One Minute Chronicle: COMEX Died in 2012

The Commodities Exchange died in 2012, yet very few if any failed to note its obituary.

 

Dr Jim Willie, a macro-economics analyst living in exile due to Jewish threats against his life, has noted recently that COMEX has failed to deliver any gold since June of 2012. Although we have reported this tidbit before, it is worth repeating.

 

COMEX operates a criminal enterprise where they advertise a gold market but in fact do not have one. Instead it trades paper. Anyone who attempts to take delivery of gold is either laughed at hilariously or forced to settle in cash.

 

The only functional gold market in the world is in China. To our knowledge, the London Bullion and Metals Association is also failing to deliver gold, but may be failing on an intermittent basis rather than on a permanent one. Bulk quantities of gold cannot be purchased for less than 50% over the fake gold price quoted in London.

 

Gold prices have been heavily manipulated through paper prices, but as so many buyers, especially Asian, have called the bluff on this fake fractional market, the price of gold has come under heavy pressure.

 

However, with Ft Knox dry as a bone - except for nerve gas - and London nearly depleted of gold - the price manipulation schemes are starting to fall apart. We have predicted in the past that gold would rise in 2013 and 2014 - and were wrong both times. But as the old adage goes, if you keep repeating your good or bad calls, you will eventually be right.

 

We believe that we were fundamentally correct, but tactically premature, not fully understanding the ability of the gold naked shorters' abilities to control the gold price. The recent rise in gold suggests that long term secular bull market in gold will resume.

 

If Willie's prediction about the establishment of a new Gold Trade Note comes to fruition, gold will most emphatically accelerate its ascent.

Copyright 2015 Tony Bonn. All rights reserved.

US Federal Reserve in Desperate Panic

Hat Trick editor Dr Jim Willie reports in his latest column that the US Fed is in utter panic regarding its own liquidity and solvency. 

 

The problems facing the US monetary system are legion, but the most recent problems plaguing the private banking cartel are its very foundations – capital. The bank has purchased well over 3 trillion USD of troubled and vacant assets whose values have failed to recover to the fairy land par value at which the Fed carries the garbage. With a highly leveraged capital base at under 3%, even small rises in interest rates have magnified impact on capital losses.

 

Willie reports through his sources that an emergency meeting was held among the regional banks on September 5, 2013 to discuss the deteriorating capital structure, rising interest rates, and its inability to defend the dollar. One of the consequent actions from the meeting was to sell bonds and MBS even at a loss to raise liquidity.

 

Another problem facing the bond market is its limited incestuous configuration where the big 4 banks trade among themselves in frenzied flash trading to create the illusion that prices for bonds are higher than they actually are. Unfortunately that strategy is running on fumes, the duration of which is short – measured in months.

 

On top of all these problems, the Fed is under increasing pressure to not only maintain bond prices and buy all US Treasury issuance, but to also purchase the coming torrent of dumping of Treasuries by foreign holders. We believe that this is what spawned the juvenile taper talk because the Fed was trying to ease away from domestic buyer of first and last resort in order to make room for foreign redemptions. The Fed is running out of “tools.”

 

Willie opined that the Fed was paying interest on excess reserves to have a stash of cash to prop up its insolvency, an opinion we had advanced circa 2009. We also believe that it was one of its tricks to keep the massive money printing from flooding the banking system, turning the money into instant hyperinflation.

 

Although it has been out of the news, Willie mentioned again the enduring nature of the London Whale trade which caused JPMorgan much embarrassment, loss, and fines. But the problem has not gone away and the losses are treble what the criminal firm reported.

 

This issue – impending doom at JPMorgan – may well have been the catalyst sparking the emergency Fed meeting in September. There is no way that any agency in the world could staunch the losses at JPMorgan or make its depositors whole – even with a massive bail in.

 

The United States has earned enmity worldwide for its vast criminal enterprise stemming from the banking cartel which defrauded home owners (MERS fraud), borrowers (LIBOR fraud), and hedgers (COMEX fraud), the latter of which is well on the road to extinction. We believe that it will no longer make a futures market a year from now.

 

While Willie holds great hope for a return of the gold standard, it is not entirely the blessing it is made to be. Gold is scarce, certainly in the West, and will cause many hardships for the 99% who have limited means. As the great William Jennings Bryan pleaded, do not crucify the people on a cross of gold, or thrust a crown of silver in his brow.

 

The US people could alleviate much of its bankster induced trauma by demanding the abolition of the Fed, allowing the US Treasury to issue US Notes without borrowing from the Fed or any bank.

 

The happy talk from the newsfakers should not dissuade prudent people from anticipating the decimation of the US Fed and the banking system within the next 12-18 months. We have been amazed at how long the charade has been kept alive, but when the Fed is in peril because of its capital ratios, we know the end is nigh.

 Reference

Jim Willie, Flash Trading Hits USTreasury Bonds, www.goldseek.com, 9/25/2013, accessed 9/25/2013

Copyright 2013 Tony Bonn. All rights reserved.

Major Swiss Bank Defaults on Allocated Gold

Jim Sinclair reported in King World News that a friend of his was denied his gold by a major Swiss bank on the grounds of anti-terrorism and anti money laundering schemes. Although Sinclair took the explanation somewhat seriously, he clearly understood that the Swiss bank did not have the gold.

 

Sinclair is an iconic gold man whose trading days go back to the first gold rush of the 1970s. Paul Volcker, then chairman of the Federal Reserve, asked him to lead the liquidation of the Hunt brothers vast silver holdings in the wake of the engineered silver crash in 1980. In short, Sinclair has superb contacts and insight into the precious metals markets.

 

This news comes on the heels of our report yesterday (4/22/2013) that the LBMA and COMEX had virtually defaulted on their gold contracts. The Swiss banks have been stealing allocated gold accounts for years, thinking that no one would come looking for his gold.

 

While this recent development is disturbing, Sinclair reported that the refusal to deliver gold came from the central bank which is up to its eyeballs in criminal activity. We laughed when we read that the refusal was on anti terrorist grounds. The American Central Intelligence Agency is world's biggest terrorist organization and operates al qaeda as a mercenary army to concoct such operations as the Boston Marathon bombings.

 

The reason is to complete the establishment of the Nazi state. We repeat again our warning to purchase only physical gold and to keep some of it overseas. The US government has numerous concentration camps in operation as Jesse Ventura reported on his television series Conspiracy Theory.

 

Those who insist upon retaining their Constitutional rights will be hunted as terrorists and murdered without trial by the US government. Martin Luther King, Jr was only one such victim.

 

References

Sinclair - Swiss Bank Just Refused To Give My Friend His Gold, King World News, April 23, 2013

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/4/23_Sinclair_-_Swiss_Bank_Just_Refused_To_Give_My_Friend_His_Gold.html

Copyright 2013 Tony Bonn. All rights reserved.

LBMA Defaults on Gold Contracts

While Western monetary quacks have ridiculed gold until their credibility is no greater than what Bill Clinton said of Paula Jones’, the cocks have come home to roost. The LBMA and COMEX have defaulted on their gold contracts, with nary a sign of prosecution for their criminal actions.

 

Of course there will be no prosecutions because the London Bullion and Metals Association is backed by the same criminal governments which participated in the recent gold takedown. The same holds true of COMEX – the American precious metals exchange.

 

Most of our dear readers may not know what the COMEX and LBMA are all about, and may not understand the implications of these defaults. There are a number of reasons to be concerned but the two foremost in our mind is that the fiat and fractional currency scheme is under severe stress and the rule of law has been destroyed through the egregious breach of contract represented by the defaults.

 

Officially there was no default because contracts were settled in cash. But such a settlement is not in the spirit of the contracts and is a breach in material of the agreements.

 

There is a third reason for concern, namely that the United States has escalated its wars of imperial aggression in Africa, seizing Mali’s gold mines on the heels of seizing Libya’s supplies. We have reported on other military actions in other parts of Africa where the United States is stealing natural resources of once sovereign nations as the US recolonizes Africa.

 

The criminal bank ABN Amro fired the first salvo when it reneged on gold deliveries to customers who had entrusted their gold with the bank, an error in judgment of epic proportions. Days later, the COMEX dramatically increased margin requirements on silver and gold in a panicked response to the relentless drain on its gold supplies.

 

Andrew Maguire, a successful financial manager, told King World News on April 22, 2013 that when he advised his clients six years ago to retrieve their physical gold, COMEX reacted with great hostility to his demand for delivery. The reason is that it threatened their solvency and rehypothecation scheme.

 

JS Kim, writing at ZeroHedge on April 22, 2013, reported the following banksters in attendance at another gold slam hosted by Barry Soetoro, president of the United States, one day prior to the unprecedented assault on the price of gold the week of April 8, 2013.

Lloyd Blankfein, Chairman and CEO Goldman Sachs

Jacques Brand, CEO Deutsche Bank

Michael Corbat, Chief Executive Officer Citigroup

Jamie Dimon, Chairman, CEO and President J.P. Morgan Chase

Sergio Ermotti, CEO UBS

James Gorman, Chairman and CEO Morgan Stanley

Gerald Hassell, Chairman and CEO Bank of New York Mellon Corporation

Jay Hooley, Chairman, President and CEO State Street Corporation

Abby Johnson, President, Fidelity Financial Services, Fidelity Investments

Steve Kandarian, Chairman of the Board, President and CEO Metlife

Brian Moynihan, President and CEO Bank of America/Merrill Lynch

John Strangfeld, CEO, Prudential

John Stumpf, Chairman, President and CEO Wells Fargo

Jim Weddle, Managing Partner, Edward Jones

Bob Benmosche, President and CEO American International Group

 

There were two reasons for the destruction of value. The first and foremost was to avail themselves to more gold at huge discounts. Some of the gold went to payoff pesky clients, but much more went into their personal accounts which was the second reason for the slam down.

 

For those who wonder how the banksters crashed the price, we give you a simple answer. The government sponsored banksters have the privilege of selling gold without having any collateral. And so they sold 400 tons of it without having a single ounce – an operation known as shorting. Unfortunately for them, it did nothing to dampen demand.

 

Many analysts note that gold is a vote against the fraudulent fiat, debt based, fractional reserve monetary system in place throughout the world. Thus a suppression of the gold price would challenge anyone in that belief  – they hope – from acting on it in the acquisition of physical gold.

 

Previously, the government had resorted to destroying Peregrine Financial and MF Global to raid its customers’ gold. But that was not nearly enough to satisfy deficits in their gold accounts and their bankster sponsors.

 

He who owns the gold makes the rules. Gold is going to those who respect it. The United States is drained of its official gold holdings although its government continues to claim over 8000 tons. Fort Knox holds nothing but nerve gas.

 

We urge folks to own physical gold – the paper traded exchanges will leave you high and dry. They are not to be trusted. We also urge all Americans to retrieve gold from safety deposit boxes. It will be confiscated in the very near future.

Reference
Maguire - Elaborates On The LBMA Default & Ensuing Panic, King World News, April 22, 2013
Why the Western Banking Cartel’s Gold and Silver Price Slam Will Backfire - And How You Can Protect Yourself from the Blowback, JS Kim, Zero Hedge, April 22, 203

Copyright 2013 Tony Bonn. All rights reserved.