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Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says

Tyler Durden's picture


Remember when banks were exposed manipulating virtually everything except precious metals, because obviously nobody ever manipulates the price of gold and silver? After all, the biggest "conspiracy theory" of all is that crazy gold bugs blame every move against them on some vile manipulator. It may be time to shift yet another conspiracy "theory" into the "fact" bin, thanks to Elke Koenig, the president of Germany's top financial regulator, Bafin, which apparently is not as corrupt, complicit and clueless as its US equivalent, and who said that in addition to currency rates, manipulation of precious metals "is worse than the Libor-rigging scandal." Hear that Bart Chilton and friends from the CFTC?

More on what Eike said from Bloomberg:

The allegations about the currency and precious metals markets are “particularly serious, because such reference values are based -- unlike Libor and Euribor -- typically on transactions in liquid markets and not on estimates of the banks,” Elke Koenig, the president of Bafin, said in a speech in Frankfurt today.

Actually, what makes the most serious, is that precisely because they are on liquid markets means they implicitly have the blessing of the biggest New Normal market maker of call - the central banks, and their own "regulator" - the Bank of International Settlements (hello Mikael Charoze).

“That the issue is causing such a public reaction is understandable,” Koenig said, according to a copy of the speech. “The financial sector is dependent on the common trust that it is efficient and at the same time, honest. The central benchmark rates seemed to be beyond any doubt, and now there is the allegation they may have been manipulated.”


Bafin has also interviewed employees of Deutsche Bank AG as part of a probe of potential manipulation of gold and silver prices, a person with knowledge of the matter has said.

We wonder how long until this particular investigation is stopped based on an "executive order" from above, because Bafin is now stepping into some very treacherous  waters with its ongoing inquiry of gold manipulation: what it reveals will certainly not be to the liking of the financial "powers that be."


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Thu, 01/16/2014 - 15:32 | 4338592 Sofa King Confused
Sofa King Confused's picture

Great you found out what everyone already knows. Now stop it.

Thu, 01/16/2014 - 15:36 | 4338609 WarriorClass
Thu, 01/16/2014 - 15:38 | 4338614 Xibalba
Xibalba's picture

If the President, (or his working group on markets) does it, then it's not illegal. 


*waves peace sign*

Thu, 01/16/2014 - 15:39 | 4338627 Motorhead
Motorhead's picture

Verschwörung, Huren!

Thu, 01/16/2014 - 15:52 | 4338659 Frozen IcQb
Frozen IcQb's picture

Now they speak!

Where were they before their gold "to be returned" was backordered for eight years by the FED?

Thu, 01/16/2014 - 16:03 | 4338694 Yes We Can. But...
Yes We Can. But Lets Not.'s picture

Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info.

That the NSA is unchecked will produce some bad outcomes IMO.

Thu, 01/16/2014 - 16:06 | 4338704 nope-1004
nope-1004's picture

National policy for a reserve currency to maintain confidence MUST entail the manipulation of any alternative.

Seems rather logical.


Unfortunate that it takes so long for others to catch on and see through the veil.


Thu, 01/16/2014 - 16:09 | 4338719 BLOTTO
BLOTTO's picture

Our Life has been manipulated more than  the precious metals and libor scandal combined - X1,000...

Thu, 01/16/2014 - 16:13 | 4338740 NotApplicable
NotApplicable's picture

Somebody forgot to grease the Bafin!

Thu, 01/16/2014 - 16:29 | 4338788 redpill
redpill's picture

I'd advise this guy starts making his own tea from now on.

Thu, 01/16/2014 - 16:53 | 4338862 Odin
Odin's picture

The financial sector is dependent on the common trust that it is efficient and at the same time, honest."



Wait, there was a time when this shit was honest?




Thu, 01/16/2014 - 17:34 | 4338873 Manthong
Manthong's picture

Maybe they are a little P.O.’d that they only got 37 of their of their “supposed” 3,400 tons held for safekeeping by the US back about a year after asking for only about 300 tons back.

..and they were not the serial numbered German marked bars..  it was new gold, recast and likely bought on the open market (at suppressed prices of course).

Thu, 01/16/2014 - 17:55 | 4339014 negative rates
negative rates's picture

This will not end well.

Thu, 01/16/2014 - 19:04 | 4339194 HoofHearted
HoofHearted's picture

Don't stop the shit yet...I still have FRNs to exchange for precious metals. And if the government isn't insolvent by the time I file taxes, there is a refund coming to me. (Thanks, suckers, for giving me $1000 per child in my family. Still not sure why that is, but we convert it into four ounces of gold right away!!!) Don;t take the punchbowl away until late February or early March at the absolute fucking earliest!!!!

Thu, 01/16/2014 - 19:11 | 4339221 Pinto Currency
Pinto Currency's picture


UK Prime Minister questioned on LBMA gold market rig:

Thu, 01/16/2014 - 23:29 | 4339981 Dick Buttkiss
Dick Buttkiss's picture


Fri, 01/17/2014 - 03:44 | 4340218 BaBaBouy
BaBaBouy's picture

Market Manipulation In Most Countries is Illegal.

Compensation IS DUE to Thousands Of Mining Companies That Have Been Harmed Or Destroyed By These Covert PM's METALS Operations. (+ South AFRICA ?)

Not To Mention A Million Or So Investors...

Fri, 01/17/2014 - 07:48 | 4340302 GetZeeGold
GetZeeGold's picture





I for one am shocked and appalled.


Who knew.....except about everyone?


GATA is going on vacation.....the sign out front says.....TOLD YOU SO BITCHEZ!

Thu, 01/16/2014 - 17:55 | 4339016 Al Gorerhythm
Thu, 01/16/2014 - 19:53 | 4339361 cynicalskeptic
cynicalskeptic's picture

Well back in the late 80's - when nobody seemed to care about gold - the vaults on E Level at the NY Fed were full of gold, all nicely stacked in their respective government's cages.  The German bars - and much of the European gold - was still stamped with the eagle and swasticka put on then the Reichsbank had it in inventory.  While the smelter puts their ID, fineness and weight on bars, it was also the custom of various banks to stamp bars withtheir mark of ownership.

It's already come out that Germany was allowing their gold in US possession to be leased out (to be lent to various bullion banks and - OF COURSE, SOLD - while the banks paid minimal interst on theoir lease and invested the proceeds of the sale in higher paying bonds, a supposed 'win-win' as long as gthe price of gold holds steady or goes down).  

So.... now we have the scramble to buy it back - in competition with China and the rest of the world - and you can bet the US is going to be nice to China in exchange for continued support of the $US (e.g. - NOT dumping US Treasuries all at once - a move also in China's interest to preserve as much value as possible while they convert those $$$ into hard assets). 

I wonder if ANY gold is left in the basement of the Fed 

Would be all too convenient for some if the 'Die Hard With a Vengence' scenario actually came to pass in one form of another..... HORRORS!!! We were robbed!!!!!

Thu, 01/16/2014 - 20:18 | 4339481 Skateboarder
Skateboarder's picture

And the security keep guarding empty boxes. Imagine if they knew. :)

Fri, 01/17/2014 - 03:26 | 4340216 Oracle of Kypseli
Oracle of Kypseli's picture

I suspect a terrorist attack on the NYfed which will supposedly evaporate all the gold. I wonder if the building and its contents is insured by AIG. Happy trails mates

Fri, 01/17/2014 - 06:49 | 4340300 Tall Tom
Tall Tom's picture

They had that chance when the Gold was stored in the Basement Vaults of the World Trade Center.


But for some reason they decided to move all of those metric tons of Gold, beginning in July, 2001 to, as Alan Greenspan said on Sept. 17, 2001, to an "undisclosed location". (the vaults of the NY Federal Reserve)


So none of that Gold was vaporized underneath the WTC on September 11, 2001.


It just had to have been, "Dumb luck" that the Gold was not in those underground vaults on September 11, 2001.


I can just imagine the US Government Official in Charge saying, "Hey..I am bored. Let's take a couple of MONTHS and MOVE ALL OF THE GOLD OUT FROM UNDERNEATH THE WTC. That will give us something to do...Let us just do this for the fuck of it."


No. They had no clue that those Twin Towers were going down...NONE WHATSOEVER.



Thu, 01/16/2014 - 22:26 | 4339843 Cacete de Ouro
Cacete de Ouro's picture

Elke König is a broad ....

Thu, 01/16/2014 - 16:19 | 4338760 geminiRX
geminiRX's picture

Bitcon comes to mind too...

Thu, 01/16/2014 - 17:37 | 4338979 TruthHammer
TruthHammer's picture

as not being a legit alternative? agreed

Thu, 01/16/2014 - 17:42 | 4338990 MrPalladium
MrPalladium's picture

No, but as an alternative that must be coopted and manipulated by the system. A wise warning.

Fri, 01/17/2014 - 03:39 | 4340222 Oracle of Kypseli
Oracle of Kypseli's picture

TPTB can eliminate digital crypto-currencies in a NY minute. Don't be fools. They may even be the originators to deflect what the left hand is doing.

The religious-like followers of bitcoin are all over the blogosphere proselytizing just like penny stock pushers and Jehovah witnesses

Bugger off 


Thu, 01/16/2014 - 19:31 | 4339289 Frozen IcQb
Frozen IcQb's picture


The reserve currency would not have to be manipulated if politicians were not commiting treason by spending above revenues.

Thu, 01/16/2014 - 18:24 | 4339092 Long-John-Silver
Long-John-Silver's picture

Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info.


I think She's pissed Germany can't get it's Gold back. It's been rehypothecated so many times it no longer exists.

Thu, 01/16/2014 - 21:59 | 4339779 Fish Gone Bad
Fish Gone Bad's picture

The gold exists.  She still won't get it back though.  Its been turned into Indian gold jewelry.

Thu, 01/16/2014 - 23:19 | 4339963 Uncle Sugar
Uncle Sugar's picture

It's at the bottom of some river or lake.

Fri, 01/17/2014 - 03:40 | 4340221 toothpicker
toothpicker's picture

It's in China or in a castle somewhere in Europe

Thu, 01/16/2014 - 23:50 | 4340010 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Alright now fellow gold bugs. Enjoy this day of validation. You've truly earned it.

But tomorrow or maybe early next week, this will hit the mainstream press where it will be mentioned in passing and from then on, your meticulous proofs of manipulation will be met with:

"Well, DUH!!!! Tell us something that whole world didn't ALWAYS know! You're a little slow on the uptake, aren't you?".

Today proves your views about gold's place in the world are as correct now as they have always been. Honestly after last year its pretty comforting. But this is only a small step...

Fri, 01/17/2014 - 07:11 | 4340311 GetZeeGold
GetZeeGold's picture




Tell us something that whole world didn't ALWAYS know!


I seriously doubt your run of the mill 711 patron had any clue.....let alone your standard soccer mom.


It's probably best if we just keep this between ourselves.

Fri, 01/17/2014 - 04:50 | 4340261 Volaille de Bresse
Volaille de Bresse's picture

"Perhaps Angela Merkel, pissed about NSA abuse, gave Bafin the green light to come out with this info"


Could be... or Merkel has a much bigger view and mentally teleports herself to 2030, when China is booming and the US is semi-dead.


WHO is Germany going to sell Mercedes cars to, then? Not some dude in Texas or Cali. Pissing the US, who cares as long as China's your #1 economic partner...


With a strong Berlin/Beijing partnership, Germany will even be able to leave Europe and let France drift/sink with the insolvent "tanned" Euro-zombies (Spain Greece Portugal Cyprus). 

Vorwäts Deutschland!!!!

Thu, 01/16/2014 - 15:59 | 4338695 Pladizow
Pladizow's picture

Someone wont be made partner at JPM or GS!

Thu, 01/16/2014 - 16:12 | 4338730 kaiserhoff
kaiserhoff's picture

True, but when the Germans get their gold back, they will be able to buy Japan with it.

Of course, so will anyone else with a couple of Krugarrands to rub together.

Thu, 01/16/2014 - 16:20 | 4338765 Rainman
Rainman's picture

Germans get their gold back ? ....that's a good one !

Fri, 01/17/2014 - 06:59 | 4340309 GetZeeGold
GetZeeGold's picture



Yes we have your you can't see it.....yes, you can have it back......just not right now.


What? Are you still here?


Go home......we'll call you. Would you take some bitcoins for that?


Thu, 01/16/2014 - 17:15 | 4338918 DaveyJones
DaveyJones's picture

assuming anyone will want to buy Japan

Thu, 01/16/2014 - 19:24 | 4339262 Beam Me Up Scotty
Beam Me Up Scotty's picture

Buy it and pass it down to your great, great, great, great,..........grand kids about 100,000 years in the future.

Thu, 01/16/2014 - 19:55 | 4339369 cynicalskeptic
cynicalskeptic's picture

Think of it as a large 'glow in the dark' novelty item.

Thu, 01/16/2014 - 20:27 | 4339513 DaveyJones
DaveyJones's picture

like a night light for the moon

Thu, 01/16/2014 - 22:02 | 4339786 Fish Gone Bad
Fish Gone Bad's picture

Making fun of Japan is pretty easy to do.  It must be all the Tritium and Cesium 137 in their drinking water.

Thu, 01/16/2014 - 16:06 | 4338711 TeamDepends
TeamDepends's picture

Sleeping like babies, confident the kind, grandfather-like NY bankers were keeping a watchful eye on their stash.  Speaking of the cartel, is anyone else enjoying watching them repeatedly attempt to push silver under $20 only to receive a waving silver finger in their face and a taunting "Oh no you di-int!".

Thu, 01/16/2014 - 16:15 | 4338745 maskone909
maskone909's picture

fo sho

lovin my new 10oz ntr bars

thinking a boat trip is way overdue

Thu, 01/16/2014 - 16:24 | 4338778 gmrpeabody
gmrpeabody's picture

Better plan on taking those bars with you..., nothing is safe at home anymore.

Thu, 01/16/2014 - 17:01 | 4338891 SilverIsKing
SilverIsKing's picture

Not only will he take them with him, I am certain that the bars will somehow fall overboard and be "lost forever."

Thu, 01/16/2014 - 17:17 | 4338923 Kaiser Sousa
Kaiser Sousa's picture

"attempt to push silver under $20 only to receive a waving silver finger in their face and a taunting "Oh no you di-int!".

yeah, its hilarious how after a huge phony paper price smash they get it to trade in a narrow range for days while the Fraud Markets r moving up and down, and all around...

so obviously bullshit...thanks assholes - for real money for me and more peices of green worthlessness for you cocksuker mother fucking MoneyChangers....

he who laughs last..........

Fri, 01/17/2014 - 06:55 | 4340308 zhandax
zhandax's picture

Funny how the price of a Bach Stradivarius never seems to go down.  And it's only silver plated.....

Thu, 01/16/2014 - 18:14 | 4339076 gaoptimize
gaoptimize's picture

Pudently, thriftilly, frugally

Fri, 01/17/2014 - 04:23 | 4340239 FreedomGuy
FreedomGuy's picture

The government will save us! It's not like they manipulate the economy, massage the numbers or believe in central planning, right? They care about us more than we care about ourselves. They will fix this and set it right, I am certain.

Thu, 01/16/2014 - 15:46 | 4338641 Canadian Dirtlump
Canadian Dirtlump's picture

they found out what a few thousand of us probationary tinfoil hat wearing  cavetrolls know. The vast majority of the gum chewing mongoloids who exist to pop anti depressants and watch my strange addiction, honey boo boo and pawn stars would either laugh at you, or give you a serene autistic blank stare if you said that to them.

Thu, 01/16/2014 - 18:30 | 4339109 Kirk2NCC1701
Kirk2NCC1701's picture

Not so fast, 'hoser'.  I don't accept that so many of us here at ZH "knew" of this or that even it old/new owners/Tylers and contributors knew.  The proof is simple:

1. In a world where ANYTHING of economic is manipulated, we should expect even PMs to be manipulated.  But we didn't, in a pre-2013 world.  As recently as Oct. 2012 ZHers and other gold fans/bugs were "FRONT-RUNNING" The Fed on its QE policies and driving up the PM prices.  That's a fact, Jack!

2. When ZH finally spotted and reported the PM price reversal, due to price manipulation (e.g. Banging the Open or the Close, on thin volumes), it seemed to come as a surprise and a shock.  We've seen the PM prices (futures) get monkey-hammered for about 15 months now, and each "uptick" is falsely celebrated as some kind of a "recovery", when in fact it's nothing but an ongoing part of a Sideways market.  Even TD does it... trying to talk up PM prices.  And I call them out on it every time.

I submit that it's not just TPTB (Fed & Friends) who are "manipulating" PM prices, but so are gold bulls.  The latter do it with their feeble attempts at pump up the prices or bullion purchases, when this is not working.  Not in the US anyway. 

There is therefore a fair bit of Revisionist History going on here on ZH.  There has only been a realization of PM Manipulation after the fact, not before it.

As I've said many times:  PM prices will be (a) Channel-Bound and (b) won't break out until TPTB let their prices break out.  No matter what ZH says or gold bulls & shills proclaim.

Fri, 01/17/2014 - 01:43 | 4340158 Nage42
Nage42's picture

Is it just me?

I see a difference between:

talking up an asset class on a public forum touting its merits


Microsecond sell-and-withdraw of tens of thousands of 100-ounce contacts per second using special order commands that are quietly agreed with exchanges.

But maybe I'm just a nit-picker?

Fri, 01/17/2014 - 04:24 | 4340241 FreedomGuy
FreedomGuy's picture

The entire world is now a political economy and manipulated by governments. As we lose track of the real value of anything from money to a pound of sugar we will suffer accordingly.

Fri, 01/17/2014 - 07:23 | 4340326 Tall Tom
Tall Tom's picture

Give me a break, KirkNGC1701...


Anyone who has been involved in the Gold Market since the 1970s knows that the damned price has been manipulated. What is a Gold Standard? It is the Ultimate Price Control? (Of course it serves to limit profligate Government spending and, thus, is an anti-Government tool.)


But when the Government decoupled the currency from Gold back in the 1970s the market was still manipulated.


In the 1960s the Gold Market was manipulated by London UNDER BRETTON WOODS. Does the London Gold Pool ring a bell??? 


In the 1980s the Gold Market was manipulated.


In the 1990s the price was subject to supression. Brown's Bottom was the final attempt to crush demand for Gold. It did not work.


The Gold Anti Trust Action Group, GATA,, stood up and filed an action against the Federal Reserve Bank. They were watching the South African Miners being starved by these policies. This incensed their Good Conscience.  


So their filed an Anti-Trust Lawsuit did not go anywhere because...




How fucking convenient.


Three Criminal Cases evaporated on September 11.


GATA's antitrust case...

Enron Energy Market Manipulation case...

And the Embezzled $2 Trillion from the Department of Defense case stored conveniently where the damage was impacted upon the Pentagon.


Just a fucking coincidence, right?


And those are just the ones I know about. I wonder how many more were quashed by that event...


And you ARROGANTLY think and propose that we are UNAWARE??? GET REAL!!!


So who is writing "Revisionist History"?



Fri, 01/17/2014 - 07:58 | 4340346 Shrapnel
Shrapnel's picture


Thu, 01/16/2014 - 15:57 | 4338687 williambanzai7
williambanzai7's picture

Thu, 01/16/2014 - 16:42 | 4338819 Colonel Klink
Colonel Klink's picture

May need to revise those numerals to whichever king it was that lost his head to the guillotine.

Thu, 01/16/2014 - 17:03 | 4338892 SilverIsKing
SilverIsKing's picture

Is that a gold bar in his pocket or is he happy to see me?

Thu, 01/16/2014 - 17:03 | 4338893 Strider52
Strider52's picture

I've heard that their next move is to  digitize numbers.

Thu, 01/16/2014 - 17:23 | 4338942 MsCreant
MsCreant's picture

Is this a scented or unscented douche?

Thu, 01/16/2014 - 18:50 | 4339159 Colonel Klink
Colonel Klink's picture

Scented, he smells like Obama's cocksucker.

Thu, 01/16/2014 - 19:55 | 4339367 s-logic
s-logic's picture

Obama's cocksucker???? It's vice versa!

Thu, 01/16/2014 - 22:39 | 4339875 hangemhigh77
hangemhigh77's picture


Fri, 01/17/2014 - 04:26 | 4340243 FreedomGuy
FreedomGuy's picture

He looks happy.

"It's good to be the king!"

-Mel Brooks.

Thu, 01/16/2014 - 16:05 | 4338709 fooshorter
fooshorter's picture

Your not getting your gold back any sooner by appealing to the peasents. 7 years? Now its 8! And don't make me raise it!


~gubermint mafia

Thu, 01/16/2014 - 16:35 | 4338800 JohnnyBriefcase
JohnnyBriefcase's picture

"I am altering the deal. Pray I don't alter it any further."
-Lord Vader

Thu, 01/16/2014 - 16:45 | 4338823 Nothing but the...
Nothing but the truth.'s picture

What gets my fucking Goat are some of the PM contributors on Seeking Alpha, who flatly deny the existence of manipulation in the PM markets and would rather use stupid little charts to explain the price falls. These idiots  are hopelessly misinformed and blind to reality.

Thu, 01/16/2014 - 17:27 | 4338950 piceridu
piceridu's picture's the smoking gun:

If we want to have a chance to remain the masters of gold an international agreement on the rules of the game as outlined above seems to be a matter of urgency. We would fool ourselves in thinking that we have time enough to wait and see how the S.D.R.'s will develop. In fact, the challenge really seems to be to achieve by international agreement within a very short period of time what otherwise could only have been the outcome of a gradual development of many years.

U.S. objectives for world monetary system—a durable, stable system, with the SDR as a strong reserve asset at its center — are incompatible with a continued important role for gold as a reserve asset.... It is the U.S. concern that any substantial increase now in the price at which official gold transactions are made would strengthen the position of gold in the system, and cripple the SDR


Confidential 1974 Memo To Paul Volcker

Thu, 01/16/2014 - 19:58 | 4339388 cynicalskeptic
cynicalskeptic's picture

SDR's - the ultimate fiat backed by NOBODY created out of thin air to suit whatever the needs of TPTB are.....  oh yeah... I'd trust those completely

Thu, 01/16/2014 - 21:42 | 4339746 tip e. canoe
tip e. canoe's picture

SDR's ain't called paper gold for nuttin'.

(talk about an oxymoron)

Thu, 01/16/2014 - 17:42 | 4338991 Herd Redirectio...
Herd Redirection Committee's picture

Some people just can't resist the urge to support the MSM and become a useful idiot themselves.  It gives them direction, purpose, and an identity.

Thu, 01/16/2014 - 20:05 | 4339433 Frank N. Beans
Frank N. Beans's picture

they're a little too nice and polite on that site, that's the problem


Thu, 01/16/2014 - 16:46 | 4338840 AngelEyes00
AngelEyes00's picture

It's obviously being manipulated because developed economies are exercising QE, printing money, which would bomb their currency valuation/s if gold prices were allowed to rise.  It's a no brainer because as we can see gold is being hoarded.  How can something that is being hoarded remain down in price? 

I just hope this investigation is not squelched in the interest of BAU. 

Thu, 01/16/2014 - 17:26 | 4338949 MsCreant
MsCreant's picture

I like when the mint runs out of the stuff because the price is so low and demand is so high.

In what equation does high demand = low prices? 



Thu, 01/16/2014 - 17:44 | 4338994 Herd Redirectio...
Herd Redirection Committee's picture

High demand?  I am pretty sure that means if you are holding, you should sell no matter what the offer, at market, above market, hell, even below market!

Thu, 01/16/2014 - 18:05 | 4339038 Transformer
Transformer's picture

High demand = low price is always true when gov puts in price controls.  In Venezuela recently, the government set the prices for everything, from big screen TV's to toilet paper.  The purpose beinig to hide, or not acknowledge inflation.  All prices were set low, so there was a very high demand, which immediately cleaned out all the stores.  Business owners were not interested in losing money, so they did not replace stock.

Sound familiar?

Thu, 01/16/2014 - 20:00 | 4339397 cynicalskeptic
cynicalskeptic's picture

Good reminder...... stock up on TP (and garbage bags) along with the food and ammo.......

Fri, 01/17/2014 - 00:48 | 4340106 bearwinkle
bearwinkle's picture

No shit Sherlock! DERP!

Fri, 01/17/2014 - 01:19 | 4340138 SAT 800
SAT 800's picture

It's a communication problem. He doesn't mean by manipulation what you mean by manipulation. He's talking about waterfalls on Friday that have no effect on the monthly average price. the only thing that's possible, by the way. Manipulating PM's prices in the sense that the internet cognescenti believe in is impossible; which is why it doesn't happen; because impossible things don't happen.

Fri, 01/17/2014 - 15:38 | 4341854 TheReplacement
TheReplacement's picture

$5 on a brown murdering this dude in some tragic and completely random act of terrorism.

Thu, 01/16/2014 - 15:32 | 4338593 buzzsaw99
buzzsaw99's picture

The financial sector is dependent on the common trust that it is efficient and at the same time, honest... the fuck if it is.

Thu, 01/16/2014 - 15:37 | 4338613 chdwlch1
chdwlch1's picture

Got that right!  It's dependant on being the one and only issuer of credit!

Thu, 01/16/2014 - 15:40 | 4338628 slotmouth
slotmouth's picture

If you trust that the market is efficient and honest, you must be out of your damn mind.

Thu, 01/16/2014 - 20:46 | 4339581 Clowns on Acid
Clowns on Acid's picture

Well it actually was....before Greenspan, and then Bernanke, and now Yellen...oh yeh who is Vice Chair again....?

What do all these guys ahve in common besides being negative real interest rate specialists ?

Thu, 01/16/2014 - 15:34 | 4338596 NoDebt
NoDebt's picture

Two words: exploding Mercedes.

Thu, 01/16/2014 - 15:48 | 4338654 TeamDepends
TeamDepends's picture

It is strange that M-B didn't come right out and say:  "Ja, our cars do not simply blow up for no reason".  They were probably assured then reassured the story would drop down the memory hole.

Thu, 01/16/2014 - 15:58 | 4338690 NoDebt
NoDebt's picture

Mercedes, as a matter of general principle, leaves those sorts of "fiery death trap" denials up to Tesla.

Thu, 01/16/2014 - 20:07 | 4339413 Simplifiedfrisbee
Simplifiedfrisbee's picture

Two years ago at midnight, a stranger(he had pulled over on the side of the road), my cousin, and myself came across a vehicle that had smashed into a light post. The electrical line snapped and caused a fire in the vehicle. It was an M3 convertible. While my cousin and stranger telephoned for help, I went over to the vehicle and immediately put out the man burning in flames with my shirt. Burning human skin is unforgettable.

We immediately moved him across the street in fear of the car exploding. The car was engulfed in flames in just a few minutes.

Police and fire department showed and the Chopper took him away.

Point is, I informed the fire chief we were afraid the car would explode. He said, "Cars explode only in movies. It rarely happens in reality."

Thu, 01/16/2014 - 16:18 | 4338756 Tim_
Tim_'s picture

San Diego 6 News - Video

"They [fire and police] were told not to comment on this story."

"There were zero skid marks."

"Mercedes says their cars just don't blow up."

"Cars can be remotely controlled."

Thu, 01/16/2014 - 17:47 | 4338997 Herd Redirectio...
Herd Redirection Committee's picture

Call me a cynic, but he may have (had help) faked his death.  Not a lot of places to go in your career as 'investigative journalist' if you lose credibility (which is what would have happened if he didn't continue outing gov't corruption and scandal).

Thu, 01/16/2014 - 17:32 | 4338968 TaperProof
TaperProof's picture

My favorite was when my friend spent $120k on a new MB and the electrical system failed on his ride home leaving him on the side of a busy highway...     stuff like this should be great news for Tesla

Thu, 01/16/2014 - 18:27 | 4338600 JustObserving
JustObserving's picture

what it reveals will certainly not be to the liking of the financial "powers that be."

But they have been listening to all of Merkel's calls since 2002.  That has to be worth something.

Merkel will call off the German regulators.

Thu, 01/16/2014 - 15:34 | 4338601 Obchelli
Obchelli's picture

Bullish for Equities!

Bearish for Precious Metals!

Thu, 01/16/2014 - 16:36 | 4338804 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

It's interesting to see the comex not react in the slightest to this news isnt it?


Gold should either be going where KWN always promised or to where FOFOA always promised.  Instead a yawn from the markets.  Maybe HFT algos arent coded to parse "manipulation worse than libor".

Thu, 01/16/2014 - 16:54 | 4338866 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

Jesus Christ, China just announced their official reserves are up by 76% to 2710 tons and that they are now the third biggest gold holder in the world.


No reaction in price...  Would Bernanke blowing his head off on live TV while screaming, "It was always about gold!" move the price at this point?

Thu, 01/16/2014 - 17:18 | 4338928 DaveyJones
DaveyJones's picture

even if it doesn't, I'm game 

Thu, 01/16/2014 - 17:29 | 4338962 MsCreant
MsCreant's picture

I bet we could take up a collection for that one. Gold even.

Thu, 01/16/2014 - 20:26 | 4339507 DaveyJones
DaveyJones's picture

hello dear

how are the perennial food plantings?

Fri, 01/17/2014 - 13:40 | 4341475 MsCreant
MsCreant's picture

Need to get started, but my semester is started too so I have been a neglectful plant mom. I have one big job to get done, then probably this weekend I will get out there and put some back into it! Still need to do some winter clean up.

And yours? Cold frame?

Fri, 01/17/2014 - 14:23 | 4341628 DaveyJones
DaveyJones's picture

greenhouse and four small cold frames + some stuff right out in the open that survived 14 degrees.   Lots of Kale, but some asian greens are pretty tough, green oinon now coming back. They usually do up here around the third week of January. Garlic too

Sat, 01/18/2014 - 00:31 | 4343300 MsCreant
MsCreant's picture

I should check where I planted those onions... oh dear!! Ha ha ha. I am serious! Raccoons (maybe Rocky?) got my garlic and dug it up.

Some dog stole our bird feeder! The kind with the cakes you put in a cage? Just ran off with it, stopping to try and eat it, and ran again.

I love greens. I can cook up some mean southern style greens. I have no shame, bacon, onion, garlic, aged organic balsamic vinaigrette, salt, pepper, man oh man. Don't cook them to death either! So good for you when you are not eating grain and gluten products. I am off dairy too right now. 

I should plant Kale. 

Had a lot of apples. Don't have a way to store them. Quite a few went bad. Need a freezer next. All kinds of things going on when I really think about it. 

So glad for you and the cold frame action. I bet I could benefit too, but the yard is still evolving. All our problems are not solved yet. The berms are not holding. Should have done swales. 

Sat, 01/18/2014 - 01:34 | 4343380 DaveyJones
DaveyJones's picture

swales may be the key to life

Thu, 01/16/2014 - 17:26 | 4338957 RafterManFMJ
RafterManFMJ's picture

I don't know, but I'm willing to donate a new 100 dollar bill to fund the experiment.

Thu, 01/16/2014 - 21:12 | 4339653 AllWorkedUp
AllWorkedUp's picture

That's all??? 2,710 tons???

I thought fer sure China had accumulated close to 20K tons by now. No wonder the scumbags are able to keep the price down at around $1200. Alot of misinfo out there.

KWN ought to pull their heads out of their asses.

Fri, 01/17/2014 - 07:36 | 4340334 Tall Tom
Tall Tom's picture

Not all of the Gold that was imported by China was purchased by the PRC Central Bank. Most of it has ended up in the hands of PRIVATE INDIVIDUAL OWNERS in China.


There are 179,000 Metric Tons of Gold as reported by the World Gold Council. Central Banks and Governments own about 40,000 Tons. The rest is PRIVATELY OWNED.


Perhaps you need look in the mirror?

Fri, 01/17/2014 - 01:21 | 4340140 SAT 800
SAT 800's picture

probably not; but it would be worth watching.

Thu, 01/16/2014 - 15:37 | 4338602 Kaiser Sousa
Kaiser Sousa's picture

this  is why the phony paper prices have to be ignored and if u r able u must continue to STACK with every disposable DEBT COUPON DOLLAR U HAVE!!!!!!!!

the matrix wasnt just a movie...

does it have you??????

"Gold is the money of kings...Silver is the money of Gentlemen....Barter is the money of peseants, and Debt is the money of Slaves...."

Thu, 01/16/2014 - 17:06 | 4338899 SilverIsKing
SilverIsKing's picture

"Gold is the money of kings...Silver is the money of Gentlemen....Barter is the money of peseants, and Debt is the money of Slaves...."

                    "...and Bitcoin is the money of Fonestar."

Thu, 01/16/2014 - 17:23 | 4338943 Death By Cold S...
Death By Cold Steel Report's picture

Amen Brother Amen...

Thu, 01/16/2014 - 15:35 | 4338603 Hippocratic Oaf
Hippocratic Oaf's picture
"Precious Metals Manipulation Worse Than Libor Scandal, German Regulator Says"

Mr. Dimon, paging Mr. phone, Mr. Dimon.

Thu, 01/16/2014 - 15:35 | 4338605 Mad Mohel
Mad Mohel's picture

That's one German that needs to watch his wiener schnitzel from here on out.

Thu, 01/16/2014 - 15:35 | 4338606 Fidel Sarcastro
Fidel Sarcastro's picture

Elke Koenig may end up sleeping with the fishes if he isn't careful.

Thu, 01/16/2014 - 15:43 | 4338637 Wolferl
Wolferl's picture

Elke König is a woman, just sayin.

Thu, 01/16/2014 - 15:52 | 4338679 Mad Mohel
Mad Mohel's picture

Shit! So nobody was going to listen to her anyway. Well there goes another hope of a legitimate investigation.

Thu, 01/16/2014 - 16:23 | 4338775 TrumpXVI
TrumpXVI's picture

Correct, maybe something like this "Elke"??


Or....maybe not so much.

Thu, 01/16/2014 - 16:36 | 4338805 Urban Redneck
Urban Redneck's picture

not so much... (for some context to Dr. Engali's comment below)

Thu, 01/16/2014 - 15:36 | 4338607 DavidPierre
DavidPierre's picture



Chinese water torture.

It was reported yesterday out of Switzerland that the Swiss want to become an international hub of Chinese renminbi trading. The Swiss government is in talks to swap Swiss francs with China's renminbi in anticipation of the Chinese currency becoming a reserve currency. It was also reported that Russia is negotiating an $18 billion "goods for oil" deal with Iran and that The White House is "concerned". Ya think?

Did we even need any more evidence that the world is turning towards China and their currency...and away from the U.S. and our dollars? If you read the first story regarding Switzerland, they fear that "they are playing catch up" ...especially with our long time ally Britain. It was reported a few weeks ago that Britain has been in trade talks with China and levering their mutual business ties through Hong Kong. Of course they are playing catch up as China has been spanning the globe making trade, currency (theirs) and business deals for several years now.

Have you ever heard of the phrase "Chinese water torture"? This is merely the very slow dripping of water onto someone bound to a table. It is done slowly and methodically and never does the pace increase (unlike CIA water boarding). The process continues until the subject finally breaks. In a sense this is exactly what the Chinese are doing, they are slowly and methodically supplanting the U.S. from it's position of the "reserve currency". Yes we have seen fits and starts but for the most part the pace has remained quite steady but continually "building".

Think about this analogy for a moment, we (the U.S.) are "bound". Did someone "tie us up"? No, we have done this all to ourselves of our own "free will". Yes I know, we did have some "help". We were "helped" by the British and Europeans initially and then by Japan followed by the Chinese. They "helped us" by purchasing our debt. Back in the old days there had to be buyers for one's debt as it was unacceptable, no, LUNACY for the central bank of a country to purchase more than even 1% or less of an offering. Foreigners bought and continued to buy U.S. Treasuries until about 2 years ago...when they just stopped at which point the Fed was forced to step in. The Fed has purchased over 70% of Treasury issuance for over 2 years now, this IS lunacy...but now considered "normal"?

So why is it that the Swiss are moving towards a financial deal with the Chinese? Well, forgetting the fact that our regulators have pissed them off by bullying their bankers, they are simply "following the gold". Gold has been flowing into China at a rate of 100 tons per month (plus retaining their own production). I have seen "official" reports out of the World Gold Council and GFMS that say the Chinese have amassed nearly 3,000 tons and "may have" surpassed the French and Italians. May have? Let me say this, the "official" line of 3,000 tons is laughably BOGUS not to mention that Italy probably lost close to half of their gold back in 1998 with LTCM's blow up.

China has imported and produced AT LEAST 3,000 tons...just in the last 2 years alone! I would guesstimate that 5,000 tons would be the absolute minimum of their hoard and may be 8,000 or even approaching 10,000 tons. Business (and financial power) ALWAYS follows the gold. The flip side of this is that when gold "leaves" a does financial power. Put simply, we blew it! We had the manufacturing base of the world. We were cutting edge everywhere you looked and the financial center of the world. We have lost our "edge" and if the "Monkey Business" that we are playing with Germany's gold is any guide, we have also lost our gold.

I do want to mention that this scheme where the Fed buys Treasury bonds (QE) has prolonged the game, it is also an accelerant to our becoming irrelevant. Monetization is fraudulent and we are doing this openly, publicly and telling the rest of the world something that they know not to be true. They understand today as it has always been understood that gold is "financial truth" which is why business always follows the gold. Watching and living through this is painful from a patriotic standpoint. Foreigners on the other hand don't really care, they are slowly, steadily and methodically (like Chinese water torture) preparing themselves for the future. Trade deals, currency deals, political alliances, military alliances etc. are being negotiated and reported on every single day, yet here in the U.S. it's "business as usual"...until it isn't any longer.


Thu, 01/16/2014 - 15:59 | 4338697 gwar5
gwar5's picture

Agree 100%. Rickards feels Chinese needed minimum 4000 tonnes to be a major player at the coming big dance. There is every indication they have exceeded that number by a good margin already and they show no signs of letting up. Won't end well.


Policy of the US seems to be to officially deny disaster is coming while quietly prepping to control the masses for when the coming disaster hits. There is no strategic or economic mitigation "Duck and Cover" type plans to help the man on the street for what's coming, only incremental plans for martial law to protect the status quo.  

At least the Chinese have been telling their own people to acquire gold to protect themselves at the same time they are developing their domestic market so they can give the insolvent West the middle finger.




Thu, 01/16/2014 - 16:13 | 4338729 LawsofPhysics
LawsofPhysics's picture

Well, I for one look forward to selling my soybeans, pecans, and other produce to the Asians for gold.  Sounds great to me, bring it.

Thu, 01/16/2014 - 16:29 | 4338790 Lore
Lore's picture

GATA has been trying to raise awareness of this for ages. The price of monetary metal is a direct barometer of truth in the marketplace. I spoke a few years ago with an Indian banker who called the Anglo bunch "the most corrupt in the world." 

1.6 Billion Rounds Of Ammo For Homeland Security? It's Time For A National Conversation (Forbes, Feb 2013)

"The Denver Post, on February 15th, ran an Associated Press article entitled Homeland Security aims to buy 1.6b rounds of ammo, so far to little notice.  It confirmed that the Department of Homeland Security has issued an open purchase order for 1.6 billion rounds of ammunition.  As reported elsewhere, some of this purchase order is for hollow-point rounds, forbidden by international law for use in war, along with a frightening amount specialized for snipers..."


Thu, 01/16/2014 - 18:12 | 4339067 Bay of Pigs
Bay of Pigs's picture

"These guys are the biggest crooks to ever walk the planet"

BoP's Dad on the Wall St Banksters, (who is still running strong at 92).

Fri, 01/17/2014 - 04:44 | 4340260 disabledvet
disabledvet's picture

again...if you get it from outer space "it's already refined." take a look at the number of launches of the Space Shuttle..."just put it in the cargo bay."

Thu, 01/16/2014 - 20:05 | 4339432 cynicalskeptic
cynicalskeptic's picture

China has a LONG memory and plenty of reasons to 'get back' at the West.

Remember the Opium Wars?  Didn't think so... but the Chinese do.  They view the last few hundred years as an 'abberation' - a brief period where the barbarians from the West ran amok. China views itself as the long term bastion of 'civilization' having suffered at the hands of the West in recent centuries.

Thu, 01/16/2014 - 21:22 | 4339687 AllWorkedUp
AllWorkedUp's picture

But someone just posted they annouced they had only 2710 tons of gold. A long way from 4K tons. WTF? I thought they were buying 100 tons a month?

Who can believe any fucking info out there? Rickards or anyone else?

Thu, 01/16/2014 - 16:12 | 4338731 Kirk2NCC1701
Kirk2NCC1701's picture

"We blew it".  Who exactly do you mean by "We"?

It's not exactly like they blackmailed or threatened us. And yet... I still don't hear guillotines rolling or knives being sharpened, nor judicial inquiries or even decently organized protests or marches.

In the end... "A people deserve their leaders".  I plan and act accordingly: IOW, no "Patriotism" over here, i.e. no "flag-waving or supporting the lifestyle of losers or crooks".  Feel free to do so if you like.

A 100% Patriot is a 100% Useful Idiot for TPTB.

Thu, 01/16/2014 - 16:20 | 4338762 Renfield
Renfield's picture

Deleted, redundant.

Thu, 01/16/2014 - 16:47 | 4338844 Kirk2NCC1701
Kirk2NCC1701's picture

p.s. To be clear:  I do not deem it a Virtue to bleed or die for an utterly corrupt and bankrupt regime, or a veritable 'army' of losers, parasites and crooks (numbering in the many, many tens of millions).  

That does NOT mean that I am not prepared to be a "Patriot" when it comes to protecting "my own", i.e. my family, my friends, my Clan, my Tribe. 

Screw "Los Federales"!  Time to reign in allegiance (from a Republic that has grown and morphed/metastasized into the very evil Empire it fought in the past).  Screw the "national" agenda or so-called "national interests".  Time to buy, grow and act locally and regionally.

Bring on the Parallel Economy:  a mix of Real Assets, Barter, Cash, PM, and BTC.  And ONLY give unto Caesar what Caesar is "entitled to"** (in his own currency).

** Entitled can mean different things to different people.  To some it means a strict Constitutional interpretation, whereas for others it means BOHICA -- depending on their level of conviction + physical courage, in the face of Caesar's tax collectors and mercenary army.

Thu, 01/16/2014 - 20:11 | 4339454 Max Cynical
Max Cynical's picture

As of December 2013, RMB now 2nd most used currency in trade finance, overtaking the Euro.

Recent SWIFT data shows that RMB usage in traditional trade finance - Letters of Credit and Collections - grew from an activity share of 1.89% in January 2012 to 8.66% in October 2013, propelling the RMB to the second most used currency in this market. It ranks behind the USD, which remains the leading currency with a share of 81.08%. The RMB overtook the Euro, which dropped from 7.87% in January 2012 to 6.64% in October 2013 and is now in third place.

Thu, 01/16/2014 - 15:40 | 4338617 Son of Captain Nemo
Son of Captain Nemo's picture

Perhaps this might be the straw that broke the camels back moment -or perhaps at least one of several that we know about...

Sure hope John Kerry doesn't try to make peace with the Germans the same way he did recently bearing gifts of potatoes to Russia's Lavrov?

Don't think that went over too well.


The Germans ain't shutin up till they get their good delivery GLD back, just as Russia ain't leaving Syria anytime soon until that pipeline of their's gets built. 

Thu, 01/16/2014 - 15:46 | 4338642 astoriajoe
astoriajoe's picture

Perhaps we mint a gold coin, maybe just slightly bigger than an American Eagle coin,  with the words "300 tons pure gold .9999" stamped on the back and call it a day.

Thu, 01/16/2014 - 15:56 | 4338682 Son of Captain Nemo
Son of Captain Nemo's picture

And it shall have Paul "Krugface's" cameo on the obverse and his ass (breaking wind) on the reverse.  And they shall forever use it in his honor during the coin toss at the Superbowl...

Thu, 01/16/2014 - 19:16 | 4339236 astoriajoe
astoriajoe's picture

and we start the game with the score of 7-7.

Fri, 01/17/2014 - 13:33 | 4341457 FreedomGuy
FreedomGuy's picture

I like the idea of the trillion dollar coin. Mint 17 of them and all debts are paid! This is so easy a child, Congressman or Fedster could do it!

Thu, 01/16/2014 - 15:46 | 4338643 dwayne elizando
dwayne elizando's picture

I doubt the Germans are going to get their Au back. It looks to me like it's already a partial default!

Thu, 01/16/2014 - 15:56 | 4338686 Son of Captain Nemo
Son of Captain Nemo's picture

I doubt they will either. 

Strike that comment from the record. We know they will NEVER get it back and so do they.

Thu, 01/16/2014 - 16:00 | 4338698 tvdog
tvdog's picture

The potatoes weren't entirely Kerry's fault. The law prohibits gifts of more than $100 to foreign officials. E.g., the king of Saudi Arabia gives the U.S. president a jewel-encrusted sword worth thousands, and gets a book in return.

Thu, 01/16/2014 - 16:36 | 4338806 gmrpeabody
gmrpeabody's picture

was it autographed...?

Thu, 01/16/2014 - 19:10 | 4339213 Au Shucks
Au Shucks's picture

Sure, in front of the camera.  Of course, King Saudi-poo-poo is then sure to receive billions in "military aide" and "foreign assistance" which he will use to terrorise his populace, entrench his authority, and force their industry to use slave labor that enables them to export real goods back to the US for paper nothings. 

Pretty fair exchange, eh?

Thu, 01/16/2014 - 15:38 | 4338620 Terp
Terp's picture

And this right after Bafin publicly bitchslapped DB CEOs for "non-action" in dealing with the LIBOR scandal.

Mutti won`t like that one bit.

Thu, 01/16/2014 - 15:41 | 4338632 Wolferl
Wolferl's picture

You can bet your arse that Mutti is behind that.

Thu, 01/16/2014 - 15:39 | 4338622 eclectic syncretist
eclectic syncretist's picture

The amount of registered gold at COMEX dropped by a very large 20% yesterday, and now there are only 370,000 ounces left, or just a little over 10 tonnes.  It's not far from here to zero, so the lies should start piling up faster and furiouser every day now.

Thu, 01/16/2014 - 15:47 | 4338646 astoriajoe
astoriajoe's picture

20% every day and we never get to zero. ;-)

Thu, 01/16/2014 - 15:48 | 4338657 NoDebt
NoDebt's picture

Hey, listen, that's been the story for 9-10 months now, so I wouldn't get so excited.  You're one of a LONG line of people who have said "they'll be out of gold in week or two."  Yet month after month it clicks along, bouncing off the bottom again and again.  However they do that magic trick it's obvious they can perform it every damned day of the year.

Thu, 01/16/2014 - 19:38 | 4339308 BigJim
BigJim's picture

I've just discovered this really authoritative website, called King World News! They have a lot of experts on there saying that it looks like gold and silver are going to rocket up in price any day now.

Fri, 01/17/2014 - 16:57 | 4342107 MeelionDollerBogus
MeelionDollerBogus's picture

I can't wait for another jaw-dropping expose exclusive from famous whistle-blower andrew maguire... and now without further ado...

Thu, 01/16/2014 - 16:41 | 4338818 ForWhomTheTollBuilds
ForWhomTheTollBuilds's picture

I'm watching the same numbers you are, but don't get too excited just yet.


Has pretty high quality color comentary on why a Comex failure isn't likely anytime soon.  In an earlier entry he pointed out "delivery" is legally made when a long contract holder is given a paper warrant by a too big to fail bank.  The warrant never expires and can be used as collateral for a loan making is good as gold unless your one of those pedantic weirdos.


Still lots of machinery in place to keep the reigndeer games going on for a while yet.  I still say the game just ends one day when China says so.  All we know is that today we are one day closer.


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