It's the Fed's Fault JP Morgan is Manipulating Silver

Right? That's what I took from this little winner. The NIA via Zero Hedge:

On December 11th, 2009 NIA declared silver the best investment for the next decade. In our December 11th article, we said that it wasn't a coincidence that the very day Bear Stearns failed was the same day silver reached its multi-decade high of over $21 per ounce. We went on to say, "The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position."

JP Morgan took over the concentrated short position in silver from Bear Stearns and gained complete control over the paper price of silver. Within weeks, JP Morgan was able to manipulate the price of silver down to below $9 per ounce. NIA believes they were able to drive the price of silver down through "naked short selling," selling paper silver that is unbacked by physical silver.

Never wanting to be accused of being one of those weirdos who believes in physical markets and shoos this ETF garbage that's obviously way WAY overleveraged, I'll stay out of it.

It's cool, the recent CFTC hearings will prove that point without me having to bother:

NIA believes the precious metals markets are currently being artificially suppressed by paper gold and silver that doesn't physically exist. At last week's CFTC hearings, Jeffrey Christian of the CPM Group admitted that banks have leveraged their physical bullion by 100 to 1. This means for every 100 ounces of paper gold/silver that trade, there could be as little as 1 ounce of physical gold/silver in the vaults backing it. However, Mr. Christian sees no problem with this because he says "it has been persistently that way for decades" and there are "any number of mechanisms allowing for cash settlements."

Well it must not be important if it's always been like that and there are endless numbers of asshats lined up waiting to bail out these phony markets should the need arise.

But what if all that cash is tied up in, say, a European slush fund?

If you are still asking "Why Lehman and not Bear Stearns?", this may help you answer that question.

In other words:

"JPMorgan acts as an agent for the Federal Reserve; they act to halt the rise of gold and silver against the US dollar. JPMorgan is insulated from potential losses [on their short positions] by the Fed and/or US taxpayer"


Jr Deputy Accountant

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


elf2006real said...

Quite Literally FUCK ME. I'm deep and long into gold/silver ETF's.

Mind you that's just 40% of my 401K, which isn't much...but I stopped contributing 2 years ago. That's money I can't get out without a big hit on taxes.

I did notice my newer ETF's of SGOL and SIVR are doing better than GLD and SLV...much less market cap?

Anonymous said...

Everything old is new again.

- Nelson & William Hunt

Anonymous said...

I thought the collapse was due to the housing bubble and the high gas prices............?????????

Oh dear dear Elf, serious? Better adjust that before they set the paper on fire, I've heard it isn't nearly as resilient as actual metal when set aflame. ;)

Anon @ 7:27p - to which collapse are you referring?

Anonymous said...

Blythe: "We made an error of judgment. Frankly, we made a bit of a rookie error. We got overexposed in the market and made ourselves vulnerable to a squeeze." (Their position losses in coal compared to their risk exposure in silver is like a broken pipe in the wall compared to the 2004 Indian Ocean tsunami - Jesse)

My comment: no Blythe, you didn't make a "rookie error". People like you never believe yourself to be a "rookie" - you step onto the stage thinking you've got it all figured out. You lost all humility and you got arrogant. You are like most people - they believe their own press clippings.

Silver chart whispering "Foxy Lady" in Blythe's ear here I come, comin' to get ya'!

Anonymous said...

Masters was also once quoted as saying that her fiduciary nonesuch was the equivalent of “a free lunch”, something which of course, unless you are a food critic, simply doesn’t exist.

When called out by The Guardian on her creation’s destructive effects on the economy, our female Frankenstein replied blithely (sorry, but I couldn’t resist)…

“I do believe CDSs [credit default swaps] have been miscast, much as poor workmen tend to blame their tools.”
Which I take it is the business equivalent of “Credit Default Swaps don’t kill people, people with Credit Default Swaps kill people.”

God, these quotes just make a person want to rip off her head and shit down her neck.

Anonymous said...

Blythe Masters learnt how to sew body parts together at Cambridge University, and got her lab, electricity supply and a hunchbacked personal assistant named Igor from those great humanitarians at JP Morgan.

Anonymous said...

Blythe's 2007 testimony to the Senate:

"On a professional level, I have direct experience in markets with significant similarities to the growing emission credit markets. I have been a trader in the commodities markets."

Yeah Blythe, we've seen what a fabulous job you've done.... with "friends" like this, who needs enemies?

"A trader and a manager of our global credit derivatives and structured products business."

"Congress is studying whether to create a so-called cap and trade emission framework. JP Morgan supports a framework that caps greenhouse gas emissions and establishes a price for those emissions."

Yeah, I got your "price" right here in my BVD's....

"By establishing a price for carbon—through a cap and trade system—Congress will unleash the forces of supply and demand."

More like "unleash" a bunch of soul sucking, money grubbing assclowns like Blaaaaaaaathe Masters.....

I wonder if this was the set up for the JPM position in coal that blew up on her?

Anonymous said...

this bitch is so full of shit her eyes are brown

"JP Morgan would be pleased to provide intellectual resources to the Committee as it contemplates that balance."

Yeah, I'll bet you would be pleased.

Anonymous said...

Hey Blythe - you're so fucking concerned about the environment and "global warming" I've got a suggestion for you where you can put your money where that smarmy little mouth is at - go load up a rifle and blow off the heads of your precious toy horses since the gas they produce in their farts are causing Al Gore and company great discomfort. You probably would if there were a buck to be made doing it - you won't admit it but you know deep down it is true.

Anonymous said...

Don't misinterpret my recent comments - I still dislike the plotting and scheming, scrawny and sniveling, little horse-humping pommy bitch. But, I can just see these fuckers baiting as many people into the silver futures game as possible and then changing the rules at the same time that Ben conducts an "Events Study", scratches his hairy ass, scratches his balding head and then figures out (conveniently) it is time to start raising rates. I can just picture it - or it may just be my normal, everyday paranoia flaring up. I <3 posting shit this way - it must be as aggravating to you as trying to play a game of "Whack-A-Mole" while drunk.

Anonymous said...

"The differences in contract sizes are significant factors that may influence an individual’s choice of contract. Mini silver future contracts can be utilized by newer traders with limited spare capital and a smaller tolerance for risk."

Translation: for all you mom and pops and turnips recently fallen off the truck, we gotta contract to fit your needs too. Ever watch the Charlie Brown specials where Lucy gets the football set and invites Charlie Brown to come over and kick a field goal.... Paranoia is a terrible affliction.

Anonymous said...
Anonymous said...

There's a scenario that could play out between May and September in which commodities (including my beloved silver) and the stock and bond markets could all sell off between 20% and 40%. The trigger will be the cessation of QE II and a multi-month pause before QE III.

The fiscal and monetary path we are on has a very high likelihood of failure over the coming decade, and I see nothing that shakes that view.

10 YEARS!!!! REALLY????? OK Mr. Zero Hedge Guest Poster in the Basement in his underwear, you just lost me as I have trouble forecasting what fantastic outfit I'm gonna wear three days from now much less what the fuck is going to go on in 10 YEARS!!!! I know about as much of what's to happen a decade out as my fucking lovable Inglorious Bastard - we just hope that Purina's still pumping out Little Friskies in 10 years. Did YOU ever think you'd be doin' the Dew where you're at right this 2001? Maybe you got it together more than I'm giving you credit for but I'm guessing the answer is "No".

Beware the Ben Bernanke Fun Bucks (and the Ides of March). still waiting for my ZZ Top Viva Las Vegas musical montage.

I love you, Anon.


Anonymous said...

I love you too Adrienne - but you already knew that.

If I fuck with the Friskies, then I have to answer to the Inglorious Bastard who has already told me that he will gladly slit my throat while I'm sleeping if I fuck with his Friskies. We have a Mutually Assured Destruction policy that has worked out well for both of us. I stay out of his Friskies, he stays out of my porn and baby oil.

Anonymous said...
Anonymous said...

'cause when the chips are down and the rubber meets the road and dudes dressed like chicks start breaking out the mixed martial arts moves at a California taco stand, ALL of us are reduced to our true selves (which is a ring of pimply faced, smelly eigth graders stupidly chanting "Fight, fight, fight...")

Anonymous said...
Anonymous said...

available for full screen viewing

Anonymous said...

hey! what gives Adrienne??? You took down my linky thingy to the transvestites throwing down in a Taco Heaven??? Now, I'm sure that you can throw those things together lickety split given the black belt you earned at Ted's Basement Dojo of Internet Kung Fu Skills but I am still working on my yellow belt and it takes a little effort.... know what I'm saying??? So, in effect you are like "pissing on my Picasso" if you catch my drift....

I'm thinking you don't love me anymore...

WHAT?! I'd never delete a comment. You should know this, leaving comments about lesbian yeast infections or whatever on Earth it was.

Love forever,

Anonymous said...

Well, lo and behold it is back in it's rightful place under Are You Ready to Rumble? Yay.....

Hey show some respect...Tranny throw downs at Taco Heaven and Ethiopian lesbian yeast infections are what makes the beautiful Earth turn on its axis...

Julie Andrews says it best

wcv said...

GoogleBlogger ate some comments today. It happened at my site too.

Thanks for the tranny taco fight. I had not seen that.

Anonymous said...

...and the trout rise to my elk hair caddis fly... I can go home happy (yay) EVERYBODY loves San Diego Night Shift Transvestite Jagermeister Fueled Taco Stand Smack Down (even prudes who say they hate it secretly get a creamy sense of satisfaction watching these confused sonsofbitches cat fight each other)

Anonymous said...

I knew that would get a rise out of you Gonzalez... you ole squishy girl. (your words - not mine) It's annual meeting day (yay) and we get to go in and talk about how pathetic a loser our investment portfolio has been due largley to the extremely low and artificial interest rate environment (thank you Cap'n B. Neckbeard - seriously, put a Captin Morgan style hat on that fucker and he looks he should be in an Errol Flynn movie - sorry, couldn't help but go movie reference on you there, A).

Anonymous said...

The guy who does my taxes does a pretty good job for the fee he charges and includes a year over year analysis so I get a snap shot of "How ' my doin'??" As expected, my interest income shows a decline. A 50% DECLINE year over year. It wasn't like 2009 was a banner year anyway and then to add insult to injury, 50% LESS in 2010. We both know why that has come to pass. My guess is that the unwashed masses are at least "kinda", "sorta" aware of what the fuck is happening and why their grocery bill is higher this year compared to last and why they can't get any interest return on their savings.

My brother in law and I are going to continue to invest in chucks of precious metals - they come with funny little name plates like "Victory" "Yamaha" "Harley-Davidson" "Buell" "Honda".

Anonymous said...

hmmm, are we there yet? You got some 'splainin' to do Lucy.

NEW YORK (TheStreet ) -- Silver prices tanked after another margin hike from the CME and a stronger U.S. dollar, taking Gold prices along for the ride.

Ozzy and silver prices - who would think that would meet up?

Anonymous said...

When QE unwinds in summer (as it most likely will), it will probably have the same effect as a hike in the overnight rate. Thoughts?

Anonymous said...

The twist, sales manager Clay Teague says, is that most of his customers are now selling silver rather than buying.

honey, do you remember where we put the wedding goblets and grandma's good sterling?

And the winter is looking fine
And I think the sun will shine again
And I feel I've cleaned my mind
All the past is left behind again

I said goodbye to romance, yeah

Anonymous said...

so you're stranded out in West Texas so thirsty you're thinkin' o' drinkin' your own piss. so thirsty that you'd drink water out of a hoof mark in the dirt IF it were there...but there ain't no water...nothing but cactus and horny toads and scrub... for as far as you can see....

Presidio County Judge Paul Hunt is concerned the silver mine is using more than its fair share of water. "Underground water resources are gold," Hunt said kinda funny that the judge's name is Hunt, huh?

Moe at the bar answering Bart's crank call - "Is there a Mike Hunt here? Mike Hunt in the bar?"

Anonymous said...

the bounces are going to be fun to follow.... told brother Chuckles to make sure he kept his head screwed on tight when the price hit 45...hopefully he listened to his little brother (this time).

Anonymous said...

Don't misinterpret my recent comments - I still dislike the plotting and scheming, scrawny and sniveling, little horse-humping pommy bitch. But, I can just see these fuckers baiting as many people into the silver futures game as possible and then changing the rules at the same time that Ben conducts an "Events Study", scratches his hairy ass, scratches his balding head and then figures out (conveniently) it is time to start raising rates. I can just picture it - or it may just be my normal, everyday paranoia flaring up. I <3 posting shit this way - it must be as aggravating to you as trying to play a game of "Whack-A-Mole" while drunk.

March 1, 2011 3:12 PM

Lucy and Charlie Brown with the football.. the more things change, the more they stay the same.

Anonymous said...

gonna be an interesting weekend for all the Johnny come lately silver "investors". Do I stick or run, stick or run????

you gotta know when to hold 'em
know when to fold 'em
know when to walk away
know when to run

yup, a sticky, sweaty, gut wrenching weekend for a few

The first rule of investing is "Don't Panic"

The second rule of investing is "If there is a panic, be the first to panic"


Anonymous said...

Sure enough, the Shanghai Gold Exchange has just announced it is hiking both the silver margin to 19% as well as the price limit on gold to 13%.

goodbye to romance, yeah...goodbye to friends... Lucy is moving the goal posts on Charlie Brown (again)

I've had that fucking Ozzy song in my head all damned week... It's a good song but sweet baby Jeeebus it is driving me totally bat shit. Chicken ranching can be bad on your back - get well soon. I keep checking and nothing new on JDA.