Jeffrey Christian Has A Second Chance To Disprove The Gold Ponzi Scheme, Fails

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Sat, 04/10/2010 - 23:19 | 295137 hedgeless_horseman
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Where there are firemen with a truck and a hose, there is usually a fire.

Sun, 04/11/2010 - 00:24 | 295190 MarketTruth
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Apologies for hijacking to top spot here.


You can DL the file at

No need to 'live stream' it. For those NOT using the MaxIpad, right click above link and choose Save Target As...

Sat, 04/10/2010 - 23:26 | 295143 Womb Service
Womb Service's picture

I wonder if he'll have an "accident" before he gets a chance to open his mouth again?

Sun, 04/11/2010 - 16:32 | 295659 akak
akak's picture

Rumor has it that he was booked on the Polish delegation Aeroflop flight into Minsk, but had to cancel at the last minute.

Sat, 04/10/2010 - 23:44 | 295155 Cognitive Dissonance
Cognitive Dissonance's picture

"Those banks' management, their credit departments, the banks that they borrow money from would never allow them do that."

I feel better already, knowing that these guys would never be allowed to do that. Of course, if I were to apply any logic, common sense or even critical thinking to this quote, I might need to question this little pearl of wisdom. But since mine is not to question why, mine is just to buy buy buy, I can sleep tight tonight.

Good night Daddy.

PS......"For anyone who wishes to lose 10 IQ points permanently...."

Consider it done Tyler, consider it done.

Sat, 04/10/2010 - 23:59 | 295172 truont
truont's picture

Ironically, gold bug (AKA troglodyte) history will come to regard Jeffrey Christian as the most influential whistleblower on 100:1 paper to metal leverage in our financial markets.

Sun, 04/11/2010 - 16:23 | 295622 akak
akak's picture

I propose that we encourage some (private) mint to produce a commemerative gold coin with the face of Jeffrey Christian on one side and Jon Nadler on the other (and with little Bernake faces scattered throughout), and with a legend on the edge of the coin stating: "Heroes to the Gold Cause!"

Sun, 04/11/2010 - 16:03 | 295636 Al Gorerhythm
Al Gorerhythm's picture

Bedroom scene: Mother and child, 1 minute past midnight, during a raging, Force 10 storm.

"Sleep little one, sleep. It's only you dreaming. Mommy will make it better".

(She raises her hand and sprinkles imaginary pixie dust over the sleepy child's head. That has been their game and it has always placated him.)

"Thanks mommy." the sleepy child mumbles, reassured.

(As windows implode and the roof blows off, the child closes his eyes and sleeps on, trusting that all is well).

Sun, 04/11/2010 - 00:05 | 295174 been there done that
been there done that's picture

I've been listening to Puplava's show for few years now. I heard this earlier today and took some of the same excepions to it. Tyler points out far more than I noticed but I was really scratching my head on this one. Puplava is an inflation guy. He beats you over the head w/ a lot of the same viewpoints over and over (if you care to listen). He has convinced me that oil IS going to be a problem.

Sun, 04/11/2010 - 06:31 | 295292 RatherBFlying
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Ever since Puplava came back from vacation in August 2009, he's moved from a Prudent Bear to a Total Pump Monkey. He completely missed the run up from the March lows to August, then jumped back in and has been touting the market ever since then. The show peaked in 2009 when they did the Inflation/Deflation debate, but it seems to me the only one who didn't listen to what was said in the debate was Puplava himself.


That said, I'll keep listening to the show because of John Loeffler. If you didn't hear his mock interview with the combination Sheep Herder/Investment Broker last week, you missed a chance to laugh your ass off.

Sun, 04/11/2010 - 15:04 | 295591 SWCroaker
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Puplava makes a point of inviting both types of guests: those that he agrees and disagrees with. He's also stated (and shown) that he is not in the habit of cutting his guests down (ala CNBC shoutfests) and leaves his listeners to think for themselves.  He does, I do, and I find it refreshing.  JP is also a proponent of managed storage over personal possession, and there I take liberty to think my own way as well.  Nobody's perfect, and even if I was listening to *me* hosting the show, I'd probably find bones to pick.


When I first listened to this interview, it dropped my own personal star rating on both the guest and his firm by several stars.

Mon, 04/12/2010 - 00:05 | 295918 akak
akak's picture

Puplava would not have been "cutting down" his guest Jeffrey Christian in any way to merely ask him some obvious and pointed questions as follow-up to some of Christian's more disingenuous and opaque statements.  I think Puplava really dropped the ball on this one, and I was almost dumbfounded listening to the interview to hear some of the outrageous bankster machinations that Christian tried to defend, and the misinformation that he attempted to peddle, with no meaningful response from Puplava whatsoever.

Next time, Jim, throw some hardballs, and stop striking out on every easy pitch that comes your way!

Sun, 04/11/2010 - 00:05 | 295175 Vendetta
Vendetta's picture

When they start calling people names like "troglodytes" we know we are getting on their nerves.  They don't like to explain themselves because they can't with reasonable explanations so they inevitably start sounding like Charlie Brown's teacher.

Sun, 04/11/2010 - 03:32 | 295255 Problem Is
Problem Is's picture

Hilarious Vendetta...

"...sounding like Charlie Brown's teacher."

You mean: "Wah-wah-wah-WAH-wah?"

"When they start calling people names like 'troglodytes'"

The Fallacy of the Ad Hominem  Attack

Notice Jeffery "Peckerhead" Christian (whoops I did it...) did not retort or counter the facts of the dissenter. The dissenter would be the "troglodyte".

"Conspiracy Theory" is the ever popular method of discrediting the dissenter by... not refuting his facts but by the fallacy of the Ad Hominem attack... calling him names to discredit the position or argument the dissenter brings forward. Classic sloganeering by idiot mouthpieces (whoops... did it again) of the oligarchy.

The problem with Myth Narratives like what Cristain is espoucing... is they are logically invalid arguments. So when confronted with facts, counter examples, bitch (damn... did it again) has no facts to stand on or no place to go but..."troglodyte."

Sun, 04/11/2010 - 06:22 | 295290 Hansel
Hansel's picture

Me caveman.  Me like shiny rock.

Sun, 04/11/2010 - 00:09 | 295176 The Person Fami...
The Person Familiar With The Matter's picture

Should have bought after seeing the Friday CNBC viewer poll. But after hearing an "expert" explain it, will be buying GLD and SLV first thing Monday morning.


Sun, 04/11/2010 - 00:16 | 295182 perchprism
perchprism's picture


Dood, before you do that, go to and buy a few oz of gold for personal possession.  Buy a couple hundred Mercury dimes, and Standing Liberty quarters.  Maybe a roll of Silver Eagles.  You can order online tomorrow and pick it up at the Post Office by Friday.



Sun, 04/11/2010 - 00:38 | 295198 truont
Sun, 04/11/2010 - 02:42 | 295246 chumbawamba
chumbawamba's picture

Wait, what!?  The whole idea here is that you cannot trust any counterparties.  And you just have not been doing your reading.  GLD and SLV are not gold and silver: they are paper investment vehicles, nothing more.  You will no more extract any gold or silver from each respective fund that you would blood from a turnip, or the truth from a Goldman Sachs banker.

Physical gold and silver, in your possession.  Hurry.

I am Chumbawamba.

Sun, 04/11/2010 - 13:36 | 295490 Attila
Attila's picture


We were in Kitco the other day and the gal there broke into fits of laughter when she found we were looking for Silver Maples. She said they had some in early March which lasted less than one day.


The Canadian Mint advised they MIGHT have some Maples in July.


Guess there's a surplus of Ag...



Sun, 04/11/2010 - 15:42 | 295614 Real Wealth
Real Wealth's picture
by Attila

"We were in Kitco the other day and the gal there broke into fits of laughter when she found we were looking for Silver Maples. She said they had some in early March which lasted less than one day."

Currently silver is in good supply locally.  However, my last visit there was an 50ish black gentleman buying like $850 worth in cash.  Previously, I'd only encountered other white males hoarding PM.  I was tempted to ask if he was buying with cash (no markup for using credit or check for silver) in fear of the government tracking his purchases for confiscation.

Sun, 04/11/2010 - 16:15 | 295649 cossack55
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When this cat left did he perhaps get into a large black Chevy Suburban with tinted windows?

Sun, 04/11/2010 - 20:19 | 295783 Carl Marks
Carl Marks's picture

Most likely a Cadillac.

Sun, 04/11/2010 - 00:13 | 295178 cswjr
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Could this guy possibly be talking about the velocity of gold derivatives (i.e., # of times 1 Toz. worth of gold futures is traded around) vs. the transactions velocity (# of times 1 Toz. changes hands) of physical gold?  Is that ratio anywhere remotely near 100:1?  The guy's idiocy just boggles my mind and I'm searching for a seed of rationality in there somewhere.  Of course, even if this is his meaning he's still WAY off with the 100:1 ratio for currencies and Treasuries.

Sun, 04/11/2010 - 00:19 | 295183 LeBalance
LeBalance's picture

I have figured out Jeff Christian, he is a member of the Yes Men.  As you will recall the Yes Men are an activist group who perform "identity correction" on their corporate target by masquerading as spokespersons for said body.  In the past the Yes Men have spoken on BBC as DOW and apologized for the Bhopal Incident (

Bravo "Mr. Christian!"

Sun, 04/11/2010 - 00:20 | 295185 Bolweevil
Bolweevil's picture

shh! if you listen real close you can almost hear the music.

Sun, 04/11/2010 - 08:43 | 295325 SWRichmond
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I heard the music.

Mr. Christian confirmed that gold in unallocated accounts is lent out in a fractional reserve system.  Unallocated accounts are often called pool accounts.  If you buy gold in a pool account you are actually contributing to phony gold supply and price suppression.  I think from the analysis elsewhere of GLD anyone could find ample reason to be suspicious of their actual physical holdings.  Under these circumstances, the only acceptable way to own gold is to buy physical gold and take possession of it.  Mr. Christian alluded to this in his interview, but the example he used was FRN cash.  He said that cash in a safe deposit box was not counted as an asset of the bank and could not be lent against.  Did everyone else miss this? 

Sun, 04/11/2010 - 21:59 | 295832 akak
akak's picture

"Mr. Christian confirmed that gold in unallocated accounts is lent out in a fractional reserve system.  Unallocated accounts are often called pool accounts.  If you buy gold in a pool account you are actually contributing to phony gold supply and price suppression."


And curiously, it is the very man who is perhaps the most publicly vocal in his anti-gold rantings (and most quoted by the "mainstream" media on gold), Jon Nadler, who was the architect of the precious metals pool accounts peddled both by the Royal Canadian Mint and Kitco, his employer.  No, no possible connection whatsover between that and his rabid and hysterical denunciations of, and innumerable attacks on, the "Radical Goldbug Extremists" (his words) who demand to hold physical gold instead of paper promises.

(roll eyes here)

Sun, 04/11/2010 - 00:20 | 295186 Kina
Kina's picture

Should GLD price drop by a factor of one hundred?

And the price of purchased physical gold price rise?

Or will the investor be scared off gold altogether?

If there is subsquent crash in the gold price is it an opportunity to buy more?


Sun, 04/11/2010 - 00:21 | 295188 Bolweevil
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Sun, 04/11/2010 - 06:13 | 295289 Gordon_Gekko
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If there is subsquent crash in the gold price is it an opportunity to buy more?

A crash in the paper Gold price doesn't necessarily mean physical will be available at that price. Paper Gold and the physical metal are two ENTIRELY different products.

Sun, 04/11/2010 - 07:20 | 295297 ciscokid
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Sun, 04/11/2010 - 08:03 | 295309 SWRichmond
SWRichmond's picture

Watching for backwardation.

Sun, 04/11/2010 - 09:49 | 295339 AUD
AUD's picture

Indeed. The gold 'deposit' will trade at a discount to the physical asset. Just as bank deposits have before and will again trade at a discount to physical bank notes.

Fancy that, you pay to store your gold, while the 'depository' lends it at interest. That's good margin!

Sun, 04/11/2010 - 18:34 | 295736 john_connor
john_connor's picture

Exactly.  I think the market wants to call the moral hazard bailout train down to the river right now.  Let's see how congress feels when long bonds jump 500 bps in the next 2 months and physical gold is 2K per ounce.

Sun, 04/11/2010 - 18:44 | 295742 Shameful
Shameful's picture

Whoa there partner!  I'm with you on a meltdown and either a spike in bond yields or the Fed being the only buyer, but 2 months?  Why two months?  I mean more and more fraud is getting pushed out there but most people still have their head in the sand.  It's not like the herd is fully spooked yet.  A jump that dramatic would trigger the end game and I have to think they will do their damnedest to slow it down.

Sun, 04/11/2010 - 22:20 | 295851 Hephasteus
Hephasteus's picture

Last time they paper crashed it. The premiums on coins went up to compensate. LOL That was only a 74 billion dollar paper crash.

Sun, 04/11/2010 - 00:21 | 295189 Stormdancer
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Christian says position limits on commercials will "skew" the pricing of futures...but of course he never explains the process. So, unregulated, naked positions of unlimited size DON'T "skew" pricing? Can't have your cake and eat it too Jeffery.

Of course no mention of COMEX paper hedging LME paper (but it's physical paper!)

No wonder Nadler quotes him.

Sun, 04/11/2010 - 00:40 | 295200 truont
truont's picture

Oh, it's physical paper!  Here I got all worked up over nothing about the 100:1 leverage in metals exchanges...  

Sun, 04/11/2010 - 00:41 | 295201 The Person Fami...
The Person Familiar With The Matter's picture


Sarcasm button was hit like caps lock. I use, they are always 24 over spot on 1oz gold bars. This is 9 to 11 less than, didn't pull up.

Sun, 04/11/2010 - 13:37 | 295491 perchprism
perchprism's picture

I get and mixed up.  Have bought from both.  Haven't tried

I wondered if you were being sarcastic. 

Sun, 04/11/2010 - 01:09 | 295211 carbonmutant
carbonmutant's picture

Trilobytes, Trilobytes? These guys sound like a bunch of dinosaurs

Apple Basil Martinis are really good...

Sun, 04/11/2010 - 03:07 | 295212 chindit13
chindit13's picture

I really understand this fellow and can help explain his methodology, even though Goldman was not one of the firms I worked for in my youth (otherwise, of course I would willingly submit to sterilization so as to eliminate the threat of my seed from the human gene pool).

You see, he informs as well as educates when he says that those "conservative" banks---you know, the ones who brought about the destruction of $40 trillion of asset values worldwide---borrow at 75 pips and loan at 85 pips, for the magical ten point spread that covers SGA, loss reserves and most important:  bonuses. 

Now Jeffrey, in point of fact they borrow at 10 pips and loan out at 2999 pips, for a gang-raping 2989 pip spread, but I am willing to accept that is simply a rounding error as you define such things, kind of like the size and value of the "hedge" your former employer had on its exposure to AIG. 

In any event, that is a valuable window into the manner in which Fletcher's, er....Mr. Christian's mind operates.

Regarding gold derivative trading, he makes a point about the value of traded contracts relative to the actual supply of the underlying physical material, hoping to inform the troglodyte-community-at-large as to how a Once-a-Goldman-Always-a-Goldman mind works. 

Now some of us trogs are foolishly caught up in this "time is linear" thing and believe that open and closed contracts on an underlying asset are totally different from just plain open contracts.  Silly us.  For example, Gordon Gekko and I might have 100 troys of gold between us (I won't tell the truth, GG, your secret stash is safe with me).  I sell it to GG, he sells it to me (pardon the blasphemy!), I sell it to him...maybe fifty times in a day.  At the end of the day a single contract of 100 troys is open, though we have traded 5000 troys worth of real money.  All well and good.  No fractional reserving here, nor velocity.

Mr. Christian reminds us that it is intent that is critical, and that the difference between volume and open interest is really just a nuisance not worth bothering about.  Thus, at the close of a typical Mr. Christian day in Wonderland, while positions representing 1 million contracts might be open, and physical supply might only equal ten thousand contracts, if the intent of one of the contract sides is to close the position and not worry about physical delivery---or even sell a million more contracts so as to run troglodyte stops---then the difference is merely a combination of rounding error and a way in which the Einsteinian Time-Space Continuum is more fully exploited for fun and profit.

If all of that is just too complicated for a troglodyte mind infused with too many deep Earth gases from all the mining activity, just take comfort in this:  it's technical.

Sun, 04/11/2010 - 05:27 | 295277 Sig
Sig's picture


Sun, 04/11/2010 - 06:54 | 295295 JmBob
JmBob's picture



A small, but vital, point;  the banks didn't destroy $40Trn of asset value, they just returned the value of those assets to something more nearly approaching their 'true' value - having previously allowed their apparent value to increase exponentialy in the first place.


This is a 'good thing'.

Sun, 04/11/2010 - 15:44 | 295625 truont
truont's picture

Yes, that is why I just don't get the 100:1 paper to metal leverage. 

It is just too technical for my trog brain to grasp.

Good thing we have these Goldman savants to help guide the less fortunate masses like we--the useless eaters that we are!

Sun, 04/11/2010 - 18:32 | 295733 Oracle of Kypseli
Oracle of Kypseli's picture

The collective total IQ is constant. it's just that the population is growing.


Sun, 04/11/2010 - 01:28 | 295214 hamurobby
hamurobby's picture

If I were GS, I would probably pick a more smooth talking guy to be in this guys shoes. What he is saying is true and fine about the 100 to 1 ratio of longs and shorts, to actual deliveries, but let there suddenly be a large increase in contracts for delivery. I read somewhere that there has been a substantial draw down of gold and silver available for delivery. Now, that does not mean the world is out of gold and silver, it just means it will take some time to get deliverable metal. If there is a real panic, such as a CONfidence failure in fiat, be glad you own gold in your hands on that day. Let them keep holding price down, I keep adding to what I have. One day very soon, we wont mind cause it wont matter.

Sun, 04/11/2010 - 01:24 | 295222 three chord sloth
three chord sloth's picture

I've got a question...

Do any of these derivatives have an actual claim to physical gold? Or is this like a very high risk financial version of fantasy football, where a hundred leagues can offer a hundred Peyton Mannings on a hundred draft days, but none of those leagues have any claim to the real Peyton Manning?

To put it another way, does it matter if there is a hundred bets per ounce of gold if those bets have no legal standing to take possession of the original ounce?

Sun, 04/11/2010 - 10:23 | 295354 MsCreant
MsCreant's picture

Looks to me the answer is no, technically they do not have an actual claim to physical. It seems to me the bet is not gold and that is what is at issue. It is acting like it is existing gold on the price. A seeming unit of supply, when it is not a unit, but a bet. They trade it as if the bet is gold in existence.

It matters. BIG TIME. When I want gold, I don't want to be given a $ instead. If I want oil, I don't want a $ instead. If I were in an ETF, I'd only be there, understanding I was trying to out ponzi a ponzi scam. Move in, make my profit, get out. I don't have the time or stomach for it. I'll keep my physical, thanks.

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