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Posts Tagged ‘LBMA

JP Morgan Silver Manipulation Explained: Part 2

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Once again, two bears (inexplicably, one of them is still the Aussie koala) come to grips with the infamous J P Morgue:

Imminent Big Bank Death Spiral

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by Jim Willie CB
Posted originally October 28, 2010

Use the above link to subscribe to the paid research reports, which include coverage of critically important factors at work during the ongoing panicky attempt to sustain an unsustainable system burdened by numerous imbalances aggravated by global village forces. An historically unprecedented mess has been created by compromised central bankers and inept economic advisors, whose interference has irreversibly altered and damaged the world financial system, urgently pushed after the removed anchor of money to gold. Analysis features Gold, Crude Oil, USDollar, Treasury bonds, and inter-market dynamics with the US Economy and US Federal Reserve monetary policy.


THE MORTGAGE AND FORECLOSURE SCANDAL RUNS SO DEEP THAT ORDINARY OBSERVERS can only conclude the US financial foundation is laced with a cancer detectable by ordinary people. The metastasis is visible from the distribution of mortgage bonds into the commercial paper market, money market funds, the bank balance sheets, pension funds under management, foreign central banks, and countless financial funds across the globe.

Some primary features of the cancerous tissue material are allegations of mortgage bond fraud, major securities violations, absent linkage to property title, income tax evasion, forged foreclosure documents, duplicate property linkage to single mortgage bonds, NINJA (no income, no job or assets) loans to unqualified buyers, and more. In fact, more is revealed it seeems each passing week toward additional facie to high level and systemic fraud. The world is watching. The growing international reaction will be amplified demand for Gold, from impressions that the USDollar & USEconomy have RICO racketeering components extending to Wall Street banks and Fannie Mae mortgage repositories.

The centerpiece question, when allegation of the US bond fraud is coupled with European sovereign debt distress, comes down to WHAT IS MONEY? The answer is Gold and Silver and not much of anything else. Other assets like crude oil or farmland are effective hedges against tainted money, but when they contain debt tethers, they too are vulnerable. Huge flows of funds are fleeing traditional asset groups. Some mistakenly still believe the USTreasurys to be a safe haven. A shock of cold water comes to them when that bubble goes into reverse perhaps several months later after reaching 2% yields. The big magnificent epiphany in the last couple years has been that a house is not a hard asset, but rather a debt instrument extension. Important questions have arisen as to what assets are free from counter-party debt risk. The grand demands for physical gold prove that the futures gold contracts are not money either, but tainted Wall Street and London securities contracts that keep the system going.

The big banks have been called too big to fail. They are too big to plow under without removal from power of the bankers themselves. They are too big to permit their balance sheets to be liquidated without a US banking system seizure together, and a 30% to 50% additional housing market price decline. They are too big to send into receivership without igniting a credit derivative sequence of explosions. They are too big to block the widespread illicit practices and enforcement of law of regulations. However, a wondrous spectacle has begun to shine light:

The mortgage & foreclosure scandal could turn out to be the big US Bank tombstone epitaph, as bank revenues from mortgages slide, as home owners tend to refuse on mortgage payments, as court cases unfold in full view, as class action lawsuits provide evidence on racketeering at a systemic level, as MERS and REMICs are isolated by the courts for further investigation. Time will tell. Time will reveal extraordinary efforts by the USCongress to pass additional laws that grease the bank pathways, past and present. Remember back in July 2007 when Bernanke claimed this was just a subprime mortgage problem. The Jackass called it an absolute bond contagion from its origin, which it surely turned out to be.


Two critical elements have been identified. The MERS electronic title registry system was designed to facilitate recording of property titles as associated mortgage bonds traded freely and changed ownership hands. Unfortunately, the title database has no legal standing, as declared by several state courts, including some supreme courts. Banks or financial firms holding the mortgage notes cannot team with the title database and force eviction during the home foreclosure process. That is the first gaping flaw.

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LBMA 2010: Back to the future

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by Adrian Ash
Originally posted 30 Sep 2010

“Haven’t we seen this before, in 1923…?”

THE BIG MONEY FLOWS FROM THE BIGGEST TRENDS, OF COURSE. But even the brightest people, and with the best of intentions, can struggle to see today what hindsight will say you could have banked on.

By the summer of 1922, for instance, you needed 100 of Germany’s paper Marks to buy one gold coin Mark, against which they were supposed to be equal. Yet the German Chancellor “would [still] accept no connection between the printing of money and its depreciation,” notes Adam Ferguson in When Money Dies (London, 1975)… even  as the Weimar Republic’s hyperinflation pushed Berlin food prices well over 50% higher inside one month.

Indeed, “the opinion that the flood of paper is the real origin of the depreciation [in its purchasing power] is not only wrong but dangerously wrong,” said the Vossische Zeitung newspaper. So by the time the worthless currency was abandoned 14 months later, it took one trillion paper Marks to buy one golden equivalent, and German banks “turned the Marks over to junk dealers by the ton” for recycling as scrap paper.

Who could’ve guessed?
Now, fast forward almost a century. Today the value of money (like its price versus gold) is at issue once more, and missing the big trend – inflation or deflation, commodities boom or depression – is a big worry for anyone serious about defending their savings. Over the last decade, gold prices have scarcely looked back in their rise from $252 to $1313 per ounce today. US equities, in contrast, have gone precisely nowhere, while commodities have certainly rallied, but hard assets (outside gold and silver) remain off their pre-Lehman tops of 2008. Treasuries and cash-in-the-bank can barely keep up with inflation, meantime, despite the official “core” US measure slipping below 1% per year. Housing looks like the “double-dip recession” cast in concrete.

Edging above $1300 this week, therefore, it’s little wonder that “Gold: Bubble or boom?” was the big theme (both on-stage and off) at this year’s London Bullion Market Association conference, held in Berlin. Besides dealing silver and the platinum-group metals, the LBMA’s membership is the world’s wholesale gold market – the refiners, assayers, vault operators, dealers, financiers and analysts who help move the metal from mine-head to retail production, whether jewelry manufacturers, dental suppliers, chip fabricators or gold coin mints. Very much centered in London (where the Association’s biggest bullion-bank members settle some $20 billion of gold trading between themselves each day), this odd little corner of the financial market well remembers the time before today’s current rally… a miserable two-decade run of falling gold prices, falling demand, and falling returns for the market’s suppliers. And no one wants to be late in seeing that the wind’s changed direction.

“When I started in precious metals in the early ’80s,” said one head of metals trading to the 500+ delegates on Tuesday morning, “I understood that private clients would hold around 3% of their wealth in gold bars and coin…But over the next 20 years, those reserves were really liquidated, down to pretty much zero by 2000.”

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Central Banking: A Blight On Humanity

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by Rob Kirby, KirbyAnalytics.com
Originally posted 9 October 2009

IMPECCABLY RELIABLE SOURCES have informed me that as recently as Sept. 30, 2009 – the last possible day of trade in the Sept. 09 gold futures – a number of well-heeled market participants “bought” substantial tonnage worth of gold futures on the London Bullion Market [LBMA] and immediately told their counterparties they wanted to take instantaneous delivery of the underlying physical bullion.

The unexpected immediate demand for substantial tonnage of gold bullion created utter panic in at least two banks who were counterparties to this trade – J.P. Morgan Chase and Deutsche Bank – because they simply did not posses the gold bullion which they had sold short [an illegal act which in trading parlance is referred to as a “naked short”].

Because these banks did not have the bullion to honor their contracted commitments, one or both of them approached the counterparties and asked if there was any way they could settle this embarrassing matter quietly on a “cash basis” to absolve the banks from fulfilling their physical bullion delivery obligations. The purchasers were not interested in a ‘cash settlement’ and demanded delivery of physical bullion giving these banks 5 business days to resolve the situation.  A premium of as much as spot plus 25 % [that would be 1,250 – 1,300 per ounce of gold] was offered to settle this matter in fiat money instead of the embarrassment of a very public “failure to deliver” on the part of the London Bullion Market Association.

Earlier this week, no less than two Central Banks became involved in effecting the physical settlement of this situation. One of these Central Banks was British [that would be the Bank of England] – and reportedly, even they were only capable of providing less than pure, non-compliant gold bars that did not meet good delivery standards stipulated by the LBMA.  Like it or not, this is a testament to lack of physical gold available, folks.

To summarize: Banks like J.P. Morgan Chase and Deutsche Bk. – who sold endless amounts of gold futures at prices of 950 – 1025 and then tried to make “side deals” with the folks they sold the futures to – offering them spot + 25 % [let’s say 1,275 per ounce] to settle in fiat – only after their counter parties demanded substantial tonnage of physical gold bullion.

Stunningly, if accurate [and there is absolutely no doubt in my mind that this is not accurate], this means that gold is already in SEVERE backwardation and this fact is being hidden from the public.

Then, to protect the “integrity” of the futures market as a ‘price discovery mechanism’ – Central Banks – aiding and abetting – plunder the sovereign assets of their respective countries to bail out their agents / friends in an attempt to ‘sweep the whole bloody mess under the carpet’. Does anyone wonder why our financial system and fiat money will soon to be TOAST?

What a disgraceful insult to humanity.

Written by aurick

15/11/2009 at 10:51 am