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A Blueprint to Kill JP Morgan’s Alleged Massive Manipulative Position in the Silver Futures Market

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Our mission at SmartKnowledgeU, besides helping our clients to protect and grow their wealth in the face of the criminality of the global banking cartel, has always been, since day one, to also be a spark to reinstate a sound, gold-based monetary system. Bankers have released so much propaganda and deceit regarding the inability of our current fraudulent monetary system to return to a gold-based monetary system that I have written two books to be released this month and next that refutes the banker-created drivel and propaganda regarding the inapplicability of a gold-based system. In my two books, to be released this month and next, titled

 

(1) The Golden Gift; and

(2) The Bankers’ Plot to Bankrupt the World & How We Can Stop Them!

 

I describe two important topics that the public-at-large still fails to grasp. One, I describe how the criminal banking cartel can counter-intuitively and periodically temporarily crush gold and silver prices in fraudulent paper markets even as global physical demand rises and physical supplies shrink and the importance of this sham to the banking cartel in seducing the retail investor to always make improper decisions about physical gold & physical silver (ie. not buying it). Two, I describe why retail investors should not fear this situation, how retail investors can use accumulation of physical gold and physical silver as an effective tool in fighting and defeating the criminal banking cartel and why purchasing physical gold and physical silver may be the only form of protection against the inevitable brutal collapse of our fraudulent monetary and banking system that is coming. If you have not yet read my previous article, you may join the 50,000+ people that read this article on my website and at the ZeroHedge website to discover why I believe that the criminal banking cartel’s end game is to crash our current banking & monetary system: The Criminal Banking Cartel’s End Game: A 100% Digital Monetary System.

 

I will post information about how to purchase my two books on my website later this month if you are interested in reading more than justthe below excerpt. Furthermore, I will be donating 100% of profits from the first year sales of both books to three very worthy organizations that provide care for orphaned children and children with learning disabilities (Future Light Kids, Two Sisters, and the Mulligan Project),and I hope to visit all three of these organizations in the near future. If we wish to change the extremely destructive path that the criminal banking cartel has placed us on, then we need to spread our knowledge and serve as a beacon of light to help one another understand this banking con game.  Furthermore, though the price of gold and silver are guaranteed to exhibit more volatility as the global monetary system implodes and until it can diverge from the banking cartel controlled manipulation schemes executed in paper markets, we should not fear this volatility as the end game will create massive divergences in paper gold/silver and physical gold/silver prices with enormous upside to physical prices. I sincerely believe that if all of us understood the banking con game that all of us would convert the majority of our paper fiat savings into physical gold and physical silver by month’s end, using any interim, intra-day volatility to the downside to purchase the largest quantities. In the meantime, please find below an excerpt from my upcoming, not yet released book, The Bankers’ Plot to Bankrupt the World & How We Can Stop Them!:

 

Simply calling the criminal banking cartel’s bluff regarding their incessant manipulation of gold and silver prices is enough to stop it. We must have the courage to act. Simply knowing without doing, or being willing to do without doing is not good enough. The time has come for all of us to be willing to “do”. And if we are willing to do, we can make a huge difference in whether the future path of our world continues down our current path of darkness and destruction or whether we can affect a 180 degree turnaround and usher in a new age of enlightenment. Let me explain.


Over the past several years, several incidents have made it clear that despite the popular belief of the masses that the criminal banking cartel is too powerful to defeat, that defeating them is definitely within the realm of possibility. The fallout from JP Morgan’s media-dubbed “London Whale” this year and the SemGroup bankruptcy in 2008 aptly demonstrated this.  The story about JP Morgan employee Bruno Iksil first broke when traders, using the size of price movements and trades they witnessed in a synthetic bond index known as CDX.NA.IG.9, suspected one trader of holding a singular massive position. Later, Iksil was revealed to be holding up to a $100 billion position in CDS (Credit Default Swap)exposure in this particular index. When the underlying bond market turned against Iksil’s massive bets in the CDX.NA.IG.9, reports started leaking that JP Morgan could be facing a $2 billion loss. Iksil’s position also revealed JP Morgan’s Blythe Masters to be a master liar as she had just appeared on CNBC to refute allegations that JP Morgan traders ever engaged in deliberate manipulation of markets just before the Iksil story broke. Remember, Iksil’s massive position was discovered when other traders witnessed that one trader’s moves were influencing the entire behavior of that index and put their positions at enormous risk, the very definition of manipulation. However, the downside of holding such a deliberately massive manipulative position also soon became apparent to the chagrin of JP Morgan’s Jamie Dimon and Blythe Masters – a small market moved against you could create enormous losses on paper at a very rapid rate.


Once traders discovered the size of Iksil’s massive position, they started taking the opposite side of Iksil’s trade to deliberately move the market in the opposite direction, knowing that Iksil would then be left facing a huge conundrum. Iksil could choose to assume defensive strategies whereby newly assumed positions could hedge some of the growing losses on his open positions but unfortunately, would also contribute to increasing the spread on the losses of his original positions. Because Iksil chose to assume a massive position that could only be described as having a goal to manipulate the CDX.NA.IG.9 index to make profits for JP Morgan, once knowledge of this position became known, it immediately became vulnerable to be manipulated itself so that it would eventually implode. And in the financial world of vultures, once vultures smell blood, there is no saving the carcass from doom.


This is precisely what happened to Iksil’s position once other vultures gained knowledge of his position, and why soon after, many analysts estimated that JP Morgan’s minimum losses on this trade would double from $2 billion to $4 billion while other analysts have determined that a mere 100 bps move in credit spreads in the wrong direction could eventually cost JP Morgan’s loss to skyrocket from a $2 billion loss into a $20 billion loss. Thus, it was always in the best interest of JP Morgan CEO Jamie Dimon to conceal this position as long as possible no matter if he was aware of it from the very start, possibly as early as 2010, as many have accused and speculated, or whether he only became aware of it sometime during the first quarter 2012 as he has steadfastly claimed. Whatever the case may be, as soon as the losses mounted on Iksil’s position and the losses became known, his position, in essence, became indefensible from the attack of circling vultures.


Nearly the exact same scenario led to the downfall of SemGroup Holdings, a private firm based out of Tulsa, Oklahoma. Based upon SemGroup’s eventual declared $2.5+ billion in
losses in 2008, analysts backward engineered a figure for SemGroup’s massive short position in crude oil of 50 million barrels, or approximately a whopping 17% of the entire US crude inventory of 300 million barrels at the time. So what made SemGroup’s short position blow up? Again, there is strong circumstantial evidence that another firm’s knowledge of SemGroup’s massive short position left it vulnerable to attack. Basically, the story goes like this. Citibank, Merrill Lynch and Goldman Sachs were all involved in a failed $1.5 billion private
placement for SemGroup early in 2008. As a result of the standard due diligence and forensic accounting required for such a private placement, all three firms almost undoubtedly obtained intimate knowledge of SemGroup’s massive short position in crude oil during early 2008. Just as banks with knowledge of Iksil’s trading position have now squeezed Iksil’s failing position and caused Iksil’s losses to likely eventually balloon to multiples of the originally estimated $2 billion loss, many people familiar with the SemGroup’s contribution to the oil spike from $100 a barrel to $147 a barrel in 2008 suggested that Goldman Sachs had used their inside information (quite illegally by the way, if this is what indeed occurred) to take the opposite side of SemGroup’s position and deliberately force oil prices much higher at a time when SemGroup could least afford it. By squeezing SemGroup’s shorts and causing SemGroup’s already substantial losses to multiply, Goldman Sachs allegedly single-handedly was able to engineer the spike in oil futures from $100 a barrel to $147 a barrel in 2008, and in the process, profit massively from SemGroup’s demise.   

 

Thus we have two clear examples of corporate goliaths that were punished for the assumption of extremely risky dangerous positions. Given this knowledge, and the extrapolation of futures data that leads many of us to believe that JP Morgan consistently holds more than 90% of the total net commercial short position in the silver futures market, Iksil and SemGroup have provided for us the blueprint to also collapse JP Morgan’s alleged illegal and immoral massive short position in the silver futures market – take the opposite side of JP Morgan’s trade. Up until this point, no financial group has taken the opposite side of this trade and tried to collapse JP Morgan’s allegedly massively manipulative short position in silver futures, because all financial groups likely fear that JP Morgan’s pockets will always be deeper to counter them because of JP Morgan’s intimate ties to the US Federal Reserve. Despite this alleged massive short position in silver, Blythe Masters is on record as stating that JP Morgan has “no stake in whether [silver] prices rise or decline.” Thus, I say it is time we all to put Blythe Master’s claim to task and that it’s time for JP Morgan to put up or shut up.


If the strategy of taking the opposite side of a hugely manipulative position allegedly helped Goldman Sachs kill SemGroup’s massive short position in crude oil and eventually bankrupt SemGroup and it this same exact strategy that allegedly helped hedge funds double, triple or perhaps increase by a factor of 10,  JP Morgan’s CDS paper losses in a very short condensed period of time, then there is no reason to doubt that this same strategy would not work in chasing JP Morgan out of the silver futures market if they are indeed holding a massively large manipulative position in the silver paper market. So how could this be accomplished?


One way would be for hedge funds and speculators to start piling on long positions in the silver futures market to force prices to rise and cause a massive spike in silver due to the consequent necessity of JP Morgan to then also assume long positions to hedge the growing losses of their short positions. However,for reasons stated above, we know that this will never happen as those that have assumed long positions in the silver futures market have repeatedly been forced out of the market with massive losses due to JP Morgan’s utter dominance of the paper silver market and their periodic engineered silver crashes with the cooperation of MF Global, the US Federal Reserve, the SEC and the CFTC. Due to the massive distrust of the paper gold and paper silver market created by the enormous volatility that the banking cartel creates in this market from time to time, convincing institutions to very aggressively take the opposite side of a trade in a market that is so highly manipulated, as occurred with SemGroup and the London Whale, would be an exponentially more difficult task in the silver futures market.  Furthermore, the criminal banks have illustrated that the CFTC will change laws, such as initial and maintenance margins in the PM futures market at any time to assist JP Morgan when JP Morgan’s silver short is in serious trouble. Thus, assumption of the opposite side of JP Morgan’s silver position in the paper markets may not be a viable option.


But there remains a second option – take the opposite side of JP Morgan’s alleged massively manipulative silver position not in the paper markets but in the physical market. If every one that read this article just converted a small percent of their paper savings into physical silver, eventually this action would cause such a massive divergence between physical silver price and the paper futures silver price that the fraudulent COMEX futures market would collapse and bring down JP Morgan’s alleged short silver position with it.  In other words, the people could act as did Goldman Sachs versus SemGroup and hedge funds v. the London Whale and collectively serve the same purpose as a huge fund that decided to take the opposite side of the alleged JP Morgan silver short to squeeze their position and cause it irreparable damage. And since Blythe Masters is already on record as stating that JP Morgan has no stake in whether silver prices crash or skyrocket, then skyrocketing silver prices should not cause great economic distress for JP Morgan, and if it does, then
she will once again be outed as a massive liar.


However, this solution to shaking JP Morgan out of their massive silver short position will work if only enough citizens around the world believe it will work. The problem we face now is primarily one of education, so I am depending upon each and every one of you to spread the world and to serve as a node of information transfer to your fellow citizens. The reason citizens have not yet taken this stand against JP Morgan, even those whom are furious with JP Morgan’s immoral actions in the finance world, is because they do not believe we can win.  This false assumption has been spawned from the banking cartel’s massive volatility created in paper gold and paper silver markets and also simply by banker propaganda that is designed to raise doubt in our collective intellect and our collective ability to fight back. How many times, since 2008, have you heard bankers tell us that the situation is “too complicated for people to understand” and that only they have the “expertise to solve this economic crisis”? The truth of the matter is that their immorality in gaming the system for their benefit only is shockingly simple to understand and that the solutions we can partake collectively to bring them down are shockingly simple as well. However, the key word is “collective”. United, there is no way a few dozen families worldwide would ever be able to control 6.8 billion people and hold us hostage, but this is the situation we face today because we do not yet have the faith that we are powerful enough to affect positive change in the banking industry. During this fight for our economic freedom, too often we have fallen victim to the voice of doubt that bankers have planted inside our heads, telling us we are too dumb and too weak to make a change, and we have unfortunately have believed their drivel. I am here to tell you that we do wield the power to defeat them if we only support one another to first educate, second, believe, and third, act upon our
beliefs.


Most citizens, by and large, still have shockingly little understanding of what drives gold and silver prices, and they do not understand that the banking cartel can drive down gold and silver spot prices considerably at times even when institutions and sovereign entities are consummating massive physical purchases of gold and silver. And that is why the people should fight back in the physical market. If one should purchase 5,000 ozs of silver today and the cartel drives silver down $3 an ounce, at the end of the day, you still have 5,000 ozs of silver and the price drop is merely illusory and one, in my opinion, that will be easily recouped in the future. Why? Because the current dynamics of the physical market and the downward spiral of our global monetary system says it will.  Remember that massive purchases of physical gold and physical silver were reported out of the East during this latest Western banking cartel takedown in paper prices. What does this indicate? - that in the future, the prices of gold and silver will rebound massively, despite any interim volatility or another banking cartel takedown that may happen. I fear that most people do not understand just how close we are to the end of our current global monetary system and that taking action now to protect oneself from the implosion of our criminal fraudulent monetary system is quickly becoming less of an option but rather an absolute necessity.


The only reason that these massive physical purchases of gold and silver are not causing a massive divergence between spot and physical prices right now is because these physical purchases that have been transferring massive quantities of physical gold from West to East have been completed out of the view of the public. Perception is very important in the determination not only of paper prices but also of physical prices. If the retail investor joins in this physical buying spree and gold and silver coins become scarce, then this situation, because it would be visible to the retail investor, would eventually cause a massive divergence in price between the spot and physical prices of gold and silver because the perception of gold and silver supplies will finally match the reality of physical gold and silver supply. At the current time, perception and reality of physical gold and silver supplies DO NOT MATCH one another. This is how we can still suffer depressed prices of gold and silver even as physical supplies are tightening.


Thus, for all intents and purposes, we need to change the perception to match the realities of the physical gold and silver markets in order to drive the stake into the heart of the alleged JP Morgan short position in silver. Three weeks ago, in my article Fear & Panic are the Banking Cartel’s Weapons V. the Gold & Silver Bull. Patience and Logic are the Best Defense, I stated, “at times like this, when gold and silver have taken a fairly brutal hit in a condensed period of time thanks to low daily trading volumes both in PM futures and PM stock markets that make it very easy for the banking cartel to manipulate them, it can be difficult not to sell out of everything and run for the hills if one allows emotions to dictate one’s decisions(always a bad move). Especially at a time when fundamentals mean virtually nothing and speculators like JP Morgan and Goldman Sachs are constantly rigging markets and gaming the system through their High Frequency Trading (HFT) programs, it is difficult not to become emotional with your investment decisions. Thus it is important to take a step back from the here and now, and to look at the big picture to re-gain a better grasp of where asset prices will be heading in the future and to re-establish the proper perspective with which to evaluate your decisions… I would interpret this as a sign that a major bottom is imminent rather than sign that the gold and silver bull are finished.”


Despite Citigroup technician Louise Yamada releasing an article that very same day in which she stated that weakness in gold and silver was likely to continue with gold likely to retrace to $1,500 an ounce or lower and silver likely to retrace to $25 and then possibly $20 an ounce, I contradicted her with my own view. Since May 16, 2012, one day prior to when I wrote this comment, gold has moved 5.5% higher from a low of $1526.70 and silver has moved a very significant 8.8% higher from a low of $26.73. And even if I’m wrong about gold not retracing to $1,400 due to another banking cartel engineered decline in PM prices, the big picture people need to understand to gain the confidence to take action and shutter the alleged and immoral JP Morgan silver short is that the occasional massive and artificial banker-created volatility in paper prices of PMs is entirely irrelevant to the protection physical PMs will provide when the global monetary system continues to implode. If people can grasp this one concept, then I’m convinced that people will collectively act in a decisive manner to finally assume the opposite side of the alleged JP Morgan silver short as hedge funds did with the London Whale and as Goldman Sachs did with SemGroup.


The sure way to align perception with the reality of tight supplies in the physical gold and physical silver markets that have resulted from the banking cartel’s takedown of paper gold and paper silver prices last month is to start preparing for the end of our current global banking system by converting fiat currencies into physical silver right now. If you are still apprehensive about doing so, then consider starting out small. Merely convert part of your savings into physical silver right now and continue to do so every month. If we can convince enough people around the world to do this, then we would all be re-assured in a positive feedback loop by the resultant rising silver prices. The only reason that JP Morgan has been able to temporarily knock down silver prices every time it makes significant runs higher in price is because enough people do not buy physical silver and continue to engage JP Morgan on their home turf of paper silver derivatives such as futures and the SLV ETF. However, draw JP Morgan out of the paper silver game and on to the turf of physical silver by converting bogus paper fiat currencies into physical silver and holding tight through their attacks on paper silver prices, and this will spell the end for any manipulative silver shorts held by them.


Silver is a small enough market and it is priced at an affordable enough price right now that nearly every one, rich, middle class or poor, can participate in this scheme to help end our current fraudulent banking system.  Christine Lagarde, the head of the International Monetary Fund, aptly illustrated why we all need, as a collective group of global citizens, to act now and put an end to the scams big banks are imposing upon us. Ms. Legarde warned this week, in June of 2012, that the world risks a triple crisis of declining incomes, environmental damage and social unrest unless countries adopt a more sustainable approach to economic growth. This is one of the most incredibly hypocritical statements yet to be uttered by a banker because her organization is one of the organizations most responsible for economic instability across the entire world. If we do not act now, banksters will be sure to achieve the destruction of our current system that they desire in order to establish a 100% digital monetary system that will be their deceptive “solution” presented to us to save us from economic instability. In reality, such as solution will only further push all of us deeper into economic slavery. There are those that question the validity of exposing big bank scams and pushing them into a bankrupt state as many have intelligently observed that it is only us, the taxpayers, that will be continued to be punished for the banks’ immoral behavior with the imposition of more massive bailouts.  While this unpleasant conundrum may be true, at least the accumulation of physical silver (and physical gold) will protect us as the prices of gold and silver should continue to soar under these conditions. Thus, the accumulation of physical gold and silver will serve as a hedge for us for conditions that we know will happen as a result of our actions with one enormous added benefit. The accumulation of physical gold and silver will provide us with the power to determine our future course of action after our current monetary system implodes instead of leaving this power concentrated in the hands of the immoral global banking cartel. At the present time, the smaller silver market versus the much larger gold market (in terms of market capitalization) affords us the best opportunity to do so, and if all of us would convert just a small percent of our fiat paper savings into physical silver, I sincerely believe that we can achieve our mission of putting the power to determine our future back in our hands.

 

For a much more comprehensive and detailed discussion of this topic and other topics critical to surviving the coming brutal collapse of our global monetary system, please visit our website to purchase a full copy of The Bankers’ Plot to Bankrupt the World & How We Can Stop Them! next month when it becomes available. And please remember, we will be donating all first-year sales profits of this book to two children's orphanages and one children's learning center.


About the author: JS Kim founded SmartKnowledgeU after becoming disgusted with the immorality of Wall Street and deciding to walk away from the commercial banking industry seven years ago. He founded SmartKnowledgeU as a way to help people preserve and grow their wealth in the face of massive industry fraud with a higher mission to spark a new financial renaissance that will reinstate a sound gold-backed monetary system that benefits all citizens of the world. His Crisis Investment Opportunities investment newsletter,launched in June 2007, has returned a cumulative 161.44% return since the date of launch until June 11, 2012. Follow us on Twitter @smartknowledgeu. Please see the disclaimer on our SmartKnowledgeU website regarding any information contained in this article.

 

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Sun, 06/17/2012 - 08:32 | 2533515 jailnotbail
jailnotbail's picture

He is in severe need of an editor, but the argument is sound.

Thu, 06/14/2012 - 11:31 | 2525836 RockyRacoon
RockyRacoon's picture

You stated above that you didn't read the article completely.  How is it now that you can offer a precis more succinct than the author?   What do you gain by your disparagement?

Thu, 06/14/2012 - 14:26 | 2526532 NotApplicable
NotApplicable's picture

I read it all, but don't find it to be something that would persuade the masses to buy silver, which would seem to be the reason it's written.

For Joe Sixpack, a better case could be made to buy junk silver coins for use in local commerce once the dollar implodes, as anything beyond that is getting into the investment/speculation area, which Joe is smart enough to avoid, knowing it's just people after his money. Start talking about the Crimex, and his eyes will glaze over.

But explain to him how gasoline has remained relatively flat over time (in comparison to fiat) as priced in silver US coinage, then you can get somewhere.

Thu, 06/14/2012 - 08:01 | 2524944 El
El's picture

I'm already all in, so the best I can do for "the cause" is to continue to hold. I'll look forward to the participation of the rest of you some day. :D

Thu, 06/14/2012 - 07:49 | 2524919 groundedkiwi
groundedkiwi's picture

coffee and cigarettes is all you will need for barter when push comes to shove. 2 world wars have proven it.

Thu, 06/14/2012 - 07:49 | 2524918 eatapeach
eatapeach's picture

I think the fact that gets lost, even on "people in the know", is that SILVER *IS* MONEY.

Thu, 06/14/2012 - 07:48 | 2524912 Bangin7GramRocks
Bangin7GramRocks's picture

Don't stop with the massive silver market. I also hear that JPM has cornered the #2 pencil market. If everyone that reads this just buys 10 Ticonderoga's, Jamie Dimon will soon be homeless! GO TEAM!

Thu, 06/14/2012 - 07:59 | 2524909 Ranger4564
Ranger4564's picture

The problem with this strategy is:

1, you've got to entice people to buy physical instead of paper, and many people ignorantly prefer the flexibility of paper (until it won't be so convenient)

2, you're talking about a corrupt bank holding company JPM, that actually works with the government to ensure continued support for the national debt currencies, and given any attack on the SLV / GLD paper game,

a) you risk being arrested for being a subversive / traitor / enemy should the challenge become threatening enough

b) can't prevent the government / JPM or any other mechanism from arbitrarily deciding to print or conjure up more SLV / GLD.

 

As much as I'd love for there to be a simple solution, no market solution will actually save humanity, we will have to fight this one out.  And by the way, compounding the complexity and confusion of the scenario, the oligarchs plan is for the collapse JPM / GS / MS / Citi / etc, to further burden us with more losses and greater debt...I've written about it recently, but here are 2 that might help clarify this.

http://www.youtube.com/watch?v=CdhYNNFVwcI

http://www.youtube.com/watch?v=EgiV9IHGpFE

http://www.youtube.com/watch?v=U8ntsjnYvhw

Thu, 06/14/2012 - 09:40 | 2525282 Cortez the Killer
Cortez the Killer's picture

Indeed most people aint got the $29 saved to buy an ounce of silver.

 

 

Thu, 06/14/2012 - 12:09 | 2525978 i-dog
i-dog's picture

Make that about $50, by the time the markups and delivery/collection costs are added in for the one-off purchaser.

Thu, 06/14/2012 - 07:32 | 2524896 silverdragon
silverdragon's picture

A guy buying at Kitco HK who was buying the week before me bought a bit over two tonne of silver in one hit. Gotta say that impressed the hell out of me. A couple of mates have crossed the one tonne mark which deserves respect as well. Smart money is buying physical over here in ever increasing and larger quantities. We bled Kitco dry of all silver except 30kg bars of Jiangsu (Chinese province) silver. They looked so ugly not even a silver bug wouuld buy them.

They couldn't even tell us when they would next have any type of Silver.

The next time it kicks off we wont take prisoners as there are so many more of us now.

Thu, 06/14/2012 - 09:12 | 2525165 achmachat
achmachat's picture

the 1000kg of silver kind of makes sense when you consider that it's the same price as a nice upper middle class house in Europe.

A lot of people invest their money in houses like this that they rent out... so why not swap one of those with the 1000kg of silver...

especially if you believe that real estate prices probably won't climb much higher (if there's no real estate crash) and that some kind of monetary easing is on its way to dilute the currency, thus raising prices for precious metals in the long run.

Thu, 06/14/2012 - 07:28 | 2524889 Thamesford
Thamesford's picture

Thank you "smartknoweldgeU" - Can't wait to see "SuccinctknowledgeU"

Thu, 06/14/2012 - 14:17 | 2526485 NotApplicable
NotApplicable's picture

Yeah, that was a lot of damn reading to discover he didn't even mention the Celente's inabililty to crash JPM and the Crimex but was Corzined instead for being ballsy enough to try.

As long as there's a fake, paper market still in operation, there simply is no divergence between spot and physical, as there's no independent pricing mechanism for physical only, other than the meeting of the minds at the coin store. And if one does try and arise, the cartel will outlaw it as price-fixing.

Thu, 06/14/2012 - 07:27 | 2524888 Zero_Sum
Zero_Sum's picture

The problem is that CME and the other exchanges are complicit. They'll execute one-sided margin hikes to prevent anyone from up-ending the status quo.

 

Thu, 06/14/2012 - 08:14 | 2524939 Zero Govt
Zero Govt's picture

the PM's are rigged all the way to the Exchanges

what JP Morgan et al require is a constant stream of fresh sheeple to fleece however

so they need people to be herded into the market to be sheered of their savings

SmatKnowledge is "fiercely independent" of course but not unique. He's singing from the same song sheet entitled "Apocalypse Now, Get Your PM's While U Can" as dozens of other fiercely independant industry guys

they should form the 'Fiercely Independent Choir' maybe... you can hear the same tune/story sung 40 times a day around the Blogsphere, it's "invaluable knowledge" but as Led Zepplin wrote, 'The Song Remains the Same'

Thu, 06/14/2012 - 09:11 | 2525164 JOYFUL
JOYFUL's picture

Zero, quotes Zepplin...

son,

yu on a losin streak... I suspect we got a "communications breakdown...'how many more times''...yu gonna diss Mr Kim...till yu get 'trampled underfoot'...yu see, there's a difference tween callin for correction and talkin da man down...'difference bein...'what is and what should never be.'..

yu gonna 'ramble on' son????, or chuse to 'bring it on home', an say 'thank you' to the Mighty Kim, who has given fair warning bout what happens 'when the levee breaks'>>>?

make no mistake...yu gonna be a 'black dog'...yu may receive 'no quarter' here!

folks what don't buy silver n gold when the buyins cheap gonna be singin

'nobody's fault but mine'.... come closin time!

Zepplin RULES!...[this message brought to yu from a far off time.]

 

Thu, 06/14/2012 - 10:00 | 2525382 Zero Govt
Zero Govt's picture

Zep are awesome eh? 

chuckle regards the post ;)

I'm just hanging on the telephone for a few answers from Mr Kim

(sorry that's a Blondie track!)

Thu, 06/14/2012 - 08:23 | 2524989 DavidC
DavidC's picture

The PM paper markets are rigged all the way to the Exchanges. The availablity and quantity of physical PMs are not. If the physical is unavailable at some point the dog will start wagging its tail again and not the other way round, which is what happens now.

DavidC

Thu, 06/14/2012 - 08:36 | 2525022 Zero Govt
Zero Govt's picture

I agree David but there is no shortage in the Silver or Gold markets

the shills, rampers and industry types have claimed it but there's no evidence whatsoever. A dip in US mine production yes, so the US is a net importer, so what? There's 1,000's of mines across the globe, the industry can source supplies no problem

the bullion banks et al are past masters at presenting (BS) about inventory shortages.. it's an age old shell game, that is all

Thu, 06/14/2012 - 19:20 | 2527550 Havana White
Havana White's picture

Zero... Seems you don't understand how the physical precious metals markets influence and are influenced by the paper (unbacked) markets, and vice versa.  In discussing shortages, for example, your "the industry can source supplies no problem" is a whiff, where the important point is the response to foreseen shortages -- that is, the inevitable effects of rising prices on otherwise manipulable trading vehicles.

To anyone who owns or trades GLD (and also, for curiosity's sake, to those who own or trade pm's and bonafide pm securities):  Have you read the GLD prospectus?  Not just heard the gist of it, but actually read it?  You'd think GLD was designed specifically to someday suddenly go poof.

http://www.spdrgoldshares.com/sites/us/prospectus/

Fri, 06/15/2012 - 15:42 | 2530481 Zero Govt
Zero Govt's picture

i believe Martin Armstrong has addressed and put to bed the paper v physical nonsense perpetrated by Turd Ferguson and the other hysterics including the issue of "un-backed" markets

i don't buy into any shortage story hysteria either, be it Silver or any other resource... the globe is fucking colossal, man is but a speck on a whales back, our resources are infinite for mans purposes

if prices go up, if there looks even remotely like there'll be a sustained shortage we'll simply start digging

Yep, entirely agree with you regards GLD and indeed any ETF, including Sprotts for that matter

Thu, 06/14/2012 - 07:26 | 2524885 unwashedmass
unwashedmass's picture

damn shame that probably only a tenth of those who click on the article will read the past the first paragraphs due to the hard on book pitch.

if the goal is actually to crash JPM rather than sell books, wasted opportunity to read a million folks who might actually help. damn shame.

Thu, 06/14/2012 - 07:39 | 2524883 Zero Govt
Zero Govt's picture

Smartknowledge,

are you another Jim Sinclair-KWN-Turd Ferguson ramper that plays the markets with 1 hand tied behind your back (the only way is up) or do you, have you, encouraged clients to sell at tops and go short?

if people do as you encourage and all buy in (Tulip Bulbs and dot.com mania here we come) have you a detailed exit strategy for your investors how to unload all the metals they've stashed and hidden away post apocalypse?

will the apocalypse be as brutal as all the shills screech? ...any chance the authorities will see it coming, announce Bretton Woods 2017, and transit smoothly from one Fiat system to some other equally awful monopoly money system?

Namely how many scenarios are you working on for the End of Days. 

a). apocalypse

b) ??

c) ???

Thanks for answering all my questions to date (cough) you're a mine of "invaluable information" (scaremongering, conspiracy theories, buy PM's and mining shares guys)

Thu, 06/14/2012 - 08:48 | 2525063 JOYFUL
JOYFUL's picture

K'mon now Zero...

yur first comment here was kinda "kool"...and I thought, Hey...Zero become Hero....

but now yu gone done it overboard - Mr Kim is Kool...is NOT a "turd" F pumper shill, and ...even if he goes a bit overboord too, "his heart is in the right place"...

btw...we still disagree bout 'Jentilman Jim' Sinclair - he's kinda kool too:

Zero to Hero n back agin!

Thu, 06/14/2012 - 09:43 | 2525246 Zero Govt
Zero Govt's picture

Kim is a "fiercely independent" guy, and who am i to argue with his opinion of himself. All i'm saying is he's not very unique, his scare story is the same you can hear sung hundreds of times over (any guest on KWN will do).

I've got some questions for him, to date he's got no answers but his heart is in the right place, another gold-bugs best friend in the industry

Turd Fergusons place is like a sauna of apocalyptic hysteria (same storyline as Kim here only much more intense). He made alot of crap calls on Silver, got some justifiable moans, threw his toys out the pram and i left. End of 

Gentleman Jim sings the exact same tune as Kim, Turd, KWN about 7 times a day on his website (bored yet?). After Turd i only check-in to read Jim once a week now. Then a few weeks ago news is Jim is selling the farm and leaving the USofA because he's scared of the US Govts encroaching totalitarism (writ large across his website most days in news stories)

But a starnge thing 2 weeks ago Jimbo re-affirmed his vows to Govt and always wanting to be governed! The insitution of murder, mahem, anarchy, social chaos and economic destruction across the globe but he always wants more of those pesky politicians 'governing' him?!!

Selling his farm to excape what philosophically he can't get enough of. Weird don't you think? Like Jim has a split personality, Love & Hate, Jackyl of Govt & Hyde and run away from Govt !

And Jim can't help himself humming the mantra and repeating the sales pitch of the IRS, "the only 2 certainties is death and taxes". Weird!!

So the 'coolness' of 'Statist Jim' has dropped into a frying pan. You cannot moan every week 7 times a day on your site to your flock about the social and economic destruction Govt is causing and then sing the Govts most insidious and threatening of mantras

Jim needs to come out which is the real Jim.. StatistJimbo or EscapingJimbo ??

Thu, 06/14/2012 - 10:31 | 2525516 JOYFUL
JOYFUL's picture

...But a starnge thing 2 weeks ago Jimbo re-affirmed his vows to Govt and always wanting to be governed! The insitution of murder, mahem, anarchy, social chaos and economic destruction across the globe but he always wants more of those pesky politicians 'governing' him?!!

Can't respond to that particular assertion till I know what yu be talkin bout...specifically...[pls e-lab-or-ate]

Thu, 06/14/2012 - 11:07 | 2525670 Zero Govt
Zero Govt's picture

Jimbo said he'd always been governed and expected it to be always so to the end of (his) days ...much like his repetative muttering death and taxes are a certainty, Jim can't see out of the box.. taxes come and go like the tides of course, there's nothing sure except change ..like Jim escaping the US Govt (who'd want a Gold mining operation in legislated to death America)

Thu, 06/14/2012 - 12:55 | 2526158 JOYFUL
JOYFUL's picture

can't make heads nor tail of what yu be goin on about there

without a link to a specific quote that shows what the point of yur arguments is, gonna haf to right this one off to personal animus on yur part...

perhaps he did not respond "in a timely fashion" to a email of yurs?

Thu, 06/14/2012 - 11:57 | 2525926 i-dog
i-dog's picture

"I am the son of one of the world's greatest traders, Bertram J. Seligman, who like, Jesse Livermore, always knew what was over the horizon. I do not pretend to have all the talent of those market giants but just some of it. Goldman Sachs, Solomon Brothers, Lehman Brothers, and Bache were a few of the firms started by my family. All this appears in a book called 'Our Crowd.'" -- Jim Sinclair

Jim Sinclair's ancestors, the House of Seligman, partnered with the House of Rothschild and the House of Morgan, which places him in the inner circle. Just sayin'....

Thu, 06/14/2012 - 16:19 | 2527078 Zero Govt
Zero Govt's picture

i-Dog  -  Thanks for the background info on General Jim

little wonder then that Sinclair is a Statist and re-affirmed his vows to be governed til death some weeks ago

and tips circumstantial evidence in favour of my though Sinclair was probably an appointee of the establishment in the wind-up (post establishment stitch-up, nobbling and fleecing) of the Hunt Brothers silver positions in the 80's

Thu, 06/14/2012 - 12:44 | 2526126 JOYFUL
JOYFUL's picture

good to see yu back sniffin around Dawg...there's no doubt that the Jimster comes from a background of suspect pedigree...I can personally attest to the weasel-ness of the Sinclair name, and the names of those chosen few of the inner circle of New York Crytpos need no introduction to the more learned readers here - but yu can say exactly the same thing about Peter Schiff...n quite possibly other big guns of the golden griddle...

There's black sheep in every family, just as there's a silver lining in every cloud...when I was new to the precious metals game, it was his words what got me over the shakin phase, n I'm sure I'm far from being the only one...I never forget a debt of kindness, nor an injury, and I consider what Jim Sinclair does on his site to be the random offering of kindness to strangers...on a daily basis. I still say that's

KOOOL!

Thu, 06/14/2012 - 14:50 | 2526621 i-dog
i-dog's picture

Good to see you still keeping it straight, J ... but I've got to side with the 0 on this one (though not his personal attack on the venerable JSK, whose motives I don't question - only his choice of delivery method).

I've been very suspicious of the phyz pumperz for a very long time ... not only because of the nasal pedigrees of many/most of them, but also because of the obvious ties to the pontifical agenda of those others who have no financial background (eg. Jones, Williams and a dozen other 'doomer' bloggers). Celente's "do as I say, not as I do" with MuthaFreakinGlobal was just a big LOL for me!

Since TPTB are planning a global digital currency - enforced by both a propaganda and legal blitz to scare the 98% (that's "the 99%" minus the 1% of die-hard rural preppers who will totally ignore such a campaign) into compliance - then I don't see collecting coins and bullion as having much practical use ... particularly since the Zimbabwean experience shows that fractional grams of pure gold dust or jewellery shavings is the preference of those running black market barter from the back of a HiAce, while Argentina shows that a range of local 'currencies' (basically IOUs from trusted local merchants) are the preference of urban communities attempting to rebuild after a central collapse. Whether one stores one's wealth in bullion or bully beef to enter the apocalypse is therefore largely personal preference, IMO ... since the day after "the Big Bank Holiday" any type of personal movement will be heavily restricted and involve passing through "Papiere, bitte!" checkpoints with body scanners at every turn.

In any event, if I time it right, I'll probably move from a western metropolis to another nation where electricity and central authority will be a quaint notion when TSHTF (meaning that digital anything will be neither accepted nor enforceable, and the local community will be self-sufficient in barter - along the lines of Argentina - without the need for anything shiny to accomplish it).

Unless I make such a move by 'snake boat', I'm also sure that the border nazis fully intend to use their newly acquired naked body and vehicle scanners to ensure that I don't take anything 'unapproved' out of the tax farm, errr, country (or even into a local mall for bartering, for that matter!) beyond my person, a few clothes and an approved chipped document/arm. So I would probably be arriving with only my wits and experience, rather than a container load of silver bullion.

So whether I stay and barter, or whether I fly the coop, I don't think silver is "the only answer". Better that we dismantle the fuckers than choose a different deckchair! I think that was also what 0 was [loosely] on about.

Stay KOOOL, brother ... and, where you are, it can't hurt to keep stackin'!

STATISM IS DEAD!

Thu, 06/14/2012 - 07:23 | 2524880 unwashedmass
unwashedmass's picture

otherwise good article destroyed by endless pitch to "buy my books" at the intro......probably two thirds of the potential readers (and those with the ability to act) will stop reading before ever getting to the meat.

a real shame. wasted opportunity if the goal really is to crash JPM, rather than sell books.

Thu, 06/14/2012 - 08:07 | 2524953 BidnessMan
BidnessMan's picture

I am one of the two thirds.....

Thu, 06/14/2012 - 11:20 | 2525778 RockyRacoon
RockyRacoon's picture

Poor Fred Mertz.  He too was just short of making something of himself.  Your avatar is appropriate.

You guys did read the part where are the profit from the book(s) will go to charities?  Just askin'.

You shorted yourself by not reading the article, regardless of motive.  If you can't extract useful information from ANY reading then your critical skills are lacking.

Thu, 06/14/2012 - 07:23 | 2524879 unwashedmass
unwashedmass's picture

otherwise good article destroyed by endless pitch to "buy my books" at the intro......probably two thirds of the potential readers (and those with the ability to act) will stop reading before ever getting to the meat.

a real shame. wasted opportunity if the goal really is to crash JPM, rather than sell books.

Thu, 06/14/2012 - 07:38 | 2524876 JOYFUL
JOYFUL's picture

I have no doubt that Mr Kim's heart is in the right place... I have extolled his writings here many times in recent past,...

But,

the accentuation of the Keiser theory that JPM is vulnerable to squeezing via the retail purchasing power of individual investors is a mere buttress to the mistaken notion that there are "markets" -physical or otherwise- left in which peeple can play.

A shell game is not a market. There are no buyers, no sellers, only the action ...of the game.

Fools will be parted from their savings, until such time as the table itself be overturned...which is why the moneychangers spare no venom for the one born from within their own ranks, who called them out in the temple.

JPM, Barrick Gold, and the Bullion Banks which abet their Bush-ey Bandit Bizness are the heads of a Hydra which will be either killed by, or will kill, the peeples of  the western\eastern worlds...it's getting very late in the game for the dupes to change their destinies, and decide the outcome. In fact, we are in the fourth quarter, and may indeed require a Hail Mary ...at this point I've personally given up on Merikan leagues to pull this one out, and am constantly praying to the departed spirit of Jackie Parker!

Michael de Guzman knew the whole story, jus like Ms. Bhutto did , but  took the story with him, on his bungee jump from heli-copter, sans cord.

Thu, 06/14/2012 - 11:15 | 2525741 newworldorder
newworldorder's picture

RE: Joyfull

Yours is the most profound comment on ZF for the day - at least from those that I have time to read today.

Action and the power to use action, controls the FX "interventions.". The idea that gold is NOT money but a commodity is one of the biggest shams inflicted on the West during the last 100 years. That concept has removed financial discipline from Government/Human Actions for the last 100 years. The banksters and politicians love it this way and will not change unless forced to change.

The power to keep the sheeple sleeping and producing is the last great elixer for those in charge. It will not be given up voluntarily under any circumstances. It will have to be taken at the first  opportune time that may come to a theater near you soon.

The 2012 elections in a number of countires will give us the ultimate clue as to whether change is coming or if our slumber on this planet will continue.

Thu, 06/14/2012 - 14:35 | 2526581 NotApplicable
NotApplicable's picture

The only clue elections provide is the number of clueless who participate in them. The sheeple will be sheared, regardless of the intensity of their bleating.

That, you can count on.

Thu, 06/14/2012 - 15:18 | 2526815 HungrySeagull
HungrySeagull's picture

The sheeple will be sheared, regardless of the intensity of their bleating.

Thu, 06/14/2012 - 07:18 | 2524871 silverdragon
silverdragon's picture

If it aint silver and kinda heavy it aint silver, just a con.

Thu, 06/14/2012 - 07:02 | 2524850 eddiebe
eddiebe's picture

Never understimate the stupidity of people, or their greed. Usually the banksters are so far ahead of the ongoing screwing of Joe the plumber Joe doesnt stand a chance. Trickle down is in firm control.

 Sure, if everyone in the world started buying gold and silver it would break the fractional reserve banksters. Have you ever tried to get anyone to do anything? In a group of people have you ever been able to change ideologies?

 Good luck selling your books, bud, eventually even a broken clock is spot on.

Thu, 06/14/2012 - 06:54 | 2524833 silverdragon
silverdragon's picture

Don't know if I have mentioned it before but 10,000 industrial uses and it has been money throughout history.  Probably a good idea to get some before there is none left.

Thu, 06/14/2012 - 06:51 | 2524828 tmorris
tmorris's picture

How do PHYS and PSLV factor into the physical vs paper debate?

Thu, 06/14/2012 - 06:28 | 2524810 fiapop
fiapop's picture

Buy silver crash JP Morgan. Believe Max Keiser started this overcame year ago. Maybe the author should give him credit.

Thu, 06/14/2012 - 07:09 | 2524856 smartknowledgeu
smartknowledgeu's picture

Yes, as I have appeared on Max's show numerous times I am well aware of Max's campaign. And you are right, I should've perhaps acknowledged Max's campaign, so I apologize for my oversight, but as I am sure that there are dozens of us that have had similar ideas, it was not an intentional omission on my end. In addition, I have issued, as my paying subscribers know, similar sentiments to stack physical gold and physical silver for more than six years since the end of 2006. Truth be told, any student of monetary history is bound to independently come up with similar sentiments if he/she studies  the 100% gold-backed reserve banking models that have existed in the past in formulating a strategy to win this battle against the criminal banking cartel. I have seen multiple times ideas that I posted months/years earlier on my blog (I've been blogging since 2006) appear on ZeroHedge by other authors at much later dates and they very well could have been ideas independently arrived at by other authors as well, and I do not mind. In this war for our financial freedom, it is critical and essential that we come together as a community instead of entertaining any ideas that cause division. We must realize that we are all on the same side and we will fail if we do not stand in solidarity with one another. I know Max personally and I'm sure Max knows that I am not ripping off his ideas any more than I would suppose he is not ripping off my ideas if I heard him state anything I've stated months or years earlier.

The message of how we can achieve economic freedom from the fraudulent control of banksters is a mission much greater and much more important than you, me, or any other single person that lives on this planet. However, I wrote the above article to try to explain the importance in the difference between the banker-created perception of no paper demand and massive paper supply in the face of the reality of massive physical demand and shrinking physical supply. As well, I wanted to explain that it is primarily a problem of perception not matching reality of the physical PM markets that prevents people from buying physical silver (and gold) and why, if we can overcome this problem of perception, we may find ourselves a solution to combat not just JP Morgan, but the entire criminal global banking cartel. In this sense, I thought the above may be useful in moving some people from a state of inertia into action that would benefit all of humanity.

Thu, 06/14/2012 - 08:38 | 2525011 Ranger4564
Ranger4564's picture

Good response.  I agree with your reasoning.  That surprisingly also brings me to a point I've been making my whole life...

 

How much paper value is a Physical Human being worth?

If a physical bullion / car / house is generally equivalent to another, why are physical people not viewed in the same vein?

 

The reason some (many) of us fight for equality amongst fellow human beings is because there isn't a significant enough difference in the value of 1 human life compared to another.  In opposition to Rand, Einstein saw this and essentially argued this position. The condition that we presently live in civilizations which allow people to claim superiority over others, or people to claim greater wealth simply because they were born generations earlier is absurd and will one day disappear.  The person wasn't the intrinsic quality that added value... they didn't create the world and they didn't engineer their minds.  It's a chance occurrence in nature.  That this disparity was intentionally imposed by the oppressors and later internalized by the populace is lost on almost all people, but thankfully, as conditions become worse and as the oppressors shift strategies / tools, their evil manipulations become ever clearer.

If you think market rigging is evil, wait till everyone begins to grasp the magnitude of the rigging of one's mind and life.  Question and challenge your beliefs because they may not be yours. There is a reason the Wachowski's made a couple of movies... The Matrix and V. To make it easier to recognize what I'm alluding to, and to anger you enough to do something. So far, neither has achieved their intended aims with the majority... i say watch them again, turn on closed captioning, watch the extras and director's comments, read the cliff notes... whatever it takes to make people understand... you are in the matrix, you are not morpheus or neo, you are Cypher... don't believe the hype. The matrix is very deceptive, it offers people what appears to be the way out... Obamna, Tea Party, Ron Paul, only to re-enfold the mesh, to entrap you in gullibility. Step outside and stop hoping, start believing, in yourself.

The practice of striving to gain wealth over another instead of with another will surely disappear as we realize we're all in a vast cosmic miracle that no longer requires your demise for my survival, so why not work together to improve conditions for each other, and others. That would be cosmic divine justice. Fuck 'em and their laws.

Thu, 06/14/2012 - 10:07 | 2525418 Axenolith
Axenolith's picture

How much paper value is a Physical Human being worth?

If a physical bullion / car / house is generally equivalent to another, why are physical people not viewed in the same vein?

Because physical people are easy to make, but hard to raise to a level where they return on investment.  People would be worth a LOT more even if the opposite sex was all gnarly and covered with knobs and spikes and had vaginas with teeth and you had to fight to plant the seed that would birth into a fully functional productive human right away. 

As it stands, once you make the "sale" on planting that seed, you can crank them out like crazy and then you have to suffer through a dozen plus years of them planting solitary lego mines all over the house, alienating the cat and wrecking your car when they're tall enough to see over the steering wheel.

If you had to take care of a car or 10 years, feeding it gas and everything before you could drive it, you'd just blow it up and walk.

 

Thu, 06/14/2012 - 12:41 | 2526111 akak
akak's picture

 

People would be worth a LOT more even if the opposite sex was all gnarly and covered with knobs and spikes and had vaginas with teeth and you had to fight to plant the seed that would birth into a fully functional productive human right away.

I see you have been in bed with Hillary too, then.

 

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