U.S. Intelligence Suspected of Killing CFTC Silver Manipulation Case Against JP Morgan

By Dominique de Kevelioc de Bailleul

“Four-year silver probe set to be dropped,” FT titles its piece Monday regarding the JP Morgan silver manipulation scandal.

According to FT:

A four-year investigation into the possible manipulation of the the silver market looks increasingly likely to be dropped after US regulators failed to find enough evidence to support a legal case, according to three people familiar with the situation. . .

In 2010, Bart Chilton, a CFTC commissioner, said that he believed there had been “fraudulent efforts” to “deviously control” the silver price.

But after taking advice from two external consultancies, the first of which found irregularities on certain trading dates that it believed deserved more analysis, CFTC staff do not have sufficient evidence to bring a case, according to the people familiar with the situation.

Though Ted Butler, GATA and Andrew Maguire have provided the ‘watchdog’ agency with a drivers licenses of the suspects, a video tape of the incidents, the address of the assailants and the usual time they sit down for dinner, two mysterious “external consultants” believe that the “CFTC staff do not have sufficient evidence to bring a case.”

Therefore, the refusal of the CFTC to hand over the ‘smoking gun’ evidence to the U.S. Department of Justice in the JP Morgan case is no longer the issue for silver bugs to seek relief; the issue now becomes: Why won’t charges ever be filed against Jamie Dimon?

On May 5, 2006, then-President George W. Bush essentially handed over Wall Street, COMEX and CME to the Director of National Intelligence (DNI), a spy agency created in Dec. 17, 2004.  In essence, with the signing of the Intelligence Reform and Terrorism Prevention Act of 2004, anything that truly matters in the financial markets ultimately has no democratic oversight to protect market participants.

From the Business Week article of May 2006 (no longer available online):

Intelligence Czar Can Waive SEC Rules

Now, the White House’s top spymaster can cite national security to exempt businesses from reporting requirements.

President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.

AUTHORITY GRANTED. William McLucas, the Securities & Exchange Commission’s former enforcement chief, suggested that the ability to conceal financial information in the name of national security could lead some companies “to play fast and loose with their numbers.” McLucas, a partner at the law firm Wilmer Cutler Pickering Hale & Dorr in Washington, added: “It could be that you have a bunch of books and records out there that no one knows about.”

The memo Bush signed on May 5, which was published seven days later in the Federal Register, had the unrevealing title “Assignment of Function Relating to Granting of Authority for Issuance of Certain Directives: Memorandum for the Director of National Intelligence.” In the document, Bush addressed Negroponte, saying: “I hereby assign to you the function of the President under section 13(b)(3)(A) of the Securities Exchange Act of 1934, as amended.”

A trip to the statute books showed that the amended version of the 1934 act states that “with respect to matters concerning the national security of the United States,” the President or the head of an Executive Branch agency may exempt companies from certain critical legal obligations. These obligations include keeping accurate “books, records, and accounts” and maintaining “a system of internal accounting controls sufficient” to ensure the propriety of financial transactions and the preparation of financial statements in compliance with “generally accepted accounting principles.”

Knowing how the National Security Agency (NSA) has worked in the past, it, also, should not be too surprising that the ‘smoking gun’ witness to JP Morgan’s blatant manipulation of the silver market, Andrew Maguire (and his wife), was attacked by a hit man in a hit-and-run car assault the day following his damaging testimony against JP Morgan at a CFTC hearing of Mar. 25, 2010.

Here’s where the DNI may have stepped in to squash the CFTC investigation into JP Morgan and, possibly, took action to permanently squash Andrew Maguire, too.

At the time of the attack on Maguire, the highly-controversial Admiral Dennis C. Blair was on duty as director of national intelligence (Jan. 29, 2009 – May 28, 2010).

The U.S. economic collapse “already looms as the most serious one in decades, if not in centuries,” Blair told the Senate Intelligence Committee on Feb. 12, 2009.

“Time is probably our greatest threat,” Blair added. “The longer it takes for the recovery to begin, the greater the likelihood of serious damage to U.S. strategic interests.”

Nearly a year later, Feb. 3, 2010, Blair testified again before Congress, and said, “If that direct action–we think that direct action will involve killing an American, we get specific permission to do that. … I would rather go into details in closed session, Mr. Chairman, but we don’t target people for free speech. We target them for taking action that threatens Americans or has resulted in it.”

Blair added, “Being a U.S. citizen will not spare an American from getting assassinated by military or intelligence operatives overseas if the individual is working with terrorists and planning to attack fellow Americans.”

Those two ‘external consultants’ who ‘advised’ the CFTC to drop the case against JP Morgan may have come from the DNI, citing national security interests, of course.

And as far as Andrew Maguire, it may have been a pure coincidence that the director of national intelligence at the time of his hearing with the CFTC was a loose cannon, Blair, a possible psychopath.  Was the DNI behind the hit-and-run of Andrew Maguire and his wife?

For more information on Blair’s checkered past, including disobeying direct orders, suspicions of perjury and other dishonorable accusations, read about him on Wiki.

Gold & Silver: Go “All-In”

By Dominique de Kevelioc de Bailleul

Calls for the Fed to make a QE announcement in September by Jim Rickards and John Taylor got another handicapper, Michael Pento, to go on the record for a likely announcement following the annual Jackson Hole meeting of the world’s central bankers in late August.

“My first impression was that the reports we had from the Wall Street Journal that the Fed was imminently going to interfere with the markets (with more QE), once again proved to be untrue,” Pento told King World NewsThursday.  “Bernanke is waiting for Jackson Hole.  He’ll make some kind of announcement, like he did back in 2010, and then he will start to put his plan to destroy the currency in effect, probably in September.”

That’s the situation in the U.S., as Pento sees it.  But within the EU, the situation is more dire and murky.  Laws there don’t allow for the ECB to intervene in the bond market like the Fed can.  But Pento has drawn the same conclusion as former Asst. Secretary of Treasury Paul Craig Roberts has: the laws will be broken in Europe—again, Germany’s outrage to the suggestion that the euro be monetized away will be ignored, and the EU will be taken over by a supranational cabal.

“In my estimation, the ECB is about three or four weeks away from giving a banking license to the EFSF and the ESM,” said Pento.  “This will lead to unlimited purchases of European debt, and an unlimited dilution to their currency.”

With Spanish 10-year yields soaring back over 7 percent today, ECB President Mario Draghi’s “do whatever it takes to preserve the eurozone” speech to save the euro from cracking 1.20 lasted only three days.  After touching approximately 6.5 percent Tuesday, the 10-year yield soared right back up past the 7 percent mark Thursday, likely putting more pressure on the euro in the coming days.

In the meantime, ‘main stream media (MSM)’ paints a picture of Draghi as an independent, yet dependent, central banker, pointing to the hurdles of corralling 17 sovereign nations before the ECB can intervene in a Fed-like manner to purchase Spanish sovereigns, implying that Draghi is in a box and panicked Monday when he awoke to a 7.6 percent Spanish yield.

“From a communication point of view, he [Draghi] misguided the markets,” Commerzbank’s chief economist Jörg Krämer told the New York Times. “He raised expectations which he could not fulfill.”

Analysis such as Kramer’s observation of what the ECB can or cannot do is either naive or intentionally misleading the markets, according to former U.S. Asst. Secretary of Treasury Paul Craig Roberts.

In an interview with Slovakia’s TV24li, Roberts stated that Greece and Italy have been taken over by former Goldman Sachs bureaucrats in Europe, with Italy’s president and entire cabinet appointed by those close to the nefarious U.S. investment banker.  The entire drama played out in Europe is a scam to save banks and to consolidate power to a supranational body, according to Roberts.

“Democracy [in Europe] is being destroyed.  And of course the EU bureaucrats are using the crisis [in the EU] to takeover the economic policies of the individual countries,” said Roberts.  “They say, we can’t trust the governments.  Look what’s happened, and so we are going to consolidate and we will make the tax decisions, budgets decisions for all the countries.”

To Pento’s credit, he’s picked up on Robert’s theme playing out in Europe, and has advised clients of Pento Portfolio Strategies to expect a dual last-minute ‘stick save’ from both the Fed and ECB.  Reports by the MSM of an imminent death of the euro are greatly exaggerated, he speculated.

“I am telling my clients, I am gearing them towards the inevitable inflation.  But I think it’s silly to go ‘all-in’ right now,” Pento concluded.  “We have significant holdings in precious metals and we have written covered calls against that strategy.” Then, we are ready to go all-in once we have a firm commitment on the part of these two central bankers to massively monetize the debt.”

Watch for Bernanke’s speech at Jackson Hole for hints of a ‘favorable’  announcement following the FOMC meeting in September.  All inflation-sensitive assets should soar, “but you will see the most salient moves in precious metals, base metals, energy and agricultural stocks and commodities,” he said.

Imminent Silver Price Explosion!

By Dominique de Kevelioc de Bailleul

Silver has perked its head up and sniffed the next round to hyperinflation is on the way.  Load up the truck; it’s expected to be the best ride, yet.  Here’s why:

No less than three articles penned by well-placed journalists at the ‘establishment’ rags of the Wall Street Journal, Financial Times and the Economist were launched within days of each other, with all three ‘suggesting’ that Bernanke better start stirring-up the animal spirits—on the pronto!

Jon Hilsenrath of the Wall Street Journal, the man who the straight-shooting Stephen Roach of Morgan Stanley calls the real chairman of the Fed, wrote Wednesday, following the dismal U.S. GDP report:

A few quick thoughts on GDP report out this morning:

Key price indexes are uniformly running below the Federal Reserve’s 2% objective. The personal consumption expenditures price index was up 1.6% from a year ago, thanks in part to falling gasoline prices. This is the price index that the Fed watches most closely, more so than the consumer price index produced by the Labor Department, which is running a touch higher. Excluding food and energy, the PCE price index was up 1.8% from a year ago. The Fed watches this ex-food-and-energy index to get a read on underlying inflation trends. For the quarter at an annual rate, the PCE price index ran at 0.7% and excluding food and energy it ran at 1.8%. An alternate measure, the “market-based” price index, is also running below 2%. This is ammunition for Fed officials who want to act right away to spur growth. Not only is growth subpar, and the job market stuck in the mud, inflation is also running below the Fed’s long-run goals.

Final sales of domestic product — a measure of how the economy is doing when you take out inventory swings – up at a 1.2% rate in Q2 and averaging a 1.7% rate since 2011. That’s really substandard for a recovery.

That’s the first polite salvo at Bernanke.

Now from Greg Ip of the Economist.  Ip is Europe’s version of Wall Street Journal’s Hilsenrath, but it’s all the same as far as the American-European central bank alliance is concerned, with the Depression of 1873-79, the banking crisis of 1907, the brief but deep Depression of 1921, and the Depression of 1930-1945 to serve as stark reminders that the two economies are inexorably tied at the hip.

Ip piece for the Economist was written with the point of view of an article he would write in 2021, looking back at monetary policy of 2012.  A blog entry about Ip’s piece can be found at Zerohedge.com.

In the fall of 2012, Greece abrogated its bail-out agreement with the IMF, European Union and ECB, declared a moratorium on all external debt payments, and began paying domestic bills with IOUs that it then declared legal tender. The ECB cut off Greece’s banks, Greece responded with capital controls, and relabeled its IOUs “new drachmas” which quickly plunged to 35 euro cents. Bank runs immediately commenced throughout the periphery; bond yields in Spain shot over 7%; global stock markets cratered.

The ECB was finally forced to act to save the euro: it announced it would buy as many bonds as necessary to cap all sovereign yields at 6%, with the exception of Greece. The ECB never had to buy any bonds: investors no longer had any reason to sell since the ECB had taken insolvency off the table.

Days later, the ECB president destroyed the euro shorts during a press conference.

“Within our mandate, the ECB is ready to do whatever it takes to preserve the euro,” ECB President Mario Draghi told reports last week.  “And believe me, it will be enough.”

UBS’s Art Cashin commented on Draghi’s surprise market-moving jawbone antic:

“Mario Draghi’s comments stunned the markets,” stated Cashin.  “What prompted the timing of his move?”

Referring back to Ip’s article, Cashin continued, “Wait a minute! That [article] sounds rather close to what Mr. Draghi was discussing. Coincidence? Probably, but the timing is stunning. Somewhat like the simultaneous but separate development of calculus by Isaac Newton and Gottfried Leibniz in the early 1600′s.”

Unlike Morgan Stanley Roach’s direct style, Cashin’s more-diplomatic observation nonetheless delivers the point.

And to complete the shock-and-awe three-man series of salvos from the mouthpieces of the ‘establishment’, Council on Foreign Relations commissar Sebastian Mallaby of Financial Times wrote Tuesday:

 . . . the Fed could couple more quantitative easing with a formal announcement of a higher inflation target.  Some Fed leaders are open to this. Charles Evans, the Chicago Fed president, has floated the idea of a 3 per cent target, effective until unemployment falls below 7 per cent. A higher inflation target would lead markets to understand the Fed is committed to quantitative easing of game-changing magnitude, inducing the behavioural shifts needed to make the policy succeed.

The Bernanke Fed has been pilloried for pursuing wild quantitative easing at the risk of inflation. The truth is that it has pursued cautious quantitative easing without risking inflation. The time has come for some fresh thinking. A Fed that can escape the myth of its audacity might be able to do more.

Inflation isn’t a problem, according to Mallaby, though ShadowStat’s John Williams’ reconstruction of M2 reveals a 15 percent growth rate doesn’t quite jibe with Mallaby’s neoclassical assertion.

And according to Williams, further money printing is, not only expected by the Fed, it will lead to hyperinflation by the end of 2014.

Not too surprisingly, no one really expected central banks to repeat a Wiemar scenario so quickly, including Williams, who, after witnessing central bankers unleash the printing presses following the aftermath of the collapse of Lehman, pushed up his forecast for toilet paper money to 2014, from 2019-20.

And the conclusion that can be drawn from all of that jibber-jabber from the ‘establishment’s’ prestitutes?

FX Concepts’ currency expert extraordinaire John Taylor told Bloomberg News Monday, “I think something’s going to happen on Tuesday, Wednesday, obviously reported Wednesday,” referring to the FOMC meeting this week.  “And mostly likely it’s going to be Bernanke teasing us a little bit, you know, that QE is coming.”

“September it’s [a formal announcement of more QE] coming,” Taylor said.

Gold Bears Will Be Shanghaied

By Dominique de Kevelioc de Bailleul

Gold bears expecting the ‘gold bubble’ to pop must be smoking that funny stuff left over from the two opium wars of the mid-1800s between the British and China.  Today’s war with China finds the Son of Britain attempting a variation of the same colonialist trick by forcing, this time, funny money onto the Chinese.

Not only is Uncle Shunyuan not falling for Uncle Sam’s modern-day sharecropper scheme of purchasing real goods with counterfeit money, Americans will soon wake up to the realization that, in addition to their jobs being sent to China, their wealth, too, has set sail for the Middle Kingdom.

Those soon-to-be worthless dollars promised by Uncle Sam to retirees to pay for their golden years are being traded in for gold at an alarming rate in China.  Soon, even the gold bears will have to admit they’ve been Shanghaied.

“China’s underlying financial policy is to sideline the U.S. dollar and build its domestic metals inventories, notably of gold and silver and using these to replace its huge dollar surpluses while prices are cheap,” Silver-Coin-Investor.com’s Dr. Jeff Lewis stated in a recent article, China’s move into gold and silver part of global monetary plan.

Lewis goes on to state that irrespective of China’s economy experiencing a proverbial soft or hard landing, Beijing’s near “panic” to acquire as much of the yellow metal as a means of protecting its monstrous reserves—and to protect its citizens from a collapsing 21st century colonialist empire behaving like a cornered rat—is, by far, a more pertinent issue to China’s long-term strategic goals.

“China mined a total of 355 tons, which was by far the largest amount of gold mined for any country,” Stephen Leeb told King World News, Tuesday.  “And yet they are still buying every single available ounce they can get in the open market.

“ . . . gold has become increasingly important and China has encouraged its citizenry to buy gold,” added the author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life.  “With the stock market already frustrating people in China, the Chinese, interestingly, will not want gold to be added to that list of frustrations for their investing public.”

As a reminder of a WikiLeaks cable released last year, published by its Aussie founder Julian Assange (a traitor, of course—or stooge?), the Chinese are quite aware of the dollar’s role for maintaining the neoconservative goal of complete global U.S. hegemony; and with Russia’s help, along with the other motivated members of the BRICS nations, Uncle Sam’s meddling, threatening, extorting, bribing and swindling ways with its ‘partners’ in the The-World-is-Flat nonsense, the U.S. will assuredly near its MF Global sudden death moment—but on China’s timetable, at the very latest.

US embassy cable – 09BEIJING1134

MEDIA REACTION: U.S.-CHINA-JAPAN RELATIONS, U.S. POLICY, CHINA’S GOLD RESERVES

3. CHINA’S GOLD RESERVES

“China increases its gold reserves in order to kill two birds with one stone”

“The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): “According to China’s National Foreign Exchanges Administration China ‘s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.[emphasis added]

Back to Leeb, who believes the Chinese won’t delay its “frantic” accumulation of gold by finessing better gold prices.  Instead, Beijing has surreptitiously established a floor under the gold market in the mid-$1,500 area, as it catches as much falling metal from the pockets of the upside-down logic of the gold bears, who still believe (conveniently serving as useful idiots to the Chinese) the safety trade remains with the U.S. dollar.  Beijing has high hopes for U.S. investors to remain ‘stoned’ for as long as possible.

“In the past, if the Chinese could step out of the way and let gold tumble in price so they could purchase it cheaper they would,” said Leeb.  “Right now I think they just don’t want to add to their citizen’s frustrations with key markets, gold being one of them.  If I’m right, then the Chinese will continue to support the price of this metal.”

Sprott Asset Management Chief Investment Strategist John Embry, another regular of King World News, agreed with Leeb.  In Embry’s interview with Eric King, Tuesday, he intimated that the Fed must allow the gold price to rise very soon to stop a Charles de Gaulle run on the gold market by the Chinese.

Embry also echoes Goldmoney’s James Turk’s daredevil prediction that August will be the month the Chinese will be stopped from buying “cheap” gold due to apparent shortages of the physical metal seen coming.  The theory goes: higher prices create marginally higher supplies.

“We are moving toward a fundamental shortage of gold, and I believe it may start as soon as next month,” Embry proffered.  “I think the bottom is being put in right now . . .

“But this action is all just building a massive base in gold.  I think the big issue going forward is this growing shortage of available physical gold.  I strongly believe one of the reasons for the shortage is a lot of it is headed East. [emphasis added].

“The last four or five months of the year gold should challenge and easily take out its all-time high.”

“Big, Big Moves” in Gold Price in August, Elite Insider Leaks to GATA

By Dominique de Kevelioc de Bailleul

As early as 10 days, the gold price will suddenly explode to the upside, according to one of Europe’s elite.  Moreover, the European tycoon also explained why the silver price soared approximately 150 percent to nearly $50 within an eight-month period of Sept. 2010 and Apr. 2011.

Speaking with SGTreport host Brandon Smith, Chairman Bill Murphy of Gold Anti-Trust Action Committee (GATA) said a longtime British “contact” told him that the month of August will usher in an event which will shock traders into buying the gold and silver bullion market aggressively again.

“The fellow I spoke with I’ve known for years, one of the wealthier men in all of Europe,” said Murphy.  “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.”

Murphy continued with the suggestion that the “big, big move”, starting in August, could possibly be triggered as a result of an announcement by the CFTC regarding its nearly four-year-long investigation into charges of silver market manipulation practices leveled against mega-banks JP Morgan and HSBC, the two banks that Murphy and his associates at GATA have accused for more than a decade as the kingpins of the gold and silver market cartel.

“I’ve a great deal of respect for Bart Chilton, one of their commissioners,” Murphy explained.  “I’ve met him twice—communicate with him here and there—he doesn’t tell me anything he can’t—but he told me . . . I don’t know . . . two, three months ago, that we should be hearing something [announcement] in three or four months, either way.  So, that would put it [the announcement] in August.”

Echoing predictions for a late-summer rally in the precious metals market, Goldmoney’s James Turk, told King World News, Jul. 16, the factors that soared precious metals prices in 2007, 2008 and 2010 are, again, in place for another stellar move to the upside this summer, as well.

According to Turk, in addition to the volatile credit markets in Europe, prices of food commodities are expected to jump sharply in August in response to global drought conditions, including severe drought conditions in the world’s breadbasket, the United States, not witnessed since the 1950s.  Turk expects the commodities market to spark another eye-popping move in the precious metals.

“There is a new factor at work that is about to light a fire under the precious metals that few people recognize – food inflation,” said Turk.  “It was one of the key drivers in the summer of 2010 which launched the huge rally that eventually took silver near $50 and gold to a new record over $1900.

“Food inflation was also a factor in the big run-up of the precious metals in 2007, and early 2008, when food riots broke out around the globe because of high prices,” added Turk, and conclude, “food inflation will again become one of the drivers sending gold, silver and the mining shares much higher from here.

“The summer doldrums are over.  Gold and silver are ready to get exciting once again.  We can expect a rally from here that will take our breath away.”

Silver Manipulation: CFTC v. Dollar Hegemony

By Dominique de Kevelioc de Bailleul

If the silver community expects satisfaction out of CFTC Commissioner Bart Chilton and his ‘colleagues’ at the commodities future trading ‘watchdog’, don’t expect any!  Get it out of your mind.

As a reminder, the Silver Doctors published an email of Bart Chilton’s response to their inquiries into the matter of the silver manipulation investigation—as in, why is it taking so damn long to resolve?!  In short, Chilton stated he expects the results of the investigation will be released by Oct. 1, 2012.

Why nothing will happen?

A fraudulent financial system is predicated upon a continuation of the fraud—a la Ponzi scheme.  Simple.  Ergo, no action will be taken by the CFTC against JP Morgan, and the manipulation will continue, though kind words or sympathy most assuredly will come from CFTC’s sympathetic good cop, Bart Chilton.

“I empathize with you on your loss; I really do, but thank you for being a lovely contestant on Fascism, the game.”

Ted Butler, Bill Murphy, Chris Powell and Adrian Douglas at GATA are good people, doing the right thing for noble reasons.  The silver community owes each one of these men sincere gratitude, but they are outnumbered by a pack of suit-wearing psychopaths, not by the CFTC, but from the financial system oligarchs and Washington politicos who have naturally teamed together to form a fascist state.

Nothing will come out of the CFTC’s investigation regarding the manipulation of the silver market.

Obvious demonstrations of what GATA is dealing with can easily be gleaned by the cast of social misfits and genetically defective masses of human flesh already well-know to us.  How about Bernie Madoff?  And MF Global’s Jon Corzine, JP Morgan’s Jamie Dimon, Goldman’s Lloyd Blankfein, U.S. Treasury Secretaries Timothy Geithner and Hank Paulson, politicians George W. Bush, Dick Cheney, Donald Rumsfeld, William & Hillary Clinton and Barrack H. Obama as well as many others yet to be discovered by the public as racketeering mobsters tied to Washington’s one-party cabal—and that’s just on the American side.

“Psychopaths have what it takes to defraud and bilk others: They are fast-talking, charming, self-assured, at ease in social situations, cool under pressure, unfazed by the possibility of being found out, and totally ruthless,” wrote Andrew M. Lobaczewski Ph. D., Polish psychiatrist and author of Political Ponerology: The science on the Nature of Evil Adjusted for Political Purposes.

According to Amazon’s introduction of the book, Political Ponerology, another capo of the Washington/Wall Street syndicate tried to suppress its publication.

Amazon: The first manuscript of this book went into the fire five minutes before the arrival of the secret police in Communist Poland. The second copy, reassembled painfully by scientists working under impossible conditions of repression, was sent via a courier to the Vatican. Its receipt was never acknowledged, no word was ever heard from the courier – the manuscript and all the valuable data was lost. The third copy was produced after one of the scientists working on the project escaped to America in the 1980s. Zbigniew Brzezinski suppressed it.

Political Ponerology was forged in the crucible of the very subject it studies. Scientists living under an oppressive regime decide to study it clinically, to study the founders and supporters of an evil regime to determine what common factor is at play in the rise and propagation of man’s inhumanity to man.

Shocking in its clinically spare descriptions of the true nature of evil, poignant in the more literary passages where the author reveals the suffering experienced by the researchers who were contaminated or destroyed by the disease they were studying, this is a book that should be required reading by every citizen of every country that claims a moral or humanistic foundation. For it is a certainty that morality and humanism cannot long withstand the predations of Evil. Knowledge of its nature, how it creates its networks and spreads, how insidious is its guileful approach, is the only antidote.

If psychopaths and war criminals in control of America & Companies, Inc. are willing to kill innocent American citizens, Iraqis, Afghans, Sudanese, now Syrians, and soon-to-be Iranians, in the face of every human law of decency—not to mention dozens of U.N. treaties and other sanctioned rules of international conduct—what causes someone to think that the very financial system, founded upon global U.S. dollar hegemony, will be threatened by a complaint from the CFTC?

The source of funding of the U.S. military and its role as protector against any threat to said system will be crushed.  Saddam Hussein and Muammar Gaddafi threatened the petrodollar system, and they got crushed.  What chance do Ted Butler and the good guys at GATA have against the most powerful fascist state the world has ever seen and the individuals in power who are willing to kill to protect the U.S. dollar?

Commissioner Bart Chilton, I’m sure, is already aware of the powerful cabal behind the manipulation of the price of silver and doesn’t stand a chance of making a difference either.  The issue is a matter of ‘national security’.

Peter Schiff: A Much Bigger Collapse is Coming

By Dominique de Kevelioc de Bailleul

Euro Pacific Capital CEO Peter Schiff received top headline on Yahoo Finance News Tuesday, encouraging investors to loading up on gold and silver before the rush from global investors into precious metals becomes the only game in town.

The global financial crisis will inevitably move to the other side of the Atlantic to the U.S., as the focus on the dollar’s terrible fundamentals once again puts pressure on the Treasury market.  And when that day comes, the selling of US debt and market turmoil it will ignite will dwarf Europe’s sovereign debt catastrophe, according to him.

“We’ve [U.S.] got a much bigger collapse coming, and not just of the markets but of the economy” Schiff tells Yahoo’s Breakout host Jeff Mack. “It’s like what you’re seeing in Europe right now, only worse.”

In agreement with Swiss economist Marc Faber and commodities trader Jim Rogers, Schiff predicts the Depression of the U.S. economy will deepen some time in 2013.

As the Fed responds with more aggressive QE to prop up banks, in addition to maintaining historically record low debt carrying costs to Treasury, investors will most likely come to realize that the Fed has become powerless to affect any positive outcome to the crisis.  More jobs will be lost, tax revenue to the Treasury will fall, and deficits will soar even higher than the $1.5 trillion deficit expected for fiscal 2013.

“That’s when it really is going to get interesting, because that’s when we hit our real fiscal cliff, when we’re going to have to slash — and I mean slash — government spending,” says Schiff.

“Alternatively, we can bail everybody out, pretend we can print our way out of a crisis, and, instead, we have runaway inflation, or hyper-inflation, which is going to be far worse than the collapse we would have if we did the right thing and just let everything implode,” Schiff continues.

But Bernanke will most likely make good on his promise to economist Milton Friedman (1912-2006) during a speech the Fed Chairman made at Friedman’s 90thbirthday celebration.  In his speech, Bernanke relived the Fed’s monetary policy responses to the financial crisis of the 1930s, and praised Friedman for pointing out that the Fed’s restriction of money supply to stem the flow of gold out of the United States was a mistake.  The Fed, instead, should have increased money supply to save the banking system and move off the gold standard (as Britain did earlier in the crisis).

“This action [raising of interest rates] stemmed the outflow of gold but contributed to what Friedman and Schwartz called a ‘spectacular’ increase in bank failures and bank runs, with 522 commercial banks closing their doors in October alone,” Bernanke said At the Conference to Honor Milton Friedman, University of Chicago, Chicago, Illinois .

“The policy tightening and the ongoing collapse of the banking system caused the money supply to fall precipitously, and the declines in output and prices became even more virulent.  Again, the logic is that a monetary policy change related to objectives other than the domestic economy–in this case, defense of the dollar against external attack–were followed by changes in domestic output and prices in the predicted direction [down].”

In 1931, the gold price was fixed at $20.67, making it a bargain to holders of U.S. dollars if the Fed had acted by debasing the dollar.  But instead, the Fed decided to protect the dollar from “attack” by domestic and foreign holders, a policy move that Schiff believes is in the best interest of the U.S. economy, today.

That’s not likely to happen, however.  It’s clear from the passage, above, of Bernanke’s entire speech that Bernanke will sacrifice the U.S. dollar in the hopes of saving the banking system; he believes it’s a small price to pay to prevent the decimation of the banking sector—the very point of Friedman’s lifetime of work.

“Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve,” Bernanke ended his speech.  “I would like to say to Milton and Anna: Regarding the Great Depression. You’re right, we did it. We’re very sorry.  But thanks to you, we won’t do it again.”

And Schiff takes Bernanke at his word, and recommends that investors buy gold and silver before “Helicopter” Ben makes good on his promise to Milton Friedman of 10 years ago.

CFTC’s Bart Chilton, A Slick PR Man

By Dominique de Kevelioc de Bailleul

CFTC Commissioner Bart Chilton smiles.  He frowns and head-nods to mimic his audience’s predictable emotions of the criminal news story of the day.  He understands you and the anger you must feel.  He even sports anti-establishment long hair to blend in with his audience.  He’s a likable guy with a pleasant face, blond hair and blue eyes, a corn-fed country-boy look about him, who communicates more with facial expressions and clever tone control to serve as an excellent public relations man.

For example, Chilton spoke with Bloomberg’s Erik Schatzer and Trish Regan Tuesday about the Barclay’s Libor-rigging scandal.  Notice carefully how Chilton deflects questions, but launches non-verbal language to camouflage his unresponsive answers to the poignant question on the minds of the public regarding the criminal probe of the Barclay’s incident—why aren’t people prosecuted and going to jail for bank fraud?

Schatzer: Bart (not ‘Commissioner), I presume, the CFTC wanted Bob Diamond and Jerry del Missier out at Barclay’s.  You could have made it a condition of your settlement.  Is this the right outcome?

How about asking the question: why aren’t bankers being prosecuted and going to jail if they commit fraud?  Why are deals being made in the first place?

Chilton: You’re correct; we could have made these things part of our settlement.  We could have tried to work on that.  It’s not part of our settlement.  We don’t talk about personalities, and to some extent I don’t want to get into personalities now, but I will say, ‘Look these guys broke the law’ <said with gusto>  ‘They broke the law’, and as you were just talking about it impacted interest rates all over the planet <again, said with gusto>.  So, it’s a big damn deal <increasing his angry tone>, and I think if you ask most people out there watching and people out in the countryside I talk to, whether they think this is a just outcome, they’d say, ‘sure‘.  They wonder why people aren’t in jail.  When people do the crime, they should do the time, not just pay the fine.  But that’s not in our settlement for the banks to determine, but I think there’s a lot of people out there who aren’t displeased.

Chilton said nothing the public doesn’t already know, but he did mimic how people feel about the incident with Barclay’s by showing a little anger while he stated the obvious points of the case.  In the sales profession, a technique called the ‘feel, felt, found’ is used to gain the prospect’s trust, with the well-know technique beginning with mimicking your prospect’s concerns by disarming the prospect by validating his feelings and objections.  Chilton demonstrated a knack for the ‘feel, felt, found’ method of culling the viewer to his side by cushioning the bad news with showing empathy for the public’s outrage that no banker is going to be criminally prosecuted for manipulating interest rate financial vehicles.  But the bottom line from Chilton is: people (in the countryside) should accept the settlement, the cop out, and if you do feel the Justice Department should prosecute, well, you’re in the minority.

After searching on the web for a public poll about what to do with bankers who commit fraud, not one formal poll conducted by a major newspaper could be found in Google’s search engine’s top results pages.

But, The Guardian conducted a poll in August 2011 regarding the victims of banker fraud who protested in the UK last summer.

The Guardian/ICM poll asked: “Do you think that people convicted of theft or other offences during the recent riots in London and elsewhere should or should not receive a tougher prison sentence than they might ordinarily expect, in order to set an example of them?”

“Of the respondents, 70% said they believed offenders should receive a tougher sentence, while 25% believed they should not.  Five per cent said they did not know,” The Guardian stated.

And Chilton wants the public to believe that the “people in the countryside” think a mere monetary fine is “just”?  Shouldn’t the Justice Department criminally prosecute to “set an example of them,” as The Guardian posed its poll question regarding the victims—the people of the countryside?  And reread Schatzer’s question again.  Does that sound like a question that would be asked by legendary investigative reporter, Jack Anderson?  The media, regulators, bankers and politicians are all in this mess together.  No one will break ranks until the public is pushed into serious action that threatens this flagrant cartel of fascists.

Chilton: They’ve violated the law.  Our Department of Justice are the ones who decide whether or not they’re going to prosecute and put somebody in jail.  They reached a settlement as you know for $160 million with Barclay’s, so they agreed not to prosecute anybody on this incentive to crime, send them to jail.  I’m not going to second-guess the Department of Justice, but what I’m saying is that there are a lot of people out there in the countryside who are watching this, they’re wondering about, in general, about this culture that’s been going on in the banks for years, since 2008, and I think there really does needs to be a culture shift, and so far I really think we’ve got a culture shaft a lot of times, and as we’ve seen sometimes it goes all the way to the top.

A culture shift?  It’s unlikely that “people in the countryside” believed that a culture of committing fraud was accepted as a right endemic to bankers.

Well, I think this [settlement] sends a good signal to people in the countryside that regulators on both sides of the Atlantic are on the job, that we are looking after it.  Now, it doesn’t mean the end, but again, I cannot say whether we have an investigation when there is a continuing probe, but it is a natural question and I can assure that its a question that we ask ourselves.  I just can’t comment unfortunately where it is. . .

No.  The signal to bankers is—no banker goes to jail, and the fine imposed will not seriously harm the institution which employed them.  But, “the people in the countryside” may think it’s a big deal to fine a bank the size of Barclay’s $160 million, unless, of course, the countryside bumpkins cares to look at Barclay’s balance sheet of $2.3 trillion in assets—or 0.0000695 of Barclay’s total assets.

Though the magnificent work of Gold Anti-Trust Action Committee board member Adrian Douglas can never be repaid to fit the job he does for all gold and silver bugs, the idea of calling Chilton “the modern-day equivalent of Eliot Ness” may be a mistake, but a most forgivable one in the case of Douglas and GATA.  GATA is dealing with the most clever, high-tech slimes the world has ever know, working on low budgets and high ambitions to fight the Fed, JP Morgan and banker fraud.  No one can ever challenge GATA’s good intentions successfully, though former Goldman Sachs ‘associate’ Jeff Christian had tried with no success other than to diminish his own reputation.

If Chilton is truly a ‘good guy’, how can he stay at the CFTC knowing that his work amounts to essentially nothing?  Could anyone imagine GATA’s Bill Murphy, Chris Powell or Adrian Douglas lasting 24 hours at the CFTC if catching guys who allegedly commit monstrous, outrageous and unspeakable fraud means essentially nothing?

Gold and silver bugs may want to rethink Bart Chilton’s real role at the CFTC.  He looks good, sounds good, but so do slick PR men.

Hey Silver Bugs, “Act Like a Man!”

By Dominique de Kevelioc de Bailleul

Right now silver bugs need to view the following scene from The Godfather (1972) when Johnny (Frank Sinatra?) goes to see the Godfather for help breaking into the entertainment business.

Johnny: Oh godfather, I don’t know what to do.  I don’t know what to do.

Godfather: You can act like a man!  <slaps Johnny in the face>  What’s the matter with you?  Is this how you turn out?  A Hollywood finocchio that cries like a woman? <imitating Johnny> What can I do?  What can I do?

So “toughen up” as Jim Sinclair of JSMineset.com said to wimpy precious metals investors who were calling him and crying about the precious metals market earlier this year.

Act like a man!  Need a slap to the face, too?!

At the time of the making of the movie, silver had dropped to $1.37 per ounce in November 1971, after falling from a high of $2.57 per ounce in 1968, a drop of nearly 50 percent in more than two years.  But by December of 1972, the silver price cracked $2.00 once again, on its way to $50 eight years later in Jan. 1980.

Today, after only half the time of the 1968 to 1971 fall in the price of silver, silver bugs are crying like women—like a finocchio (gay).   After 13 months, the silver price has dropped from nearly $50 in late April to $26.20.  Big deal.  That’s typical silver market action.

Look at the chart, above, and see the 40-times move in the price of silver through the next eight years.  The 1968-71 price decline looks tame within the overall picture in the year 1980.

Today’s chart, below, shows the silver price forming a head and shoulders pattern, with the Slow STO looking as oversold as the price of silver was back in October 2008.  So far, nothing looks out of the ordinary for the silver price as it works off excess speculators money.  For the long-term holder, the silver price trades at a nearly 50 percent discount from late April 2011 runaway move.

Be patient.  The fireworks have yet to begin.

Peter Schiff’s Latest Advice to Investors

Dominique de Kevelioc de Bailleul

Gold and silver investors watching metals prices move back down near to the Dec. 29 lows of $1,523.90 and $26.15, respectively, should seriously consider accumulating the metals now.   The ‘Big Reset’ of the global financial, slated for no later than 2014, will reward precious metals holders as the big winners among investors, according to Peter Schiff.

Speaking with Cambridge House International, the CEO of Euro Pacific Capital said, “The United States is in a lot of trouble.”   After the Fed presumably embarks on QE3, and that stimulus wears off, “I think we’re going to have a crisis.  I don’t think we’re going to have time for QE4 or QE5.  I mean, ultimately, that’s where we’re headed, because that’s all QE does.  Each QE sows the seeds of the next QE.”

And global money looking for a safe haven won’t stand for another repeated currency debasements through debt monetization by the U.S. central bank.  Because Europe’s woes have forced politicians to make tough choices there, the spotlight has been taken off, temporarily, the even-more dire circumstances of debt loads and deficits of the U.S., according to Schiff.

Schiff’s time line for the Armageddon scenario of a U.S. dollar crisis matches predictions made by commodities legend Jim Rogers and ShadowStat’s economist John Williams, with each man projecting 2014 as the year the U.S. dollar no longer maintains its former role as the world’s premiere reserve currency—implying a severe decline of its global purchasing power and much higher metals prices.

In 2014, that’s the year the U.S. economy is expected to reach fresh new lows and the year politicians will finally be forced to face the tough choices regarding proposed cuts to federal, state and local government budgets, according to the three men.  It will also be the year that ushers in severe social unrest, similar to what is happening in Greece, in the case of Jim Rogers’ prediction for 2014.

Ironically, Schiff believes that if the U.S. economy miraculously digs its way into real economic growth, the bond market will sell off due to concerns of inflation from two massive QE programs from the Fed, driving interest rates much higher, along with U.S. borrowing costs—costs that will explode the federal budget deficit beyond the already red-line levels of 10-plus percent of GDP.  The dollar cannot survive under that scenario, according to Schiff.

“We don’t want to allow a real recovery, because that means real bitter-tasting medicine needs to be swallowed,” he said.  And added, no later than the year 2014, we’ll see “higher interest rates.  There’s going to be lower real estate prices, stock prices, some banks are going to fail, and the government is going to have to seriously cut spending dramatically to everybody.”

Under a Schiff scenario of deeper economic recession/depression, dramatic cuts to all levels of U.S. government spending will create a similar and immediate economic and financial death spiral, now faced by Greece, with reduced GDP coming from total U.S. government spending—presently 40.3 percent of GDP—further limiting the U.S. economy to pay on its local, state and federal debt, thereby initiating a feedback loop of further cuts and GDP declines, and so on—an unraveling of the Ponzi-like scheme warned of by Russian economist Nikolai Kondratiev in 1925, and later, by Austrian economist Ludwig von Mises, among others.

By the year 2014, like Jim Rogers’ longstanding ‘heads-you-win-tails-you-win’ investment theme as a result of continued stimulus (currency debasements) to fight the Kondratiev Winter (depression) or the immediate inflation unleashed from years of Fed balance sheet expansion, Schiff recommends holding real money—gold (and silver)—the only money that will survive the loss of confidence in all fiat currencies and the ability of the U.S. to make good on debt obligations.

“There is no short-term fix anymore, because we’ve been doing these short-term fixes for a along time,” Schiff concluded.  “We got a little extra rope from this European crisis . . . Something is going to happen in Europe, because this cannot go on indefinitely.  And the numbers are just so big for the U.S.  Interest rates have got to rise, or the Fed is going to have to print so much money to keep them from rising that inflation is going to flare up in a way that government numbers can’t hide it anymore.”

Therefore, Schiff’s advice: Avoid dollars and euros.  Buy gold, real “money”.