JP Morgan Secretly Stockpiles Silver and Gold—Blood Money

By Dominique de Kevelioc de Bailleul

Leave it to Max Keiser to pick up on the Silver Doctors article, titled, “Is JP Morgan Shorting Paper Metals While Acquiring Massive Physical Stockpiles?

If Keiser, who himself appears to have once been a clever and scheming juvenile delinquent, believes the article’s supposition reeks of the devil’s sulfur, there may be more than a sliver of truth in it.

The Silver Doctors cite Jim Sinclair, ‘Mr. Gold’, who has said two things which would most likely prove to be foolhardy not to believe.  One, that the Fed would embark on “QE to infinity.”  And, two, the bullion banks would amass the lion’s share of the bull market profits in the rise in gold and silver prices.

The first looks like a done deal.  The second will most likely pan out as well, which takes us back to the Silver Doctors article.

The ‘Doc’ goes on to quote, David R, a veteran bullion trader, who has traded at the desks at AIG, Barclays, and UBS.

They [JP Morgan] buy the physical silver at the same time they sell the future (on Comex) futures trade in contango (higher price than spot physical) they get zero interest rate cash from FED so borrow the money for free, they own the vaults to store the silver…. so as the future comes to maturity they can either settle against their physical long or roll the future to collect more free contango…. This is pure arbitrage paid for by the FED.  This has been going on for over 30 years and why shouldn’t they be allowed to have 25% of the Open Interest?  There is no manipulation because they are short the futures and long the physical and have “ZERO” price risk, but nice profits!  It’s brilliant trading and completely 100% legal and that’s why they will never be charged with manipulation because there is none going on. Sometimes it’s just that easy!

Of course, it’s that easy.  Banks make money on spreads on every damn thing they touch.  But as Ted Butler and the fine folks at GATA have argued: when a single trader becomes dominate within a single market, it’s size, alone, affects price discovery.  That is, indeed, illegal, going back to the late 19th century—a time when the U.S. faced some of the nasty side-effects of an industrial revolution gone unfettered.

The man who fought the monopolists of the early 20th century, armed with the Sherman Anti-Trust Act of 1890, Teddy Roosevelt, must be rolling in his grave at the suggestion that JP Morgan’s “brilliant trading” is “perfectly legal,” as trader David R. suggests.  In fact, there’s nothing brilliant about JP Morgan’s criminal activity in the bullion markets.  The scam is not new; it’s as old as the hills.

According to Wikipedia, the lead author of the Sherman Anti-trust Act, Ohio Republican Senator John Sherman said the purpose of the Act was “to protect the consumers by preventing arrangements designed, or which tend, to advance the cost of goods to the consumer.”

In the case of the silver market, the cost to the consumer is inflation—in everything, especially in those things consumed each day for survival.  If the bullion markets are suppressed to give the U.S. dollar an advantage over the competition—bullion, the Fed can create more dollars, thereby forcing holders of the commodity (the dollar) to take a purchasing-power loss.

And with the latest mortality statistic revealing that more deaths in America come from suicide than from the result of an automobile accident, one must have to wonder how many of these suicides were the result of extraordinary bad economic times.

Another author of the Act, Senator George Hoar of Massachusetts, said, an entity that “merely by superior skill and intelligence…got the whole business because nobody could do it as well as he could was not a monopolist …(but was if) it involved something like the use of means which made it impossible for other persons to engage in fair competition.”

By the way, after the 1890 U.S. Senate ratified the Sherman Anti-Trust Act by a vote of 51-1, the House unanimously passed the bill with a vote of 242-0 on Jun. 20, 1890.

Can anyone image today’s Congress taking such a stand against the largest cancerous tumor of them all, JP Morgan?  Of course not.  Maybe Gerald Celente’s latest suggestion to boycott the upcoming general election is as good as Max Keiser’s suggestion to buy as much silver as one can.

The bottom line to the JP Morgan bullion prices suppression scheme is, if bullion prices reflected the weakness of the U.S. dollar, the Fed would have to stop printing them.  Congress would be forced to make the tough decisions regarding the public account, and the wrongs can be righted more quickly with less, much, much less pain—and most likely less suicides, too.

It’s been said, “Evil knows no boundaries.”  That evil is the Fed’s no. 1 stockholder, JP Morgan.  How Alan Greenspan, Jamie Dimon, Robert Rubin, Lloyd Blankfein and the other Den of Thieves can sleep at night is another puzzle for another time.  There’s a lot of blood on their hands, and for one, Blankfein, appears to have no idea why his hands are stained red.  What an anthropomorphic example of a living and thriving cancer.

God have mercy on these pathetic and perfect examples of humanity’s worst.

Fed Floods Market with Fake Gold, the Latest Hurdle for Gold Investors

By Dominique de Kevelioc de Bailleul

Tungsten-filled 10-ounce gold bars suddenly have appeared at some of the finest dealers of Manhattan.

No doubt, beginner investors who seek to purchase real money, a real asset, the ultimate safety, have had to overcome decades of carefully orchestrated financial propaganda from the Fed, Washington and academia.  ‘They’ say, the dollar is good, and gold is just a rock, a silly anachronism and an asset useful only to persecuted WWII-vintage Jews.

Then, having cleared the propaganda hurdle, the new class of awakened investors have had to somehow research the gold market long enough to maybe run into articles which discuss the accusations of fraud riddled throughout the paper gold aspect of the market and the manipulation scheme perpetrated by JP Morgan.

What appeared to be an easy way out of the dollar, through a click of a mouse and a few bucks commission on the Scottrade website, may turn out to be more dangerous than holding a debauching currency.

Enter, stage right, comes Jeff Christian, who assures investors that the paper market is on the up-and-up.  The debate between GATA and Jeff Christian kept some investors out of the line to take delivery of real metal, forestalling a bit longer the inevitable and coming stampede into the gold market.

Was GATA an organization spewing ‘conspiracy theories about a gold cartel?

Christian, a suspected shill for the gold cartel, argued that GATA was seeing things, imagining dark-hat bankers ripping off the public with un-backed gold ETFs and bogus short sales of the metal in the futures market.

The case of Andrew Maguire and the CFTC investigation into JP Morgan proves beyond a reasonable doubt that Christian is either a liar, an incompetent or a shill for the Fed.

Christian leaves the stage and CFTC’s Bart Chilton enters.  Chilton, the corn-fed, boy-next-door kind of guy, who grows up to become a heroic fighter of corruption in the financial markets, is the perfect character for the next act to Christian’s ‘Gaslight’ performance.

And the tangible results of the so-called Eliot Ness of Wall Street?  Nothing.  Nearly three years after the CFTC hearings and investigation into JP Morgan, Chilton comes up with zip, furthering the con of the U.S. dollar.  Chilton is now quiet.  He’s done his job for the Fed.  He may leave now.

Now, the poor, confused investor hears that the Fed’s QE-to-infinity policy will further debase the U.S. dollar.  Even some of the ‘big boys’ have come out with recommendations to buy gold.  PIMCO’s Bill Gross and Bridgewater Associate’s Ray Dalio have gone public recently to counter Warren Buffett, Charlie Munger and Bill Gates, the con-job trio billionaire shills for the Fed.

Is it time to buy some physical?  Even the big boys think it’s a good idea.

But wait, the circulation of phony gold bars hits the news, and the companies selling the bars are, of course, the most reputable walk-in retailers of New York.

And the timing of news of the tungsten-filled gold bars couldn’t come at a most fortuitous time for the Fed.  The most recent announcement of QE3-to-infinity policy from Bernanke & Company is a downright admission that the U.S. economy is not responding to previous QEs, unprecedented levels of ‘currency swaps’ and a reflation of the over-the-counter derivatives market.

The Fed needs more help pushing the mob away from gold, because there isn’t enough gold to back all the paper promises saturated throughout the banking system.

“We’re getting closer and closer to the big disclosure that the banksters have stolen the gold, and now they’re flooding the market with fake gold,” TruNews radio host Rick Wiles tells his listening audience of Sept. 24.

Is Wiles spreading another ‘conspiracy theory’?  Let’s ask Christian what he thinks.  Let’s see if Chilton will recommend to the U.S. State Department that it shut down the Chinese company that’s been alleged to have made the phony bars.  Let’s see if Warren Buffett has anything to say.

Dollar Reaches “Pre-Avalanche Moment”; Gold $7,000, Jim Rickards

By Dominique de Kevelioc de Bailleul

Speaking with Max Keiser’s On the Edge, Currency Wars author Jim Rickards says, the collapse of Lehman Brothers and the Fed’s response to the crisis convinced China to no longer trust the United States and the dollar-based reserve scheme.

In the past, the thinking among the world’s central banks focused upon the dollar as an anchor for relative valuations of other currencies trading against it.  That was a bad idea, according to Rickards.

“We trust the United States to maintain the value of the dollar, so we’ll anchor it [other currencies] to the dollar,” he says.  “That trust was misplaced, beginning, really, around 2010.

“The United Sates decided, as a matter of policy, to trash the dollar.  The Chinese made one enormous blunder; they actually trusted the United States to the tune of $3 trillion of assets to maintain the value of the dollar.

“China’s learning the hard way that you really can’t trust the United States anymore.”

After that breach of trust, following the Fed completed round of its first QE program, it became clear to the Chinese, according to Rickards, that the Fed intends to devalue the world’s reserve currency and the $3 trillion of U.S. paper it bought as the mechanism of maintaining a competitively cheap yuan against the dollar.

“The Chinese, you know, they don’t want to be the suckers at the poker table.  the United States put enormous pressure on China to allow the yuan to appreciate a little bit against the dollar, which it did in 2011.”

Since then, evidence shows the PRC has responding to the Fed through drastically stepping up central bank gold stock at the PBC.  But, in the meantime, the race to the bottom of the currency graveyard for the world’s major currencies will continue until that fateful day, when the global system is forced into a ‘big reset’ to another currency regime.

“These things [global currency devaluations] can go on, as I’ve show, historically, for 10 or 15 years,” says Rickards.

“Nobody wins.  All get is, either, global inflation or contraction of world trade if the currency wars turn into trade wars,” he adds.  At some point, “the system breaks down.”

But, “we’re some years away from that.  These currency wars will continue,” he says.

When Keiser likens last week’s Fed QE3 announcement to a “pre-avalanche moment” for the dollar, Rickards agrees.

Yes, “we are in a pre-avalanche moment, Max,” he says.  QE3 is a “suicide mission for the dollar.”

All you “have to do is look down the road and envision a Fed balance sheet that has, perhaps, $5 trillion of base money, up from about $3 trillion, today.  That’s sort of where we’re heading,” he adds.

So, China’s race to stockpile gold, in earnest, is on, according to Rickards.  China needs to acquire more gold reserves to earn a place at the Bank of International Settlements (BIS) table at the time when a new global currency regime is negotiated.

China wants the yuan to be included within the new global currency, necessitating an appreciable increase in the PRC’s gold hoard of an estimated 2,000 tons.  No gold, no inclusion.

“We don’t know exactly how much they have, but China is the largest gold importer in the world,” Rickards explains.  “They are the largest gold producer in the world.  Their mines are producing 300 tons a year, that is by far the largest in the world  Where are that 300 tons going?  Some of it’s going for domestic purchases, but a lot of it is going to the central bank.”

“To just look at the U.S. in the eye, they actually need 4,000 tons,” he says.

“This is just going to put upward pressure on gold prices for years to come, and my estimate is it will get to $7,000 an ounce, not next year, not immediately, but sooner than later.  That’s my target price for gold.”

Breaking: Historic Silver Panic in Progress, Says GATA Sources

By Dominique de Kevelioc de Bailleul

It’s finally here—the long-awaited run on silver supplies.

Speaking with Alternative Investors Hangout (AIH), GATA’s Bill Murphy tells investors, “Just pay attention, right now,” because the buying is so heavy in an unprecedentedly tight silver market, we “don’t know what will happen here; it’s historic.”

And investors should, indeed, pay attention to Murphy’s latest assessment of the silver market.  In July, he said an unidentified European billionaire told him to expect the bull market in silver to resume in late August.

“The fellow I spoke with I’ve known for years, one of the wealthier men in all of Europe,” Murphy told SGTReport in late July [BER article].  “He’s got a lot of connections . . . It will be tough for the gold and silver markets [during the month of July], but starting in August they would start to ‘go nuts’, and they would ‘stay nuts’ for a long time. . . Big, big moves are coming, starting in August.”

After 15 months of a painfully long consolidation, the big move in the silver price began, just as Murphy’s source predicted.  After briefly toughing the low $27 level, silver has soared more than $7 withing three weeks, a gain of approximately 27 percent, or an annual compound rate of 6,500 percent!

Reminiscent of Andrew Maguire’s demonstration to the CFTC of his intimate knowledge of JP Morgan’s nefarious activities in the silver space, Murphy believes his source is well-placed and able to leak accurate information to investors as it comes available.  Hours after alerting media of Maguire’s meeting with the CFTC, Maguire and his girlfriend were attacked by a would-be assassin with a speeding automobile.

Moreover, the absence of King World News’ anonymous London trader has fueled speculation that Anonymous has moved on to Bill Murphy, who may also inherit DOS (denial of service) attacks following leaked information published by King world News.

“Because of my sources . . . when . . . this was in July, that gold and silver were going to base, [then] take off before the end of August and go to all-time highs, much higher, and that’s what’s happening,” Murphy tells AIH.

Another one of Murphy’s sources told him the silver market is so tight that the poor-man’s gold could touch $100 in another mini mania replay of the Aug. 2010 to April 2011 bull run that took silver from $17.50 to pennies shy of $50—a near-triple within eight months.

A similar move today, off $26.50 baseline support, equates to a target price of $75, but, according to Murphy, this next move in the silver price could eclipse that exciting jump which began in the summer of 2010—both in amplitude and time frame.

“I have other sources tell me the silver market is as tight as they’ve ever known in history,” he says.  “I expect silver to go towards 80 [dollars] to 100, quickly.  I know that seems like a big thing, but that’s what I think.

“All I know is: the physical market, if you want to buy silver in size, is the most difficult in history.  These are from my best sources.  We’ve been right on everything so far; now, we’ll see what happens.”

Though moves of that magnitude, suggested by Murphy’s source, may appear to newcomers to the silver market as hyperbole, but, because of the supply-demand dynamics of a heavily fettered silver market, the extent of an upward price adjustment may well become an inverse multiple of the extent of the price suppression.

In the case of silver, the latest U.S. Mint activity report reveals a 191:1 ratio between the number of silver and gold ounces sold at the Mint.  Taking into consideration the ratio of silver and gold available in Mother Earth is estimated at 12:1 (according to the latest mining statistics), monstrous moves in the silver price expected by Murphy appear very reasonable.

And if the gold (and silver) cartel continues to buck Gresham’s Law, nature will indeed take its course—a consequence JP Morgan would like, desperately, to avoid.

“The gold cartel, JP Morgan, is trying to suppress us, but if I’m right, there’s a big scandal coming regarding JP Morgan and the silver market manipulation escapades,” Murphy says.

“It’s going to be something like the LIBOR scandal.  I’ve been talking about this for months, as you well know.  We’ll see what happens.”

Without identifying the extent or exact nature of the scandal, Murphy has said in previous interviews he suspects many banks have defrauded customers through the offering of allocated gold and silver accounts, which, may, in fact, not exist.

And those affected may be large Asian and other institutions, which could suddenly insist delivery of their metal—metal not available for sale at today’s prices.

For the banks to make good on deliveries, much higher prices are needed to draw sellers out.  In the case of silver, the price presumably must at least catch up to gold’s double from its 1980 high of $850 as a price level that could draw sellers to market.  A double in the silver price, from its high of approximately $50 in Jan. 1980, suggests at least a $100 handle for the white metal could bring in the sellers—but maybe not.  The market for silver has been dysfunctional for many, many years.

“I know what should happen behind the scenes,” Murphy ends the interview.  “I don’t know if it’s going to happen.  If it [a stop to JP Morgan's scheme] doesn’t, it will come out in some other way, and it will blow peoples’ minds.”

As This Chart Clearly Shows, Stock Will Crash

By Dominique de Kevelioc de Bailleul

Harkening back to the Charles Nenner’s interview on Fox’s Bulls and Bears of early May 2011, his prediction of Dow 5,000 by the close of 2012 stood back then and stands today as a bold call.

But, here’s why stocks are very vulnerable to a Nenner crash scenario and why, even in the absence of a false move by the Fed, stock will most likely decline hard anyway.

A look at the Baltic Dry Index (BDI) suggests either the global economy is about to soar, or Nenner’s Dow 5,000 call could be on the money, or close to the money.

As of Sept. 12, the BDI stopped short of one point of its all-time low of 661, a level not seen since the S&P 500 crash low of 666 points, during the height of the Lehman crisis of Mar. 9 2009 [see graph, below].  But as the S&P closed on Sept. 12 at 1,463, a 130 points, or so, off its all-time high set during the second half of 2007, Bernanke manipulation of stock prices has set equity investors up for a fall—a very big fall.

Stock prices, which many regard as a leading economic indicator, need to explain, then, first: why have there been so many stock market crashes?  Did, suddenly, everyone change their minds about the economy and its health to deliver corporate profits?  And second: if the gold and silver markets, bond market, currencies markets and commodities markets are obviously ‘manhandled’ quite frequently by the Fed, why not stocks?  Why are stocks sacred cows of the Fed’s deception racket?

Economic, export and labor data, which show the U.S., European and Chinese economies either collapsing, in the case of the U.S. and Europe, or rapidly slowing, in the case of China and its Eastern satellites, serve as an underscore to the BDI’s low levels.

Just as the Fed used Morgan Stanley to prop up credit through the credit default swaps (CDSs) market as well as enlisting JP Morgan to suppress the price of PMs, it’s most likely that the Fed has buoyed stocks through the purchase of S&P futures via the NY Fed’s Exchange Stability Fund (ESF).

And here’s where it gets interesting.  The U.S. dollar broke through 80USD support rather easily this week, adding yet another negative for owning stocks.

At some point there will be an evaporation of the multi-year nonsensical mantra: that there is a ‘risk on’ trade and it means, buy stocks.  Instead, it’s more likely that a falling dollar against its rivals will turn out to be the foreshadowing of a crashing stock market and a soaring gold price.

The gold price did take a hit leading up to the Lehman bankruptcy of 2008, but at that time investors had not been prepared for the initial shock of the prospect of a global meltdown.  Gold had since recovered long before the crash low of 666 in the S&P was set on Mar. 9, 2009.  At the nadir of the S&P crash, gold was trading back up near its all-time high above $1,000 per ounce.

Today, however, there’s too much talk, evidence and time passed since the fall of Lehman to catch alleged ‘smart money’ much off-guard again.

From the looks of the gold chart, today, the buying on the dips to snag a better gold purchase before Armageddon arrives suggests that gold will not sell off during a crash in stocks; it will, instead soar in price, taking the number of ounces to buy the S&P to new post-1981 lows.

Many predictions of an October Surprise swirl the Internet, a stock market crash may well be that surprise, but the catalyst for the crash may come from anywhere—maybe war, as Nenner had predicted in May 2011.

No Time Left, Gold & Silver to Go Sky High

By Dominique de Kevelioc de Bailleul

Either something huge is coming to the financial markets, or something huger, or even huger yet lurks.

Consider the following, though not close to being all inclusive of the warning signs riddled throughout the global geopolitical-financial landscape.

  • George Soros dumps stocks and loads the boat with gold
  • John Paulson has nearly half his portfolio invested in gold
  • PIMCO recommends gold
  • Chinese importing record-high shipments of gold
  • U.S. Mint sold 191 times silver ounces to gold ounces for 1st week of Aug.
  • Spanish bonds drop nearly 200 basis points within two weeks
  • Baltic Dry Index makes fresh all-time lows.
  • The German, Dane and Dutch people balk at PIIGS bailout
  • U.S. and China economies are rolling over; Europe in depression
  • Israel’s allegedly insane PM may trigger WWIII with Iran
  • Invasion of Syria likely
  • U.S. government preparing for revolution
  • Lyndon La Rouche says threat of nuclear war the highest since Bay of Pigs
  • Rule of law unofficially suspended in the United States
  • Gun sales and “prepper” industry go vertical

And all of those troubling events, and many more, are unarguably traced to a coming collapse of the U.S. dollar.  The world has been dependent upon the dollar for trade and banking reserves for 68 years, and it’s removal as a working global exchange vehicle cannot lead to anything favorable, financially or politically.  History tells us so.

Adding to the chorus of dollar collapse prognosticators comes the folks at Charles Nenner Research Center, an outfit that’s been on a long winning streak of successfully predicting with astounding accuracy the cycles of the gold market, currencies and equities.

Nenner warned of an intermediate top in gold as it crossed $1,900 and not to expect anything too troubling for the euro during drama surrounding the crisis in Greece.

Though not as well-known as heavyweights John Taylor of FX Concepts or the parade of guests of Eric King’s King World News, Charles Nedder’s work deserves a fair amount of attention.

Though his demeanor on camera appears somewhat awkward and unpolished, the man who frequently wears a yamaka on air has outshone the best analysts of economic and market cycles.  He doesn’t mince too many words and gets to the point rather quickly during his interviews.

Speaking with Financial Survival Network host Kerry Lutz, managing director of Charles Nenner Research Center, David Gurwitz, says Nedder’s research indicates that gold should easily go to, “for sure, $2,100, $2,500” per ounce as the world begins to scramble out of the U.S. dollar—the world’s reserve currency that, he predicts, will collapse within 15 to 18 months.

“Gold is going to $2,100, $2,500 and silver should go back up to $49 . . .” says Gurwitz.

Moreover, Gurwitz says Nenner expects a strong euro against the dollar in the coming year, or so—a prediction that’s also consistent with other extreme dollar bears, such as Europacific Capital’s Peter Schiff and ShadowStats’ John Williams.  Both Schiff and Williams see 2013 as the turning point in the dollar’s relative strength against other major currencies.  And all three forecast a dollar collapse within two years to 30 months.

“Our dollar should fall apart in about 15 to 18 months, which is just going to create a whole mess of things,” says Gurwitz.  “And the euro will be the currency of choice, which it is now, believe it or not.  And he [Charles Nenner] has been saying to people for a while, ‘don’t short it; don’t short it; don’t short it’ and he’s been right.”

In March of 2011, Nenner told Fox’s Bull and Bears the DJIA would drop to 5,000 and that war would break out by the close of 2012.

In May of 2012, Nenner told Bloomberg if the weak nations of the eurozone left the supranational currency, the euro would take over the role as the safe haven currency, which suggests, maybe, that a resolution of the global financial crisis will include some, or all, of the PIIGS leaving the common currency by 2014.

“Massive Storms” in Silver Market Before American Election, Silver $150

By Dominique de Kevelioc de Bailleul

Speculation of a post-presidential-election-central-bank-coordinated money bomb of fresh new cash from the Fed, the ECB and other central banks, appear to be just that: speculation.  That, according to a regular guest of Eric King’s King World News (KWN), Swiss money manager Egon von Greyerz.

The global central bank bailout and “the coordinated money printing I have been talking about for a long time is going to happen this autumn,” says von Greyerz.  “I can see an autumn with massive storms, Eric.”

Not only has the precious metals market sniffed out an imminent and overt global QE3 plan, the western bank cartel is presumably buying the Spanish 10-year bond ahead of the announcement, taking rates sharply down within a two-week period to 6.02 percent, from a 7.62 percent print of Jul. 24.  Buyers of the Italian 10-year nearly achieve the same performance during the same time period.

Those moves serve as a telltale sign that a money bomb will come before Novemebr.

“They [ECB and IMF] must do everything they can to eliminate counterparty risk because the counterparty risk in the system is massive,” adds Greyerz, which may include strong-arm tactics, according to Mail on Sunday American columnist Mary Ellen Synon.

She surmises that the ECB’s planned policy action of “outright market transactions”, as ECB President Mario Draghi called the debt monetizing scheme in an ECB press release this week, will contain provisions that include the classic IMF ‘carrot-and-stick’ approach to getting things done.

Synon suggestes that, instead of one of the PIIGS getting a bailout—first—before demonstrating agreed-to ‘austerity’ measures have produced results for an additional tranche, the ECB plans to wave money at the people of the country in question and wait for its political leadership to succumb to the pressure to allow the IMF to takeover the nation’s fiscal matters, just as all small Central American nations have had to endure when working with the IMF.

“Start with Spain.  Imagine Prime Minister Rajoy is finally forced to go for an official bail-out,” Synon states in her article, titled Draghi’s new plan to save the euro: ‘Goooood morning, Vietnam!’.

“He has been resisting it, apparently because bail-outs are for little people like the Portuguese and the Greeks, not for important Spain,” she adds.  “But Rajoy gets strong-armed. The EU-ECB-IMF troika designs a plan (which may or may not include IMF money). He has to sign.”

von Greyerz agrees, but falls short of speculating how the behind-the-scene politics will play out for a country like Spain to agree to unpopular cost-cutting measures at the nation-state level.

“There will be pressure from one country to the next,” von Greyerz continues, “and the ECB, European governments, the IMF, and the Fed, they will all be fighting to keep the system together and that will mean printing more money.”

Further speculation from other analysts is: if no signature to an IMF ‘package’, Rojoy must somehow resign to make room for another Goldman Sachs syndicate operator to take control of the country and sign—a la Greece.

All of that drama in Europe will take place before Nov. 6., according von Greyerz, who relays his recent observations of frantic activity in the paper gold market taking place behind the scenes.

Someone doesn’t believe any plan put forward by the ECB to stabilize the PIIGS will work, with a history of two previous plans by the troika having already failed.  This time, the big players are going for the physical gold, and its rumored that those creating a stir in the physical market come from the East.

“I need to add that we are now seeing a lot of fund managers and investors moving out of gold ETFs, and taking delivery of physical gold and holding it outside of the banking system,” he said.

“The reason for this is investors and asset managers are becoming deeply troubled at the thought of a systemic collapse, and the gold being encumbered inside the banking system in that circumstance.”

von Greyerz, KWN’s most bullish contributing analyst, believes the coming weeks will start the next leg higher in the gold price, with the bulls taking gold to bizarrely high levels as the result of the panic deliveries of physical gold and silver bullion (an observation also made coincidentally by one of Hat Trick Letter publisher Jim Willie’s sources).

“This move in gold and silver has barely started,” von Greyerz concludes.  “We will eventually see $100 up-days in gold, and silver will move several dollars in a single trading day.  So we will see an acceleration this autumn.

“We will reach these short-term targets of $50 in silver, and roughly $2,000 in gold.  But I would add that I expect gold to reach $4,000 to $5,000, and silver $150, without any major correction.”  The time frame for such a massive move, he has said in previous interviews with KWN, is 12 to 18 months.

Morgan Stanley Intentionally Set Up to Fail

By Dominique de Kevelioc de Bailleul

Knowing the financial system will never recover following the derivatives blowup at Bear Stearns of 2008, the next bank-broker-dealer intentionally slated by the Fed to collapse as the next bad bank is Morgan Stanley, according Hat Trick Letter publisher Jim Willie.

The evidence of the coming “killjob” on Morgan Stanley appears to jibe well with Willie’s thesis, but only an analyst who naturally doubles as detective with a flare for nailing down the criminal profile of the syndicate leaders earlier than most can also see what others may wrongly regard as paranoia.

“Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010,” Willie explained to readers of bullion dealer SilverDoctors.   “I call them the designated hitter for Wall St.  Why wasn’t it JP Morgan, BOA, or Goldman Sachs?  My theory is simple: THEY EXPECTED LATER TO KILL MORGAN STANLEY!”

Could the resignation of Morgan Stanley CEO John Mack in September of  2009 following the height of the March 2009 meltdown serve as a clue to the banking cartel’s plot?  Maybe Mack abruptly left the firm after receiving word from the NY Fed of his coming role as a placeholder for the Eccles boys who had plans to go completely rogue to the dark side.

That’s speculation, of course, and so is Willie’s latest supposition—but considering the mounds of obvious criminal activity riddled throughout the global financial system, revealed to the world following the fall of Lehman Brothers, and the sudden drop of the monicker ‘Crazy’ Jim Willie by the goldbugs when referring to him and his ‘crazy’ theories, reporting the next likely fraud by the bank cartel has turned into a lucrative cottage industry, led by Jim Willie, Max Keiser and the folks at GATA.

It turns out that there’s nothing more popular than true crime stories, and Willie’s analysis of the motive behind the scheme certainly dovetails nicely into what all good money managers and correctly-trained economists now know: the bond market wags all dogs, but lately something isn’t right.

Since the monster-size monied participants of the yield curve game attract the smartest and most staid of the lot of this otherwise filthy financial industry, the bond market, in the past, got it right far more many times than the ‘vigilantes’ got it wrong.  But has happened to the bond vigilantes?  Willie explains.

“Morgan Stanley created the false impression of a flight to safety in U.S. Treasury bonds,” states Willie.  “Take a look at the 10 year yield early in 2010.  It was moving up to the 3.5% range! Alarm bells were going off!

“They were talking about QE and bond monetization by the Fed! China was backing out of buying treasury bonds!  We had more supply, and less demand, and a rising 10-year yield.  Suddenly we had a tremendous ‘flight to safety’.  What a bunch of propaganda!”

But the risk to investors beyond a collapse of asset prices of equities and real estate can now include cash—once considered a risk-less asset.  Not anymore, according to Willie, and the failure of a big Wall Street fixture will wake the public up to the risks of holding any asset besides bullion (in your hand or storage outside of the banking system) is coming, and that firm will be Morgan Stanley.

“No one is protesting against these big banks for stealing from these segregated futures accounts.  It’s because they’re futures accounts! The point is they’re segregated private accounts, and in bankruptcy law they are first in line during bankruptcies!!

“This is very big, and I expect we’re going to see a jump into private brokerage accounts.  It doesn’t look like it’s going to be Merrill Lynch, it looks like it could be Morgan Stanley.”

Willie expects segregated accounts at Morgan will go the way of Sentinel—into the black hole.  Holding bullion is the last refuge to the U.S. investor.

Something VERY BIG is Coming to Silver

By Dominique de Kevelioc de Bailleul

Something truly very big is coming to the financial markets, and the precious metals are the place to be when that something big happens.

Too many analysts have come out lately, throwing around lofty targets to the price of gold and silver markets, and to take place within a very short period of time, for nothing concrete scheduled by global monetary ‘authorities’.

Something more than mere conjecture is at play.

The latest prediction for a moonshot in the silver market comes from Goldmoney Founder James Turk, who foresees, not only a massive short squeeze coming, but also surmises, at least, momentum also popping the top off the price of the poor-man’s monetary metal.

“I expect to see $68-$70 in 2-to-3 months,” Turk tells King World News (KWN), Monday.

Though incredible as that prediction may seem, others very close to the silver (and gold) market expect a similar explosive move in the metal.

“We could see those levels ($4,500 – $5,000 on gold) within a year and possibly much faster,” Swiss money manager Egon von Greyerz told KWN, Aug. 23. “This autumn we are going to have a very strong move.

“If we look at silver, silver is going to move a lot faster than gold,” he added.  “The same technical target for silver is $150.  That would move the gold/silver ratio down to 30/1.”

Whatever the catalyst for such an eye-popping move in the metals will be, someone in-the-know convinced GATA’s Bill Murphy that the coming news will be big—big enough to unleash silver from the grips of the JP Morgan-led cartel.

“The fellow I spoke with I’ve known for years, one of the wealthier men in all of Europe,” Murphy told the SGTreport, Jul. 19.  “He’s got a lot of connections . . . It will be tough for the gold and silver markets [during the month of July], but starting in August they would start to ‘go nuts’, and they would ‘stay nuts’ for a long time. . . Big, big moves are coming, starting in August.”

So far, Murphy’s source is spot on.

After briefly falling below $28, Aug. 20, the silver price soared $3.75 cents to $31.72, or 13.5 percent, to close out the month of August, breaking out of its 15-month-long descending trend line.

Could a truly favorable announcement from the CFTC regarding the JP Morgan manipulation scheme in the silver market be the catalyst for such a big move in silver?  Not likely.  But the news that could cause silver to “go nuts” might come from an announcement of another sort—a coordinated announcement by central bank of more ‘QE’, as JSMineset’s Jim Sinclair has suggested many months ago is inevitable.

It appears that Sinclair’s prediction, too, could be spot on, and if it were to come to pass, the flood of cash into the gold and silver market from hedge fund and institutional money managers would provide the needed ammunition to overwhelm JP Morgan’s price suppression scheme.

“Central banks need to take a more international perspective, recognize their collective influence and take into account monetary policy spillovers,” Jaime Caruana, general manager of the Bank for International Settlements told policymakers at Jackson Hole, Montana, the annual venue for central bankers.

The source of that quote comes from Reuters’ Alister Bull, who added, “Bernanke, in the audience at the luncheon address, did not flatly reject the suggestion, but he noted that a discussion about international monetary policy cooperation also implied cooperation on foreign exchange rates.”

After witnessing the effects on financial markets due to rapidly changing exchange rates leading up the 1987 stock market crash and the exacerbation of the Asian currency crisis of 1997-8, central planners won’t want to repeat that exercise.

The implications of a global coordination to debase the worlds major currencies are unprecedented in monetary history, as analysts outside of Wall Street’s “Hall of Mirrors” (as Jim Grant referred to the Fed’s deception) warn investors that the purpose of further central banking ‘easing’ beyond the already-failed economic growth policies of QE1 and QE2 has more to do with maintaining the illusion of solvency than these programs have done for economic expansion.

“For the first approximately 50 years of the last century, every additional $1 of debt in the U.S. created $4.60 of (additional) GDP,” von Greyerz told KWN, Aug. 30.  “In the last 10 years, every new dollar of debt has created 6 cents of GDP.”

But unlike the stock market crash of 1987 and Asian currency crisis, investors will have no strong currency with a deep enough market to sidestep a simultaneous devaluation of the world’s major fiat currencies.

The Swiss franc is loosely pegged to the euro; the BOJ is likely to be apart of the global coordination, along with the BOE; the Aussie and Canadian dollar are too small of a market; the Chinese will also be easing, according to Jim Rickards; and emerging market currencies that depend on healthy developed economies will ease as well in an effort to ameliorate a further drop off in exports due to a rise in their currencies against the dollar and euro.

For the first time in monetary history, the entire globe will embark on a currency debasement scheme, forced upon all nations by the Fed, primarily, and the ECB, secondarily, which, together, represent approximately 89 percent of all currency reserves held by central banks.

According to Goldmoney’s Turk, that scenario is the setup for what he refers to as “stage II” of the silver bull market—a stage in which the rallies are long and the rising prices attract institutional money as well as the wealthy retail investor into the market.

A move past the all-time high of $52 to Turk’s $70 target means that “silver is finally entering stage II of its bull market,” Turk tells KWN’s Eric King.  “That is when it will really gets exciting, Eric.  The first stage of a bull market, which is the one we are now in for silver, is always the boring part.

If a move in the silver price from $17.50 to nearly $50—within an eight-month period, beginning Aug. 2010 and ending Apr. 2011—is the “boring part,” the heights in store for silver investors during stage II could make some silver ‘stackers’ very rich, indeed.

Marc Faber Agrees, ‘Get the Hell Out’

By Dominique de Kevelioc de Bailleul

The message to investors should be most clear by now: Quickly get your cash out of financial institutions and buy some gold.

“It’s very dangerous to put everything in cash with MF Global or another financial institution, because I’m not too sure about the law . . . if the law will protect you as a depositor or an account holder,” editor of the Gloom Boom Doom Report Marc Faber tells Bloomberg.

Whether the messenger comes way of an up-straight and straight-up N.Y. City Italian, an exiled American living in Central America, a young woman totting firearms and a Bible, or an eccentric Swiss-born money manager living in Chiang Mai, Thailand, each warn investors and savers that cash on account is not safe at financial institutions—no matter how much the FDIC or SIPC insures.

Gerald Celente, Jim Willie, Ann Barnhardt and, now, Marc Faber warn the runs on Greek, Spanish, Italian and several Eastern European banks will eventually come to the U.S.  And if investors and savers think they’re covered in the event of a failure, a media-downplayed ruling by United States Court of Appeals for the Seventh Circuit of Aug. 9, regarding the bankruptcy case of Sentinel Management Group, too many will come to know that their cash is most definitely exposed to what many say is legal theft.

“The system is rigged. . . if you don’t have it [assets] in your possession, you don’t own it,” said Celente, following word that his commodities brokerage account was seized in Jon Corzine’s MF Global bankruptcy of Oct. 31, 2011.

“JPM has seen fit to gobble private accounts at both MF Global and PFG-Best, with regulatory blessing as the courts sprinkled fascist holy water,” writes Jim Willie of the Golden Jackass newsletter.

“If you don’t understand what ‘get the hell out’ means, there’s not much I can do for you,” Ann Barnhardt commented, after hearing of the Seventh Circuit of Appeals ruling.

In the case of Sentinel, its creditor, BNY Mellon, contended that its secured loan with the Chicago futures brokerage firm takes priority over other loans which may have been secured by Sentinel’s pledge of allocated accounts.

“The appeals court affirmed an earlier district court ruling that the bank had a ‘secured position’ on a $312 million loan it gave to Sentinel, which turned out to have been secured by customer money,” according to Reuters of Aug. 9.

“I don’t think that’s what the Commodity Futures Trading Commission had in mind” with its requirement that brokers keep customer money separate from their own,” Reuters quoted Sentinel trustee Fred Grede.

“It does not bode well for the protection of customer funds,” he added, “I’m sure Mr. Corzine’s attorneys will get a hold of this ruling and use it for all it’s worth.”

Other than strongly recommending that idle cash be removed from U.S. banks and broker-dealers, Faber says investors and savers, alike, should hold some gold to protect their savings from another insidious means of ‘institutional’ theft in store from them in the future: the loss of purchasing power of their Federal Reserve notes.

“I think they [Fed] will print money and that eventually everything will become more expensive. . . and I would hold some gold . . . and I would hold some equities,” he says.

“And I happen to think that one day a lot of corporate bonds will have a higher credit rating than the U.S. government [bonds],” he adds, which coincidentally comes on the same day as another Bloomberg interview with credit rating agency Fitch, who warns the U.S. Treasury of an impending downgrade, if Congress cannot outline plans sometime in the first half of 2013 to narrow a $1.3 trillion annual budget deficit.