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JPMorgan Just Cornered The Commodity Derivative Market, And This Time There Is Proof
For years there had been speculation, rumor and hearsay that JPM had cornered the US commodities market. Now, finally, we have documented proof.
* * *
Traditionally, we look at the OCC's Quarterly Bank Report on derivatives activities to see which was the largest bank in the US in terms of total notional derivative holdings. The reason being that like on frequent occasions in the past, we find some stunning results, such as most recently in January when we wrote that, for the first time, Citigroup had eclipsed JPM as the largest US bank in total derivatives, with just over $70 trillion compared to perennial megabank JPM's $65.3 trillion as of the third quarter of 2014, explaining also why Citigroup had drafted the Swaps push out language in the Omnibus Bill.
And while this time there was little exciting to report at the consolidated level (JPM overtook Citi in Q4 only for Citi to once again become the world's largest bank in total derivatives with $56.6 trillion compared to $56.2 trillion for JPM and $52 trillion for Goldman as Bloomberg reported earlier), and in fact total notional derivatives tumbled from $220.4 trillion in Q4 to $203.1 trillion in Q1 the lowest level since 2008...
... an absolutely shocking blockbuster emerges when looking at the underlying component data.
Presenting Exhibit 12: Notional Amounts of Commodity Contracts by Maturity: even a CFTC regulator would be able to spot the outlier charted below.
What the chart above shows is that after fluctuating around the low to mid $200 billion range for the past 5 years, in Q1 the amount of Commodities with a maturity of under 1 year exploded to a record $3.9 trillion!
Sadly, the OCC provides no actual explanation for why there was such an epic surge in commodity derivatives within the US banking system in the first quarter, so we decided to explore.
What we found is what those who have for years accused JPM of cornering the commodity markets, have known: because it is none other than JPMorgan's Commodity derivative book primarily in the <1 maturity bucket, which exploded from just $131 billion to a gargantuan and never before seen $3.8 trillion!
In fact as the chart below shows, while historically JPM has accounted for just over 50% of total commodity holdings among all US commercial banks, in the Q1 this number soared to a stratospheric 96% which by anybody's standards is the very definition of cornering the market!
We don't know what prompted JPM's derivative book to soar to such a never before seen amount, but the number most certainly looks abnormal on both an absolute and a relative basis, especially considering that no other banks boosted their particular derivative book with the same vigor.
So what is going on here?
We decided to dig down some more when we encountered something even more perplexing. Because whereas in previous quarterly updates, the OCC broke out the FX and Gold categories as separate derivative items as seen in this most recent chart from the Q4 update...
... in Q1, once again quite inexplicably, the OCC decided to lump these two products together, thus making any credible observation about the total notional outstanding of just gold derivatives, impossible! But wait, we thought that according to former Chairman Bernanke, gold anything but currency: is the OCC suddenly disagreeing with that assessment?
Furthermore, while in all previous iterations of the OCC's Table 9, gold derivative notionals by maturity were explicitly broken out as can be seen in this Q4, 2014 table below:
Starting in Q1, 2015 the "gold" section in Table 9 no longer exists (although we can see that while JPM cornered "commodities", it was Citi that had its total derivative notional of "precious metals" undergo a massive jump, also for reasons unknown).
One would almost think the OCC is hiding something as the demand of US commercial banks. So while we no longer know what just total gold derivatives outstanding is, for some unexplained, reason, we do know that the combined total of FX and gold just hit an all time high.
* * *
And while the OCC did all it could to mask the "gold" line item by lumping it with FX, it still kept "Precious Metals" as is, although we assume that this too will be lumped with FX and gold shortly.
It is this chart that shows something is truly odd when it comes to the US commercial bank industry's activity in the precious metals space.
So in summary, this is what we do know:
- in Q1, JPM cornered the commodity derivative market, with a total derivative exposure of just over of $4 trillion, an increase ot 1,691% from just $226 billion in one quarter!
What we don't know is:
- why did the OCC decide to effectively eliminate its gold derivative breakdown by lumping it with FX,
- why there was a 237% increase in the total amount of precious metals (which include gold) contracts in the quarter, from $22.4 billion to $75.6 billion
We have sent an email requesting much needed clarification from the Office of the Currency Comptroller, although we are not holding our breath.
Source: OCC’s Quarterly Report on Bank Trading and Derivatives Activities First Quarter 2015
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It's a good time to hedge risk markets with physical assets.
Puerto Rico is another disaster: https://www.youtube.com/watch?v=DDIQNO8PS8M
This illegal activity will certainly be dealt with promptly and severely now that JPM just hired a new "Chief Compliance Officer."
Oh wait... the new hire is Eric Holder!
If JPM are net short, they may be cornered as oposed to having cornered the market.
Pinto what sane person would sit on 65-70 trillion USD of anything, unless destruction was the goal. Give it a sane thought for one moment, this is more proof of psychotic NWO than anything else, QE, endless war, political manipulation.
but we still don't know if 'ol uncle Ted Butler is correct or not in his theory that JPM has bought up all the phyzz silver supply of Eagles w/ free fiat from the Fed.
http://www.silverseek.com/commentary/no-proof-jpmorgan-not-big-buyer-sil...
Only time will tell...and I don't think there's much time left, do you folks???
Don't wait...just keep on stackin' phyzz for as long as these scumbags keep hammering the paper dollar price down way below the cost of production.
It's a no brainer
[Note: #16 in the incredible Silver Squelchers research series is 119 pages long. It’s essentially an entire book of its own, offered for FREE to SGT Report readers, courtesy of the one and only Charles Savoie. Please PRINT THESE OUT and save them! ~SGT]
Members Involved With Oceanic & Maritime Affairs
by Charles Savoie, Silver Stealers.net, via SGT Report:
“Founded in 1902 in London and the following year in New York, the Pilgrims Society seeks to promote good Anglo-American relations. It has an elite membership of politicians, diplomats, businessmen, and writers.” Most of their identities must be kept unknown to “promote good Anglo-American relations?” We are reminded of Samuel Johnsons (1709-1784) warning, “Where secrecy or mystery begins, vice or roguery are not far off.”
From The Pilgrims 1940 roster, JFK’s father—
http://sgtreport.com/wp-content/uploads/2015/06/Silver-Squelchers-Sixtee...
Um, how much margin debt is involved here? Commodities often allow for 5%-10% margins. This could really assfuck JPM if something moves the wrong way.
articles like this demonstrate why it is bad and wrong for reports to be released to the public
wasn't Tyler also the guy who leaked the London Whale position that immediately led to its implosion?
that's the rumor i heard.
London Whale 2.0?
Where have you gone, Bunker Hunt? They would have already reamed him way before this point.
Is JPM possibly doing God's work for the central banks? After all they supposedly hold huge amounts of physical gold and also have printing presses to pay for any amount of short positions.
obozo could ask his fellow clowns what is going on...LOL YEAH RIGHT!
The bank chiefs are in Washington for a regular meeting of
the Financial Services Forum, a Washington trade group that is
made up of the chief executives of 19 of the biggest financial
services firms.
Here is a list of the chief executives scheduled to meet
with Obama:
- Lloyd Blankfein, Chairman and CEO, Goldman Sachs
- Jacques Brand, CEO, Deutsche Bank Americas
- Michael Corbat, CEO, Citigroup
- Jamie Dimon, Chairman of the Board, CEO and President, JP
Morgan Chase
- Sergio Ermotti, CEO, UBS
- James Gorman, Chairman and CEO, Morgan Stanley
- Gerald Hassell, Chairman and CEO, The Bank of New York Mellon
Corporation
- Jay Hooley, Chairman, President and CEO, State Street
Corporation
- Abby Johnson, President, Fidelity Financial Services, Fidelity
Investments
- Steve Kandarian, Chairman of the Board, President and CEO,
Metlife
- Brian Moynihan, President and CEO, Bank of America
- John Strangfeld, CEO, Prudential
- John Stumpf, Chairman, President and CEO, Wells Fargo
- Jim Weddle, Managing Partner, Edward Jones
- Bob Benmosche, President and CEO, AIG
Eric Holder just got hired? You got to hand it to the bankers. They know where their bread is buttered and vice versa.
So JPM shorted the shit out of gold to keep the price down, and half assedly covered their tracks by pretending they were selling commods in general?
Ergo, Buy gold?
Yes, a blatant example of the evil trinity in action. There is no longer even a revolving door. There is no door at all. The lanes between the Corporations, the State, and the Mammonites* are wide open. In fact they are morphing into a single entity.
*Mammonites is an all inclusive term for what were in biblical times, the Moneychangers. Today they have insinuated themselves into all aspects of financial activities. Starting with the Central Bankers, we go to the major financial houses, the smaller brokers, insurance companies, and charlatans.
We are being eaten alive by this soulless psychopathic parasitic evil trinity. This time IS different. The advent of the information age has rewritten all the rules of engagement. When this all blows up, it's going to visible on the moons of Saturn.
Gird yourselves ZHers,
;-D
No one is responsible now.
21 Though hand join in hand, the wicked shall not be unpunished:
Proverbs 11 King James Bible
vice versa? where their butter is...breaded?
very dangerous to expose these important men in one room, who would ever dream for such an oportunity?
The head of JPM's commodities desk must be too young to have heard of the Hunt Brothers.
"This could really assfuck JPM if something moves the wrong way."
I know very little about how high finance works, and the derivative world is way above my pay grade.
But if JPM has truly cornered the market, is it in fact possible for it to move against them? What does it mean to corner a market if it doesn't mean that they now entirely control it? This is an honest question. I don't understand the terminology well enough.
Papa,
Asking irrational people rational questions is a waste of time.
When the price moves against the Rightwingnuts positions; it's because JPM controls the market.
When the price moves in their favor; JPM? What are you talking about? Gold is going to $10,000!
It's impossible to exit such a position without the market running away from you.
If you own 96% of an instrument how do you sell 96% of it without crashing the market?
If you have short sold 96% of an instrument how do you cover that short without bidding the price into a huge spike?
If you corner a market you can generally control the price until people figure out that someone has cornered the market. When word gets out, everyone else in the universe conspires to squeeze your balls and the market runs away from you and you get margined out and everyone else makes a killing at your expense.
@Occidental Mortal : That might be true if you didn't have a CTRL ALT PRINT button to get all the cash you wanted plus mysterious unnamed dark pools that will come in and buy up any junk that you need to dump at a huge loss. It's rigged from the start all the way to the bloody finish.
OcciMort, you ae just looking at trading. With a reset, silver could be as vauable as gold, there is certainly less silver than gold on the planet. I don't think they plan to sell and make a killing. They are holding through the reset, when who knows what could happen on the other side.
Tf, those are derivatives under one year. If they are holding through the reset, they must be expecting said reset imminently. I think an easier theory to envision could be that the bulk are options or swap positions they sold which, assuming they can hold the underlying metal price down, will expire worthless, allowing JPM to keep the premiums.
We don't need no stikin badges, we're the Exchange Stabilization Fund!
Cornering the market is great fun...until someone sledgehammer's your balls into a sticky paste.
Aside from somebody else trying to squeeze their nuts off, they're tied to physical goods. What happens if some new mutant corn worm is immune to the toxin in the BT corn and decimates the corn crop this year? Or, what happens if they have a record corn crop and JPM holds a lot of shorts in corn? What happens if a bunch of mining companies go tits up?
I often see ZH get critcized for blaming everything bad on bankers.
Let's see if I've got this right.
Eric Holder works for the law firm that gave the green light for MERS, the secret electronic mortgage society that enabled selling peoples' home as Wall Street certificates then becomes US aTtorney gEneral. DOJ finds not one ounce of wrongdoing whie millions get froeclosed.
That entire bubble, inflated by fEd chairman Greenspan pops, resulting in huge TARP bailouts for reckless bankers.
New fEd banker Bernake dreams up fake QE money ~80B/month and hands it to his banking buddies to buy all the shittyMBS deals.
Now Tyler tells us that it looks like the "Office of the Comptroller of Currency*" (LOL!) conspires with JPM to cover up another huge pile of steaming fraud with Eric HOlder presently employed at JPM to the tune of 77 million doollars. (<--is that real or a joke?)
* OCC Mission Statement: "To ensure that national banks and federal savings associations operate in a safe and sound manner, provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations"
FUCK YOU
I hope JP Morgan gets what they deserve: good and hard.
or skull fuck ?
" This could really assfuck JPM if something moves the wrong way"
Is there a downside to this?
What if.....JPM is the banker of all bets on the online 24 hour gold and silver in all fx trading platforms.
JPM then sells huge number of contracts in either direction and sweeps all stops on the way dn and on the way up as these stops are based on your leverage and the action ratio of your funding in play.
Bingo. It's as if the players are going all in and you can cover everyone and everytime, eventually every player is broke.
With unlimited digital money nobody escapes.
That's why you see a big drop only to be followes by a smooth reversal
RIGHT ON... They Just Eat All The Positions On Both Sides, Up/Down. Always Profit.
Anybody dumb enough to still be buying paper metals deserves what is coming.
Silver For The People
Thirteenthfloor
The derivatives market is a mess.
They may have long and short postions in gold and silver in an effort to contain the market for a period (perhaps while they exit their less attractive positions in interest rate sensitve derivatives).
Tough to say exactly what is up with this report - but the size seems to indicate a problem.
As each contract requires some cash up front, perhaps, just perhaps, this is a 'color of law' method to infuse the Comex with cash, in order to keep the COMEX itself from failing?
To prepare the comex for extraordinary price moves and prevent a liquidity crunch in commodities? LIKE the recent mutual fund and ETF loan agreements, but in camo.
I dont know finance other than it is an elaborate fraud in general, I do know the arts of deception.
If JPM were to directly infuse the Comex with a tranch of cash... people would ask: WTF?
Would that information on the detail not be available under a FOIA request? Unlike The Fed, OCC cannot use the excuse that "It is a Private Corporation not a Government entity"....
And incidentally Tyler, whilst the remaining PM information IS still available, it might be a good time to run the numbers comparing the total notional PM derivatives exposure to the the notional exposure as reported in the Monthly BPR? That might throw some additional light on the total notional value of PM derivatives OUTSIDE LBMA/Comex contracts, which appers to be huge?
I'm sure Eric Holder (who is an expert at delaying and otherwise obfuscating FOIAs) will just call the head of OCC and offer him a few "pointers."
Holder will serve as JPMorgan Chase’s chief compliance officer, where his responsibilities will include lobbying Congress on the company’s behalf and ensuring it “gets the best deal possible” from any new proposed financial regulations.
For his efforts, Holder will earn an annual salary of $77 million plus bonuses for a job well done.
http://dailycurrant.com/2014/09/26/eric-holder-takes-77-million-job-with...
Yep, Obozo's Crony Capitalism is advanced to the max, whilst pleasing & enabling his Wall Street puppet-masters also to the max. A Win-Win for the forces against freedom.
I thought Obama was a Liberal and this is all the result of failed Liberalism running out of other people's money?
So now Obama is a Capitalist? Or a Capitalist Tool? The latter I can believe...
Funny how the only person with enough balls to actually do what all you Rightwingnuts clamor for...tell the bankers to go fuck themselves...is a Communist...Tspiras
Where are the Free Market Capitalist Leaders calling for a burn down of this rat infested shithouse?
Just call it a criminal enterprise, or TCEFKATUS--the criminal enterprise formerly known as the United States. Ideological labels are simply old hat.
Capitalist? No. Criminal? Yes.
Both criminal and communist.
Forgive Firebrander. He either does not have access to a dictionary or he does not comprehend the meanings of the words therein.
Rightwingnuts? Go back to the Daily Kos where people still believe that there's a difference between Team Red and Team Blue. Tool.
HUH? WHat the hell you talking about?? Volitility moves the price. Time to make money if you get the right side of the trade.
Did you bet for the illusion or against it??
"Where are the Free Market Capitalist Leaders calling for a burn down of this rat infested shithouse?"
'Free Market' is just a marketing slogan, a brand as are Republican and Democrat.
Words, if misused enough, eventually lose all meaning and are reduced to knee-kerk slogans, used to bypass thought. 'Obama is a Communist' is a prime example. By his actions, he is to the right of Bush. 'But Obamacare' you say? A law written by and for the benefit of large disease industry corporations.
Thank you. The intentional debauching of our political vocabulary is already working as intended. It's getting more and more difficult to have the most rudimentary conversation, since none of the words mean anything.
Like Obama or not, he is no Communist. No Communist in the history of ever favors diverting public wealth into private, corporate hands. That's all Obama does. He is a cautious, right-wing, corporate-owned politician in centrist clothing. He puts on the center-left persona once in a while because his base, and indeed the balance point of American politics, is actually centrist to slightly left-of-center. Not surprisingly, if you define things by what the names actually mean. Right now, though, the media are owned by a small number of corporate interests who range from slightly right-of-center to far-right, and they have created the illusion that the American political balance point is somewhere right of center, and that the most energy is on the far right.
Obama's actions all promote and further the integration of government under corporate control. That makes him a Fascist, by Mussolini's definitions. I'd take Mussolini's word on that, if nothing else. If your pet industry isn't one of Obama's crony paymasters, you may get shut out, but that certainly doesn't make him a "Socialist" or "Communist" (and those two words don't mean the same things either).
"'But Obamacare' you say? A law written by and for the benefit of large disease industry corporations"
Glad to see at least one other person understands that..."ObamaCare' is NOT Socialized Medicine...it is Crony Capitalism.
THE VA HOSPITAL SYSTEM IS PURE SOCIALIZED MEDICINE...and yet, the Republicans, even the Uber Rightwingnuts, are willing to defend it with thier political lives.
Instead of "repealing ObamaCare", why not SHUT DOWN the VA, replace it with a free market system...and once that is a huge success, "repealing" the ACA will be easy...actually demanded by the people...
"I'm sure Eric Holder (who is an expert at delaying and otherwise obfuscating FOIAs) will just call the head of OCC and offer him a few "pointers."
Yes, but the alternative is just to accept the deliberate obfuscation implicit in, amongst many others, this OCC report and do nothing? It continues to amaze that NONE of the usual suspects has submitted a FOIA request for the documents in the CFTC Silver "Investigation".
The Holder appointment epitomises our age and illustrates better than any other appointment the "revolving door" syndrome. They obviously have no shame or embarassment and regard these things as just normal. Which again tells the dtory......
No need to worry it'll be a 'controlled demolition' ;)
Rockefeller - and one of the Patriarch's ( John Davison Rockefeller ) more famous quotes was that "competition was a sin."
As in a School of Whales?
Shit Tylers, this is YOUR work?
Please divest yourselves of all nailguns, and don't enter tall buildings.
Eric Holder sure as shit will NOT be saving your ass, and I want to be able to come back here!!
"This illegal activity will certainly be dealt with promptly and severely now that JPM just hired a new "Chief Compliance Officer."
Oh wait... the new hire is Eric Holder!"
Next, they will hire Jon Corzine to oversee customer accounts and Marc Rich will be in charge of political donations.
When does nepotism become incest?
With Holder at the realm, time for some fast & furious PM running escapades!
don't believe the internet
Which means: Don't believe anything.
Hero (1992). All there is, is bullshit."People always talking to you about truth. Everybody always knows what the truth is like it was toilet paper or something and they got a supply in the closet. But what you learn as you get older is there ain´t no truth. All there is, is bullshit. Pardon my vulgarity here. Layers of it: one layer of bullshit on top of another. And what you do in life, like when you get older, is you pick the layer of bullshit you prefer and that´s your bullshit, so to speak."
https://www.youtube.com/watch?v=eSijB9-Hw7g
Or don't believe you.
So are they long or short? It would seem they are short based the assumption they are holding prices down for the system itself, how can interpret the long and short of it?
.gov front man.
Gov is a front man for the bankers.
That one might be true...
Having said that "riding oil down to twenty bucks a barrel" doesn't strike me as a very good way to corner a market.
I've certainly ne'er heard of anyone cornering a market by shorting it either.
I will say in the Government's defense "sometimes you just fuxk up and actually listen to your paymasters."
I mean a deflation??? Sure doesn't sound good for tax revenues let alone solvency.
You know how everyone loves an asset bubble though!
Yes, without the other, neither could have carried off the biggest theft in history.
Many ask why no political opposition. Those not bought are trembling in their shoes. This is so big nothing will stop them.
If you are the dealer at the table as well as the player at the table. Nobody gives a shit if anyone is cheating.
68 BILLION in Puerto Rican debt is a SHIT TON of money.
"Paging Jeb Bush of FLORIDA." We got a problem here?
Though beyond my paygrade, if this was bullish for gold it would seem other huge market players would be sending NUGT vertical, but this is not the case; so they must be short.....yes? Damn Damn Damn - there must be a huge play here! I need to be smarter!!!
Smarter only gets you closer to the nailgun....jus' sayin'.
Good time is right. Legendary gold trader Jim Sinclair issued an alert tonight that The World Has Already Ended!
Is that you'll never see gold under $1600 where are my slippers Jim?
That link was a waste of time.
no, that's will forget more about the gold market in 1 day than you'll know about the gold market in your whole life, jim.
It's a fucking good time to get more 12 guage and 30-06 ammo.
Is that for real???
If so, if wish our own bureaucrats were half that honest.
if gold is being lumped in with FX it sounds like more paper gold to me, and that it was combined with FX to obscure the fact that no one knows where it really is or who really owns it.
Plus 1000 on the Puerto Rico You tube - unbelivable 'interview' with the PR Finance Minister, who must have been drunk jiving on about how they fooled the hedge funds and Paulson into believing they had money to pay back their debt.
The guy gets laughing so hard sometimes he can't talk - and he is the Finance Minister of the country?
Just unbelievable, but it WILL crack you up - we need a whole bunch moar politicians/ministers this honest...
He'll probably be shot a dawn.
Watch it.
https://www.youtube.com/watch?v=DDIQNO8PS8M
While hysterical, that cannot be real..Can it? It looks like it's a video from the 80's.
that is extraordinary! if it is true? WOW!
John Paulson just watched that video and is not laughing:
"Paulson has also been one of the biggest financial backers of Puerto Rico. Last year, he called the U.S. territory the Singapore of the Caribbean."
YCMTSU
http://fortune.com/2015/06/29/john-paulson-greece-puerto-rico-hedge-funds/
A peak into America's future:
"According to Cohen, the unemployment rate is 13.7%. Only 700,000 of the 3.5 million people, or 20%, work in the private sector. The other 80% either are on welfare, or they receive unemployment or other aid, or they work for the government"
http://www.generationaldynamics.com/pg/xct.gd.e150328.htm#e150328
What do the charts show for Copper and Aluminum?
I believe Goldman was shown to be manipulating aluminum.
"Because the 100,000 dollar Model S is FLYING off the showroom floor!"
"Because the 100,000 dollar Model S is FLYING off the showroom floor!"
Thanks - Heard that GS was up to BS. Trying to determine is recent price drops are due to lack of demand or something else.
A PUT or A CALL is a derivative.
Every ETF is a derivative.
So?
wait...what??
that's what I said
And today doesnt show at all that they control the precious metals market...stocks down, dollar down, people buying up gold all over the world, but gold is down 2 bucks....If there was any doubt that they are suppressing the price of gold, today should take all doubt away. I only complain because I dont have the money to buy more, and it pisses me off....
WTF are you talking about...think for Christs sake...if you "controlled the precious metals market" wouldn't you want the price to ramp up (at your command) and then CRASH (right after you went short) when you felt the bull had run far enough?
Nutjobs galore.
GOLD GOES NOWHERE BECAUSE THE WORLD IS BROKE!
GREEKS ARE BUYING BREAD AND GASOLINE>>>NOT GOLD!
Did you just fall off of the turnip truck?
"GOLD GOES NOWHERE BECAUSE THE WORLD IS BROKE!"
How does that statement square with the 130 plus TRILLION in derivates just mentioned in the article. You give the word dumb a whole new meaning.
"Cornered"? Like what the FED did to the US Treasury market?
Please elaborate, if mental capacity permits....
No worries.
Just shorting the Drachma.
So, did they lump gold with FX because gold is money now?
I didn't think so, either.
Not likely, but they do lump gold-in-the-vault with "gold receivables," (what most people would call "promises that won't be kept.")
Every commodity price and financial instrument is being manipulated to keep the charade alive and going........this is the biggest scam in history.
Wish I had more money to sing into metals.........
So... ALL they have to do, is to ask for Delivery -- and thus 'corner' the so-called 'Market' where it really counts: Possession of Assets, not Paperware.
What say you, BRICS and AIIB? What's that? Did I hear "Molon labe"?
I tried that once, asking for physical delivery of silver I had with my bank for decades. "Oh, we don't do that!" said the bank guy in horror.
The "storage charges" were more than the value of the silver at that point, but when I talked about phyisical delivery, they decided to negotiate a reasonable deal to cash in my silver.
You were nicer than me, I told TD I would sue their asses, if they didn't redeem the certificate I purchased. They said I was just holding an instrument that tracked silver - to which I replied: "Why am I being charged storage fees?"
unlike you or i jpm doesn't have to worry about counterparty risk. they get that insured up to infinity for free from the fed.
lim 1/x as x-> infinity = 0
That's the intrinsic value of electronic fiat. Physical fiat has some intrinsic heating value, or some bumwad intrinsic value.
So is this the Fed using JPM to suppress gold?
JPM is one of the primary shareholders of the NY Fed.
JPM uses the Fed not vice versa.
It's tough to know who uses who here. Unless you're talking about the bankers and the government using us, then it's pretty clear.
It is a matter of National Security that the banks are stealing all there is to steal from the western world but even the Somalian pirates know the gold stash has been moved to Jamie Dimon's island.
ok so now what do i do? as the moniker implies <vbg> silly me
The new mantra for Securities Regulators and Financial Institituion Regulators is the "stability AND integrity" of the financial markets.
1. "Stability" should not be an end in and of itself if it implies or constitutes market manipulation.
2. Market manipulation destroys the "integrity" of the capital markets, as it leads to mispricing of risk and malinvestment.
3. Therefore, there is a tension between the goal of "stability" and "integrity".
4. Integrity should be given a far greater weight than stability because an unstable market may eventually stabilize (and there may be good reasons for the instability) whereas a market that loses integrity (and the trust of market participants) may never regain that trust.
By seeking / permitting "stability" at all costs, it actually leads to the ultimate destruction of the markets through loss of confidence.
if this is not the ultimate violence against humanity, what else is?
How about a certain President-to-be in a thong, bending over?
Paging WB7!
How does this compare to the Derivatives of the Douche Bank? One buying the others?
The world is falling apart...and gold and silver are doing nothing...strange..very strange
Gold and silver are doing what they've always done - remained solid.
It's paper that's doing all the dancing.
What's strange is how few people understand that.
correct...
amd sincde they keep putting the shit on sale im sitting back buying 20 oz's of Silver every 2 weeks...
just to fuck with them-fucking assholes....
DEATH TO THE MONEYCHANGERS.....
Strange? Why? Name for me the "wealthy" nations of the world where the common person has $1200 to invest in a 1oz lump of metal rather than an iphone or something else they can use or eat?
The world is broke sir...hard to drive up the price of something few can afford...the only entities with money are banks and governments...and why would they buy gold?
750 trillion notional out there all dressed up and nowhere to go. I am trying to visualize all that hitting the iphone and food market. The gold and silver door will get locked up solid sometime in the near future. You will be locked out with the other 99%.
Biggest winner of this crisis so far is Litecoin. The Chinee Likee
http://www.thebitcoinchannel.com/archives/45594
"What we don't know is:
answer - because Gold and Silver is money, and they know it but dont have any.....
Jaime is a whale god
Banksters don't like their own paper???
Say it ain's so....
falling? what you did not see it, Fallen apart is the correct term-
A Greek, a Puerto Rican, and a JPM banker walk into a Chinese bar.....
And swear under penalty of perjury they are American Citizens and promptly vote for Hillary Clinton........
Bill Clinton, Hilary Clinton, and Al Gore were in an aeroplane that crashed. They're up in heaven, and God's sitting on the great white throne. God addresses Al first.
"Al, what do you believe in?"
Al replies, "Well, I believe that the combustion engine is evil and that we need to save the world from CFCs and that, if any more freon is used, the whole earth will become a greenhouse and we'll all die."
God thinks for a second and says, "Okay, I can live with that. Come and sit at my left."
God then addresses Bill. "Bill, what do you believe in?"
Bill replies, "Well, I believe in power to the people. I think people should be able to make their own choices about things and that no-one should ever be able to tell someone else what to do. I also believe in feeling people's pain."
God thinks for a second and says, "Okay, that sounds good. Come and sit at my right."
God then address Hilary. "Hilary, what do you believe in?"
"I believe you're in my chair."
Chinese bartender states I do not serve assfuckers here.
The JPM banker and Greek leave.
Chinese bartender shouts hey I told you no assfuckers.
Ricky Martin leaves.
.....After 12 rounds of drinks they're all drunk and it's last call.
The Greek and the Puerto Rican tell the bartender the drinks were no good. They refuse to pay and they refuse to leave. They go on and order more drinks.
The banker offers to pay their tab.....
Who gets out alive? The chinese?
@ZH so what? its probably almost all eurodollar futures. basically libor 3 month future contracts which a billion notional has maybe 1 million-2 million in risk. i think this says that JPM is biggest commodity dealer. doesnt mean theyre doing anything criminal
No, it is not eurodollar futures at all: those are found in the Interest Rate section, of which incidentally JPM had $47.3 trillion in Q1 as per Table 8.
And that $47.3 trillion, by the way, is only "bilaterally netted" as long as not a single counterparty in the collateral chain fails. Which is why AIG had to be saved at a cost to taxpayers of about $20 trillion.
I'm glad I'm not the only one who browses these reports. Thanks Tyler, for pointing this out.
Tylers: I know you hate GLD ("paper gold "). But, it is allegedly allocated and audited. All WE have to do to expose the fraud is sell all the not really too big to jail mark to unicorn equities (over $1T source of funds, so less than 3% would be sufficient to acquire the entire GLD at current prices) to buy GLD and demand delivery. Should they fail to deliver, the Sponsors and Authorized Participants would all be UNEQUIVOCALLY guilty of fraud and no amount of CFTC bullshit could save them.
It's time for those of us who invest of savings rather than " money " (phantom debt claims created from nothing, where the not really TBTJ banks collect seigniorage via Cantillion effect and we all bear the inflation) to harness their nearly infinite abuse of asymmetric leverage, knowledge of positions and control of effective money supply against them. Liquidate their control frauds (which include the cash from financing consumption ponzis like AMZN and NFLX that are given subsidized access to unlimited "money" while others are out under engineered duress) to raise cash (5% physical to put pressure on the fractional reserve control fraud) and take possession of GLD. Each and every day. $ for $. Without leverage. Their accumulated abuses will crush them.
This is why it is important to read the prospectus of ETFs. Here is what the SEC.GOV says:
Investors can buy and sell shares of GLD—which are backed by physical gold bullion—through exchanges around the world, including the New York Stock Exchange, the Bolsa Mexicana de Valores, the Singapore Stock Exchange, the Tokyo Stock Exchange and the Stock Exchange of Hong Kong, much like any other stock.
But you may be wondering… Who creates those shares? Why and when are new shares created? And how is it done?
The Trust’s Authorized Participants or APs are the only entities permitted to create and redeem GLD shares, which can only be done in blocks of 100,000 shares, called baskets.
There are many reasons why an AP may choose to create or redeem a basket of shares, but the primary reason is to create inventory for the secondary market, where investors buy and sell shares on an exchange just like any other security.
Here’s how the creation process works: An AP initiates the creation of one or more baskets of shares by calling in an order to Bank of New York Mellon, GLD’s trustee. The AP is then responsible for the delivery of gold in the form of London Good Delivery Bars to GLD’s Trust, which is held by the Trust’s custodian, HSBC, in its vault in London. London Good Delivery Bars must be in compliance with the standards set forth by the London Bullion Market Association with respect to size, weight and fineness.
If memory serves me, there are only 5 APs and JPM is one of them. The GLD was set up for the bullion banks to finance their gold inventory via the Sheeple. Mission accomplished. No delivery for you.
Fractional reserve banking is, basically,fraud.
I thknk that means JPM and all banks are criminal enterprises......
How much does a politician, or a SC judge cost these days?
Let's just say, if you can print however much you need, price becomes irrelevant.
Exactly. They're a ponzi scheme.
http://research.stlouisfed.org/fred2/graph/?id=TCMDO,GDP,M2
Notice that the one time the blue line went down, we got the AIG bailout, TARP, ZIRP, QE1, QE2, Operation Twist, QE3 and probably some other shit that we never heard about. If that blue line goes down, eventually it will suck the "money" out of the system and there won't be enough for everybody to service their debts. It MUST continue to rise.
The public - ZeroHedge included - ONLY know what the banks want us to know - not a damn thing more. Believe it and you CAN TAKE THAT TO THE BANK!
Probably so. However, it is a very nice piece of investigative journalism by ZH.
Investigavtive journalism used to be an oxymoron.
Investigavtive journalism used to be a pleonasm.
Now it's an oxymoron.
I would disagree.
If you dig hard enough, it's surprising what can show up.
Most people don't put in the effort to find out what's really going on - distracted by all the classic divide and conquer techniqes employed by TPTB.
Poke around and find things like 1911 Thomson Dictionary of Banking - a lot of what's going on is more understandable by the study of such documents, but it takes time and effort.
Oh look, there's a reality TV show on the lying, manipulative screen over there. Requires no effort - shuts off the mind.
The world's fucked.
You know what kinds of TV shows kick ass? Shows on things like Egyptology and the technology in antiquity. Nature shows. Science shows. Things like that. But you know what? Back when there were fewer channels, there were more of those kinds of shows.
I would agree.
I've not had a TV this century. I think my kids are 2 of the very few of their generation that grew up largely free of its influence.
I always enjoyed those kinds of programs, but to get channels showing them, I have to sign up for a 'package' that means I would be enriching those who use TV against us.
The only vote that's always counted is when you vote with your wallet.
Shows like that cost a lot more to make than just rounding up some compliant freaks and telling them what would be funny for them to do in front of a camera.
I'm not sure about the costs, but they do have to find somebody knowledgable in the subject. I sniff a lot of them out online though. What's funny is when you're watching a show on ancient Rome or Greece and out walks Peter Weller.
Hah! Yes, that kind of appearance is pretty weird.
Yes, paying researchers and getting the rights to use experts and their work takes more time, and therefore costs more money. The filming and production costs are more or less similar, if you're going to shoot anything at all visually interesting.
"Reality" shows are dirt-cheap. No actual writers; the Producers script it all, and loosely at that. The rubes clowning around get paid nest to nothing. They usually go someplace cheap and wreck stuff or run around, so it's incredibly cheap. I know a few people who've gotten crew work on them, and have been involved in pitching concepts to all the various interested networks. I wouldn't get involved with that kind of work; if I needed money that badly I'd rather work in kiddie porn snuff films; something you could admit to your parents, you know.
I'm watching reruns of BlackHawk down.
El V: you'll like this: https://tinyurl.com/nw7hrso
Also available in book form: https://tinyurl.com/p89g99z
Do you mean the Egyptology shows where they talk about ancient slaves using primitive tools to build magnificent buildings by hand with astonishingly precise astrological features that last thousands of years, the likes of which we cannot duplicate even to this very day?
Perhaps you mean the Egyptology shows that wave a shiny thing over here so we don't notice things like Sumer and Gobekli Tepi?
Understand this, I am not picking on you, just pointing out that if it is on TV it is most likely a lie or utterly meaningless.
Perhaps you've seen this. It seems somewhat interesting but dry and long.
I wasn't aware that slaves built the pyramids. And pending financial collapse meaning that we won't be able to do much of anything not withstanding, who says that we would be incapable of building something like the pyramids today? The only things stopping us are that 1) we don't really want to build something like that and 2) our fucking economy is falling apart. Had we wanted to do something like that 20 or 30 years ago, it would have been done, and a lot faster than the Egyptians had done it. But, there are some really clever ways of doing shit without diesel engines and hydraulics.
https://www.youtube.com/watch?v=uYQBDhkBfr0
After he raised that block using his teeter toter method, he could have built wheels around it and used it as an axle and simply rolled it to wherever he wanted had his desire been to move it rather than to stand it up. There are a lot of forgotten tricks to make seemingly impossible tasks possible.
I think we all know the end if pretty fucking nigh. The rest of the public knows that some show is on tonight.