JP Morgan Whistleblowers Reveal Blatant Manipulation of Gold and Silver Markets

King World News reported Friday in a blockbuster interview with precious metals trader Andrew Maguire that 2 whistleblowers from JP Morgan approached him with evidence that their bank actively manipulated the price of gold in contrast to the protests and ridicule denying such allegations in the state and corporate owned media.

 

Maguire told Eric King that he, and subsequently the whistleblowers, supplied solid evidence to the Commodities Futures Trading Commission that JP Morgan actively suppressed the price of gold and silver when it was in their interests to do so - which is generally a 24 x 7 proposition.

 

Maguire supplied his evidence in 2010 while the 2 whistleblowers came forward in June 2012 under the protection of the Dodd-Frank Whistleblower Protection program to furnish the CFTC with evidence of criminal manipulation of the precious metals market.

 

Although the news is sensational, it simply confirms what we, and long before us the Gold Anti Trust Association, have reported for years. GATA has presented to the public and CFTC powerful prima facie evidence of market manipulation to which the criminal CFTC has turned a blind eye because it is owned by the banking cartel doing the bidding of the Fed and Treasury.

 

When trading freely, the price of gold is a sensitive indicator of the failure of the private banking cartel, often referred to as the Federal Reserve, whose policies are deemed inflationary or ruinous to the value of the currency. But Alan Blinder, former vice chairman of the Fed stated publicly that “it is the last duty of a central banker to tell the public the truth.” His policy statement has just been exposed for all to see the corruption of the government and the private banking cartel – not just under Ben Bernanke’s leadership, but also under all of his predecessors, especially Alan Greenspan.

 

The typical means of manipulating the gold market is through the use of naked shorts which are illegal for private citizens and institutions, but which the CFTC has legalized for bullion banks to which the Fed and Treasury grant the right to lease or sell the government’s owned gold, much of which was confiscated from private citizens by Franklin Roosevelt in 1933.

It is not just government owned gold which the banks lease. They have done so with sovereign gold, such as Germany's, which resulted last year in a demand for gold repatriation. The Fed, after telling Germans to take a hike on at least 7 occasions, finally relented by telling German officials that they could have some 300 tons of their gold within 7 years. The gold is simply not there and the Germans will NEVER see their gold.

 

In 2010, Maguire reported that Asian interests entered the gold market in a massive way after learning that the market was severely undervalued due to central and bullion bank manipulations. The recent revelations by Maguire on King World News are expected to fuel another frenzied bout of buying, evidence of which was seen in the afterhours market for gold on Friday which zoomed 20 dollars per ounce in heavy trading.

 

Although the news is astonishing enough, Maguire told King that the CFTC has refused to investigate any of the allegations even with overwhelming substantiation provided by the JP Morgan employees.

 

Maguire further revealed that 2 key banks, one of which was Goldman Sachs, were on the brink of collapse when the UK sold sovereign gold to bail out the bank.

 

The undesired side effect of this policy of suppressing gold is that it has whetted demand for physical gold which has been drained from the bullion banks as Zero Hedge has so ably reported, especially in the case of JP Morgan which has exited parts of the precious metals market.

The below market prices of gold and silver will result in the inevitable failure of COMEX and LBMA, which we predict will occur within 6 months. The only caveat to our prediction is that the private banking cartel provides insider information to the bullion banks as Maguire further revealed, which may enable them to ride the second derivative, so to speak, by which they may be able to very narrowly escape a complete collapse. But we have our doubts. They have certainly gone long in recent weeks.

 

We have long maintained that gold is in permanent and severe backwardation, the consequence of the Fed vigorously defending the dollar against its ruinous policies to benefit banksters and other criminal elements. The paper price of gold has been in an unprecedented state of backwardation while the physical price has been in this state for at least 2 years.

 

Jim Willie predicts that the price of gold will at some point go dark when the COMEX officially collapses, meaning that there will be no fixed universal price of gold because the 2 major cartels will have been broken and exposed for the corrupt organizations which they are.

 

The end game is that physical gold holders will be massively screwed because the bullion banks to whom they have entrusted their physical gold will cash them out. Although this is illegal for allocated accounts, unallocated accounts such as those found in  GLD and other ETFs are fully within their contract rights to cash out account holders, meaning that the dupes who thought they owned gold will get a big surprise such as when ABN Amro stole the gold of their customers by closing the gold window. It's cousin is the bank bail-in - a topic for another post.

 

Willie has reported about extensive lawsuits in Switzerland where massive gold thefts by the bank owned government have caused outrage among their "customers." These so-called customers will NEVER see their gold again.

 

The end game is the dollar, and ultimately it is a doomed currency. In the meantime, the Fed, Treasury, and CFTC are in wholesale collusion to pretend otherwise.

Reference

http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2013/9/14_Andrew_Maguire.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.