This page has been archived and commenting is disabled.

An Almost Perfect Storm Of Incompetence And Felony

Tyler Durden's picture




 

Via Jesse's Cafe Americain,

 "People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason.

 

But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right."

 

John Kenneth Galbraith, Age of Uncertainty

 

“Misdeeds, once exposed, have no refuge but in audacity. And they have accomplices in those who are fearful in their complicity.”

 

Tacitus, Annals

We just saw a very historically significant decline in the precious metals in terms of days lower without relief. And we have seen a remarkable rise in the US dollar index against the Euro and the Swiss franc that cannot possibly be good for the real economy of the US, when every other developed nation is trying to devalue their currencies to stimulate their exports and inhibit imports.

I believe that a portion of the gold selling in particular is an effort to knock down the open interest in gold for December. If there was any serious attempt for holders of those contracts to stand for delivery, even JPM, which has been obviously building up its stores of gold to act as the 'fixer' in that market, would not be able to cover the demand.

JPM was consistently taking delivery for their house account in gold, and just transferred 70,000+ ounces over from Nova Scotia's warehouse, from whom they had been taking delivery.

As we know, in the last big delivery month, JPM stepped up with an enormous amount of their gold, 400,000+ ounces, to provide enough real bullion to satisfy the contracts standing for delivery. Even now their inventories remain somewhat depleted.

The dollar has also been soaring, because the Fed is trying to pretend that the US is recovering so that they can raise rates.  A strong dollar and higher rates are very harmful to what is almost undoubtedly a fragile economic recovery in the US.

And it is fantasy to think that the US can somehow go it alone, and continue to improve while the rest of the world is cutting rates because their economies are slowing.

The Fed wants to raise rates for their own policy purposes, so they can cut them, without going overtly negative, when their latest financial bubble starts to collapse, which it may already be doing. They cannot really raise rates in a Presidential election year past June, so they will push ahead, to serve their own purposes, even as they harm the real economy.

There will be another financial crisis as the IMF warned today. There will be a serious dislocation in several financial markets, including the precious metals and the bonds at some point, that will rock the current system to its foundations.

It is a portion of the credibility trap which inhibits any meaningful remedy and reform.

It is an almost perfect storm of incompetence and felony.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 11/11/2015 - 11:39 | 6777266 philipat
philipat's picture

Jesse, you nailed it. As usual..

Wed, 11/11/2015 - 11:52 | 6777307 Pinto Currency
Pinto Currency's picture

 

 

The bubble of outstanding debt (340+% of US GDP) has to be restructured.

And the creator of that bubble, the Fed, needs to be shut down.

 

Wed, 11/11/2015 - 11:56 | 6777331 Captain Debtcrash
Captain Debtcrash's picture

As shown here silver is the only asset that is not over valued compared to median and mean income, including gold.  I know where I'm putting my money.

Wed, 11/11/2015 - 12:36 | 6777542 Surviver22
Surviver22's picture

Current Events Linked to Ancient Biblical Prophecy!

http://motivationdose.com/is-america-babylon/

Thu, 11/12/2015 - 23:39 | 6780898 Boris Alatovkrap
Boris Alatovkrap's picture

You are frequent talk about Ancient Biblical Prophecy, but maybe you are not know anything about Bible, or prophecy, or anything ancient.

Wed, 11/11/2015 - 11:58 | 6777323 J S Bach
J S Bach's picture

The unprecedented part of the the cycle of corruption and "felony" taking place today is that - thus far - there has been absolutely NO accountability against their criminal actions.  There doesn't even seem to be an "Eliot Ness"-style vigilante among our leadership core.  The government and media are in complete cahoots with the financial fraudsters.  (Ron Paul was easily pushed aside as an adversary.)  It seems that only an outside force driven by a mass outrage of the people will rid the world of the great counterfeiting cabal.  If or when that mass outrage reaches a critical tipping point is the big question.  It is up to those who understand these things to relate the truth - as often as possible - to everyone with ears to hear and brain to think.

Wed, 11/11/2015 - 15:21 | 6778316 eforce
eforce's picture

The outrage will be used to remove the cabal and replace it with the NWO.

The masses are so easily moved from one set of chains to another.

Wed, 11/11/2015 - 19:40 | 6779416 J S Bach
J S Bach's picture

It's not often I find someone more cynical than myself.  Salut!

However, I do hold out the hope that enough people of principle will be present when that passing of the chains occurs.  Hopefully, they will inspire a shackling of the international usurers.

Wed, 11/11/2015 - 12:00 | 6777351 ThirteenthFloor
ThirteenthFloor's picture

Jesse, clear to the point. At the end I was craving for a little more. As Dr. Engali points out below, let's get on with it.

Wed, 11/11/2015 - 12:04 | 6777359 junction
junction's picture

Modifying Tacitus, "We have created an [economic] desert and called it victory."  Yesterday, on the pre-debate debate, Huckerbee commented about the high percentage of Americans who have $1,000 or less in savings.  He said a root canal cost $1,000 and woe on those people if they need a root canal and then their car breaks down.  The United States is a third world country where only the middle class pays taxes.  While Obummer and the crooks in Congress pass laws to go after Americans with hidden assets overseas, corporations like Facebook, Apple and Starbucks hide their overseas profits from the taxman with impunity, waiting for the next tax forgiveness deal where they pay a 3% corporate tax to repatriate their billions of dollars parked overseas. 

One story I read was about an American Holocaust descendant who got $1 million back from a Swiss bank, money his family had left in a Swiss bank before WWII.  The bank kept the money until lawsuits in the 1990s forced it to pay back stolen account funds to Jewish family members of the original account holders, most of whom the Nazis killed.  AG Holder's crooked Justice Department got a report of these funds parked in a Swiss bank, seized the money since the American hadn't reported the foreign account and then settled with the guy, taking $100,000 from him.  The account was legal, the funds were untainted but for Obama's crooks, the chance to steal blood money was a no-brainer. 

Wed, 11/11/2015 - 12:37 | 6777530 ConfederateH
ConfederateH's picture

"who got $1 million back from a Swiss bank, money his family had left in a Swiss bank before WWII.  The bank kept the money until lawsuits in the 1990s forced it to pay back stolen account funds to Jewish family members of the original account holders, most of whom the Nazis killed. "

The Swiss banks were extorted for billions by the zio-financial-mafia.  There was never any where near an exact number of victims, because they were dormant accounts, and you can be certain that the owners didn't declare themselves jew when opening them. 

The zionists working to create greater israhell realized that they would be needing loads more stolen loot from the european goy, and the Swiss banks were target rich.  So the zionists pulled a few of their Congress-slaves strings, and faster than John McCain can create a revolution in Ukraine, the US had created another "Swiss banking scandal".  The zio-prress took this "bank scandal" up and forced the Swiss banks to pay multiple billions of reparations to the Zionists, who true to their natrure never passed it on to the supposed "victims" (maybe they never existed in the first place, or were only undeserving goy anyway).  Israhell stole the money and used it to support their ongoing genocide in Palestine and the west bank.

Wed, 11/11/2015 - 11:51 | 6777271 ebworthen
ebworthen's picture

J.P. Morgan Chase = felony & Jamie Dimon Presidential cuff-links = audacity.

When the corrupt and complicit hang we'll be making progress.

Until then, keep moving cash into tangible Precious Metals.

Wed, 11/11/2015 - 11:43 | 6777281 Kaiser Sousa
Kaiser Sousa's picture

if ya'll didnt know already...Jesse is a daily must read...

helps u maintain some perspective and inner peace while all this bullshit is unfolding...

just sayin...

Wed, 11/11/2015 - 13:57 | 6777902 Jaspergers
Jaspergers's picture

+1 He's a great last read of the day... I'm always glad to see him on ZH.

Wed, 11/11/2015 - 11:43 | 6777282 Conax
Conax's picture

The Fed wants to raise rates for their own policy purposes, so they can cut them,

Sorry, too late.  Should have done it last summer.

Thanks for playing!

Wed, 11/11/2015 - 11:45 | 6777284 Dr. Engali
Dr. Engali's picture

"There will be a serious dislocation in several financial markets, including the precious metals and the bonds at some point, that will rock the current system to its foundations."

 

Can we get on with it already? Seriously, after 5+ years I'm running out of material here.

Wed, 11/11/2015 - 12:05 | 6777356 Uchtdorf
Uchtdorf's picture

Serious dislocation in the precious metals space, you say, Jesse? All I want to know is -- up or down?

Wed, 11/11/2015 - 12:22 | 6777469 kralizec
kralizec's picture

There can be only one...direction...for something real.

Wed, 11/11/2015 - 13:27 | 6777759 JD59
JD59's picture

Lead would also be a good metal to invest into.

Wed, 11/11/2015 - 11:47 | 6777300 Philo Beddoe
Philo Beddoe's picture

Somebody should pick that up as an avatar. 

Wed, 11/11/2015 - 11:46 | 6777296 Kirk2NCC1701
Kirk2NCC1701's picture

Once again, thus is fantastic for China, that is able to go nuts with this ongoing fire-sale of resources and assets.

 

Wed, 11/11/2015 - 11:47 | 6777297 two hoots
two hoots's picture

When people or businesses live off of debt there is no understanding of true worth or value.  It all comes without effort.

 

Wed, 11/11/2015 - 11:49 | 6777309 gmak
gmak's picture

Something confuses me.  The FED and other CBs want inflation to reduce the per-GDP impact of the national debts, right? So what do they have to gain by suppressing the price of precious metals. One would think that they would wnat to pump the price up to mimic inflation and get the ball rolling, no?

Wed, 11/11/2015 - 11:55 | 6777327 RockySpears
RockySpears's picture

Would that not make PMs look like a solid currency?

Not sure they want people seeing something other than the Dollar as solid.

Wed, 11/11/2015 - 12:43 | 6777562 herkomilchen
herkomilchen's picture

Both the U.S. dollar and gold are perceived as safe-haven currencies compared to other global currencies.  Evaluated on their own merits, physical gold stands out as the superior choice because it can't be manipulated.  That presents a real problem for the Fed.

The Fed needs the world to use the dollar rather than gold so its dollar printing operation has a large base of dollar users to extract value from.  A global rather than just domestic use of the dollar enables the Fed to print trillions of dollars extra it otherwise would not have been able to print without causing skyrocketing inflation.

Thus, the Fed vitally needs to somehow make the dollar seem more attractive than gold as a risk-off store of capital, foreign central bank reserve asset, and trade settlement currency. 

The obvious way to do that is make it a more profitable money to hold by making it appreciate in value faster than gold by manipulating the gold price in dollars lower.

Wed, 11/11/2015 - 13:22 | 6777740 JD59
JD59's picture

You are spot on brother!

Wed, 11/11/2015 - 11:51 | 6777312 Vint Slugs
Vint Slugs's picture

Wow! What insight.

Wow! 11 year precious metals  bull markets and never a peep.  Now every time they go down it's a conspiracy. 
This guy brings zero new input to the table.

Wed, 11/11/2015 - 12:03 | 6777330 ebworthen
ebworthen's picture

Sounds like you've never been to Jesse's site; erudite, civilized, and spot-on:

http://jessescrossroadscafe.blogspot.com/

Wed, 11/11/2015 - 12:26 | 6777495 Sturm und Drang
Sturm und Drang's picture

That's certainly the image he successfully projects. I personally have my doubts. Everybody has an agenda, whether they know it or not.

Wed, 11/11/2015 - 14:14 | 6778012 Right-on Left-off
Right-on Left-off's picture

You have an inference that any and all agendas are Bad.

Wed, 11/11/2015 - 14:23 | 6778046 Baa baa
Baa baa's picture

Yep, the agenda has gone down a path similar to gay. Meanings change...

Wed, 11/11/2015 - 19:05 | 6779290 Sturm und Drang
Sturm und Drang's picture

It's a reasonable assumption, given human nature and the current state of de-evolution.

Thu, 11/12/2015 - 17:51 | 6784080 Not My Real Name
Not My Real Name's picture

Yes, it doesn't take a lot of reading to see he clearly has liberal leanings -- which is ironic since said leanings require fiat to "work."

Wed, 11/11/2015 - 11:53 | 6777319 Demdere
Demdere's picture

https://thinkpatriot.wordpress.com/2015/11/10/a-measure-of-propagandas-p...

The disconnect between reality and MSM in economics and business is no worse than any other area.

Dr. Engali : I think we are indeed getting on with it. They have to raise rates because otherwise there will be no dollar liquidity despite their $ creation.

The amount of inflation that is about to happen will mean every dollar goes into gold or into a foreign market for real property.  The dollar is about to fall against every other currency because Treasury cannot borrow.  Fed was 70% of Treasury purchases in 2013.  $20T in debt turns over every 5 years.  That is a lot of money to print when the gov can't borrow.

Wed, 11/11/2015 - 12:18 | 6777446 Consuelo
Consuelo's picture

Of course they 'have to', but having to do something vs. actually Doing it...?

 

6 weeks out, and there is no formal decision as yet?   In other words, between now & sometime in December of this year, the data is going to somehow reverse and give the Federal Reserve the green light it needs to shock the world with a .25% rate hike...?

While the Fed and the followers of this nonsense continue to think that the global economic galaxy revolves around what they will or will not do, the Universe continues on - in constant change, and likewise other major economic powers see the handwriting on the wall for the dying empire and act accordingly.

 

 

Wed, 11/11/2015 - 11:59 | 6777320 agent default
agent default's picture

 "People of privilege will always risk their complete destruction rather than surrender any material part of their advantage."

The basis of this is human nature.  There is another quote, from memory, taken from the Prince which is essentially the previous quote viewed from a different angle.

"A man may forgive the murder of his loved ones, but he will never forgive the confiscation his property"   Humans by nature are highly materialistic.

In short, the moment the elites start to materially infringe on the material well being of the masses, that's when hell breaks loose.  we are getting closer to that point every day.

 

 

 

 

Wed, 11/11/2015 - 13:23 | 6777748 Sparkey
Sparkey's picture

"In short, the moment the elites start to materially infringe on the material well being of the masses, that's when hell breaks loose.  we are getting closer to that point every day."

Agent default, you are, or have the mind of, a person of privilidge, with an unrealistic, yet comforting until challenged, assessment of your own power and value.

The moment 'They' begin to start to infringe on the material well being of the masses, is the day the masses are deemed no longer worth supporting, in the World envisioned for the future the masses are an unnecessary expenditure.

The World of the future is only dreamed at this point, in my mind it is absolutely unlikely that it will ever materialize as planned, yet the future comes as planned or not.

Do what you are told to do, that is what I am going to do, resistance IS futile!

Wed, 11/11/2015 - 14:27 | 6778062 agent default
agent default's picture

Nihil est incertius vulgo, nihil obscurius voluntate hominum, nihil fallacius ratione tota comitiorum.

Cicero

 

Wed, 11/11/2015 - 14:32 | 6778106 Raymond_K._Hessel
Raymond_K._Hessel's picture

Actually I think you might argue that mobs ARE largely predictable - and CIA psyops and brainwashing are largely about creating mobs.

Or, maybe creating 'herds' or flocks.

In any event +1

Wed, 11/11/2015 - 11:53 | 6777322 yogibear
yogibear's picture

Have to admire the bankster schemes.

Every ounce of gold they hold representing 300 ounces on the COMEX paper contracts.

Seems like a nice chunk of money if someone can exploit it and cause the COMEX to shut down.

Wed, 11/11/2015 - 12:02 | 6777365 GRDguy
GRDguy's picture

 "People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason." You did read about the suicide yesterday, right?

http://www.zerohedge.com/news/2015-11-10/son-billionaire-steel-magnate-p...

Wed, 11/11/2015 - 12:06 | 6777369 Quinvarius
Quinvarius's picture

It is funny how much those quotes apply to Hillary Clinton.  About to go to jail?  Well then run for President!  That is audacity.

But there is nothing the bankers can do to stop the gold and silver buying.  Their ability to control the fraud they committed is in their own minds.  They confused paper with metal.  And now they have unprintable PM debt.  It is actually how most low grade wildcat fraud banks have always failed throughout history.  They print more paper than they have gold on deposit.  It is no different with gold contracts and other peoples gold in vaults.  They put themselves back on a gold backed paper standard.  I have no doubt at all about what has happened in these markets.  None.  Bankers always do the same things over and over.  Always.  They are dumbasses.

Wed, 11/11/2015 - 13:39 | 6777824 jakesdad
jakesdad's picture

"there is nothing the bankers can do to stop the gold and silver buying"

 

if hrc gets elected & lloyd wants this stopped you'll get whiplash from how quickly it happens!  (sad part is I'm not sure there's another candidate in either party for which this would be less true...)

Wed, 11/11/2015 - 14:54 | 6778187 ljag
ljag's picture

LOL

Just remember that USA is a tiny player in world gold (actual ingots) game. India and China dwarf our holdings

Wed, 11/11/2015 - 12:06 | 6777386 Consuelo
Consuelo's picture

"I believe that a portion of the gold selling in particular is an effort to knock down the open interest in gold for December."

 

Why though...?   Finish the thought...!!

 

This is the part where only a Paul Craig Roberts, Jim Sinclair, Jeff Nielsen or a small host of others, will step into the breach and close the loop on what these shenanigans in the PM markets are all about.   What the real goal is and what the real fears are.   But I guess venturing out that far sorta puts one in the Mu-metal helmet camp...?  

Wed, 11/11/2015 - 13:31 | 6777697 JD59
JD59's picture

This country is in a FULL BLOWN DEPRESSION now, and it is 100% bankrupt. The REAL U.S. debt is 100+ TRILLION in FIAT dollars of debt.

www.usdebtclock.org

If it wasn't for all of the WELFARE SOCIALIST COMMUNIST (PSYOPS) gov programs of food stamps, SEC 8, medicare, SS disability payments, you would have 90+ Million of Americans homeless and in soup lines.  Crime everywhere!

HOW WILL THE 100+ TRILLION OF FIAT DOLLAR DEBT EVER BE PAID OFF IN THIS COUNTRY?

No one can answer that question!

Wed, 11/11/2015 - 12:17 | 6777434 Grandad Grumps
Grandad Grumps's picture

I understand that people on the inside believe that they will always remain on the inside and protected ... but Satan is a fickle master, prone to sacrificing his own when it suits him.

The path back to rightrousness has its perils. Not, the least of which is betrayal of those who have provided the privilege.

Wed, 11/11/2015 - 13:41 | 6777836 SweetDougisaTwat
SweetDougisaTwat's picture

Huh?

Wed, 11/11/2015 - 12:19 | 6777451 Mewa
Mewa's picture

wonder if JPM (Feds conduit) is trying to build up their physical because they know that chinese are behind the huge comex open interest and they will retaliate by demanding delivery if the US plays games trying to delay the SDRs....that announcement I think is next week by the IMF...If they screw around I hope china moves on killing the comex and takes over gold pricing....


Wed, 11/11/2015 - 12:19 | 6777453 Mewa
Mewa's picture

wonder if JPM (Feds conduit) is trying to build up their physical because they know that chinese are behind the huge comex open interest and they will retaliate by demanding delivery if the US plays games trying to delay the SDRs....that announcement I think is next week by the IMF...If they screw around I hope china moves on killing the comex and takes over gold pricing....


Wed, 11/11/2015 - 12:24 | 6777479 honestann
honestann's picture

The federal reserve will not raise rates in December 2015.

-----

Their allies in fraud reported bogus statistics in November to pretend the economy is "great" to justify implied threats to raise rates in December... to boost the USD and trash PMs.

Their allies in fraud will report terrible statistics in early December so the federal reserve can say "we wanted to raise rates, but the latest data prevents that for now".

Once the next meeting has passed, their allies in fraud will again report bogus great statistics again... and the cyclic pretend game will continue until even lovers of the federal reserve realize they're being played and rates will never rise, call foul, bail from the fake markets, buy PMs, and hunker down for the collapse.

Yellen is the grandma who cried wolf... for years.

The federal reserve cannot and will not materially raise rates until the USD is overtly burned toast.

Wed, 11/11/2015 - 12:58 | 6777635 Raymond_K._Hessel
Raymond_K._Hessel's picture

You could very well be right, but Fwlimbw I suspect they might.

Basically because they will have the cover of the Xmas debt binge, and so doing will increase the 'confidence' of people whose analysis is hourly, not quarterly, it gives them somewhere to go again when february comes (with hiked oil prices - another matter)... And any negative effects as always can be buried/obfuscated and/or explained away.

Of course I'm not prone to thinking like an economics phd so I would never strenuously argue my hunch here - but it seems to me that having 'somewhere to go' allows for more freedom to continue the long con under the camouflage (if you willl) of a debt boon.

Of course keep an eye on black friday sales which may be deemed advance recon on Santa's Birthday.

Wed, 11/11/2015 - 13:03 | 6777661 JD59
JD59's picture

Raising rates just ensures a faster U.S. financial collaspe.

Wed, 11/11/2015 - 15:41 | 6778396 The Gladiator
The Gladiator's picture

The federal reserve cannot and will not materially raise rates until the USD is overtly burned toast.

 

 

 

Vaporized toast.

Wed, 11/11/2015 - 16:02 | 6778507 Implied Violins
Implied Violins's picture

Everything you say is right, and seems the only sane way to go forward with what has happened, but: we are not dealing with sane people. These are psychopaths, and them and their ancestors have planned the destruction of the dollar for well over 100 years - even before it became the reserve currency. They WILL raise rates, because they NEED the dollar and the USA to be destroyed. The dollar (and the Euro and the Yen etc.) must be brought into line with all other currencies so that when these elite bastards break out their SDR international currency, all currencies will be roughly equal to start with. This will make it much easier to transition to a one-world currency eventually.

In fact, another step was taken today to weaken the dollar and set up a new reserve currency:

http://www.alt-market.com/msm/2736-china-to-allow-direct-conversion-betw...

Wed, 11/11/2015 - 12:50 | 6777589 Raymond_K._Hessel
Raymond_K._Hessel's picture

Nice concise article.

The fuckery around gold pricing is breathtaking in and of itself ( in fact I first learned of zh when a buddy sent me a really good article on the topic that I in turn passed around because it said what Id been saying much more cogently and eloquently) but one has to stand in stupefied awe at the lack of comment on this fuckery and more importantly what it implies re "markets" generally from virtually all Very Serious Economists.

It is rehypothecated madness.

Wed, 11/11/2015 - 12:59 | 6777641 TrustbutVerify
TrustbutVerify's picture

5 basis points

Wed, 11/11/2015 - 12:59 | 6777643 JD59
JD59's picture

Only if the sheeple knew how corrupt their U.S. financial system was they would be marching on D.C. with rakes and pitch forks.

The wise men in this country should use this manipulation to load up on physical and PM stocks like NGD, GPL, & PHYS.

Wed, 11/11/2015 - 14:09 | 6777984 enloe creek
enloe creek's picture

NGD will be OK.

Wed, 11/11/2015 - 13:56 | 6777900 DC Beastie Boy
DC Beastie Boy's picture

Something is brewing, let's see if $1080 holds.

The biggest issue with the sheeple is that most don't want gold or cannot afford it.

I'm always buying at lower prices, never understood all the bitching about lower gold prices, especially if you're trying to accumulate.

Wed, 11/11/2015 - 14:15 | 6778016 Baa baa
Baa baa's picture

You sound like a representative from the article's subject.

Wed, 11/11/2015 - 14:13 | 6778001 Yen Cross
Yen Cross's picture

     I see a niche market for gold filled nailguns.

Wed, 11/11/2015 - 15:09 | 6778260 Fuku Ben
Fuku Ben's picture

An excellent post. Short and sweet.

Although I don't agree with citing the IMF as any source of credibility other than that they are stating the obvious about another financial crisis. They're just the another layer in the criminal failing, corrupt, biased global attempt at enslavement through usury.

It is an almost perfect storm of incompetence and felony.

Wed, 11/11/2015 - 15:15 | 6778290 Jesse
Jesse's picture

 

Because they can't cover any enthusiastic request for delivery at these prices?   duh.

I suggest that about every other day.

Do NOT follow this link or you will be banned from the site!