7/13/12

More on Gold Manipulation

I have long said it has been happening. Gold is the benchmark for the value of circulating “money”. Lately, our paper money has been falling in value and gold signals the reality of crumbling fiat. Central Bankers have every reason in the world to attempt to smother gold. The theme is finally going mainstream:

The price of gold has been manipulated. This is more scandalous than Libor via @Telegraph http://soc.li/oIyEDQi

J.P. Morgan Chase’s quarterly net and revenue fall – MarketWatch http://on.mktw.net/LOhrzT

JP Morgan says the traders responsible for the London Whale loss have been fired and two years of compensation will be clawed back. Wow… tough.  Is that justice JP Morgan style? Where are the regulators and legal authorities to dish out further sanctions to the bank and the upper management of the traders. Yes, the managers, who were worrying too much about the number zeros in their checking account balance and not quite watching their subordinates? Just wondering.

Someone should be saying, ‘no Jamie Dimon, you are NOT the law, you haven’t done enough self punishment and cleasing’.   

Here Is What Happened The Last Time A Trader Was Caught Manipulating CDS Markshttp://tinyurl.com/cmwz2et. Hint: The password is “Jail”. Lol.

People should be jailed for this sort of behavior. Earlier in the week I featured the comments of Roubini made on Bloomberg calling for bankers to either hang, or spend quality time behind bars.  The theme is going mainstream. Prosecutions and perp walks are inthe future of the banking industry. Since the 2008 financial crisis and so called “reforms” which were anything but reforms, banksters have been emboldened to make bigger bets. Surely they reason, Uncle Ben Bernanke and Uncle Sam will show up with more rescue money. This may turn out to be a great tactical blunder for the bankers.

PPI

There was a surprise rise in the producer price index. The often wrong consensus of economists had been expecting a .4% decrease in the PPI.   

RT @DianeSwonk: Increase in #producer prices was concentrated in motor vehicles, light trucks. Pipeline #inflation much tamer. http://tinyurl.com/bvocd42

Jim again: I am in agreement with Diane. For now, rapid inflation is on hold (50% a month), disinflation is more of a risk for now as economies around the world either grind to a halt, or barely grow. The Central Banking fiat system is led by the biggest bumbler of all time: Ben Bernanke. He will destroy the West first with a virulent dose of disinflation and then as dollar devaluation sets in, all will have the opportunity to suffer through rapid inflation. That’s the cycle ahead imho unless the people strongly force change (use your imagination). Let’s hope we are really not Greece. In that little piece of real estate the people have been cajoled, hands on the ankles, and they seemed to take it with alacrity so long as they can retain some remnants of the welfare state benefits.

Two notches from Junk. That’s where Italy’s credit rating is pegged by Moody’s. What has been witnessed in Spain is going to next play out in Italy. Don’t let the calmness of summer fool you. There is only two weeks to go before the London Olympics and once that is event is underway, much attention will be focused on the games.   

Details: http://www.businessinsider.com/moodys-downgrade-italy-2012-7?utm_source=twbutton&utm_medium=social&utm_campaign=moneygame

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