GLD ETF Raid Imminent as China Flushes JP Morgan of Physical

Sources close to newsletter writer Jim Willie of the Hat Trick Letter tell him the Chinese are finally putting an end to the Fed-sponsored JP Morgan’s gold manipulation scheme—but not until the Eastern juggernaut strips every ounce of physical gold in a brilliant Sun Tzu maneuver against the Comex gold cartel.

With the cartel levered as much as an estimated 100-to-one in the gold market, JP Morgan is trapped into a game it cannot win in the end.  As normal market forces seek higher prices to quell demand, JP Morgan’s price suppression activities only serve to hasten the day when the gold price will be set free—but on China’s timetable and at a level of gold stock the Eastern giant feels comfortable stripping before crushing the hold of the G-8 and the menacing U.S. dollar standard from which China wishes to extricate itself.

“My firm belief is that a fair equitable gold price will come only after the price goes dark in the normal traditional paper dominated channels,” Willie began his update of the gold market in a piece posted on, suggesting that, at some point, the price quoted at the Comex will be revealed as merely a camouflaged official price-fixing mechanism to throw off traders into thinking rallies and plunges in the price of gold are part of a normal price discovery process.

In other words, instead of Treasury announcing on a periodic basis a new pegged price for gold under a broken Bretton Woods configuration, the U.S. can lever dollar against ridiculously low gold reserves to match the dismally low dollar reserves against assets held on the books of Fed member banks via JP Morgan’s gold manipulation scheme.

The customer(s) of JP Morgan that Blythe Masters had referred to in an interview with CNBC is, accounting for the lion’s share in terms of dollar volume, the Fed itself—which makes sense in that JP Morgan is one of the owners of the Fed (contrary to the obfuscation presented on the Fed’s Web site).

“We store significant amounts of commodities, for instance silver [gold for instance], on behalf of customers. We operate vaults in New York City, in Singapore and in London. Often when customers have that metal stored in our facilities they hedge it on a forward basis through JPMorgan, which in turn hedges in the commodities market,” Masters told CNBC on Apr. 5. Emphasis added to text.

“If you see only the hedges and our activity in the futures market but you aren’t aware of the underlying client position that we’re hedging, then it would suggest inaccurately that we’re running a large directional position,” she added. “In fact that’s not the case at all. We have offsetting positions. We have no stake in whether prices rise or decline.”

At a ratio of approximately 100-to-one of paper “hedges” against physical gold, the only customer who would be large enough to cover such a bet for JP Morgan would be a printing press—the Fed.

Back to Willie.  He goes on to say in his article that the “Eastern coalition” has been stripping JP Morgan of physical gold at intervals of $10 in a “reverse pyramid,” or higher amounts of buy orders as the price drops.  As the Chinese lay a net of buy orders of physical during the massive de-leveraging process conducted by the European banks, the gold sold by the EU in an effort to remain liquid shifts from the West to East at fire sale prices made possible by JP Morgan’s paper shorts throughout the gold bull market.

“The gold price will not rise until the Eastern Coalition has had their fill in a Western diet rich in gold,” Willie stated.  “ . . . In the process of de-leveraging, the cartel is losing their gold bullion. They are vulnerable, made worse by their insolvency, aggravated by their lack of liquidity. The paper gold price is imploding, but not the physical price.”

Willie’s intelligence of renewed aggressive Eastern alliance gold buying—as well as the just-released news flash from Reuters of Vladimir Putin’s decision to skip the G-8 summit—appear to dovetail at this time with geopolitical events concerning Iran.  Though Russia is a member of the G-8, China is not.  Escalating aggression by the U.S. against Iran has pushed Iranian allies China and Russia into a formidable alliance against America and may explain Russia’s abstention from the meeting in a show of allegiance with China against their mutual enemy in battle for another gold—black gold—oil.

If the U.S. can secure Iranian oil, China loses its leverage in the currency war and its timetable for the renminbi to be elevated as a world’s reserve currency—which the Russians would benefit as well, as the ruble would be elevated (and included in the proposed SDR with the renminbi) as dollars leave the oil market through bilateral trade agreements forged by anti-American forces, globally.

Gold market insiders sense that, as Willie reports, China and its Eastern partners have a window of opportunity before the U.S. presidential election and/or a Fed announcement of more QE to accumulate as much gold as possible before the gold price moves higher to relieve the massive physical buying at the hands of the Chinese.

But it appears the U.S. could buy more time in the event of a gold raid by the Chinese (akin to Europe’s raid on U.S. gold during the late 1960s) as a force majeure in the gold market would collapse the dollar and the means of funding U.S. military operations against Iran and countless other operations hostile to China and Russia.  That physical gold, not available to JP Morgan, would need to come from the confiscation of private gold assets, such as those held for the Barclay GLD ETF.

“Unfortunately, the Eastern gold raids waged against the Western gold cartel might be satisfied with gold bullion pulled from the back door of the GLD exchange traded fund. As the Eastern Coalition observes the de-leverage process and swoops to exploit the insolvent condition compounded by lack of liquidity, the demands made on cartel member gold reserves might come from the GLD fund itself,” Willie speculated.

He added, “The cartel simply shorts the GLD stock, entitling themselves to vast truckloads of GLD gold bars in illicit grabs. The tracks are covered by altered bar lists, whose track record is so abysmal and faulty that new covered tracks are easily made. The GLD fund is destined for a day like Madoff and Corzine before the Congress, but with far more lawsuits. Given the vast conduits between Europe and the United States, any event triggered on the continent will extend quickly to the U.S. and UK.”

Gold traders should realize that Willie’s analysis strikes at the heart of the U.S. dollar, taking Jim Rickard’s thesis to a much deeper and poignant level—a level that Rickards will not dare to go.

In fact, Rickards told TruNews radio that investors of gold will be disappointed by a probably confiscatory tax of “90 percent” on gold held by American citizens, leaving that Rickards comment to beg the question: then where do Americans go to flee the dollar?

The answer is still—GOLD!—and the corollary? Store it outside the jurisdiction of the U.S. and away from a criminal Washington hell bent to sacrifice every American in its effort to achieve its objectives.  But Rickards, the DoD consultant, won’t tell you that, which suggests to anyone who listens to him that it is futile to protect yourself from a fascist U.S. government intent on sacrificing a nation’s privately-held treasure for its globalist agenda.

Firing of S&P CEO signals Gold to Soar

Washington’s desperation to contain the inevitable fall of the U.S. dollar reared its ugly head once again yesterday, as the CEO of Standard & Poor’s Deven Sharma was fired as the rating agency’s head, and serves as a warning to others that this could happen to you for telling the truth.

Like NY Attorney General Elliot Spitzer, IMF Chief Dominique Straus-Kahn, and a number of U.S.-installed North African and Middle East dictators, Sharma (presumably a clean guy) has become the latest casualty in the war for preserving U.S. dollar hegemony.

Plausible reasons for Sharma’s departure surely will be forthcoming.  But the truth of Sharma’s departure is most likely due to his reluctance to contribute  further to the coverup of the U.S. debt Ponzi scheme now reaching the critical collapse stage.

Essentially, theft of property (beyond income and property taxes as well as fees and fines levied above the true cost to government) by overt force, or though currency chicanery, is a war on the American people and its overseas creditors.  And when a citizen of the U.S. is deprived of his livelihood for the sake of continuing the deception of U.S. profligacy and phony wars built upon the dollar’s primary reserve status, he becomes a casualty of that war.

Experience proves that the man who obstructs a war in which his nation is engaged, no matter whether right or wrong, occupies no enviable place in life or history.

—Ulysses S. Grant

No one will remember Sharma for seeking to right S&P’s shameful record.  Unlike Rep. Ron Paul, Sharma can be fired.  There’s no need to unleash the FBI to set up the target with criminal activity, or export inflation to poor countries in an effort to depose unneeded U.S. dictators through the guise of a “democratic” revolution; just fire the guy to let others know what happens to “snitches.”

Arguably, Sharma may have gotten off easily from the mob this time; he could have fallen victim to the “whistle blower” Andrew Maguire botched automobile hit-and-run job, which was executed within mere hours of his testimony about the JP Morgan gold and silver manipulation scheme at a CFTC hearing earlier this year.

So what does the Sharma story have to do with the price of gold?  Everything.

Sharma’s abrupt dismissal underscores the underlying ruthlessness of a U.S. government, taking its rogue operations to the next level—in the open, for everyone to see—which will serve as a warning to others on the “good guys” side  who dare come clean on the merits of escalating the war on American citizens and U.S. creditors.

But when the “bad guys” expose the truth, mom-and-pop-front-porch won’t take it seriously.  After all, he is the bad guy, you know.  Besides, taking on Libya’s Gaddafi is one thing.  Taking on Russia’s Putin is another.

“Thank God … we do not print the reserve currency. But what are they stirring up? They are simply acting like hooligans,” Putin said in Moscow in mid-July regarding the Fed’s quantitative easing programs.

“They turn on the printing presses and fling them (dollars) over the entire world to resolve their immediate tasks,” he added.  “They say monopolies are bad but only if they are foreign — their own are good. So they use their monopoly on printing money to the full.”

The only way the dollar can be debased in an orderly manner is for investors holding the dollar to continue believing it still will maintain its value (relative to other debauched currencies, of course), which is the point of Putin’s comment when he said “to resolve their immediate tasks,” and the point S&P’s Sharma made by downgrading U.S. sovereign debt.

Angering the world’s leaders through sadistic methods of currency devaluations, and firing of a man who shouts, “the emperor has no clothes” in plain view of the world, smells of desperation in Washington.  The firing of Shama is another signal of a gold and silver market very near hyperbolic moves—moves that hard-money advocates have been forecasting for as far back as 10 years ago.

The last time U.S. policymakers ticked off world leaders through reckless monetary and fiscal policy to the extent they have done so since 2008 was during the 60′s and the Vietnam War.  And we know what happened to the dollar relative to gold during the 70s.

Back then, it was French President Charles de Gaul who led the charge on Ft. Knox in an attempt to rein back reckless U.S. spending and dollar devaluations.  Today, with the blatant disregard for the leadership role the U.S. has taken on as the administrator of the world’s premiere reserve currency, it appears that Venezuela President Hugo Chavez will attempt to fill the size-15 shoes of the great de Gaul, while S&P’s Deven Sharma takes the bullet for the American people and its foreign creditors.