It takes a brave man to stand up and tell the truth in these times. Independent journalists in Tripoli are being threatened with death by CNN journalists. In particular they do not want them to tell the public that NATO is helping Al Qaeda in Libya. I would like to take a step beyond bravery to offer a prediction in the form of a Post Mortem on the demise of JP Morgan.
I will flatly predict that if there is neither a military coup nor a revolution, JP Morgan Chase will most likely become a government operation as did General Motors which is now popularly called Government Motors.
JP Morgan has been called the Treasury of the United States. It is true that the official depository of the US Treasury is the New York Federal Reserve bank. Tim Geithner whose father was a Director of the Asia program at the Ford Foundation studied Mandarin Chinese in Beijing. His first job was working for Kissinger Associates. He later worked at the Clinton Treasury where he and Larry Summers (Samuelson) were proteges of former Goldman Sachs CEO Robert Rubin. Before becoming Treasury Secretary he was President of the New York Federal Reserve bank.
I have written often of the billions of dollars stolen each week from federal spending because the taxpayers are not allowed to audit the books. On 9-10-2001 Donald Rumsfeld announced that neither he nor his Comptroller rabbi Dov Zakheim could trace 2.3 trillion dollars in Pentagon spending. On 9-11-2001 what was alleged to have been Flight 77 was on a flight path taking it straight towards the top Pentagon brass when it made a difficult 270 degree turn and hit the auditors who were trying to find the missing trillions.
The point I want you to remember above all else about the New York Federal Reserve bank, the US Treasury’s official depository, is that all of the tens of trillions of dollars that have been stolen from the federal government had to go through the NY Fed before it went missing. That means any NY Fed President including Timothy Geithner must be considered a prime suspect in any missing taxpayer money. Keep that in mind as our Post Mortem continues.
JP Morgan Chase is often called the unofficial US Treasury because of its control over interest rates. As I have said before, a derivative is a bet on the future value of a bond or a commodity like gold or oil. JP Morgan has 80 trillion dollars in bets on interest rates. JP Morgue earned its name because it has a total of 92 trillion dollars in bets made in the futures derivative market. If interest rates go up, JP Morgan will be instantly way beyond bankrupt. Do not worry. Treasury Secretary Geithner will just give a special feed to Obama’s teleprompter saying the taxpayers will just have to suck it up and accept the cancellation of Social Security, Medicare, Medicaid, extended unemployment benefits and Food Stamps while taxes will have to be tripled. But do not lose sleep fretting that we will cut defense spending. There will be no defense cuts with the exceptions of retiree pay and health care for the wounded. We will not cut spending on any of the 6,7 or 8 wars we are currently fighting.
Even if we assume JP Morgue has all the assets it claims, the Morgue has $2,000 in risk for every one dollar in capital. That is well beyond insane. We can only conclude that the people who own the Morgue do not worry about the consequences to their actions because they think they own the government and you.
Enter Hugo Chavez demanding the return of his 211 tons of gold. This has sent both gold and silver higher though there was a slight dip for Options Expirations . If JP Morgue returned their share of Hugo’s Chavez’s gold, they would at best have none of the 10.6 tons they claim to have in their vaults. At worst they would be either buying gold at spot prices or raiding Fort Knox. As I explained in a previous post, the US and UK governments lease their gold to JP Morgue and other banks. But all the banks are supposed to get is a piece of paper and not the bullion. This paper shows up as gold on the bank’s balance sheet. This paper gold is sold five or more times so it appears there is a lot of gold out there until someone like Chavez asks for real gold bullion and no paper. Mr Chavez started a gold run.
JP Morgan works with the US Plunge Protection Team. Every morning the Treasury has a conference call with Morgan and 26 other big banks and brokerages dictating what will happen in the markets later that day. JP Morgan has the special responsibility of keeping the price of silver down so the dollar looks good in order to keep the scam known as the US Federal Reserve going. A few weeks ago I saw a video of a paper silver transaction with a potential loss of ten billion dollars which was equal to one third of the total physical silver for the entire year. Any of these losses will be picked up by the Federal Reserve at the Discount window. All these daily losses will be paid for by you when the inflates away their mistakes. By the way, that video was pulled off YouTube.
Catherine Austin Fitts has called this the Slow Burn. She has documented the stealing of tens of trillions of dollars by the banks from the rest of us. The banks need to keep this daily theft of your tax money, your pensions, your savings and your wages going day in and day out until you have nothing left. The Slow Burn takes a long time to complete but when it is over everything you had including your savings, your pension, your wages and even your home will belong to the banks. Think you made your last payment on your mortgage. You still owe the Internal Revenue Service for any bill they send your way. The IRS is a combination tax collector and Gestapo agent for the New York banks.
Exchange Traded Funds (ETFs) use leased gold, paper silver and gold derivatives and a little bit of bullion to simulate the price of gold and silver. HSBC runs the GLD ETF and JP Morgan runs SLV. Enter UBS the Swiss bank which until recently had predicted silver would go back down to $30 an ounce. They just recently said silver will rise to $50 an ounce. Peter Schiff has said that when, not if, silver goes to $50 an ounce, all those people shorting silver will have to cover their short positions. This will drive up the price of silver to $75 or an even $100. This and the Hugo Chavez gold run will severely squeeze JP Morgue over the next three months. There is more gold for investors to buy than there is silver. Big time investors are moving into silver because it is a smaller market and easier to push to higher prices. Investors are putting as much money into silver as gold. This will drive the price of silver higher.
The Pan Asian Metals Exchange is 10% owned by the Rothschilds. All those futures derivatives for August expire on Thursday. The Pan Asian Metals Exchange will join US authorities saying in raising margin requirements on gold and silver. That plus heavy paper sales of gold and silver have combined to drive gold well below the recent $1,900 high. Bob Chapman expects gold and silver markets to rebound on Thursday after August Options Expirations are over. Raising margin requirements is counter productive in the long run because it just drives real investors out of paper ETFs and futures into bullion. This forces them to join everyone fleeing counter party risk to take delivery of physical bullion. It is that run for the physical gold and silver that is threatening JP Morgan and the ETFs. Chavez is a prime exemplar of a counter party risk. If your money or gold or silver is in a bank like Chavez’s, then you never know if you will ever get your money back. This has created a run for gold and silver. Jeff Christian said in testimony before the CFTC that there is 50 to 100 ounces of paper silver and gold for every ounce of bullion. A gold and silver run will destroy paper assets as depositors demand their bullion. The whole Ponzi scheme of the ETFs and the derivatives market is about to collapse and take JP Morgue down with them.
Max Keiser on his Sunday radio show at London’s Resonance 104.4 FM predicted a Bank Holiday. He lives in Europe where there are strong rumors of bank collapses and fears that nations like Italy, Spain, Portugal,Greece and Ireland will pull out of the euro thus cutting their purchasing power in half. Europeans are on vacation until September. Banks normally loan out ten times deposits. The French banks are loaning out 50 times deposits and have trillions of euros of bad assets still on the books. In 2008 the correct solution to the credit crisis would have been to close the banks, cancel all unpayable debts, seize the personal assets of the those criminally responsible and to declare the banks bankrupt. After re-capitalizing we could have issued stock to those who lost money either in the banks or in their pension plans. Instead we Instead we have been handing out money by the tens of trillions without canceling bad debts. That is the worst of all possible solutions.
Keiser is saying that capital markets are freezing up because of bad debts, fear of counter party risk and everyone trying to move every last euro out of their country into safe havens has combined to raise the possibility of a Bank Holiday. Europeans have stopped spending. That means a declining economy, declining government revenues, even bigger deficits and more Treasury bond sales.
Today we are in a much worse credit crunch than in 2008. And we have added trillions of dollars, euros and pounds to our public debts. This severely limits our maneuvering. Diminishing equally fast is the political capital of Barrack Obama, David Cameron, Angela Merkel and Nicolas Sarkozy. Washington DC runs on rumors. The Democrats will know what the Austerity cuts will be long before the details of the Super Congress budget must be released on Wednesday November 23rd. I predict revolts on the Left and the Right. Every Democrat will distance himself from Obama and declare himself an independent candidate for re-election. The Black congressional caucus was angry about the 16.2% black unemployment rate as compared to 9.2% for America as a whole. There are 6 statistical definitions of unemployment. That 9.2% national rate is the U3 definition. If we use the U6 definition as was common until 1994 when Clinton changed stopped using it, the unemployment rate mentioned in the press would be the U6 16.2% figure. Backtrack to 1981 when Reagan took office. If we used the unemployment rate Reagan used in 1981, the unemployment rate would be 22.5% for the average American and somewhere north of that for black people. Obama is in the White House to betray black people and other minorities to Goldman Sachs and JP Morgan. But betrayal of the voters to big campaign contributors is what politicians do.
Before JP Morgue collapses Bank of America will be forced into bankruptcy and be acquired by JP Morgan. Bank of America has been forced to accept worthless paper and equally worthless stock in corporations like Countrywide. This merger will create a Monster Bank that cannot be allowed to fail. They will intentionally use fear to scare Americans into submissively accepting another ten trillion dollars in Bailouts. This merger will give a breather to the Morgue which will use the Bailout to keep the whole scam known as Wall Street going a bit longer.
The Hugo Chavez gold run, the capital squeeze in Europe and New York, the quadrillion dollars in Credit Default Swaps, the looming collapse of the euro, the coming silver short squeeze, the genuine fears of counter party risk, declining value of home and commercial mortgages, Morgan’s 92 trillion exposure in derivatives, the trillions of dollars in unpayable debts on the books and the general decline in stock prices will drive Morgan’s stock value way down. That and the voting public’s growing anger that might spill over into a refusal to pay for any more Bailouts will mean a very bumpy ride is in store for JP Morgan.
Max Keiser had an article about the Butterfly put being used by big traders who combine long and short positions which pay off in highly volatile stock situations. The gamble is that JP Morgan’s stock value will decline sharply by December. Acquiring all those worthless Bank of America’s assets might not help Morgan’s stock price because as I just said they are not canceling bad debts. They are just creating more debt burdens. They are simply making things worse.
So we can expect turbulent times, a bankruptcy of Bank of America, the acquisition of BofA by Morgan with federal money, spikes in gold silver prices, a collapse in the ETFs, a freezing of lending, Austerity cuts spreading to America, rising unemployment, a downturn in the real economy and a decline in the stock market and an emergence of JP Morgue as a government bank. I would remind all Morgan bondholders and stockholders that Obama screwed some investors at the expense of others.
I would not expect the government to seize gold and silver bullion. They do not have the political capital to do that. And their political capital is diminishing daily. And the various governments are expected to have an international conference like the Plaza Accord which will cancel a lot of debts and devalue currencies. That could happen as early as 2012 or soon after the November elections.
Gold and silver have seasonal highs and lows. We are currently in a seasonal low. Bullion prices rise starting in September when jewelers order gold for holiday demand. It will continue to rise until February when Bob Chapman thinks gold will reach $3,500 an ounce. A 35 to 1 price ratio of gold to silver would put silver above $100 in six months. A 40 to 1 ratio would mean $85 dollar silver. It takes 5 pre-1965 quarters to make one ounce of 90% silver. A single pre-1965 90% silver quarter would have a melt value of at least 15 dollars. If the various governments have a Plaza Accord II and devalue the dollar by at least 50%, they will likely want to raise the price of gold to $7,000 an ounce to go back to the Gold Exchange standard which Nixon ended in 1971. That and a few hundred million guns and tens of billions of bullets will stop any nonsense of seizing gold and silver.
A 50% currency devaluation in America and for those nations in Europe forced out of the euro means a doubling of prices overnight. That will eliminate all remaining political capital of every politician in the world. The US government is already far less popular than was King George the Third in 1776.
Max Keiser has a campaign to bankrupt JP Morgan by buying silver bullion. He calls his supporters members in good standing of the Silver Liberation Army and their campaign is called GIABO (the Global Insurrection Against Banker Occupation.) Remember that Morgan is shorting silver while simultaneously operating the SLV ETF. Now Chavez has demanded the return of more gold than Morgan has in its vaults. Keiser has told many nations on the list of countries to be invaded to buy gold and silver bullion. As I explained in a previous post, the six wars America is currently fighting are all funded with paper money. Max said in his latest video report that Hugo Chavez just created the GLA (the Gold Liberation Army.)
When the stock market declines, we can expect the government to attempt to seize the assets of all IRAs and 401Ks (personal American savings retirement accounts) and replace those assets with trillions of dollars in Treasury bonds. They will say this is to protect us from further declines in the risky stock market. The greatest risk humanity faces comes from the banks and the governments in Great Britain and the United States and the blood sucking vampires of London and New York. Two bills allowing the government to steal your savings have already been introduced into the Congress.
All anti-war activists and all nations on Obama’s hit list should immediately convert all disposable assets into gold and silver. This will bankrupt JP Morgan and the US government and bring all the wars to an end. America is already at war with six nations.
If the Nobel Peace laureate gets us into any more wars, we will definitely be bankrupt which was the plan of the bankers all along. They want a bankrupt America to be forced to join the New World Order and to accept IMF dictates just like Ireland. Our after tax wages will be cut in half. And of course America will go down in history as the nation that started World War III.
Update: No gold deliveries as yet to Venezuela. But JP Morgan has just received some gold from HSBC as per this Headline from Zero Hedge:
9,173 Ounces Of Gold Transferred From HSBC To JP Morgan Gold Vaults Overnight
There are 32,000 ounces in one ton so clearly this is not enough to pay Mr Chavez but it does indicate a gold squeeze. Gold is currently trading at $1,826.80. If anyone wants to buy ten tons or more, he will be paying a lot more than that.
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LOL!! I Stole 3.5 Trillion Dollars From You. I Dare You To Do Something.
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