We are off to see the price fixers, who rig and rig and rig and rig and rig – but only for Jamie, Lloyd and Blythe! They look at how amateur the Illuminati and Bilderbergers are compared to the modern day Fixers of Oz who control all prices from behind their golden kimono. In the second half of the show Max talks to Satyajit Das, author of Extreme Money, about Japan’s extreme monetary policy and about extreme price fixing at the heart of the global economy.
Willie states that a Big European Bust is Coming- evidenced by the fact that European banks received $1.2 trillion from the NY Fed in January alone!
Willie states that the coming European bust will ignite a global Gold rush, a massive short covering rally, and will result in a powerful 30% to 50% rise in the gold price!
Willie also discusses gold and silver backwardation, the recent paper raids, and whether or not the metals face the risk of a 2008 type collapse as the Western financial markets go down in flames!
Bunga, Bunga is back!
The return of the undead
Berlusconi to return to Italian politics. Mario Monti to quit (and return to Goldman Sachs for a annual honorarium of $50,000,000). The Italian 10-year bond to go to 600 basis points over bunds. Investors to notice that Italy is still in the position of having massive debts and a completely stagnant economy. Panic to break out (again).
The bursting of the bubble
London property has been wearing anti-gravity boots for years now. Hey, the market has become so frothy that know-nothing footballers have been turning themselves into property developers (a sell signal if ever there was one.) But those anti-gravity boots are starting to lose their potency. Stand by for a massive fall in London prices. Property elsewhere in the UK will have a sympathy fall too. Continue reading
Great interview with Rob Kirby of KirbyAnalytics. Kirby goes into detail on derivatives, manipulation, JP Morgan and the true story behind Libor manipulation.
A Federal Reserve Out of Bullets (Maybe Bernanke can borrow some from the Social Security Administration?) , US Drought, The End of JP Morgan?, Murder, Audit the Fed & Looming California Moody’s Downgrade of multiple counties have all contributed to why gold & silver are now heading higher.
I thought that Bart Chilton would be a fitting person to talk to on this Friday morning. After all, the CFTC hadn’t yet returned my phone inquiry from last week. So, I called Bart. No answer. I left a voicemail. I called Gensler. No answer, voicemail. I called Mathew Hunter, Deputy Director of the Market and Trade Practice Surveillance branch. No answer, voicemail. Hello! Hunter! Have you spied on the high-speed algo bots? Have you tapped the phones in JPMorgan’s upper offices? “Blythe Masters.” That sounds suspicious. How about that line? Jamie Dimon? Surely, of the 11+ agencies investigating JPMorgan, someone is already tapped into that line. What are you surveying exactly? Granted, my message was surely more reserved. Didn’t want it getting passed onto the Ministry of Love where I’d certainly renounce my lover under a fiat shower. Continue reading
Stacy Summary: Check out the ‘get out of jail free’ card language coming out of the mouth of the new Financial Services Authority boss:
Shareholders lost 75% in the past five years under Diamond. He made over 100 Million at Barclays.
Hogging the headlines: In recent years, financial news has dominated the front pages – more recently the scandal at Barclays
You know, there would have been a time when a financial contributor for the Keiser report was restricted to the little stuff. Share tips, muttering about monetary policy, that sort of thing.
Not any more. Over the last few years, there’s been no breaking news like finance news. No war, no election, no natural disaster has long been able to displace finance from the front pages. This new emphasis makes perfect sense. When your job is threatened, your pension demolished, your child’s prospects seriously impaired, you need to know why these things are happening. The answers all revolve around matters financial. Continue reading
Another day, another banking scandal.
Barclays’ LIBOR cheats exploited an arcane and out-dated rate-setting mechanism to fix rates in their favour – which means to your detriment.
But just ripping off ordinary people and ordinary investors doesn’t win many points in the Bankster’s Cheat Olympics. If you really want to shoot for those medal places, you need to do more. You need to get down and dirty with the drug lords and the terrorists, the narcotics cartels and the failed states. That’s what HSBC did. It laundered money on an industrial scale. In the words of one commentary: ‘HSBC’s subsidiaries transported billions of dollars of cash in armoured vehicles, cleared suspicious travellers’ cheques worth billions, and allowed Mexican drug lords buy to planes with money laundered through Cayman Islands accounts.’
By Mitch Feierstein
How low can a political system sink? Pretty low it would seem. A recent Rasmussen poll suggests that around two-thirds of us would happily fire every single member of Congress, a spectacular lack of confidence in our lawmakers. These are unprecedented levels of disdain and the sad thing is that they’re largely justified.
The conventional analysis of this malaise has to do with partisanship in Washington. Too much money, too many special interests, too many lobbyists, too many non-competitive electoral districts leading to a new breed of politicians who pander only to the increasingly extreme demands of their base. The Constitution was never intended to foster such gridlock. Remember that the authors of that Constitution lived in a nation without political parties — in a world where parties of the modern sort were unknown. It was 1796 before the party system had really taken hold and even then, that politics was more fissile, more fluid, than anything we have now. Indeed, you could argue with conviction that the country has never had a more gridlocked, mutually hostile and partisan Congress. At a time of great economic peril, that’s a terrible position to be in.
There are wider consequences too, best expressed in the Russian proverb that the fish rots from the head. If our national leadership is incapable of showing transparent, accountable leadership, what hope is there for the other institutions and organizations that together create the nation?
One recent example would be shocking if repeated injury hadn’t more or less robbed us of the ability to be shocked. The Fast and Furious scandal matters. For a number of years, the Bureau of Alcohol, Tobacco and Firearms allowed guns to ‘walk.’ The idea was to allow suspect purchasers to acquire guns in the belief that these weapons could be tracked back to high-level figures in the Mexican drug cartels.
I don’t know if that was a completely dumb idea or not. I’m not qualified to comment. What I do know is that many dozens of Mexican citizens are alleged to have been killed by these weapons and at least one U.S. Federal agent, Border Patrol Agent Brian Terry, was shot dead. One ATF official told a congressional oversight committee, “The ATF armed the [Sinaloa] cartel. It’s disgusting.”
But these things happen. In a big country, with a complex government, sometimes people do stupid things. That’s not, in itself, the issue.
The issue is what happens next. Is there a transparent investigative process, whereby the facts are investigated and the appropriate people dismissed or (if found to be in breach of the law) punished? Of course not. The House voted to cite Eric Holder for contempt of Congress in a battle over which documents should be released to the inquiry. Holder claims he’s just a proxy for Obama and the entire attack is partisan. Nancy Pelosi argues that it’s all part of a giant conspiracy to undermine democracy. Just in case things hadn’t sunk low enough, Rep. Trey Gowdy tells Pelosi that she’s “mind-numbingly stupid” and suggests she “schedule an appointment with a doctor.”
And an American officer has been shot dead by guns that walked out of the country under the direction of our ATF officials. And Mexican drug cartels have bolstered their armories. And our southern neighbor has descended that little bit further into violence and anarchy. Yet all our politicians can do is call each other names and bicker at each other.
So much for the head of the fish. The rest of that fishy body isn’t smelling too good either. Barclays, a British bank that scooped up Lehman’s U.S. operations and has a huge presence on these shores, has admitted manipulating the LIBOR “Fixings.” Those markets are multi-multi-trillion dollar markets and if the banks are rigging them for their benefit, you can bet your house that you’re one of those to have lost money as a consequence.
So what happens? Answer: not much. It’s been fined a little fraction over 1% of its market cap. The Chief Executive — who’s already pocketed over £100 million in pay over the past few years — resigns (but will probably get a huge payoff). No one goes to jail. No one ever does, more deflection and more diversion.
Or ING, a foreign bank trading out of New York, is fined for fraud, breaking sanctions aimed at Cuba and Iran. The fine was big, but who goes to jail? Nobody. Instead the bank says in a statement that it, “it took a provision of €370 million ($462 million) in the first quarter of the year to cover the penalties, set up a team to prevent and detect money laundering, closed its representative office in Cuba in 2007, and ended relationships with sanctioned entities.” Gee, shucks.
Or MF Global, run by Jon Corzine, formerly of Goldman Sachs and close to the Obama White House. The firm went bust and around $1.6 billion in client money has gone walkabout. If someone takes money that isn’t theirs, that is theft. I’m not talking about the law, necessarily, I’m not a lawyer — but I am talking about ethics. If someone or some group of people conspires to deprive clients of $1.6 billion, that person or group of people should be wearing orange and looking out of windows with bars on them. But what actually happens? Nothing.
The solutions are so simple. We need transparency and accountability at the top. We need accountability and transparency all the way down. Forget about creating new laws when we never enforce existing ones. If you mess up, you bear the consequences of your actions. If a federal operation goes wrong, it is investigated swiftly and rigorously, with appropriate outcomes for those involved. If your firm goes bust, nobody bails it out. If you breach the law, you go to jail. If you steal a thousand bucks, you receive a light sentence. If you steal a thousand million bucks, you should get the cell next to Bernie Madoff and the same release date: 14 November 2139.
Is that going to happen any time soon?
Nope. It won’t. But meantime, two-thirds of us are right. We need to fire this Congress and start again. The pledge of allegiance talks about justice for all. We need to honor that pledge at the moment we are doing the opposite.
Mitch Feierstein is CEO of Glacier Environmental Fund and author of Planet Ponzi: How bankers and politicians stole your future