying to get my tiny message down an ADSL line here.

Fri, 01/14/2011 - 17:56 | 877539 Spigot
Spigot's picture

Absolutely agree with you. Doomed. Corruption will reap its whirl wind.

Fri, 01/14/2011 - 18:04 | 877575 Geoff-UK
Geoff-UK's picture

In history?  Well, that's a pretty high bar fella...


The country as it exists is doomed--but shepherd your local sheep as best you can to physical PMs and food storage.

Sat, 01/15/2011 - 00:42 | 878306 XPolemic
XPolemic's picture

The USA is easily the most corrupt nation in history!!!!

Not even close. The problem is not the degree of corruption, but the fact that it is occurring in the Imperial Senate, Congress and Presidency. There are far more corrupt nations than the USA, but nobody really gives a rats ass about them.

The world's remaining superpower though .... that's a different story. Better to think of this as war, where the goal is to disrupt the enemies government, forment dissent,sponsor chaos, and win without firing a shot. The USA just happens to be losing that war at the moment (having been the top dog in the game for nearly 50 years).

What will happen is an inevitability, there is no way to stop it. Best just to have an exit plan, or a solid risk mitigation strategy in place.

Fri, 01/14/2011 - 16:24 | 877192 Cinfultreat
Cinfultreat's picture

Wasnt the vote 4 - 1 to continue the process and now there would be 60 days of discussion until a final vote?  Which needs to be 5 - 0

Fri, 01/14/2011 - 18:30 | 877645 junkiebev
junkiebev's picture

doesn't fit the site conspiracy narrative hence it did not happen

Fri, 01/14/2011 - 20:23 | 877933 Careless Whisper
Careless Whisper's picture

your avatar is sexy. jus sayin


Sat, 01/15/2011 - 12:21 | 878664 ronin12
ronin12's picture

+1 - I love ZH but I do notice a propensity to skew things as negative as possible.

Fri, 01/14/2011 - 16:31 | 877193 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

And the populous still sits idle by while the financial criminals act in the open...

... i truly believe people are so passive now to their criminal overlords actions that Obama could come around your house and stamp on your grandma's face in front of you and you'd let him 'cause he said he was for the greater good. 

God bless America.

Fri, 01/14/2011 - 16:50 | 877310 cclaeys
cclaeys's picture

most people dont care, if you could attribute the disruption in their cable service to it then sure - not to mention the fact that the masses as a whole have no vested interest in it - just the schlucks that play by the rules. 

Fri, 01/14/2011 - 17:13 | 877402 No Mas
No Mas's picture

Could not be in greater agreement; you guys see the reality of this populace pretty clearly.  I have always said Bill and Hillary could kill a three year old on the WH lawn, cook and eat it and he would still win an election in a landslide because, well, he "cares."

Because we are a nation of weak assed illiterates, the PTB are going to take everything ths middle class ever had for themselves.  And the general populace will be fine with it as they watch NFL, DWTS or whatever and drink themselves into oblivion.

The market, home of the wealthy bank holding companies will continue its advance until the federal reserve decides to make money cost something.

And that will not likely happen in any of our lifetimes.

Fri, 01/14/2011 - 17:48 | 877514 calltoaccount
calltoaccount's picture

"most people dont care"...


most people have no idea of the truth of the matter because bank lacky govt and corrupt corp media have fed them lies and distractions for years.  

if people knew the truth and the consequences they are to suffer as a result, there would be outrage.  but they don't know and tptb like it that way.  


"The lie can be maintained only for such time as the State can shield the people from the political, economic and/or military consequences of the lie. It thus becomes vitally important for the State to use all of its powers to repress dissent, for the truth is the mortal enemy of the lie, and thus by extension, the truth becomes the greatest enemy of the State." 

 -- Dr. Joseph Goebbels, Nazi Propaganda Minister









Fri, 01/14/2011 - 21:22 | 878055 Confuchius
Confuchius's picture

If one considers the CFTC "decision" a bit more; it would seem the kriminals-in-charge are now getting really scared. The whole enchilada will now come back and devour them. All of them. There is no place for them to hide.

Meanwhile, buy all the real metal you can with the fiat toilet paper - - while it is still possible to do so. Which will not be for much longer...

Fri, 01/14/2011 - 16:24 | 877194 docj
docj's picture

Well, unfortunate.  Can't say 'surprising', though.

Fri, 01/14/2011 - 19:53 | 877879 Rainman
Rainman's picture

....write 100 times on the blackboard : once a squid always a squid.

Fri, 01/14/2011 - 16:25 | 877204 TooBearish
TooBearish's picture

Blythe just shot a load in her panties !  Game on - selllllllllllll em

Fri, 01/14/2011 - 16:26 | 877205 philgramm
philgramm's picture

Who the fuck do these motherfucking midgets think they are?  I am sorry.  I just can't get off this midget thing today:) 

Fri, 01/14/2011 - 17:36 | 877472 ColonelCooper
Fri, 01/14/2011 - 18:09 | 877584 living on the edge
living on the edge's picture


They make one hard decision very easy, leaving America. I no longer see an alternative. Bitter sweet day as my house went on contract today but the corrupt CFTC stuck it in all our asses. Go figure. See link below.


Fri, 01/14/2011 - 18:30 | 877639 Arkadaba
Arkadaba's picture

Great song! Haven't listened to that for a long time. Consider Canada. We need skilled workers:

Winters can suck but take up winter sports like skiing, skating, etc helps. 

I have lived in US as well and I'm pretty glad I'm back in Canada right now. I moved back because my job was axed and my green card process not complete - but, right now, with hindsight (and foresight) - I think was a good thing.

Fri, 01/14/2011 - 18:48 | 877710 living on the edge
living on the edge's picture

I used to travel to Canada quite extensively over the years. Nothing colder than a Regina winter.

Fri, 01/14/2011 - 19:45 | 877852 Arkadaba
Arkadaba's picture

Regina in winter - ouch!

Fri, 01/14/2011 - 21:27 | 878064 Confuchius
Confuchius's picture


No snakes!

No mosquitos!

No roof leaks!

No tent cities!

No beggars on street corners (except solidified ones)

Fri, 01/14/2011 - 21:56 | 878108 living on the edge
living on the edge's picture

Major shrinkage in winter that lasts from late July to June 30th. LOL

Fri, 01/14/2011 - 22:01 | 878115 Renfield
Renfield's picture

4 outta 5 ain't bad.

Toronto has a homeless problem that makes New York look like it's run by Mother Theresa.

And has since the '80s.

The worst is Bay Street and the downtown area, where you literally can't walk 2 blocks without stepping over several beggars on any given day. The panhandlers are exceptionally aggressive, too.

One of the dirty little secrets Canada finds it just rude to notice, let alone talk about.

Fri, 01/14/2011 - 22:36 | 878169 Arkadaba
Arkadaba's picture

double post

Fri, 01/14/2011 - 22:35 | 878170 Arkadaba
Arkadaba's picture

Queen and Bathurst is much worse. Yes panhandlers in Toronto can be fairly aggressive but you can just say no. Never felt threatened by any of them. And I'm a girl :p

Sat, 01/15/2011 - 02:44 | 878400 strannick
strannick's picture

Col'est winn'er I ever had was a summer with Blythe Masters and Jill Sommers

Fri, 01/14/2011 - 16:27 | 877209 Ragnarok
Ragnarok's picture

Fuck me running.

Fri, 01/14/2011 - 23:11 | 878214 living on the edge
living on the edge's picture

Maybe 20 years ago. Now I prefer stationary but thanks anyways.

Sat, 01/15/2011 - 01:14 | 878331 msamour
msamour's picture

I laughed for 5 minutes on that one! You just made my day. :)

Fri, 01/14/2011 - 16:27 | 877211 Larry Darrell
Larry Darrell's picture

The entire time I was reading this I could hear in my head a lone bugle playing a sombre tune, as one more aspect of the "free market" is laid to rest.

Fri, 01/14/2011 - 16:27 | 877212 bob_dabolina
bob_dabolina's picture

In other news water is wet.

Never saw this coming.

Fri, 01/14/2011 - 16:37 | 877252 Renfield
Renfield's picture

+1, you and Kristian down below.

So what's different? Feels about the same to me as, oh, the last two-three decades.

ETFs are still for paper-trading Playahs. (Hi there, Robo.) Physical will continue to decouple. Frankly if any dealers lower their price in response to this, take advantage.

Oh, and if this puts to rest the 'free market' fiction of what's laughingly referred to as regulated markets, then so much the better. The clearer things get, the less people can be fooled into them.

Fri, 01/14/2011 - 16:27 | 877213 Salinger
Salinger's picture

Bloomberg has definitely gone CNBS

just now headlines on Bloomberg TVee

Good News on the jobs front!!

Pizza Hut has 5,000 job openings

followed closley by Taco Bell and then HCA (health care)

Fri, 01/14/2011 - 16:32 | 877231 the not so migh...
the not so mighty maximiza's picture

surreal, you can get heart diease from allot of tacos and be taken care of now.

Fri, 01/14/2011 - 17:23 | 877439 pods
pods's picture

I never thought those tacos stayed in your system long enough to do any damage?


Fri, 01/14/2011 - 18:09 | 877587 knukles
knukles's picture

Yeah, Bloomie's has gone over to the dark side.  T'wasn't but a couple of years ago they still had some of the old (as in pre sale) WSJ reporting demeanor.... now it's all propagandavision.

Although, it does have value.  And this is important, not idle, nor humorous.  Spend 15 to 20 minutes between the two or on each for that matter and viola, there it is in black and white, the Illuminati's daily dose, twist, spin....

Is incredibly valuable, for no need to attempt to ascertain the party line.  It's right there, in the open.  Goebbels and Bernays would be disgusted at the transparency of the affair.  Sloppy, ill timed, loosing the audience so blatantly. 
Remember, we need there to be an exceptional standard against which we compare.  And CNBS and Bloomie fulfill that role immaculately.  Thus, the meme fails. 
So sloppy Bernays would issue a failing grade.

Fri, 01/14/2011 - 21:38 | 878082 Confuchius
Confuchius's picture

Have you noticed?

The pseudo-illuminati are having their lights dimmed by the 'net?

Watch for the "WE NEED to CONTROL the INTERNET" which will become more and more strident as they lose more and more control over the truth.

Look at all the bullets we save...

And all the subsequent messes to clean up.

They will just obey natures immutable laws and die at no cost to us...

Fri, 01/14/2011 - 16:28 | 877215 gorillaonyourback
gorillaonyourback's picture

if you believe in the shortage of silver as i do, just keep buying! its our will against theirs.  eventually the industrial consumers will have a hard time getting enough, hopefully it will be soon

Fri, 01/14/2011 - 17:39 | 877486 pan-the-ist
pan-the-ist's picture

Time to buy after the correction?

Fri, 01/14/2011 - 16:28 | 877217 topcallingtroll
topcallingtroll's picture

As i expected but i am not crowing i am lamenting...the troll told u the top was in......for now.....but one listens to the troll! Intermediate tops can take 18 months or qqqq because he who fights and runs away lives to fight another day.

Fri, 01/14/2011 - 16:36 | 877253 Pladizow
Pladizow's picture


Gold is only 5% off its all time high.

Silver cant be that far off from its 30 year high.

And you make such rediculous CNBC comments.

How much margin have you acquired to short the PM's - tuff guy?!?!

Fri, 01/14/2011 - 16:45 | 877273 topcallingtroll
topcallingtroll's picture

Jesse livermore is right. The market tries to take out everyone. I lost a noticeable amount on my shorts but i shorted at 28 way too early. Twenty percent loss was all i could stand and when i capitulated the rest of u should have started shorting like a motherfucker

Fri, 01/14/2011 - 16:31 | 877224 Kristian
Kristian's picture

So we can still buy silver relatively cheap... I wasn't planning to buy it any more once it shoots up well above $30 or so.

Fri, 01/14/2011 - 16:30 | 877225 malikai
malikai's picture

100 bucks says the Morgue knew about this at least 2 days ago.

Fri, 01/14/2011 - 16:35 | 877247 topcallingtroll
topcallingtroll's picture

Not even that tax cheating timmah would dare bet against u...much less those of us even less naive.

Fri, 01/14/2011 - 16:47 | 877293 malikai
malikai's picture

You're right. He'd voraciously shout that they didn't know, while quietly backing my 100 bucks with 100 grand of his own.

Fri, 01/14/2011 - 16:47 | 877291 ReeferMac
ReeferMac's picture

"Yes, Ms. Masters? I've delivered the envlopes as requested. Yes, they all smiled and took them. Is there anything else your lordship?"


Yeah, I'd wager they knew....

Sat, 01/15/2011 - 10:03 | 878552 snowball777
snowball777's picture

Apparently only 4/5 got their 'gift' from Blythe...let's hope they were certs for some elevator shoes.

Fri, 01/14/2011 - 17:40 | 877489 Lord Koos
Lord Koos's picture

2 day?  More like 2 weeks at the least.

Fri, 01/14/2011 - 16:33 | 877233 topcallingtroll
topcallingtroll's picture

Ultimately what this means is that comex becomes irrelevant in the future and its prices will follow the upcoming chicom commodity exchange. Are u short and cant deliver? Bullet to the head. Regulation chinese style.

Fri, 01/14/2011 - 16:48 | 877296 ReeferMac
ReeferMac's picture

Now there's a government you can get behind!

Fri, 01/14/2011 - 16:59 | 877350 malikai
malikai's picture

I think I'd like to trade on that exchange.

Sat, 01/15/2011 - 02:48 | 878402 strannick
strannick's picture

Q: Whats short and cant deliver?

A: CFTC Chairman Gary Gensler

Fri, 01/14/2011 - 16:33 | 877234 apberusdisvet
apberusdisvet's picture


So I guess that means that the 3 lawsuits against JPM will be delayed and delayed, or will the plaintiffs commit coincidental suicide?

Sat, 01/15/2011 - 01:41 | 878355 ZEITGEIST
ZEITGEIST's picture

actually 25 lawsuits...lets hope they dont  all travel to Jones Town and drink the lemonade there..

Fri, 01/14/2011 - 16:34 | 877237 cswjr
cswjr's picture

Argh, not surprising, but still.  G'damn m'f'ers.  I'm getting hosed on silver, but I really hope it's because those bears are right and China is dropping the hammer with plans on purchasing-- and taking delivery of -- boatloads of silver.

Fri, 01/14/2011 - 17:30 | 877458 duncecap rack
duncecap rack's picture

What Was the bears timeline? I thought that silver was to be hammered down until the end of Feb. and then it would rocket up when they tried to find physical on the spot market to try and fulfill their contracts. Is this correct? If so all the stories about physical being bought up around the world is very encouraging. JPM might get trounced yet>

Fri, 01/14/2011 - 19:54 | 877880 Arkadaba
Arkadaba's picture

The little bears may have gone over to the dark side. According to a friend living in the US, they appeared in a televised commercial for Geico?

Kidding aside, the xtranormal site claims to allow anyone to make vids with a cast of pre-defined characters: I haven't had time to play with it yet - maybe this weekend.

But I am curious to know who is making these little bears economic vids. They are brilliant and subversive and my aged aunt loves them.

Fri, 01/14/2011 - 20:14 | 877922 Blano
Blano's picture

Yes re: the GEICO ad.  Saw it several times.

Fri, 01/14/2011 - 22:01 | 878113 Diogenes
Diogenes's picture

What I want to know is since when do bears believe something is going up? Shouldn't they be little bulls?

Fri, 01/14/2011 - 16:33 | 877238 russell6164
russell6164's picture

This may be the leg down to buy again. The house won't win in the long run, the silver bullets are being bought at a tremendous rate. Buy on this dip big, may be the last one.

Sat, 01/15/2011 - 03:02 | 878405 strannick
strannick's picture


"Dont let a crisis go to waste". USDX could crash below 78. Physical getting scarcer.

1.Throw some water in your face,

2.give your self a slap,

3.look yourself in the mirror -mirrors use silver, and cant be made with Comex contracts or SLV- and tell yourself to stop being such a whiny little bitch cause 'waaaa, a bunch of corrupt Bureaucrats let us down boo hoo'.

4. pull on your big boy pantaloons,

5. stuff the pockets of those selfsame big boy pantaloons with all the crappy fiat paper that will fit

6. stride manfully on down to the physical silver store and make a difference leaving with some freeman's money!

Fri, 01/14/2011 - 16:34 | 877239 Dr. Gonzo
Dr. Gonzo's picture

Screw it. We'll take the long road and bankrupt them with a billion Silver Eagles. They can't sustain this pace. They'll run out eventualy. In the meantime I will be buying more under $30...If

Fri, 01/14/2011 - 16:34 | 877240 Dr. Gonzo
Dr. Gonzo's picture

Screw it. We'll take the long road and bankrupt them with a billion Silver Eagles. They can't sustain this pace. They'll run out eventualy. In the meantime I will be buying more under $30...If this

Fri, 01/14/2011 - 16:33 | 877241 Dr. Gonzo
Dr. Gonzo's picture

Screw it. We'll take the long road and bankrupt them with a billion Silver Eagles. They can't sustain this pace. They'll run out eventualy. In the meantime I will be buying more under $30...If this is

Fri, 01/14/2011 - 16:33 | 877242 Dr. Gonzo
Dr. Gonzo's picture

Screw it. We'll take the long road and bankrupt them with a billion Silver Eagles. They can't sustain this pace. They'll run out eventualy. In the meantime I will be buying more under $30...If this is a

Fri, 01/14/2011 - 16:34 | 877243 Dr. Gonzo
Dr. Gonzo's picture

Screw it. We'll take the long road and bankrupt them with a billion Silver Eagles. They can't sustain this pace. They'll run out eventualy. In the meantime I will be buying more under $30...If this is a long

Fri, 01/14/2011 - 18:00 | 877552 ColonelCooper
ColonelCooper's picture

Junked for quintiplicate posting.

Fri, 01/14/2011 - 18:13 | 877600 living on the edge
living on the edge's picture


You can say that again!

Fri, 01/14/2011 - 21:23 | 878057 ColonelCooper
ColonelCooper's picture


Fri, 01/14/2011 - 16:34 | 877244 Tic tock
Tic tock's picture

CTFC just needs to come up with a known parameter for 125% of deliverable supply and then it's back to the drawing board for JPM

Sun, 01/16/2011 - 01:16 | 879526 TheGoodDoctor
TheGoodDoctor's picture

What's 125% of 0?

Fri, 01/14/2011 - 16:34 | 877245 One Ton Lady
One Ton Lady's picture

I can't believe this shit, but then again, I can.

Fri, 01/14/2011 - 16:35 | 877251 Internet Tough Guy
Internet Tough Guy's picture

This is a positive outcome. The paper exchange has stated that is it entirely a speculative playground; physical buyers need not apply.

This will drive physical demand to other exchanges, and real prices will be set there. The world doesn't price oil off WTI and they won't price metals off phony markets either. 

Fri, 01/14/2011 - 16:50 | 877307 Dr. Gonzo
Dr. Gonzo's picture

I think premiums will move higher to off set the artificial low price too. This whole opera being played out is part of the death stages of the system. No one should be surprised.

Fri, 01/14/2011 - 18:03 | 877563 ColonelCooper
ColonelCooper's picture

Agreed.  The dumbshits just publicly admitted to a fractional reserve that they've been denying forever.  While this may seem like a setback, but in reality it is the beginning of the decoupling between physical and paper. 

Fri, 01/14/2011 - 18:57 | 877732 UncleFester
UncleFester's picture

Yes...what most do not understand:  the price will rise and supply will run dry, the price will fall and supply will run dry. 

Unfortunately, TPTB will declare that free markets have failed and proceed to take away what little freedoms you have left.  Of course it is just the opposite.  Price is where supply meets demand and is a signal to producers, consumers and entrepreneurs IF and only IF the producers, consumers and entrepreneurs are FREE to act...clearly they are not.

Next up: cash and cash accounts will be replaced with National ID cards that double as credit cards (are you credit-worthy = have you been blacklisted), then that will be replaced with an RFID chip.  Like today with SSN, you will not be able to leave a hospital with your newborn without having one implanted in him/her. 

I Fester

Sat, 01/15/2011 - 03:30 | 878426 Hephasteus
Hephasteus's picture

With great power comes great current times resistance squared. What was adequate under lies is inadequate under truth. Can you hear the global fuck you.

Fri, 01/14/2011 - 19:42 | 877839 Al Gorerhythm
Al Gorerhythm's picture

They may have admitted to a fractional reserve but that doesn't mean that they will play that game. The stink goes deeper than that.

Because markets are split between "actuals" and "forewards" and that the forewards can be rolled over into perpetuity, there is no intention whatsoever to deliver on their forward "actual" contracts. As long as they consider "cashing out" deliverable contracts as a physical exchange, they need zero ounces in inventory to play their games.

That too is in essence the basis of the dollar. They don't intend to deliver anything against them either. They are irreedemable and therefore are not even fractional in their reserves. It's a digital entity, not an actual. 

They got nothin. You get plenty of that. Thanks for coming. Have a nice day.

Sat, 01/15/2011 - 01:03 | 878325 LudwigVon
LudwigVon's picture

This is a positive outcome. The paper exchange has stated that is it entirely a speculative playground; physical buyers need not apply.

This is quite wise.

"Vietnam has a very lively physical market..."

Fri, 01/14/2011 - 16:36 | 877255 Dr. Gonzo
Dr. Gonzo's picture

Quintuple Post! Never seen that before...What I was trying to say was that this could be a long drawn out process and buying every 3 months for several years might be the best retirement gift they could be giving us. That's what I'm planning on doing.

Fri, 01/14/2011 - 16:51 | 877314 gorillaonyourback
gorillaonyourback's picture

exactly, have faith in your conviction, your research and trust your gut

Fri, 01/14/2011 - 18:03 | 877566 ColonelCooper
ColonelCooper's picture

Okay, unjunked. 

Fri, 01/14/2011 - 21:54 | 878103 Dr. Gonzo
Dr. Gonzo's picture

Getting a quintuple post to happen is a phenomenon that can't be explained by scientists and as far as I know I am the only poster to have it happen to him so I'm kind of sad it got junked. God has a plan for everything though. 

Sat, 01/15/2011 - 03:18 | 878418 w a l k - a w a y
w a l k - a w a y's picture

not even close! someone had about a dozen multi-posts a month or so ago

Sat, 01/15/2011 - 11:54 | 878636 snowball777
snowball777's picture

This computer scientist can explain it in terms of busted database sharding code; no gods required.


Fri, 01/14/2011 - 16:41 | 877256 hambone
hambone's picture

There is no "market".  You are in a rigged casino.  Leave the casino.

Own what you know and know what you own.

Fri, 01/14/2011 - 16:40 | 877258 OutLookingIn
OutLookingIn's picture


 I'm now sad to say that the U.S.of A. has shown itself to the world for what it is -

A morally, financially, politically, corrupt cesspool of greed and avarice with NO rule of law, out done only by it's hubristic intentions to keep doing what it's doing until it can't! Then someone will kick in the front door to the entire rotting pile of dung and watch it collapse in an orgy of self demolition and conflagration! 

Fri, 01/14/2011 - 16:54 | 877329 malikai
malikai's picture

+100 points for using the word 'avarice' to describe the United Corporations of America.

Fri, 01/14/2011 - 17:37 | 877477 calltoaccount
calltoaccount's picture

Army Of Avarice Plunders America Into Calamity That Did Not Have To Happen

One year old, but could have been written yesterday.
Fri, 01/14/2011 - 16:38 | 877259 damnitalready
damnitalready's picture


I understand this means that JPM continues business as usual, right?

It also means more time to accumulate?

Fri, 01/14/2011 - 21:53 | 878100 Confuchius
Confuchius's picture

An anonymous person has pointed out on many occasions that JPMorgue is acting merely as trash man / septic tank pumper / gofer for the us treasury who are TERRIFIED that the metals will now slip out from under their festering thumb. JPMorgue is not the problem. Merely the visible putrid slime surroundind the metals truthtelling. (So it is not necessary to even imagine any gov't mouthpiece telling the truth. Ever.

Fri, 01/14/2011 - 16:38 | 877260 topcallingtroll
topcallingtroll's picture

I saw a comment a long time ago that when billionaires are underwater they pick up the phone and call somebody..when we are underwater it is just an ordinary margin call.

Fri, 01/14/2011 - 16:41 | 877265 youngman
youngman's picture

Buy the real stuff...this will be taken care of that way.....pretty soon they are just playing with themselves

Fri, 01/14/2011 - 16:45 | 877280 lsbumblebee
lsbumblebee's picture

All they're doing is buying more time. This is not going to help them when the cupboards are bare. They can't pretend forever they have the physical when they're already leveraged 100:1. 

Fri, 01/14/2011 - 19:48 | 877864 Al Gorerhythm
Al Gorerhythm's picture

They may be leveraged 100:1 but aren't they leveraged using someone else's property? That puts a differrent slant on things. They've got nothing, had nothing and will be hounded all the way to bankruptcy court.

Fri, 01/14/2011 - 16:47 | 877290 jackpile
jackpile's picture

Would collectively taking out a full page ad in the WSJ do any good? MSM will likely ignore it as they are paid off. Would be great to get Huffpo and John Stewart to simultaenously bring this to the world's attention.

Fri, 01/14/2011 - 17:11 | 877388 Renfield
Renfield's picture

Most of the world (HuffPo/Stewart targe audience) doesn't hold physical PMs, so not only will they not do it, the world wouldn't read it/understand it if they did.

Jon Stewart might own some gold. It's a given that almost none of his audience does. Government scrip is all they know.

Which is why most of the world is and always will be poor.

Same as it ever was. Don't sweat it...

Fri, 01/14/2011 - 17:22 | 877436 unwashedmass
unwashedmass's picture


i watch jon stewart religiously...

and i own gold and silver both, and have been buying more.

don't assume that liberals or democrats aren't as freaked out or as against Bernanke's actions as you are.

don't assume that.

Fri, 01/14/2011 - 19:24 | 877794 Renfield
Renfield's picture

Then you're not one of the 'almost none' I referred to. :-)

Sorry if my comment seemed to target Dems. I honestly don't give a flip between Dems & Reps. (I'm not even American, and if I were I'd prolly be libertarian)'s just that the original post referred to HuffPo & Stewart so I did. Meaning, most people (of all stripes).

i.e., in any given audience (whether HuffPo, or Hot Air, Stewart or Beck, or independents), almost nobody owns PMs...hope that's clearer. I'm sure that the % of Dems who own PMs is the same as the % of Reps who do - vanishingly small.

(Explaining b/c I think political insults are a big waste of time, so I don't want to appear to make them.)

Sat, 01/15/2011 - 16:07 | 878940 RockyRacoon
RockyRacoon's picture

I'm one of your "almost none" as well.  But for the Daily Show a lot of the plebes would get no political news at all.   A pretty effective job was done on the show to move the 911 Responders bill along.  Better some humor than preaching.

Fri, 01/14/2011 - 23:03 | 877973 Arkadaba
Arkadaba's picture

I have been watching Jon Stewart for years but I kind of got disillusioned with rally against insanity. What is wrong with getting angry at your government when your government is screwing you? Obama hasn't delivered on the majority of election promises. He has installed Wall Street insiders as advisors and in important roles. I don't understand why the democractic base doesn't get it.

And I'm pretty far left on the scale (left on Canadian scale) 

Sat, 01/15/2011 - 10:24 | 878563 Calmyourself
Calmyourself's picture

Because you have been lied too for years.  Political arguments concerning honest liberals / Conservatives these days are nothing more than trying to discover which side told the least amount of lies in a given time frame.. 

Fri, 01/14/2011 - 17:42 | 877496 I think I need ...
I think I need to buy a gun's picture

The wall street journal is them they won't run anything, its one big circlejerk....

Fri, 01/14/2011 - 17:44 | 877503 LooseLee
LooseLee's picture

G.A.T.A. already did that nearly 2 years ago. The boobusamericanus (sheeple) is so entrenched in the web of the Matrix he/she is unable to see clearly--and quite frankly I do not think he/she wants to 'see' the Truth. Most Americans (and people in general) do not want to be 'bothered' with the fact that their little world is a sham perpetrated by the banksters, corporations and governments. That is all they have known and since things in America have been very good for so long, they cannot fathom the 'ending' of the game. It is coming, but even I am beginning to wonder how long the 'lie' can be perpetrated....

Fri, 01/14/2011 - 18:28 | 877637 jackpile
jackpile's picture

I know, you are all right. I own a lot of gold and more silver. Not a metal bug per se, I just know it's the answer as fiat collapses and should eventually go parabolic. But WHEN?! It's so damn depressing how our world is so fcuking corrupt. Will our metal really rise with CFTC non-enforcement? Or will the whole system crumble or get overrun soon or eventually? Planning a world tour this summer to look for best escape route. Any ideas folks? We are big on S. America, maybe parts of Europe (gasp) or Singapore.

Fri, 01/14/2011 - 22:07 | 878124 Confuchius
Confuchius's picture

Peru: Worth considering

Chile: A Jewel.

Panama: Necessary for any business dealings / banking.


"going parabolic" = a zero sum game.

"going exponential" is what you were getting at.

Metals "prices" are just the inverse of the increasing worthlessness of any fiat paper.

Evidently Latvia will give you another passport.

Singapore is a jewel and priced accordingly.

New Zealand is the only english speaking civilized country left, BUT you will need your Panamanian business in order to survive in the high tax NZ environment.

Uruguay is the only tax free area south of Panama. But not an easy place to try a start-up. Pappy Bush thinks it is good enough to buy 100 sq. miles of land tho'.

Sat, 01/15/2011 - 03:07 | 878410 strannick
strannick's picture

Yeah the JS crowd writes P.M.s off as Teabagger nuttiness. Then Krugman might have you charged as an accomplice in the Arizona shooting.

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