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Eric Sprott: "The Financial System Is A Farce"

Tyler Durden's picture


From Eric Sprott and David Baker

The Financial System is a Farce: Part Three

2011 was a merry-go-round of more bailouts, more deferrals and more denial. Everyone is tired of the Eurozone. It’s not fixable. There’s too much debt. The politicians don’t know what’s going on. Nothing has structurally changed. We’re still on the wrong path. There’s more global debt than there was a year ago, and it’s the same old song: extend and pretend, extend and pretend,… around and around we go,… and it isn’t fun anymore.

Just as we wrote back in October 2007, and again in September 2008, we feel compelled to state the obvious: that the financial system is a farce. It’s a complete, cyclical farce that defies all efforts to right itself. This past year continued the farcical tradition with some notable scandals, deferrals and interventions that underscored the system’s continuing addiction to government interference. With the glaring exception of US Treasuries and the US dollar (which are admittedly two of our least favourite asset classes), it was not a year that rewarded stock picking or safe-haven assets. Many developments during the year bordered on the ridiculous, and despite some positive news out of the US, we saw little to test our bearish view. If anything, our view was continually re-affirmed.

Let’s start with MF Global. With more than two months passed since the scandal broke, federal officials are still unable to find the estimated US$1.2 billion of missing customer funds.1 The whole episode has been a disaster for the CME, the self-regulatory body in charge of making sure the futures brokers play by the rules. Normally in instances of broker bankruptcy, the CME is supposed to backstop client accounts and keep them liquid – i.e., allow them to continue trading while the bankruptcy gets settled. It never happened in this case. Client accounts were frozen for weeks. Funds have remained missing for months – an eternity for clients who were caught short. The great shock was watching how inept and incapable the CME was in 1) preventing the fraud in the first place and 2) recovering client assets during the aftermath. The CME essentially copped out of their responsibility, offering little more than some perfunctory press releases along the way. They were also surprisingly quick to offer excuses for their non-action. According to CME, it really wasn’t their fault, since CME had “no control over the disposition of customer segregated funds that are held by MF Global and not by CME Clearing”.2 Their on-site review of MF Global’s operations the week before its bankruptcy suggested that the brokerage firm was in full compliance of all the rules, so it wasn’t really the CME’s problem. But of course it was their problem. That’s what the CME is there for – to protect clients in cases of fraud or bankruptcy. To protect the “integrity of the exchange”.

In the weeks that have passed, a curious web of transactions have surfaced between MF Global, JP Morgan and Goldman Sachs. Before its bankruptcy, MF Global had been drawing down a $1.2 billion revolving line of credit with JP Morgan. In bankruptcy court, JP Morgan was able to negotiate a lien on some of MF Global’s assets in exchange for paying $8 million towards bankruptcy costs. According to Reuters, “The lien puts JPMorgan’s interests ahead of MF Global customers who have not yet received an estimated $900 million worth of money from their accounts, which remain frozen as regulators search for missing funds.”3 It is also alleged that JP Morgan accepted a roughly $200 million transfer from MF Global the day before its bankruptcy to cover an overdraft in MF Global’s trading account held with them (it still isn’t clear if JP Morgan has the cash).4 MF Global also appears to have sold hundreds of millions worth of securities to Goldman Sachs in the days leading up to its collapse, but did not immediately receive payment for them from the MF Global’s clearing firm, none other than JP Morgan.

To be fair, on November 22nd, the CME did offer to pledge $550 million as a guarantee to the SIPC Trustee in the event that they did not recover all of the missing client funds, but we cynically wonder if that pledge was made after they finally figured out where all the money had gone. The CME seems to have had a good idea by early December, based on comments made by Commodity Futures Trading Commission (CFTC) member, Jill Sommers.5 The bottom line is that MF Global’s client interests and security appear to have been side-stepped to buy time for bigger, more important players to cover their losses (asses), and that is not the way the regulatory system is supposed to function.

We’re not naïve – we know the government will always protect the interests of the big banks over paltry retail investors, but do they have to be so brazen about it? The MF Global episode is basically shameless. Then there’s Dodd-Frank. Remember Dodd-Frank? It’s the massive financial regulatory reform act that was signed into law by President Obama back in 2010. We are certainly not fans of cumbersome overregulation, but in its essence, Dodd-Frank was supposed to provide a new framework to address the potential failure of a too-big-to-fail bank. There’s nothing wrong with that. Given the sheer size of the off-balance sheet derivatives market, we don’t see a problem with at least attempting to prepare for another large scale banking failure in the US. But almost two years later, we have to laugh at how little of the Dodd-Frank framework has actually been implemented. According to law firm Davis Polk, a mere 21% of the act’s 400 rulemaking requirements have become finalized since the law passed in July 2010. Of the 200 Dodd-Frank rulemaking requirement deadlines that have already passed, 74.5% of them have been missed to date.6 The lawyers must be having a field day with all the paperwork.

One part of the Dodd-Frank story that interests us is the CFTC positions limits rule set to go into effect on January 17, 2012. The new position limits are aimed at preventing excessive speculation in the commodity markets which are believed by many, including ourselves, to have driven wild fluctuations in the gold and silver spot price over the past decade. Position limits are an obvious threat to large futures speculators like the big banks, so it was no surprise when two Wall Street lobby groups, the Securities Industry and Financial Markets Association (SIFMA) and the International Swaps and Derivatives Association (ISDA) launched a lawsuit against the CFTC demanding that the new rules on commodity trading be thrown out, or at the very least, delayed. The CFTC voted on the request to delay implementation and officially rebuffed it on January 4th, which is a heartening development in an otherwise cynical saga.7 Back in December, however, the CFTC had already quietly waived the position limit filing requirements on all CME participants until May 31, 2012.8 So even if the new rules go into effect this month, banks won’t have to report their position levels until May 31st either way. Given the lobby groups’ outstanding lawsuit against the new rules, combined with the CFTC’s apparent tendency to grant temporary reprieves, we don’t expect the new position limit rules to be enforced any time soon. Once summer approaches, there will probably be more delays and more deferrals, granting the big players plenty of time to protect themselves. Extend and pretend. Delay and defer. That’s the song we sing on the merry-go-round.

Then there’s Europe and the European Central Bank (ECB). Back in December, the mighty ECB had to step in with yet another massive liquidity injection to avert a total meltdown in the EU banking system. On December 21st, they flooded 523 separate EU banks with a “Long Term Refinancing Operation” (LTRO) program totaling €489.1 billion ($626 billion).9 The program consists of loans that are due in three years and will charge an accommodating 1% interest rate. The liquidity injection will allow the EU banks to participate in a delightfully convenient carry-trade whereby they can take the borrowed money at 1% interest and invest it in various sovereign debt auctions that will likely pay them 3% or higher. The banks will keep the difference in profit, and the EU PIIGS countries get to breathe easier knowing they’ll be able to sell their garbage paper to the EU banks at suppressed rates as long as the LTRO loan money lasts. And the best part? It doesn’t involve any money printing, so there’s really no risk of inflation, you see? So just so we’re on the same page, if everything goes according to plan this year, European sovereign governments will fund their debt auctions with borrowed money lent to them by over 500 European banks who have themselves borrowed hundreds of billions of euros from the European Central Bank,… who as far as we can tell, borrowed those euros from the various EU sovereign states (or simply printed them). Do you get it? Do you see the circularity? Do you see the can being kicked down the road? And guess what? Since €489.1 billion is clearly not enough to avert disaster this year (most EU banks are so undercapitalized they’ve simply parked the borrowed LTRO money back with the ECB at 0.25% interest), the ECB has promised to launch another LTRO injection this coming February!10 No wonder gold was down in December. They completely solved the European debt crisis!

Last but not least, we must mention an alarming component of this year’s National Defense Authorization Act (NDAA) that was quietly signed into law by President Obama on December 31st, 2011. This year’s defense bill, officially known as Senate Bill 1867, includes a specific provision that seems to grant the US government the power to detain accused terrorists, including US citizens, indefinitely, without trial.11,12 There has been much uproar and confusion over the language used in the sections of the Bill related to the subject, and it’s still not clear how the Bill will change  the existing laws related to terrorism detention in the US, but it doesn’t bode well for constitutional freedom within the country. There’s obviously no direct market impact to the legislation, but we mention it only to remind investors how quickly the rules can change when governments feel vulnerable. ‘Political risk’ should no longer only be applied to mining investments in third world countries. In 2012, it may apply to us all.

It’s very difficult to predict what lies in store for the stock market this year. Anything could happen. Government intervention in the financial system has never been more extreme. We hope the examples above have shed some light on that. As we enter 2012, there are significant debt-related financial risks festering within the three great economic theatres of the world: the US, Europe and China. The market may rally, it could crash, it could tread water, we just don’t know. A lot will depend on how the central banks react. But we are eager to maintain the positioning that we held in 2011. We will maintain our exposure to precious metals equities and bullion. We will maintain our large gross short weightings in our hedge funds. We are confident that they will protect us on this farcical merry-go-round that seems to spin faster and faster with every passing day.


1. Associated Press (January 11, 2011) “MF Global trustee will meet with customers”. The Wall Street Journal. Retrieved January 11, 2012 from:
2. CME Group (November 6, 2011) “CME Group Statement Regarding MF Global”. CME Group. Retrieved January 5, 2012 from:
3. LaCapra, Lauren Tara and Goldstein, Matthew (January 3, 2012) “MF Global sold assets to Goldman before collapse: sources”. Reuters. Retrieved January 5, 2012 from:
4. Patterson, Scott and Lucchetti, Aaron (December 21, 2011) “MG Global Transfer Draws Scrutiny”. The Wall Street Journal. Retrieved January 5, 2012 from:
5. Roeder, David (December 15, 2011) “Regulator: We know where MF Global cash went”. Chicago Sun-Times. Retrieved January 5, 2012 from:
6. (January 3, 2012) “Dodd-Frank Progress Report”. Davis Polk. Retrieved January 5, 2012 from:
7. Protess, Ben (January 4, 2012) “New Limits on Commodity Trades Are Approved”. DealBook. Retrieved January 6, 2012 from:
8. CME Group Market Regulation Department (December 20, 2011) “Temporary Waiver of Annual Update for Position Limit Exemptions”. CME Group. Retrieved January 5, 2012 from:
9 Jones, Marc (December 21, 2011) “Banks gorge on ECB loans, market cheer short-lived”. Reuters. Retrieved January 11, 2012 from:
10 Cottle, David (December 21, 2011) “ECB’s Massive LTRO Gives Risk Assets Wings”. The Wall Street Journal. Retrieved January 5, 2012 from:
11 Miles, Donna (January 6, 2012) “Obama signs Defense Spending Bill despite having reservations”. American Forces Press Service. Retrieved January 5, 2012 from:
12 US Library of Congress (December 1, 2011) “112th Congress, 1st Session, S. 1867”. (See Sections 1031-1032) Retrieved January 11, 2012 from:


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Thu, 01/12/2012 - 18:03 | 2059942 ACP
ACP's picture

Really, bitchez?

Thu, 01/12/2012 - 18:08 | 2059952 Ahmeexnal
Ahmeexnal's picture

No shit, Einstein.
Time to take the law into your own hands.

Thu, 01/12/2012 - 18:12 | 2059968 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

He should close his ETFs and send the metal to the shareholders.  Then no one could short all of that metal.

Thu, 01/12/2012 - 18:23 | 2059981 ACP
ACP's picture

I'd like to see a grassroots movement called "Gold Delivery Day."

Thu, 01/12/2012 - 18:31 | 2060027 redpill
redpill's picture

Everything is fine as long as we pretend it is.


Baritt Obamney 2012

Thu, 01/12/2012 - 18:44 | 2060055 ACP
ACP's picture

I think the American people need some lessons on how to react to politicians and the world of finance:

Fri, 01/13/2012 - 00:30 | 2060656 trav7777
trav7777's picture

nothing is a bigger farce than Sprott's own funds selling gullible silverbugz PSLV at a 30% premium to NAV so he can 2ndary offer the rug from under their cost basis

Fri, 01/13/2012 - 05:19 | 2060893 EasterBunny
EasterBunny's picture

He doesn't set the NAV, it's available for any investor to see. I agree, it doesn't make that much sense to buy his fund at 30% premium to NAV, but others think it's worth it and feel safer doing so than buying SLV etc. There is no secrecy and deception to anyone willing to look up the NAV; easy.

Thu, 01/12/2012 - 23:12 | 2060533 Road Hazard
Road Hazard's picture

I know, lets elect Mitt "Flip Flippity Flopping" Romney and a repug congress and raise the national debt to 99 bernankillion dollars and live like there's no tomorrow, or party hard until the earth explodes in December of this year. Those repugs sure do talk a big game about getting government spending under control but LOVE putting the printing presses into hyperdrive!

Ron Paul 2012 or bust!

Thu, 01/12/2012 - 18:43 | 2060052 JPM Hater001
JPM Hater001's picture

They tried to do that with silver last year.  Buy an oz and bankrupt JP Morgan.  I think it was a Max Keiser idea.

Let me know if you need any other background filled in.

Oh, and I wouldnt wait for delivery.   You might want to go get it yourself.

Thu, 01/12/2012 - 18:46 | 2060065 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I think the idea you write of, "Buy Silver" to crash JPM, was first made here, on Zero Hedge.

Fri, 01/13/2012 - 00:31 | 2060658 trav7777
trav7777's picture

and here we are...and so is JPM.


Fri, 01/13/2012 - 10:55 | 2061326 JPM Hater001
JPM Hater001's picture

I wanted to be on the record as one of the few +1...

Thu, 01/12/2012 - 19:16 | 2060066 ACP
ACP's picture

If you actually showed up, you'd have a hood over your head and a one way ticket to GITMO under our new "legal system."

Anyway, going after CME would be one step towards "cutting the head off the snake."

Thu, 01/12/2012 - 18:51 | 2060076 seek
seek's picture

It already happened, and that delivery day was in December, 2011. They killed MF Global to stop it.

Hate to say it, but for a small guy, you need a trusted, powerful intermediary to take delivery for you, then turn around and deliver the gold to you.

That trusted intermediary (for now) is the US Mint, and the deliverable is eagles. Fuck COMEX, don't play in their court.

Thu, 01/12/2012 - 19:37 | 2060160 SilverDOG
SilverDOG's picture



Thank you for posting the keystone info. MFGlobals ceremonial sacrifice to its Gods. Dead-on.

Most say "huh?"

Fri, 01/13/2012 - 04:18 | 2060871 Snidley Whipsnae
Snidley Whipsnae's picture

Right on Seek... Anyone that still has faith in their broker account and is playing the paper game after MF Global fiasco is a moron.

US Mint had another record sale of Silver Eagles. Some are catching on.

Thu, 01/12/2012 - 18:17 | 2059989 Rahm
Rahm's picture

+++  Hold physical metals only way to go in the days ahead.

Thu, 01/12/2012 - 21:09 | 2060298 WhiteNight123129
WhiteNight123129's picture

If you are DRS holder (registered holder of the stock in your own name, noone can short it).


Thu, 01/12/2012 - 21:33 | 2060324 IBelieveInMagic
IBelieveInMagic's picture

What is DRS and how do you go about getting it?

Fri, 01/13/2012 - 04:21 | 2060874 Snidley Whipsnae
Snidley Whipsnae's picture

"If you are DRS holder (registered holder of the stock in your own name, noone can short it)."


Yeah, and if MF Global held your PMs in a warehouse and you had a warehouse receipt for your PMs there was no way you could lose your PMs... Untill MF went belly up and the warehouse receipts turned out to be more pieces of worthless paper.

If you continue to believe that bankers are going to play by the rules and that regulators will protect you then you are simply naieve.

Fri, 01/13/2012 - 04:21 | 2060875 Snidley Whipsnae
Snidley Whipsnae's picture

"If you are DRS holder (registered holder of the stock in your own name, noone can short it)."


Yeah, and if MF Global held your PMs in a warehouse and you had a warehouse receipt for your PMs there was no way you could lose your PMs... Untill MF went belly up and the warehouse receipts turned out to be more pieces of worthless paper.

If you continue to believe that bankers are going to play by the rules and that regulators will protect you then you are simply naieve.

Thu, 01/12/2012 - 22:11 | 2060386 GOSPLAN HERO
GOSPLAN HERO's picture

Reminder ... Zero Hedge is monitored by the U.S. Government.



Thu, 01/12/2012 - 22:37 | 2060463 TheFourthStooge-ing
TheFourthStooge-ing's picture

An urgent alert from GOSPLAN HERO was heard throughout the (home)land:

Reminder ... Zero Hedge is monitored by the U.S. Government.

Isn't everything?


Fri, 01/13/2012 - 04:24 | 2060876 Snidley Whipsnae
Snidley Whipsnae's picture

"Reminder ... Zero Hedge is monitored by the U.S. Government."


So what? The gov is monitoring everything and what has come of it? A fucking giant hairball. If you are scared, find a MSM site and post Bloomblab bull shit.

This site is not for the faint of heart!

Got gold?

Fri, 01/13/2012 - 16:40 | 2062996 DaveyJones
DaveyJones's picture

well said, that game was up a long time ago. Monitoring everything is one thing, keeping up is another.

Fri, 01/13/2012 - 08:02 | 2060955 Golden monkey
Golden monkey's picture

I see... That's why (your?) secret service came in Canada to get me last year.

Sorry for everything, including that part of their "mission" report :


See you soon, asso.

Fri, 01/13/2012 - 09:59 | 2061127 Snidley Whipsnae
Snidley Whipsnae's picture

Golden Monkey... It would help if you began your posts with an indication of who you are responding to.

I don't have a secret service... in case you were responding to my comment.

Also, I don't believe that blood in the streets is necessary.

Passive resistance, ie; close bank accounts, refuse to use credit cards, buy PMs, use local credit unions, etc, will be more effective than violent resistance. Violence will give the goons an excuse to turn the dogs of war loose on civilian populations. The best course, imo, is to get out of debt and stay out of debt... that will slay the dragons of Wall St and their lap dog pols.

Thu, 01/12/2012 - 21:56 | 2060360 Silver Bug
Silver Bug's picture

Spot on Eric, the whole system is a sham!

Thu, 01/12/2012 - 18:06 | 2059950 stopcpdotcom
stopcpdotcom's picture

Seems more like a tragedy to me.

Thu, 01/12/2012 - 19:07 | 2060112 DaveyJones
DaveyJones's picture

certainly not a "light comedy" except if you're oh... a central banker's wife

Thu, 01/12/2012 - 18:08 | 2059955 rocker
rocker's picture

The problem is you can't short a financial ponzi fraud. And you surely can't go long a fraud.

Thu, 01/12/2012 - 18:41 | 2060047 Ruffcut
Ruffcut's picture

Yes, you can short up the money you have left over to buy food and long the black guy who's doin yo wife.

That's the long and short of it.

Thu, 01/12/2012 - 23:44 | 2060581 Tijuana Donkey Show
Tijuana Donkey Show's picture

As long as he takes the nagging to, I'm fine with that. 

Thu, 01/12/2012 - 19:49 | 2060173 lotsoffun
lotsoffun's picture

one could go long, but i can't bring myself to do that.  and as a good indicator - the vix as low as it is evidence people know that shorts of any kind will be crushed.


Fri, 01/13/2012 - 04:27 | 2060879 Snidley Whipsnae
Snidley Whipsnae's picture

Rocker... all PM purchases are shorts on the dollar.

Got PMs?

Thu, 01/12/2012 - 18:08 | 2059957 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

It would be cool if he closed his ETFs and sent all the shareholders physical; otherwise he is allowing TPTB the ability to short more PM.

I appluad the article though.  I hope more influencial managers openly discussed the farce that is finance and economics.

Thu, 01/12/2012 - 21:17 | 2060309 Rakshas
Rakshas's picture

Lennon you've said that a couple of times over the past couple of days, how much of an issue do you see shorting a silver a closed end trust unit like PSLV is, particularly with such a premium attached?

Not trying to be a douche I'm just wondering whether this product is something that would be wise to short, personally I expect the shorts to get whats due them in the coming months as the not STUPID folks take out all the available physical. 

On shorting in general, some of the folks round here have started taking delivery of thier actual shares and storing them in their own safe as they believe that is the only way you truly own anything..... even paper..

Thu, 01/12/2012 - 23:56 | 2060597 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I am going to give you the shorthand here, so please excuse me if I am not clear. 

The ones providing the major short positions are those running the power structure (JPM etc).  They do this at the bequest of the Fed.  They scratch each others backs in many ways: PDs buy USTs and the ed services the debt, the PDs short silver/gold, etc.  This needs to be done so that the Fiat Ponzi is still upright.  The Fiat Ponzi relies on the dollar.  The dollar trades inversely oil.  Oil trades 1:1 the PM complex.  So this is why the ponzi must short silver.

They don't care if they lose money.  It is not about the money, it is about control.  They have done all of this manipulation to establish the Police State.  They had to make money along the way to keep the power, so they front ran the shit.  The allowed the dot com/housing/UST bubbles for that purpose (killing two birds with one stone by destroying the middle class).

That is why they can lose some cash on their shorts.  They do want to get as much out of the ponzi while they can, but there are greeater needs than pennies.

Fri, 01/13/2012 - 06:39 | 2060920 Oh regional Indian
Oh regional Indian's picture

Well said mr. LH.


Thu, 01/12/2012 - 18:11 | 2059966 TheAkashicRecord
TheAkashicRecord's picture

"The Financial System Is A Farce"

Yes we know this, how about some more focus on "now what" pieces?

Fri, 01/13/2012 - 00:25 | 2060648 Oh regional Indian
Oh regional Indian's picture

Now this.......but most people Can't handle the truth. Only partial truths work. The FED is a scam. The Donkey/Elephant show is a scam. 

But don't tell me my language is perverted. Don't touch the Queen. CIA-Drug Traders? Tin foil loony.

Does not work like that. A dive is a dive, and you take all the revelations for what they are.

Every "thing" is a scam right now. Illusion built upon delusion.




Thu, 01/12/2012 - 18:12 | 2059967 Prairie Fire
Prairie Fire's picture

Using the PgUp key is a much more efficient way of scrolling up.

Thu, 01/12/2012 - 18:12 | 2059969 gwar5
gwar5's picture

We know the markets are a farce, Sprott knows it, everybody knows it. There is a quiet run on the banks and quiet run on the markets with the little people pulling out. MF Global helped wake people up. Was glad to see 38K farmers file suit against Corzine personally, and others that were complicit.


Thu, 01/12/2012 - 18:26 | 2060012 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

They may be, but it is a slow wake up, the kind where you realize you are not sleeping but you can't stand out of bed.  The one where you don't have your motor functions and lie in a daze. 

People have pulled out of what they call "the market" (stocks) but they stay in cash, maybe they own MUNIs.  Still, they are in the system.  That is the thing:  barely anyone understands the main points of the Fiat Ponzi.

Thu, 01/12/2012 - 20:02 | 2060199 akak
akak's picture

People have pulled out of what they call "the market" (stocks) but they stay in cash, maybe they own MUNIs.  Still, they are in the system.

I agree --- most refuse to recognize that "the system" does NOT consist solely of the stock market or the bond market, or having accounts with the TBTF banks and major, interconnected big brokerages.

That is why I put all of my savings into the only honest asset, precious metals --- in the form of GLD and SLV.

Thu, 01/12/2012 - 20:23 | 2060221 JohnG
JohnG's picture




So you mean that you actually own GLD and SLV?  This is jot a jab at all.....or do you hold the metals in a safe.


Me, I have the physical metals, but about as much as I'm comfortable storing on my premises.


I also own PHYS, and PSLV.  PSLV I am considering selling because of the GIGANTIC premium to NAV, which I have never seen a good explanation as to why.  There are some "speculations," yet no real solid facts that can be backed up.  I've asked Eric King if he can get Sprott or Embry to adress this....afraid they will just talk thier book though.


Comments please?

(And do hold up on the "of you don't hold it, you don't own it"....I understand.)


Thu, 01/12/2012 - 20:42 | 2060247 akak
akak's picture


Sorry, perhaps my sarcasm there was a bit too subtle.

No, I most definitely do NOT own any GLD or SLV. Although I was once naive enough to have done so, I have long since divested myself of those sham ponzi shells of supposedly metal-backed ETFs.  The only money that I would ever even hypothetically consider investing in relation to them now would be to short them in view of their eventual and inevitable collapse.

Thu, 01/12/2012 - 20:46 | 2060254 JohnG
JohnG's picture

Understood.  When it comes to money I don't get sarcasm very well.

Thu, 01/12/2012 - 19:10 | 2060118 Richard Head
Richard Head's picture

You know it, I know it, the American people know it. - Bob Dole

Thu, 01/12/2012 - 20:04 | 2060201 akak
akak's picture

"Get off my lawn, you damn punks --- and give me back my pen!"

- Bob Dole

Thu, 01/12/2012 - 20:48 | 2060261 NuYawkFrankie
NuYawkFrankie's picture

Erectile Dysfunction?

Thu, 01/12/2012 - 21:05 | 2060287 akak
akak's picture

Reptile dysfunction.

Dole is a dinosaur, after all --- Republicansaurus neoconensis

Thu, 01/12/2012 - 18:14 | 2059973 silverserfer
silverserfer's picture

strange no news on the Lucky friday silver mine in Idaho being closed for a year by the feds for "safety issues"

heard it on NPR this morning of all places and not one peep from anyone about it. Dont think it will affect silver prices too much but interesting theroies behind why the shut down the mine.

Thu, 01/12/2012 - 18:22 | 2060004 cossack55
cossack55's picture

How are those Hecla "paper" minig shares workin' out for ya?  Oh, BTW, that reduces US silver production by 2m ozs this year.  Kind of like the 2.8m BPD of oil now not coming from Nigeria. 

Thu, 01/12/2012 - 18:42 | 2060048 mrgneiss
mrgneiss's picture

They're having ground control issues, just a mine engineering problem, nothing nefarious, but I'm surprised Jamie hasn't volunteered to send the mine a few truckloads of shotcrete out of his own pocket to keep the silver supply going.......

Thu, 01/12/2012 - 19:47 | 2060169 Rakshas
Rakshas's picture

Good point, reducing physical supply is not in anyone's interest right now even if it is only a couple MM oz's. 

Thu, 01/12/2012 - 18:46 | 2060067 oddjob
Thu, 01/12/2012 - 18:15 | 2059976 Zola
Zola's picture

+1 Eric  - it was indeed a farcical year. Orwell said good is bad , up is down...

Thu, 01/12/2012 - 18:16 | 2059977 lolmao500
lolmao500's picture

In other news, water is wet... and doomsday machines exist :

Thu, 01/12/2012 - 18:16 | 2059983 Caviar Emptor
Caviar Emptor's picture

To the untrained eye all is well, including the stock market. In reality the stock market is a barometer for inflationary monetary policy which is one of the two forces eroding away at your purchasing power and the purchasing power of dollars. That's why there's been decoupling from economic fundamentals aka all that's deflating and "wrong" like today's retail sales report showing a 3.9% decrease in electronics sales. 

The paper economy is inflating. But the real economy is tanking. And the two are locked in a self-reinforcing vicious cycle. Unlike troubles we've had in the past, we're beyond the point where the vicious cycle can be unwound. Get prepared for a rocky year both economically and politically

Thu, 01/12/2012 - 18:16 | 2059985 HedgeAccordingly
HedgeAccordingly's picture


Thu, 01/12/2012 - 18:19 | 2059995 navy62802
navy62802's picture

The system will eventually kill itself. It cannot go on like it is.

Thu, 01/12/2012 - 18:23 | 2060006 Caviar Emptor
Caviar Emptor's picture


Fri, 01/13/2012 - 00:03 | 2060609 Calmyourself
Calmyourself's picture

10-15 years depends on how much police state they can implement..  Hunger, only hunger..

Thu, 01/12/2012 - 19:50 | 2060175 lemonobrien
lemonobrien's picture

Its like watching fish in a slowly shrinking pool drying up. 

Fri, 01/13/2012 - 04:49 | 2060886 BlackholeDivestment
BlackholeDivestment's picture

...did you know D.C. water kills Goldfish? Yeah, watching dead fish in a shrinking pool of municipal water. You dump ill liquidity into the fishbowl and the buggars are instantly upside down and the naked truth shortly fails to deliver smiles to the kids.

Thu, 01/12/2012 - 18:28 | 2060016 Zola
Zola's picture

Hey cosack actually this is quite good for the stock if you think about it bc in one year there is a good chance silver will be above 50 so instead of depleting their mines like morons selling at such low silver prices they keep the stuff in the ground. True there are capex needs to upgrade the mine but not as bad as people think i would venture. If silver rockets this year, they will look like geniuses..

Thu, 01/12/2012 - 18:31 | 2060028 ironmace
ironmace's picture

So, now what? TPTB can keep the balls in the air a long time. They are not going to let all that power go by a simple thing as massive amounts of debt get in the way.

Still all the rules are out the window now it's every man for himself.

Thu, 01/12/2012 - 18:33 | 2060029 quacker
quacker's picture

Everyone talks as if there is sanity left. There is no sanity.

The key driver is that we collapsed. Not had a setback, not a bump in the road, we completely collapsed. And the most important moment since the civil war was upon us. Our government had a choice to make. And they chose to bail out the very criminals that collapsed us.

This began the "nothing matters" society that proceeds a revolution. Then what was supposed to be John F. Kennedy to the Martin Luther King power turned out to be a two-bit banker.

"Nothing matters" became full blown surreal insanity. Down became up. Bad became good. The criminals began openly looting the store and our government brazenly assisted them before our eyes.

Animal Farm has started and a police state is emerging.

Yes, under normal times a farce would be bad. But this is surreal insanity, so farces are now bullish.

Thu, 01/12/2012 - 21:00 | 2060283 Absinthe Minded
Absinthe Minded's picture

I gave you a thumbs up. You hit the nail on the head. The way a coroner arrives at a cause of death. With cold and callous candor you lay it out there as plain as can be. Once great America has been fitted with a toe tag.

Thu, 01/12/2012 - 22:09 | 2060384 quacker
quacker's picture

Indeed. We're enduring the in-plain-sight bailout of a nation's rapists, while those very rapists, secure in the arms of our governmet openly mock their bailers. This undercuts why we would even exist as a nation.

Tens of millions have lost most everything and are ready to burn this fucker down. 

Thu, 01/12/2012 - 21:07 | 2060293 rayduh4life
rayduh4life's picture

Yes but, when everyone is guilty, no one is.

Thu, 01/12/2012 - 21:38 | 2060329 quacker
quacker's picture

"Everyone" was a poor choice of words - I meant the ZH posters.

Thu, 01/12/2012 - 23:44 | 2060576 Cathartes Aura
Cathartes Aura's picture

I too gave you an upvote quacker, as it's good to acknowledge "where we are."

but maybe a small change of words - "nothing matters" that we've been taught to believe matters, and it's time to scrupulously take stock of what really DOES matter going forward - this will vary from individual to individual, but to begin to change life/lives according to just what really matters to YOU and yours is the next step. . .

the "holidays" are over, time to make some adjustments to what matters. . .

Fri, 01/13/2012 - 01:31 | 2060751 Freddie
Freddie's picture

Millions of morons keep watching TV and Hollywood's crap to enpower our overlords and keep them in control.  They control TV and the money supply plus Military Inc. too.

We cannot get Americans to even yank the plug on their HD brainwashing boxes.

Fri, 01/13/2012 - 04:47 | 2060885 Snidley Whipsnae
Snidley Whipsnae's picture

Excellent observations, quacker. MF Global debacle should be in the headlines of MSM daily until the customers are made whole... Not happening.

Anyone still trusting the clearing houses, brokers, CBs, Treasury, regulators, or gov should seek serious professional help.

The remainder of the wealth will be stolen and then the theives will board their private jets and wing off to their estate in where ever.

Those left here will be working on FEMA farms and shipping produce to SE Asia.

Got PMs?

Thu, 01/12/2012 - 18:37 | 2060038 PaperBear
PaperBear's picture

Doesn't he mean the monopolistic monetary system dominated by the American fiat paper dollar ?

Thu, 01/12/2012 - 19:46 | 2060045 ironmace
ironmace's picture

Yes, the NDAA was passed and they can hold Americans suspected of being terrorists indefinitely. OK, what about the bilions in spending attached to that bill? $662 Billion. I don't know which is worse.

Not to mention the sanctions in the bill, which step on the neck of Iran and any other country that does business with the US but gets it's oil from Iran. Poasibly making them more irrational and desperate. I like the statement from Donald Sutherland in JFK: "in that document lay the Vietnam War" In NDAA may lie WWIII.

Thu, 01/12/2012 - 21:52 | 2060354 WonderDawg
WonderDawg's picture

It's plain to me which is worse. Indefinite detention for an American suspected of being a terrorist is absolutely worse. The reason being, they can use pretty much anything against you, don't have to bring charges, don't have to let you see a lawyer, don't have to tell anyone why you're being detained. That, to me, is fucking scary.

Thu, 01/12/2012 - 23:37 | 2060567 Cathartes Aura
Cathartes Aura's picture

. . . and to the human beings living in Iran, I would guess the sanctions and threats and circling war carriers are fucking scary too. . .

chickens coming home to roost, and soon there will be no denials. 

Fri, 01/13/2012 - 00:31 | 2060657 Alpha Monkey
Alpha Monkey's picture

There will always be denials.... some people just can't see reality no matter how well they think they may.

Fri, 01/13/2012 - 01:04 | 2060713 Cathartes Aura
Cathartes Aura's picture


always wise to not be "all in" invested in your reality tho' - keep up the due diligence, hedge accordingly.

Thu, 01/12/2012 - 19:10 | 2060060 slewie the pi-rat
slewie the pi-rat's picture

the MFGlobal BK was probably directed by the SEC to the stock-broker type BK where the (re-) colateralized assets are shuffled and dealt to the creditors from our "local shadowBanking bother & cistern-hood"

if the BK had been more along the design used for commodity brokers, the squid, morgue, and other top predators would have stood behind the account holders in the pay-back line

now, we have this utter bullshit from the CFTC, today CFTC acts to protect trader collateral, endorses 'Volcker rule' | Gold Anti-Trust Action Committee

so bart&co are pretending they weren't in on this?  well, they were!

but, their bankster bosses had set up the whole thing to be run thru the wrong BK in the first place, and they were told to STFU and present this bilge-water & barf and instead of defending the interests of the commodities traders they just served them up to the multi-national bankstering interests of the crimex

so, the CFTC is sure earning its pay, again, today!!!

bifurcate the damned BK proceedings if you need to and treat the bona fide commodities traders as commodities traders before the (BK) law!

STOP! the never-ending bullshit about "looking for the money" and just figure out a judicial manner to claw it back from the shadow banksters who received it and restore the assets to the proper individual account-holders

pretty-please, you viscious toy-boy asswipe banksters 

after all, if the political cover for these decisions wanes, and possibly even if it doesn't,  there's enuf of a public record to figure out who to go after with the FOA requests and  RICO subpoenas isn't there?  ass-u-me-ing that this highly-levered "support of the euro & sovewreign debt" was planned and orchestrated by banksters during the CHF devaluation and swiss bankster support of ditto, up to & including the "exit"

the days of dithering by "auditors", who was involved, and who said & did what around MFG's lies and misrepresentations about its financial decisions leading up to the final travesty of a BK are all well-documented and have already been published, haven't they? 


Thu, 01/12/2012 - 19:36 | 2060154 DavidPierre
DavidPierre's picture

Once again...

The U.S. mint announced that January sales of Gold AND Silver Eagles surged to near record levels in "the first days" of the month. The "first days" being by January 3rd which by the way was THE 1st business day of the month. Yes, Silver Eagle sales were higher than ANY full month except for Jan and Sept. of last year and the first month of sales back in 1986!

We are to believe that this was ALL done in one business day?

No, the sales were actually logged in Dec., you remember that don't you? Dec. saw both Gold and Silver prices trashed and supposedly investors were regurgitating their positions because as Dennis Fartman said, "the Gold bubble has popped and now in a bear market".

Yes, AGAIN...just like May for Silver and Sept. for Gold of last year, the "price" collapsed while demand exploded higher. I don't know what planet anyone else lives on but I payed good money to attend a university where they taught me that prices go down because of marginal selling and up because of marginal buying. Of course these sales were reported by the mint as "January sales" but you must understand that "they" think we are stupid.

"They" did not want to report ALLTIME RECORD SALES for Dec. while another arm was trashing the price, that would not add up now would it?

No, instead they report a monthly record that was all ordered and purchased in just one day BEFORE the close of business that day! "They" figured that "we" are so stupid that we couldn't put 2+2 together?

Do you see that last month's bullshit hammering of price was done with paper contracts as the real physical metal was being gobbled up? Do you see WHY it will be so hard for Sprott to actually source 50 million ounces of Silver that must be of the "real" variety as opposed to worthless paper contracts stating that they "really really really will deliver the metal"?

Hellooo...CFTC... Bart Baby and da Boyz...are you watching?

Did you AGAIN see that you are presiding over a tail market that is wagging the physical dog's body? Do you not see that paper levered at least 100 to 1 at a minimum is making "price discovery"?

How is your 4 year "investigation" into the Silver market going? Anything yet?

No... didn't think so.

The CFTC is really stuck. Just another "damned if you do, damned if you don't" scenario. They surely cannot admit the truth that these markets are a fraud because they would start a run on supposed inventories. They also cannot give a clean bill of health because when it all blows up, well, they were already on record telling the world that "all is well. Besides, even an illiterate monkey can see the manipulation" so why beat a dead horse, right?

So here we are, sitting, waiting, watching and being irritated by the obvious lies churned out by the paper markets. But sitting, waiting and watching what? Simple... until the last dregs of supply run out or physical demand "demands" delivery to the point of a default. Or of course, until a billionaire steps up with a measly paper order and asks for delivery that cannot be filled.

It really is this simple folks. The paper suppression schemes have for 15 years enhanced the real physical demand, slowly at first and now with a force that will turn into a buying panic. This is not rocket science, this is pure street logic that an 8th grade dropout couldn't miss. It is so funny to watch CNBC trot out "experts" who spout the stupidity that Gold and Silver are "oh so risky".

I wouldn't trust these "experts" at bagging my groceries!

Thu, 01/12/2012 - 21:40 | 2060333 Teamtc321
Teamtc321's picture

Excellent piece imo. +1000

Thu, 01/12/2012 - 22:33 | 2060390 slewie the pi-rat
slewie the pi-rat's picture

Once again...   wtf?

"I wouldn't trust these "experts" at bagging my groceries!"

so, bag your own fuking groceries! 

i was talking about the crimex vis-a-vis the MFG blow-up &  BK

so was ericSprott, by the way

no mention of it from you...  you seem to be talking when the Mint books it's "sales"  and...let me guess!  you're just wildly bullish?  oh, and anyone who doesn't see this is a blind, illiterate monkey?'re trying to be another "good guy" spammer?

pretty pathetic, imo

Thu, 01/12/2012 - 23:56 | 2060598 Boxed Merlot
Boxed Merlot's picture

the financial system is a farce. It’s a complete, cyclical farce that defies all efforts to right itself. This past year continued the farcical tradition with some notable scandals, deferrals and interventions that underscored the system’s continuing addiction to government interference. With the glaring exception of US Treasuries and the US dollar...


The common denominator with "US Treasuries" and the "US Dollar", (aka frn), is Mr. Timothy Geitner's robo-signed Linda Green.

 (This is not to be confused with the original term of endearment of a "John Hancock" that gracefully adorns the US Declaration of Independence.)

 The only thing Mr. Geitner’s official autograph never made it to was a proper IRS 1040 in the time frame required by law.


Fri, 01/13/2012 - 04:57 | 2060888 Snidley Whipsnae
Snidley Whipsnae's picture

Excellent post David P... and keep up the good work at Jesse's Cafe Americain... Great site with great links and articles.

...and, you are right about the Dec mint sales reported as Jan sales!

Keep on stacking.

Fri, 01/13/2012 - 11:20 | 2061406 slewie the pi-rat
slewie the pi-rat's picture

Once again...    ???


what "post"?

...don't you mean excellent paste?

or are you so entralled w/ "david's" mockery of CNBC you can't tell the difference any more?

why don't you goto his site and get w/ the sychophantic ass-kissing?

or are you too wasted after stroking your bone [& his] because "david pierre" appeared right here on zH?

next time maybe the douche-nozzle leaves slewie alone w/ his/her trolling, Once again... 

if:  even an illiterate monkey can see the manipulation" so why beat a dead horse, right?

then:  davidP has exposed you as a monkey, applauding him/her as he beats the crap outa fido's future dinner, here, snide, = pathetic X 2!

Thu, 01/12/2012 - 18:45 | 2060061 PMakoi
PMakoi's picture

From Sprott;

The custodian of the Sprott Physical Gold Trust’s gold bullion is the Royal Canadian Mint, which stores it unencumbered and fully allocated in the name of the Trust. The Trust’s auditor audits the physical count of the bullion on a yearly basis.

Thu, 01/12/2012 - 23:44 | 2060566 akak
akak's picture

Isn't that the very same Royal (sic) Canadian Mint that lost millions of dollars worth of gold bullion a couple of years ago?  I remember how Jon Nadler nearly blew a gasket when people holding gold accounts with them (and with several TBTF Canadian bullion banks) started losing trust in the Mint, asking for their physical metals instead.  Damn, how publicly indignant and hysterical that made him!  That in and of itself made the effort worth it, but his response to the situation was to me VERY revealing of just what his agenda really is, and to just whom he owes his loyalty --- and it is NOT with Kitco's customers, or gold holders in general.

Fri, 01/13/2012 - 05:00 | 2060889 Snidley Whipsnae
Snidley Whipsnae's picture

akak... The big mystery for me is why Kitco continues to employ Nadler to scribble bs articles for them.

Any observations on that?

Fri, 01/13/2012 - 07:20 | 2060935 PMakoi
PMakoi's picture

As I recall, they had a plausable excuse for the accounting error.  There were some stories about possible theft, nothing came of it.  Gold physically held is no doubt best.  If you can afford large purchases and storage fees held in a trusted facility, maybe that is second best.  I just think that PHYS is safer than GLD.  I also have a little more trust in the Canadian Mint than others.

Fri, 01/13/2012 - 10:36 | 2061254 chubbar
chubbar's picture

There were unsubstantiated rumors at one point that KITCO didn't actually hold the PMs they sold in unallocated accounts but instead were using futures to hedge that obligation and were playing around with investors money. Anyone who is holding PMs in an unallocated account is an idiot, plain and simple. At the time it was not clearly understood how a company could cheat an investor using this vehicle, now I would assume everyone knows after MF Global. It's hard to understand what kind of company would go into the PM business and hire a guy like nadless nadler. I just take it for granted that there is something underhanded going on with them because he makes no sense as an analyst for a PM company.

Thu, 01/12/2012 - 18:49 | 2060072 roy10
roy10's picture

This says it all. For osme reason, lawmakers are protecting bank profits as if society cannot live without banks which are leveraged 100 to 1. Banks should have 25% of capital (real capital). If these banks were properly capitalized, we would never need LTROs or a fed window or any of this crap.

Enough already with taxpayer subsidies and guarantees. We need a stable banking system and not a system which constantly teeters on the brink. Is BAC going down to $5 and up to $7 a sign of stability. Does it imply that the bank is viable? BAC should be forced to raise $200B in additional equity. 

Thu, 01/12/2012 - 20:25 | 2060229 Miss Expectations
Miss Expectations's picture

Welcome roy10. WARNING: In a month or so your head may explode.

Thu, 01/12/2012 - 18:57 | 2060088 kaiserhoff
kaiserhoff's picture

The solution is to rub Obummer's nose in this vomit all day, every day...,

and try Ben and Timmy for treason.

The MSM deserve to have their balls in a vice as well.  What a cowardly clusterfuck.

Thu, 01/12/2012 - 19:02 | 2060104 LookingWithAmazement
LookingWithAmazement's picture

Of course it's a farce. Sprott is totally right. But "they" can keep the farce running for another long time.

Thu, 01/12/2012 - 19:06 | 2060110 Marley
Marley's picture

"we feel compelled to state the obvious: that the financial system is a farce."

Welcome to Milton Friedman market!

Thu, 01/12/2012 - 19:07 | 2060113 ebworthen
ebworthen's picture

Sounds like Banks, Central Banks, and Governments versus the average household.

Thu, 01/12/2012 - 21:14 | 2060307 lizzy36
lizzy36's picture

And the average household makes it easy.

The theft is brazen and now occuring out in the open.

Thu, 01/12/2012 - 19:14 | 2060121 toomanyfakecons...
toomanyfakeconservatives's picture


Both Zeitgeist movies are incredibly clear and prescient on these financial matters...

If you are not into the 9-11 hoax, the religion hoax, the environmental issues, etc., just stick with the financials which run from 1:16:09 to somewhere in the 1:40:00 range and from 0:42:15 into the 1:20:00 range in the second movie. You can thank me later...

Thu, 01/12/2012 - 19:20 | 2060137 ThisIsBob
ThisIsBob's picture

Has anybody sent Price a copy of that memo?

Thu, 01/12/2012 - 19:35 | 2060152 realitybiter
realitybiter's picture

Elect hope and change in 2012!!!


Re-elect JP Morgan and Goldman 


MF-ing unbelievable.  

Thu, 01/12/2012 - 19:42 | 2060162 Zero Govt
Zero Govt's picture

Mr Sprott is not telling us anything we don't already know

But it's always cheering to hear from big figures in the biz community that are not afraid to use aggressive language toward the rotten (and very bankrupt) establishment 

Right so back to the Rothchild media and listening to how the Fed, ECB, BoJapan and BoEngland are going to fix, and grow, the economy out of Depression by printing Triillions of fake nano-digits ...i'm all ears

Thu, 01/12/2012 - 19:43 | 2060165 LeonardoFibonacci
LeonardoFibonacci's picture

hey guys

Thu, 01/12/2012 - 19:52 | 2060179 PaperBear
PaperBear's picture

“This year’s defense bill, officially known as Senate Bill 1867, includes a specific provision that seems to grant the US government the power to detain accused terrorists, including US citizens, indefinitely, without trial.”

“‘Political risk’ should no longer only be applied to mining investments in third world countries. In 2012, it may apply to us all.”

When a guy who is a multi-billionaire is concerned about indefinite detention without trial where the accusation is the sole justification then we should be absolutely concerned.

Fri, 01/13/2012 - 00:04 | 2060613 Cathartes Aura
Cathartes Aura's picture

you left out my favourite part - in between the two quoted lines:

we mention it only to remind investors how quickly the rules can change when governments feel vulnerable.

is a huge red flag waving, a warning to recognise who ultimately has the power in a nationstate, and to understand and act acordingly (and no, I don't mean with "fear" or "respect" - but to take everything more seriously going forward).

Thu, 01/12/2012 - 19:55 | 2060186 Lmo Mutton
Lmo Mutton's picture

Subtitle D—Detainee Matters SEC. 1031. AFFIRMATION OF AUTHORITY OF THE ARMED FORCES OF THE UNITED STATES TO DETAIN COVERED PERSONS PURSUANT TO THE AU- THORIZATION FOR USE OF MILITARY FORCE. (a) IN GENERAL.—Congress affirms that the author- ity of the President to use all necessary and appropriate force pursuant to the Authorization for Use of Military Force (Public Law 107–40) includes the authority for the Armed Forces of the United States to detain covered per-

†S 1867 ES427 1 sons (as defined in subsection (b)) pending disposition

2 under the law of war. 3 (b) COVERED PERSONS.—A covered person under 4 this section is any person as follows: 5 (1) A person who planned, authorized, com- 6 mitted, or aided the terrorist attacks that occurred 7 on September 11, 2001, or harbored those respon- 8 sible for those attacks. 9 (2) A person who was a part of or substantially

10 supported al-Qaeda, the Taliban, or associated forces 11 that are engaged in hostilities against the United 12 States or its coalition partners, including any person 13 who has committed a belligerent act or has directly 14 supported such hostilities in aid of such enemy 15 forces.

16 (c) DISPOSITION UNDER LAW OF WAR.—The dis- 17 position of a person under the law of war as described 18 in subsection (a) may include the following: 19 (1) Detention under the law of war without 20 trial until the end of the hostilities authorized by the 21 Authorization for Use of Military Force.

22 (2) Trial under chapter 47A of title 10, United 23 States Code (as amended by the Military Commis- 24 sions Act of 2009 (title XVIII of Public Law 111– 25 84)).

†S 1867 ES

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

428 (3) Transfer for trial by an alternative court or

competent tribunal having lawful jurisdiction. (4) Transfer to the custody or control of the person’s country of origin, any other foreign coun-

try, or any other foreign entity.

(d) CONSTRUCTION.—Nothing in this section is in- tended to limit or expand the authority of the President or the scope of the Authorization for Use of Military Force.

(e) AUTHORITIES.—Nothing in this section shall be construed to affect existing law or authorities, relating to the detention of United States citizens, lawful resident aliens of the United States or any other persons who are captured or arrested in the United States.

(f) REQUIREMENT FOR BRIEFINGS OF CONGRESS.— The Secretary of Defense shall regularly brief Congress regarding the application of the authority described in this section, including the organizations, entities, and individ- uals considered to be ‘‘covered persons’’ for purposes of subsection (b)(2).

Thu, 01/12/2012 - 20:53 | 2060271 Dealer
Dealer's picture

Copy and paste, bitchez!!!!

Thu, 01/12/2012 - 19:56 | 2060189 Lmo Mutton
Lmo Mutton's picture

it is a poor example of copy & paste but I aint scarred.

Thu, 01/12/2012 - 20:21 | 2060219 riphowardkatz
Thu, 01/12/2012 - 20:03 | 2060200 Godisanhftbot
Godisanhftbot's picture

 It may work for ya, as the greater fools bite, but this gold fetish is barely any better than a fiat fetish.


 It's like the Taliban calling the Palestians Suicide bombers 'extremists'

Thu, 01/12/2012 - 20:09 | 2060208 akak
akak's picture

If acknowledging financial, economic and monetary reality constitutes, in your mind, a "fetish", then consider me a proud fetishist.

Thu, 01/12/2012 - 20:19 | 2060218 riphowardkatz
riphowardkatz's picture

Very insightful comment. No need to go into further details because you have covered the bases. Excellent work.  

Thu, 01/12/2012 - 20:49 | 2060264 akak
akak's picture

My guess is that he received an "A" in his Econ 101 class from the Princeton professor of pernicious pecuniary postulates himself.

Thu, 01/12/2012 - 22:57 | 2060507 TheFourthStooge-ing
TheFourthStooge-ing's picture

said akak:

My guess is that he received an "A" in his Econ 101 class from the Princeton professor of pernicious pecuniary postulates himself.

But......that comment was his economics masters dissertation at Princeton, in its entirety.


Thu, 01/12/2012 - 23:50 | 2060583 akak
akak's picture

Actually, my doctoral thesis was on "The Relationship Between Falling Interest Rates, Covert Debt Monetization, Surreptitious Corporate Bailouts, and the Extent of Ben Bernanke's Lower Lip Quivering During Congressional Testimony Before Ron Paul".

Thu, 01/12/2012 - 22:41 | 2060472 Teamtc321
Teamtc321's picture

Bot; your verbiage above is why we need Ron Paul's sound money principal's now. imho

Ron Paul 2012

Fri, 01/13/2012 - 01:38 | 2060758 Peter Pan
Peter Pan's picture

You truly must have been your mother's smartest child. If you were her only child, we can forgive her for not foisting another one upon us. Seriously though, do you really think about what you write?

Just remember gold standard ever created such an unholy mess as fiat has now or in the past.

Thu, 01/12/2012 - 20:22 | 2060220 AC_Doctor
AC_Doctor's picture
MF Global May Not Be Able to Pay Clients Back: Trustee

Thu, 01/12/2012 - 20:36 | 2060243 Careless Whisper
Careless Whisper's picture

Sounds like the Trustee is a pure genius. How did he figure that out so fast?  He deserves a spot on Bud Lights real men of genius. Right up there with mister used car lot auto salesman


Thu, 01/12/2012 - 20:41 | 2060250 AGuy
AGuy's picture

Of Course! None of the customers will get back their money. It will go to the Bankers, the lawyers, the trustees running the show. All presumption that they are working in the customers interests are false, since they lot running the show are there to help themselves. The only way the customers will get there money back is if the Fed steps in to bail them out.

Fri, 01/13/2012 - 01:00 | 2060706 tmosley
tmosley's picture

If there had been enough to "pay back" the clients, their accounts wouldn't have been looted in the first place.

It's like watching serfdom re-emerge after five hundred years of hibernation.

Thu, 01/12/2012 - 20:30 | 2060234 jkruffin
jkruffin's picture

Ron Paul's Money Bomb site in South Carolina is up and running folks.  Donate to help Ron Paul get to the White House and put a halt to the crooked FED Reserve, crooked bankers, crooked corporations, and get back to sound MONEY!!


Ron Paul doesn't get money from the fat cat bankers and corporations like Romney and the Grinch.  The two swindlers are more of the same!  It is time for a true Statesman to win and get our freedoms back.

Thu, 01/12/2012 - 21:08 | 2060296 toomanyfakecons...
toomanyfakeconservatives's picture

Sorry to break it to you, but Ron Paul would be "motorcaded" or "suicided" before accomplishing anything significant. I'm not being cynical or jaded, it's just the truth of the matter...

Fri, 01/13/2012 - 00:19 | 2060632 honestann
honestann's picture

That is no reason he should not run... and WIN.  Then the millions of us who care about what happens to him can watch his back.  Better yet, put somewhat 1000 times more agressively anti-government than Ron Paul as VP (like me), and they wouldn't DARE touch him.

If someone like me was president, the first thing they'd do is have the entire congress, the scum inhabiting the federal courts and most of the federal departments exterminated for treason, terrorism, crimes against humanity, and overthrowing the federal government.  Yes, someone like that as VP would make the predators think very hard before trying to take out a mild-mannered gentleman and statesman like Ron Paul.

I can't believe the crap I hear from people just several generations after pioneers came to an largely empty, hostile continent and secured their lives.  Makes me SICK.

Fri, 01/13/2012 - 01:49 | 2060775 toomanyfakecons...
toomanyfakeconservatives's picture

I'm not saying people should not vote their conscience, I stand by my words, RP would be "motorcaded" or "suicided" if elected. Too bad nobody had JFK's back...

Fri, 01/13/2012 - 02:33 | 2060817 honestann
honestann's picture

The difference is...


Thu, 01/12/2012 - 20:35 | 2060241 Angelo Misterioso
Angelo Misterioso's picture

Well shake it up now Sugaree, I'll meet you at the jubilee....

Thu, 01/12/2012 - 20:36 | 2060242 AGuy
AGuy's picture

LOL! We will see "Kick the Can" for a long time to come. Charles Biderman nails it. If TPTB stopped bailing and printing, they would all be out of a job (or worst  sentanced to Death aka Reign of terror style). Expect the Bailouts, the lies, and the printing to go on for a considerable period (years). They will continue playing the game until hyperflation happens and there is no can to kick anymore.  Expect Freedoms to disappear, capital controls, price controls, the works. There won't be any justice, the rich and powerful will continue to get away with theft, embezzlement, murder, etc. You think new laws like NDAA are to protect the common man? Hell no, they are there to Protect TPTB.

Get use to it!


"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship. The average age of the world's greatest civilizations has been 200 years.

 Great nations rise and fall. The people go from bondage to spiritual truth, to great courage, from courage to liberty, from liberty to abundance, from abundance to selfishness, from selfishness to complacency, from complacency to apathy, from apathy to dependence, from dependence back again to bondage."


Sound Dead on what is happening.

Fri, 01/13/2012 - 02:38 | 2060821 tongue.stan
tongue.stan's picture

a possible solution is in changing that abundance to selfichness path. how exactly? ya got me.

Thu, 01/12/2012 - 20:40 | 2060248 Silverballs
Silverballs's picture

When I walked into the lab today Dave Ramsey was on the radio and was explaining to his listeners the reason gold and silver have gone up over the last decade was due to "conspiracy theorists" when I hear these financial charlatans tell there flock blatant disinformation I die a little inside

Thu, 01/12/2012 - 20:58 | 2060280 akak
akak's picture

Dave Ramsey's ludicrous explanation is the only real "conspiracy theory" here.

Thu, 01/12/2012 - 21:20 | 2060312 SaveTheBales
SaveTheBales's picture

Never call a man a fool.  Just take his money.

Thu, 01/12/2012 - 22:20 | 2060416 AgShaman
AgShaman's picture

Dave Remsey and that other idiot financial quack/fraud Suze Orman have been diligently steering people away from gold and silver for the past decade.

They should be "runn oft" for their blatant quackery and gross ineptness at seeing the big picture.

Yep....steering people away from a 50% YOY return on their savings is what they've levied thus far upon their ridiculous cult following. When this is all said and done and the mania leaves these people in the dust....I would guess DR and SO will account for "jinxing" their listeners outta 1000%+ returns....and a most logical solution at insuring their future purchasing power.

So pathetic.

They are the most disgusting charlatans in the business.

Even worse than the Paperbug trolls that visit this place.

Thu, 01/12/2012 - 22:38 | 2060462 akak
akak's picture


Good to see you around AgShaman.

Let's hope the trolling here never gets as remotely as bad as it did on SS.  Roger that!

Fri, 01/13/2012 - 01:25 | 2060744 AgShaman
AgShaman's picture

True Dat!

It still gets pretty bad there at times....mainly the status quo apologist commodity broker

And of course that one fella......I understand why you had to send that "one" problem troll packing in the recent past.

He dropped in to pour his derision via his "crusade"

LOL...I can't remember him mentioning gold or silver ever....We both know he has a favorite subject

Fri, 01/13/2012 - 03:26 | 2060850 akak
akak's picture

I'm guessing you are referring to JarJar, LOL.

Holy Moses, does that guy have a one-track mind!

Thu, 01/12/2012 - 23:18 | 2060537 tekhneek
tekhneek's picture

When I walked into the lab today Dave Ramsey was on the radio and was explaining to his listeners the reason gold and silver have gone up over the last decade was due to "conspiracy theorists"

I guess I did "conspire" to preserve my purchasing power and gain real wealth as the fiat cards (globally) begin to fall one by one and every paperbug bagholder gets caught with his pants down (handing me that used to be purchasing power) because all of a sudden that paper bullshit that isn't actually worth anything is worthless.


Thu, 01/12/2012 - 20:53 | 2060273 DollarDive
DollarDive's picture


Thu, 01/12/2012 - 21:24 | 2060316 non_anon
non_anon's picture

how far will this farce go?

Thu, 01/12/2012 - 21:26 | 2060318 Anarchyteez
Anarchyteez's picture

Some complete motard from Profit Times who doesn't sign his essays
just wrote a complete reversal from two days ago regarding silver at

I found the read surreal in a Rod Serling TwilightZone way, which brought me to pause repeatedly, verifying, was my chair real, was I really on a balcony with a tropical breeze, were there really two suns...?

WTF?! Take a peek at it...

Thu, 01/12/2012 - 21:35 | 2060327 akak
akak's picture

Sounds like the typical, prevaricating, mealy-mouthed "two handed" economist.

"On the one hand, ....., but on the other hand, ......."

Just more sound and fury, signifying nothing.

Thu, 01/12/2012 - 21:31 | 2060323 Gromit
Gromit's picture

I object to the use of the word "system" in this context.

I suggest financial "snakepit", "black box" or "favela".

Thu, 01/12/2012 - 22:30 | 2060440 yogibear
yogibear's picture

how far will this farce go?

The banks already did performed a large scale heist with the TARP bailouts? 

Just more fleecing with MF Global. Now  on to the brokerage firms and fund raiding. The financial policing is almost non-existant. Who has been prosecuted or sitting in jail waiting for a trial? Everybody shrugs their shoulders and claims they have no idea where the money went. 

 The government can perform it's dog an pony show their doing something.  



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