Aftershocks

Tyler Durden's picture




 

Authored by James Howard Kunstler, via The Burning Platform blog,

If the FBI can track down two homicidal Chechen nobodies inside of forty-eight hours from their Boston bombing caper, you kind of wonder how come the Bureau can’t detect the odor of racketeering, insider trading, and wire fraud in this month’s orchestrated smackdown of the gold futures markets, including the parts played by the Federal reserve, one or more too-big-to-fail banks, self-interested big money players such as George Soros, slumbering regulators at the Commodities Futures Trading Commission, and tractable editors at The Wall Street Journal and The New York Times.
 
Of course, US Attorney General Eric Holder, who oversees the FBI, has done a fair imitation of a Brookes Brothers store window mannequin for four years, but surely somewhere in the trackless labyrinth of American law enforcement there exists some dogged rogue investigator with a filament of nagging curiosity who might piece together the clunky train of events that may amount to the financial crime of the century. For instance, it can’t be so difficult to determine who was behind the several hundred ton mass dump of paper gold contracts a week or so ago. There must be a pretty simple record of the transaction, retrievable with a warrant or a subpoena. Whatever entity did it — still ostensibly unknown — knowingly generated losses in the neighborhood of a billion dollars for itself. Was this just the cost of doing business? Or a favor owed, say, from a bank to its godfathers at the Fed, carried out to make the dollar look relatively a lot less unsound than it really is? Or a ruse to allow the custodians of bullion in US depositories re-acquire at bargain prices gold that has been stealthily hypothicated into oblivion? Or just to divert attention from their inability to make good on contracted deliveries of actual physical gold.
 
No official has yet answered why the Federal Reserve Bank of New York told the German government a couple of months ago that it would take seven years to return that country’s gold held in safekeeping (across the ocean from the Russians) since the Cold War. The NY Fed must have a vessel under contract that makes the proverbial slow boat to China look like an ICBM.
 
Doesn’t anybody want some answers to these questions, including how come the two aforementioned major newspapers published front-page stories calculated to justify, if not provoke, the most extreme negative sentiment in the precious metals markets, seemingly coordinated with Goldman Sachs advisories to short those markets? And what about a glance at the trading records to see who executed massive naked shorts? Wouldn’t it be interesting if they were the same parties as the dumpers? And why? - other than a strenuous intervention in the markets to make those markets look unreliable? Does anyone even remember that the purpose of financial exchanges is to verify and authenticate the clearing of trades to provide confidence that markets are honest so that real business can be conducted?
 
What the interveners have accomplished is only to prove that the gold and silver derivatives markets are unreliable. They may have smashed the trade in that kind of paper, but only achieved a firmer divergence between the derivatives markets and the bullion markets where, for example, the premiums on delivery of silver ounces makes the price exactly equal to the pre-smackdown price. Anyway, nobody believes that the London Bullion Market Association (LBMA) or that the New York Commodity Exchange (COMEX) can deliver. Meanwhile, runs on bullion contracts were starting to uncover a contagion of swindling in precious metals obligations that pervaded the western banking system. It was not a coincidence that the smackdown happened three weeks after the Dutch bank ABN Amro notified clients that it would only satisfy demands for redemptions of gold held in its custody with equivalent cash payments. “No gold for you today!” A fair inference based on subsequent events would be that all the custodians of physical gold bullion have misreported their holdings. And now that actions by the European Union and its agents have ventured into the dangerous territory of plain confiscation, there is not a whole lot of faith throughout the western world by people who are paying attention that an account of any kind in any financial institution is safe. There is good reason to fear runs on everything.
 
Because the smackdown organizers pulled off their operation in a panic, they probably ignored the potential further negative consequences of their stratagem, namely a worsening loss of confidence in banks generally and in the trade of abstract financial instruments in particular, including currencies. Nervous public officials may be brooding on imminent “bail-ins” and currency controls, but the public may be ready to bail out of the prevailing banking model into things that have been considered more money than “money” for a few thousand years, namely real gold and silver. The basic fact remains: there isn’t enough to go around.

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Mon, 04/22/2013 - 19:18 | 3485833 Meat Hammer
Meat Hammer's picture

Too bad I was so distracted by the Boston thingy I didn't notice. 

Mon, 04/22/2013 - 19:22 | 3485842 rajat_bhatia
rajat_bhatia's picture

The basic fact remains... You were wrong to go long gold.  Deal with it like a grownup. 

Mon, 04/22/2013 - 19:26 | 3485849 i-dog
i-dog's picture

Don't feed the troll, folks. Junk it, and move on.

Mon, 04/22/2013 - 19:26 | 3485853 Dealer
Dealer's picture

Aftershocks, bitchez.

Mon, 04/22/2013 - 19:28 | 3485865 UnpatrioticHoarder
UnpatrioticHoarder's picture

The most interesting coincidence, which the article misses, is that a case claiming manipulation of precious metals futures was thrown out recently. The powerz now know they are totally immune.

Mon, 04/22/2013 - 19:35 | 3485886 rajat_bhatia
rajat_bhatia's picture

I fail to understand, the purpose served by this action! How does it benefit the """ evil banksters""""?

Mon, 04/22/2013 - 19:39 | 3485901 DaddyO
DaddyO's picture

Due to the blindness of your predisposition to troll-dom, I might point out that the blatant manipulation this go round has allowed for large and unchallenged short covering.

Oh and BTW your still a dumbass!

DaddyO

Mon, 04/22/2013 - 19:43 | 3485913 rajat_bhatia
rajat_bhatia's picture

So what? its a free market, isn't it? Or do you bitches need "protection" from the ""evil banksters""?

Mon, 04/22/2013 - 19:44 | 3485921 DaddyO
DaddyO's picture

Define free market for me, bozo...

DaddyO

Mon, 04/22/2013 - 19:45 | 3485929 quintago
quintago's picture

Are you really that dense? Enough with the rhetorical questions. If they wanted to do something about the rigged markets, they would have done it a long time ago.

Mon, 04/22/2013 - 19:52 | 3485955 DaddyO
DaddyO's picture

I am pretty dense, can't you tell?

And "THEY" being whom?

DaddyO

Mon, 04/22/2013 - 20:24 | 3486085 strannick
strannick's picture

Why cant the CFTC find Comex manipulation? Because Bart Chilton is a corrupt Inspector Clouseau, thats why.

Mon, 04/22/2013 - 22:24 | 3486413 Matt
Matt's picture

If I recollect correctly, After 9/11, virtually all FBI agents in Financial Crimes were transferred to Counter Terrorism. Thus, there is only a handful of agents in financial crimes. Pretty sure there was a Zerohedge article about this.

Mon, 04/22/2013 - 20:40 | 3486086 DaddyO
DaddyO's picture

Pinto,

As much as my curiosity is aroused by Craft International's alleged presence at the Boston Marathon, I'm torn for these reason's.

  • Chris Kyle, the founder of CI was a very out spoken critic of the current administration and its double dealing with ALQ. (I believe this was his untimely undoing)
  • Many large events and venues hire Contractors to provide security for events like the Boston Marathon, Super Bowl and such.
  • CI and companies like them often provide security for dignataries in attendance at these types of events.
  • CI was at the Super Bowl in a similar capacity.

I'm still trying to link together all the articles and mis-information surrounding CI's alleged presence at the Boston Marathon. I have a very good friend who knew Chris Kyle and after talking with him, I still need more convincing on CI being involved in the bombing. I have spent a bit of time looking at all the vids and pics and I am not convinced that their presence is sinister and clandestine, I even emailed Alex Jones' group and asked them to show me definitive proof of their ascertions on CI. As of know, I've not received anything...

DaddyO

Mon, 04/22/2013 - 20:54 | 3486155 Pinto Currency
Pinto Currency's picture

 

Tough to tell - too early yet.

Lots of pics and video still to come out.

In this case, I can't think of a better organization for an intelligence service (foreign or domestic) to penetrate to raise hell than Craft International.  Just fit in and act surprised with the others.

Lots of layers and conflicting info.  - time will tell.

http://www.madcowprod.com/2013/04/22/was-boston-bombers-uncle-ruslan-wit...

http://www.infowars.com/tsarnaev-aunt-claims-naked-man-in-video-is-tamer...

Mon, 04/22/2013 - 21:04 | 3486188 DaddyO
DaddyO's picture

If you read CK's book American Sniper, it just doesn't jive with the narative being bandied about on CI. My source on CI is a long time operator who has a book coming out in June that is similar to CK's. He has serious suspicions on the untimely passing of CK and he doubt's that CI would be involved in a clandestine operation to blow up a bunch of innocent bystanders as part of a false flag operation.

Think about who CI would hire, most of the guys with this type of experience are about as distrustful of the current regime as anyone can imagine.

I just have a hard time reconcilling this type of narrative given that most "operators" are hard bitten patriots who have been labled as suspect by the current DHS and resent the hell out of that label.

Just my .02

DaddyO

Mon, 04/22/2013 - 22:01 | 3486347 Pinto Currency
Pinto Currency's picture

 

 

CI may well be patsies or their organization may have been penetrated to discredit them.

Most photos were from the finish line.  The other bomb site has very little in the way of photos posted yet.

Let's see how this develops.

Mon, 04/22/2013 - 19:51 | 3485956 nope-1004
nope-1004's picture

No kidding.  The CFTC is complicit in the crimes.  Gold and silver have been double and triple leased out, and the idiots running this circus had to smash price to free up some futures contracts.  How long will it go on?  I don't know and don't care because all of my wealth is outside of their grip.  I suggest y'all do the same.

 

Mon, 04/22/2013 - 19:46 | 3485941 rajat_bhatia
rajat_bhatia's picture

Don't name call me Daddy, I'm just a little boy :'(

free market is a market structure in which the distribution and costs of goods and services, along with the structure and hierarchy between capital and consumer goods, are coordinated by supply and demand unhindered by external regulation or control by government.

Mon, 04/22/2013 - 19:50 | 3485948 DaddyO
DaddyO's picture

And you're convinced that is what we have today?

I never would have guessed that you're working out of mommy's basement...

DaddyO

Mon, 04/22/2013 - 19:56 | 3485989 rajat_bhatia
rajat_bhatia's picture

Awww..I pity you.. You seriously believe this is not a free market? You want Mr Stalin to 'root out the evil monopolists'? 

Mon, 04/22/2013 - 20:01 | 3486007 DaddyO
DaddyO's picture

Wasn't Mr. Stalin "THE" evil monopolist?

DaddyO

Mon, 04/22/2013 - 20:08 | 3486031 knukles
knukles's picture

He's really Dr Paul (pull my Yangtze) Krugman in disguise.
Or at least sounds and makes all the sense of same.

Mon, 04/22/2013 - 20:39 | 3486127 imaginalis
imaginalis's picture

It's as free as LIBOR

 

Mon, 04/22/2013 - 20:42 | 3486133 Bay of Pigs
Bay of Pigs's picture

The Rise of the Gold Trolls (2013)

You wonder where Johnny Bravo, GoldenMiddleFinger, abiggs, Spalding Smailes, Math Man,etc....all went to?

Mon, 04/22/2013 - 21:18 | 3486221 eatthebanksters
eatthebanksters's picture

you beat me to the punch Knuckles...

Mon, 04/22/2013 - 19:53 | 3485972 SilverIsKing
SilverIsKing's picture

Hey you stupid fuckface, do you know what a monopoly is? Sorry for calling you stupid.

Mon, 04/22/2013 - 19:57 | 3485984 DaddyO
DaddyO's picture

+1

DaddyO

Mon, 04/22/2013 - 20:00 | 3485997 rajat_bhatia
rajat_bhatia's picture

LOL,

Monopoly like $AAPL? like GOOGLE? Don't they have the best products?

Mon, 04/22/2013 - 20:12 | 3486045 DaddyO
Mon, 04/22/2013 - 21:36 | 3486273 DaddyO
DaddyO's picture

I probably need to take a chill pill where these trolls are concerned, huh?

DaddyO

Mon, 04/22/2013 - 19:44 | 3485925 Meat Hammer
Meat Hammer's picture

So what? its a free market, isn't it?  LO-fucking-L

You need to go to Troll School with MDB & PUD.  

Mon, 04/22/2013 - 20:08 | 3486035 knukles
knukles's picture

Don't forget Paul (previously advisor to Enron) Krugman

Mon, 04/22/2013 - 22:01 | 3486348 akak
akak's picture

And how could you forget AnAnonymous, the master of blobbing-up and monolizing of the offuscationalized algebraic coconut speeching means via farming the poor and extorting the weak in a fabled Chinese past citizenism kind of mattering way?

Make me laugh.

Mon, 04/22/2013 - 19:42 | 3485917 Meat Hammer
Meat Hammer's picture

If we have to explain it to you, well.......

Mon, 04/22/2013 - 19:52 | 3485963 smlbizman
smlbizman's picture

i got out of their system about 2 and 3 yrs ago.......each day that passes , we get closer to a whole bunch of paper pain comin this way...the feeling of to "early" has been replaced with "thank god".....

Mon, 04/22/2013 - 21:16 | 3486208 booboo
booboo's picture

"The most interesting coincidence, which the article misses is that a case claiming manipulation of precious metals futures was thrown out recently." No it's the fact that Nutslur voted for Obama twice and would vote for him a third time givn the chance, I can forgive a retard, not so much willfull ignorance.

 

Mon, 04/22/2013 - 19:38 | 3485895 fonzannoon
fonzannoon's picture

This article gets you all riled up and makes you think there is some crazy shit going on behind the scenes but there are perfectly good reasons for what happened and Bernanke, like the student that he is, is taking the time to study them and will share his findings with us all at Jackson Hole.

Mon, 04/22/2013 - 19:40 | 3485904 rajat_bhatia
rajat_bhatia's picture

He's skipping Jack's Hole. 

Mon, 04/22/2013 - 19:40 | 3485905 Bastiat
Bastiat's picture

I thought he wasn't going to Jackson Hole this year.

Mon, 04/22/2013 - 19:46 | 3485931 fonzannoon
fonzannoon's picture

Jeebus do I still need to put sarc?

By the way, no Cramerica today and no Baldy Liesman today anywhere in sight.

So let me get this straight. Every month we hang on every word from the Bernak. If he says "somewhat" instead of "mostly" the market moves hundreds of points. But on his biggest show of the year...he has a scheduling conflict...and no baldy Liesman etc. out there to ponder and ponder and ponder. Just another buried headline. The market asked no questions. Are ya fuckin kidding me with this?

Mon, 04/22/2013 - 20:11 | 3486042 knukles
knukles's picture

Nah...

And not only the no show but to even make it more ridiculous, The Bernak said no dice till U < 6.5% and everybody still minces and dissects.
Nobody listens anymore.

Mon, 04/22/2013 - 20:17 | 3486066 fonzannoon
fonzannoon's picture

correct. So either the fed is going to end QE despite saying QE will end with U <6.5% and data heading towards the shitter, or QE is on such autopilot that Bernak can stick with jis kite surfing lesson he accidentaly scheduled that day.

Or, wildcard. Bernak admits the scheduling conflict is bogus, and claims he has a health issue or something instead.

Mon, 04/22/2013 - 19:45 | 3485926 kaiserhoff
kaiserhoff's picture

Sometimes the simplest explanation really is the truth. 

The banksters have no end of free money, but nothing sensible to do with it.

Since there is not a damn bit of regulation that applies to them, they have been running a lot of stops, as they did today with Netflix.  Sometimes, that shit gets away from them.  Unintended consequences and such.  There may be wheels within wheels, but the simplest fraud is running rampant.  Everything is a casino now.  Sooner or later, that will bite them in the ass.

Mon, 04/22/2013 - 20:18 | 3486070 pods
pods's picture

There is so much funny money running around chasing yield, I would say nothing is immune.

Well, nothing valued in paper.

Now, something that is valued in purity and mass will always retain value.

The banksters don't give a shit about anything but yield anymore.  There are no more rules. The mortgage fiatsco has been papered over, with taxpayers on the hook for F&F and the FED swallowing all the toxic mortgages.

LIBOR?  Gimme a break.

Laundering drug money?  Lol, pay a 0.05% tip and you are done.

MFG?  

Cypriot "bail in?"  They now openly steal deposits.

This is just the next logical step in someone protecting their huge gamble.

Even if one goes sour and shit blows up, it is forgiven (AIG) and you start anew.

Burn the fucking whole damn thing to the ground I say.  There is no saving it, and this cancerous mass infects most all who dare dabble in it.

Nevermind that everyone who works under this system (FRNs) has their labor valued by these fucking sociopaths.

Makes one feel warm and fuzzy inside.  Like sulfuric acid.

pods

Mon, 04/22/2013 - 19:45 | 3485935 Meat Hammer
Meat Hammer's picture

I understood the sarcasm, Fonz.  Well played.

Mon, 04/22/2013 - 19:50 | 3485952 fonzannoon
fonzannoon's picture

thanks mh you have quickly become one of my favorites on here.

Mon, 04/22/2013 - 20:05 | 3486020 Meat Hammer
Meat Hammer's picture

They like me!  They really like me!

And this in tribute to you... http://www.youtube.com/watch?v=Q_Y0gT-ab90

Mon, 04/22/2013 - 21:42 | 3486289 fonzannoon
fonzannoon's picture

Hey meat hammer, fwiw...here is the origin of my name.

http://www.youtube.com/watch?v=pk52mMfPiTk

 

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