The JP Morgue Whistleblowers Are Back

Tyler Durden's picture

Promptly after those two cuddly bears explained how the JP Morgue is manipulating the silver market, and the xtranormal video went viral, forcing the FT to release an indemnification that "according to sources" JPM had covered a major portion of its silver short (only to subsequently end up with 90% control of other metals markets), here they are back, explaining in Part 2 of the series just what the next steps in the unwind of the biggest metal manipulation scheme will look like. The kicker: a JPM insider has told one of the bears that there is no commercial silver left, "it's all smoke and mirrors, and the CFTC can do nothing about it other than pray." Other topical items explained: silver backwardation, that there are two commissioners at the CFTC on the JP Morgue's payroll, the BIS' fractional gold system and the usage of side pockets for sovereign gold, and pretty much everything that ties the loose odds and ends in the PM manipulation story.


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tallystick's picture

That's right, gold and silver are literally second and third generation star dust. 

Dave's picture

"Watered" is the key word there. And that's a whole nuther deal.

zero-g's picture

Well said, have enjoyed your commentary. There is no way out now, the only direction is up.

If anyone can submit a valid counterpoint, I'd appreciate one, as I haven't found one yet....

The only question I have is when silver goes to 50 or 100 or 500$, will we see the price of normal goods rise in kind, or in a much smaller amount?


Mr Lennon Hendrix's picture

I think that there has been and will be a balancing act between PMs and oil, with each inflating proportionally to how much can be done without disturbing the status quo.  Oil is the end all.  Silver and gold would be allowed to appreciate around 33% higher before oil breaches $105 a barrel, which is the price I have for crippling the American Adventure.  Until then, the price increase will affect technology, albeit minimally.  Once $105 is breached with authority, and silver and gold prices rise with equal ferocity, I think prices as you know it will go out the window.  Food, nevermined technology will haunt diets everywhere, however justified.  I do think once the dust settles, and that could take years, and silver is $500 per oz or whatever, I think it will keep technology in the upper class' hands.  Other considerations are with durable machinery and input costs, and whatnot.

zero-g's picture

You are probably right about oil, I hadn't really given that aspect enough respect. I think as you stated, around 105 would be a tipping point as consumers and businesses are broke, but as we have seen so many times already, it doesn't mean the banksters\US Gov can't do another extend and pretend. However, at that juncture, the only way I see them keeping it going is either outright revalue of the USD lower, ala bank holiday and a 50% lower dollar, or US workers taking actions forcing payraises, which would be difficult I think due to the amount of unemployement. The US Gov has avoided all opportunities to help the middle class in a meaningful way, and I wouldn't look for that to change anytime soon.


I think even if food and other types of goods will probably rise in price in multiples, it just will be a lower multiple of how fast gold and silver appreciate, giving us a bit of extra buying power when the dust settles. I still see a huge relative bubble in the real price and amount of luxury goods the middle class has, and think those will decrease in price, things like the 'status motorcycles' ala Harley Davidson, boats, expensive jewelry and watches, real estate, and probably high end cars too. The middle class will try to sell these to into an increasingly crowded marketplace.


It will be interesting to see how it all plays out, as the saying goes, we definitly are living in interesting times.

You helped get me interested in silver, as I had been almost gold only before, thanks.

Mr Lennon Hendrix's picture

Zero G, my friends say that, and you're welcome. 

pcrs's picture

the ben bernank could perhaps do a reverse split with the dollar

FEDbuster's picture

33:1 reverse split would get us back to 1913 "dollars".  Isn't it something that a one oz. silver dollar has held it's value since 1913, while a paper dollar has lost 97%?

FoodTiger's picture

PARIS, Dec 22, 2010

World Bank President Robert Zoellick reaffirmed his proposal to use gold as a "reference point" to reform the current international monetary system on Wednesday in Paris.

Mr Lennon Hendrix's picture

Gold has always acted as a reference point, this is merely smart wordplay by the Globalist/Fascist Banker.  What is stored as a reserve at every Central Bank?  What is stored as a reserve by all Major Banks?  What is then used to start and facilitate the fractional reserve lending scheme?  Gold is the reference point, although manipulated, for the financial system as a whole.

chopper read's picture

"The best way to control the opposition is to lead it ourselves." - Vladimir Lenin

Mr Lennon Hendrix's picture

And all it takes to formalize a power structure is for people to pledge blind hope and faith to it.  Complacency is such a shame.

SWRichmond's picture

"After the revolution, the satrapy will work for us."

MobBarley's picture

My sincere apologies to all true believers beforehand, however


"The best way to control the wikileaks is to lead it ourselves." - Vladimir Lenin


My recomendation is that you intone the above sentence in the voice of Herr Doctor Henry Kissinger.


bigfootmm's picture

"What is stored as a reserve by all Major Banks?"

What is stored at all Major Banks? You are saying gold? More like dust and shelving.

merehuman's picture

Hard, fast and now! She spoke those words in the heat of passion. Now i am soft, slow and ..i forgot

DoChenRollingBearing's picture

:)  :)  

Merry Christmas to you and EVERYONE here at ZeroHedge!

merehuman's picture

And remember me in your will!  Lol

A big thank you to you all. You all combined to give me a picture of the real world which in turn has been verbally parleayed to many in my small community. Its a fair bet to say you all have saved some lives as more are prepared for the uncertain but certainly more negative future.  It may seem like nothing to you but means a lot to them that wont go hungry. Again, Thank you.

Jendrzejczyk's picture

....laid up on the couch with a bad back?

Rick64's picture

 Two commissioners of the CFTC. They helped create the problem and now they will help fix it?

  Gary Gensler spent 18 years at Goldman Sachs, making partner when he was 30. Gensler advocated the passage of the Commodity Futures Modernization Act of 2000, which exempted credit default swaps and other derivatives from regulation.

 Jill E. Sommers worked in the Government Affairs Office of the Chicago Mercantile Exchange (CME), where she was instrumental in overseeing regulatory and legislative affairs for the exchange. During her tenure with the CME, she had the opportunity to work closely with congressional staff drafting the Commodity Futures Modernization Act of 2000.

Mr Lennon Hendrix's picture

Yeah, problem, reaction, solution at its dirtiest.

TheJudge2012's picture

Makes me wonder more why Ted Butler says Gensler walks on water.

Twindrives's picture

Jill E. Sommers huh?   Another corrupt bitch like Blythe Morgan.  And the other corrupt bitch Barack Obama.

ViewfromUndertheBridge's picture

Remember Brooksley Born, head of the CFTC until she wanted to regulate derivatives....rolled by Greenspan, replaced by Gary Gensler, deputy Treasury secretary under Rubin...all just so incestuous...but, Greenspan admitted he was wrong so there is hope that anyone elected promising change would revisit some of the biggest mistakes...and sack Gensler.



cosmictrainwreck's picture

Well I know "price means nothing" b-b-b-but just curious when will we start seeing surge in spot prices?

Mr Lennon Hendrix's picture

September '10, but if you mean from here on out, well, with massive support pu in at the $27-$29 range silver willonly go up from here.  A move to $36 is in the cards and that should only take a few weeks.  The following moves will make investors blush and ask, 'Why?' until their heads hurt.

LiquidBrick's picture

 b-b-b-but just curious when will we start seeing surge in spot prices?

Curious or clueless? You just lost 50% in gains by asking this question today instead of buying silver at or below $20 90 days ago.  The bread line is thataway!      --------------------------- >

cosmictrainwreck's picture

hey, asshole, you have no fucking clue how much physical or paper I own, or when and when & at what price I bought it. I've done OK, if you must know. I was merely looking for people smarter than me to speculate on timing and magnitude of future trends based on this new information. i was trying to ask it in a semi-humorous way........... my bad, I 'fess

buzlightening's picture

hehehehehehe! Doubt with physical silver anyone will stand in a bread line but a very funny point!!

IQ 145's picture

 Perhaps it would be just as well if I remind you that "Cartoon bears" are not considered a "source of information" by sane people.

StychoKiller's picture

Do "sane" people get their info from the MSM?  They sure aren't finding it in dying newspapers!

DoChenRollingBearing's picture

No junk from me IQ!  I thought your comment was funny!

Those bears are probably right though...

Temporalist's picture

"Shitstorm" bitchez!

Fake Jim Quinn's picture

I'm long a lot of silver and othe PMs. But it bothers me when the same guys in video #1 told you exactly what site to go and buy silver, claiming it would go to $500/oz are now back, claiming an "anonymous trader" with complex conspiracy theories. And the video says "price does not matter". I have a problem with a silver retailer who is sure silver is going to $500/oz but seems to want to sell everyone the silver they bought at $29.

Name the source, and the Commissioners on the payroll. Then we can rock. Otherwise this is as credible as any stupid Internet rumor.

bankrupt JPM buy silver's picture

Well, vid #2 does NOT say any site, so whats their gain?  Plus the site is locked down for maintenance....NEXT!

Fake Jim Quinn's picture


Just curious -- do you accept this video as gospel, and have you considered that the poster, who put time and effort into it, may have a motive unto themselves.

dark pools of soros's picture

everyone has a motive.. do you live in utopia??  even smurfs had motives


choose your side and keep it moving

Temporalist's picture


zero-g's picture

Thanks for the vid.

The info makes alot of stuff fit together so much better.

merehuman's picture

The masses are to pot it kindly.."uninformed" semi drugged, undereducated, too selfinterested and intentionally misled. Without a fight, car chase or sex much of the audience is unreachable. Since its partly by design, waiting for them to "wake up" is not an option.

Cartoon will clue anyone under 13 and over 65. It helps but we need a stronger effort to mobilize the masses.

Drag Racer's picture

you do realize that an auto insurance company made a spoof on this video and in 15 minutes or less used the same voice as one of these bears...

Bearster's picture


The conspiracy theorists keep claiming to have "proof", but spend a whole lot of time quoting anonymous sources, speculating about what the only possible explanation is, specious claims (silver is not in backwardation if you define it properly).  Shortages of coins at retail != shortage of metal itself.

The above is *NOT* to say that silver isn't going up!  I am long plenty of silver, but for much simpler reasons.  The central banks are printing unlimited quantities of paper and gold and silver are the only havens, which will become especially obvious once the stock market breaks down and as we see non-Treasury bond markets break down.  We may have a few more hurrahs in UST's but paper currencies are going to zero.  The accumulated debt is far too high to have any hope it could ever be paid off.

As to this video's assertion that the CFTC is our last hope, there has never been a case in history where a government's attempt to coerce a market into being free has ever worked.  Several reasons include: (1) government does not have enough information, (2) government employees are not necessarily honest, (3) every rule causes a distortion which some players exploit and lobby for which leads to more rules, etc. (4) you cannot fix the problem of a flat tire by mandating tire pressure limits for the other tires.

In other words: end the damned Fed, repeal the legal tender laws, let people use gold and silver (and peanut shells if that's what they want), and end Too Big To Fail!  Without a central bank and the manipulations that only it can enable including selling massive quantities at a loss, without laws to protect the politically anointed classes from us (and from the rule of law), without a mechanism for bad businesses to fail and their investors take losses, without a sound currency, etc., it's all meaningless.

The CFTC is part of the problem, not the solution.  And even if wanted, it could not fix the problem.


Mr Lennon Hendrix's picture

You refute nothing but claim otherwise.  What do you disagree about?  Be specific.