BOMBSHELL – Whistle Blower Comes Forward With Solid Proof The Price Of Gold And Silver Is Being Manipulated By Major Financial Institutions
For a long time many of us have had very serious suspicions that the prices of gold and silver were being highly manipulated. But now, thanks to the mind blowing testimony of one very brave whistle blower, the blatant manipulation of the world gold and silver markets is being blown wide open. What you are about to read below is absolutely staggering. Once the American people learn how incredibly corrupt the world financial system is, it is going to change everything. The government that we are all trusting to guard the integrity of the financial system is failing to do that job. It turns out that the Commodities Futures Trading Commission has been sitting on solid evidence that the elite banking powers have been openly and blatantly manipulating the price of gold and silver. Even though they were basically handed a "smoking gun", they have done absolutely nothing with it. But now the information has gone public and the CFTC is red-faced.Back in November 2009, Andrew Maguire, a former Goldman Sachs silver trader in Goldman's London office, contacted the CFTC's Enforcement Division and reported the illegal manipulation of the silver market by traders at JPMorgan Chase.
Maguire told the CFTC how silver traders at JPMorgan Chase openly bragged about their exploits - including how they sent a signal to the market in advance so that other traders could make a profit during price suppression episodes.
Traders would recognize these signals and would make money shorting precious metals alongside JPMorgan Chase. Maguire explained to the CFTC how there would routinely be market manipulations at the time of option expiries, during non-farm payroll data releases, during commodities exchange contract rollovers, as well as at other times if it was deemed necessary.
On February 3rd, Maguire gave the CFTC a two day warning of a market manipulation event by email to Eliud Ramirez, who is a senior investigator for the CFTC’s Enforcement Division.
Maguire warned Ramirez that the price of precious metals would be suppressed upon the release of non-farm payroll data on February 5th. As the manipulation of the precious metals markets was unfolding on February 5th, Maguire sent additional emails to Ramirez explaining exactly what was going on.
And it wasn't just that Maguire predicted that the price would be forced down. It was the level of precision that he was able to communicate to the CFTC that was the most stunning. He warned the CFTC that the price of silver was to be taken down regardless of what happened to the employment numbers and that the price of silver would end up below $15 per ounce. Over the next couple of days, the price of silver was indeed taken down from $16.17 per ounce down to a low of $14.62 per ounce.
Because of Maguire’s warning, the CFTC was able to watch a crime unfold, right in front of their eyes, in real time.
So what did the CFTC do about it?
Nothing.
Absolutely nothing.
Which is extremely alarming, because the size of this fraud absolutely dwarfs the Madoff or Enron scandals. In fact, this fraud is so gigantic that it is not even worth comparing to any of the other major financial scandals of recent times.
But Maguire did not give up. He sent several more emails to the CFTC detailing the open manipulation of the gold and silver markets.
The CFTC did not reply.
Finally he sent them a final email: "I have honored my commitment to assist you and keep any information we discuss private, however if you are going to ignore my information I will deem that commitment to have expired."
The reply by the CFTC?
"I have received and reviewed your email communications. Thank you so very much for your observations."
No action.
No acknowledgement that anything was wrong.
No recognition that a massive crime had been committed.
Fortunately, that was not the end of it.
On March 25th, the CFTC held a hearing on alleged manipulation in the gold market by the major banking powers.
Maguire wanted to testify during that hearing but he was not invited.
But William Murphy, chairman of Gold Anti-Trust Action (GATA), was invited to testify. GATA has been compiling data on the manipulation of the gold and silver markets for quite a long time now.
Murphy was only given five minutes to deliver his testimony. He raced through his presentation so that he could get as much information on the record as possible.
Very curiously, the live television broadcast of the CFTC hearing suffered a technical failure the minute before Murphy began his testimony. The technical failure was corrected the minute after Murphy was finished.
Coincidence?
Well, it turns out that there were are lot of coincidences surrounding this hearing.
But we'll get to that in a minute.
When Murphy finished his statement, the panel asked him for some hard proof of market manipulation. Murphy shocked the panel by revealing the name of Maguire and explaining how Maguire had informed the CFTC Enforcement Division of the market manipulation that was taking place by JPMorgan Chase. The CFTC panel seemed stunned by the revelation and seemed reluctant to learn any further and asked nothing else about it.
Video of Murphy's revelation to the panel is posted below....
In another "coincidence", Maguire and his wife were subsequently injured and hospitalized when their car was struck by a hit-and-run driver in the London suburbs.
When a bystander who saw the "accident" tried to block the other driver from getting away, the other driver accelerated directly towards the witness, forcing him to leap out of the way to avoid being hit. The hit-and-run driver’s car then hit two additional cars as he left the area.
But Maguire and his wife were fortunate.
In the past, other would-be whistle blowers that had evidence regarding the manipulation in the gold and silver markets died in "unusual accidents" before they were able to bring their evidence to light.
But there were even more "coincidences" surrounding this hearing.
A week before the hearing, the CFTC announced that they had had a fire in the room where its gold and silver records are held.
Isn't that convenient?
In addition, after the hearing was over, Murphy was contacted by a number of major media outlets for interviews.
Within 24 hours, every single interview was cancelled.
Every single one.
Is that a coincidence too?
It appears that some very powerful people do not want this information to get out.
It also shows how corrupt the mainstream media has become.
This is a story that is so much bigger than the Madoff scandal or the Enron scandal that it is not even funny.
And yet the mainstream media is avoiding it like the plague.
But there were additional bombshells that came out during the hearing as well.
During the hearing it was revealed that the gold manipulators have accumulated a huge short position in gold and that these huge short positions are "naked", which means that these positions are not hedged.
These massive short positions have put some of the largest financial institutions in the world in an extremely vulnerable position.
In addition, it has now come out that most "gold" that is traded is not backed by the actual metal itself. For years, most people have assumed that the London Bullion Market Association (LBMA), the world's largest gold market, had actual gold to back up the massive "gold deposits" at the major LBMA banks.
But that is not the case.
People are now realizing that there is very little actual gold in the LBMA system.
When people think they are buying "gold", they are actually just buying pieces of paper that say they own gold.
In fact, during the CFTC hearings, Jeffrey Christian of CPM Group confirmed that the LBMA banks actually have approximately a hundred times more gold deposits than actual gold bullion.
Uh oh.
So what happens if everyone decides that they want actual physical delivery of their gold?
It would be such a mess that it is painful even to think about it.
The truth is that right now most of the trading activities on the London exchange are just paper for paper.
But people get into gold because they want to be in a real commodity.
In fact, there are thousands of clients around the globe who think they own huge deposits of gold bullion, and are being charged large storage fees on that imaginary bullion, but what they really own are a bunch of pieces of paper.
If there comes a time when everyone starts asking for their gold it is going to create a squeeze of unimaginable proportions.
Maguire explains this situation this way: "for 100 customers who show up there is only one guy who is going to get his gold or silver and there’s 99 who will be disappointed, so without any new money coming into the market, just asking for that gold and silver will create a default."
The truth is that it is absolutely impossible for the LBMA to ever deliver all the gold and silver owed to the owners of contracts.
Yes, it is a gigantic mess.
But this type of things is not entirely unprecedented. For example, Morgan Stanley paid out several million dollars back in 2007 to settle claims that it had charged 22,000 clients storage fees on silver bullion that did not exist.
But the scale of the fraud going on now is absolutely mind blowing. The following video contains footage from the hearing related to these issues....
So what is the bottom line?
The bottom line is that the precious metals markets are cesspools of fraud and manipulation.
The markets have been suppressed by the major financial institutions for years, and this has created the potential for a "squeeze" in the precious metals markets that could send the prices of gold and silver into the stratosphere.
You see, the reality is that there would be no gold left in the entire world if all the Gold ETFs (Exchange Traded Funds) asked for physical delivery.
Are you starting to get the picture?
In fact, Maguire claims that the naked short selling scam by the major financial institutions is well into the trillions of dollars, making it by far the biggest financial fraud in history.
Maguire calls what has been going on "financial terrorism", and he accuses the financial institutions involved in this fraud of "treason" for putting national security at risk.
And national security is at risk.
Because if the true extent of this fraud comes out, it could collapse the entire financial system.
If you have never heard an interview with Andrew Maguire, we encourage you to listen to the audio interview posted below. It will really open your eyes to what is going on in the precious metals markets....
The Century's Biggest Fraud Revealed
This is one of the biggest financial stories of the decade. Because it is complex, most Americans will not understand it. But the fraud and manipulation in the gold and silver markets has the potential to cause a massive economic collapse even without all of the other factors talked about on this blog.
Some very powerful people have been doing some really, really bad things. Once people understand the truth, they will never look at the financial markets the same way again. Already, faith in the major financial institutions of this country has been shaken by revelations about what has been going on over at Goldman Sachs. The American people have no more appetite for any more financial scandals or for any more Wall Street bailouts. But if the fraud and manipulation taking place in the precious metal markets ever gets totally exposed it will change the U.S. financial system forever.
Please get this information out to as many people as you can. There are a number of very powerful people who are not going to be pleased that sites like this are attempting to get the truth about this massive scandal out.
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| HANK PAULSON GOLDMAN SACHS US TREASURY GANGBANKSTER EYEING REVERSE PYRAMID SCAM CONFISCATION OF SOCIAL SECURITY | |||||||||
| Published on 04-12-2010 | |||||||||
By Tommy Tucci - BLN Contributing Writer Philadelphia - US Treasury GangBanksters corrupt bureaucratic apparatus financial banking baron parasites and crony farcical mainstream media Double Speak. Egregious example 'Social Security withholding taxes is a calculated Government Theft of Labor Property and Hard Assets.' Basically Social Security is a bureaucratic theft referred to by the misnomer 'Government Entitlement.' Subsequently, entitlements are extreme theft 20th Century Pyramid Scams confiscating labor and property. Simultaneously, the control of interest rates and higher future taxes exponentially increases the confiscation of Social Security Medicare Funds over decades. Consequently, entitlement is just one government politics of deflection scam to complete the masses of citizenry delusions. 'We the People' are constantly reminded that the Social Security Medicare funds will be exhausted in future years. Correct, corrupt parasitic robber barons such as morbid Mr. Paulson supreme GangBankster turn the original many decades Social Security Pension Fund upside down. Resulting in the instantaneous 21st Century Reverse Pyramid confiscation of 'We The People' labor and property that required exponential years to reach satisfied yields and payouts. Currently, Reverse Robin Hoods Merry Men GoldmanSachs/US Treasury/FedReserve Corporation kleptocrats should be charged with 'The Racketeer Influenced Corrupt Organization Act' RICO as opposed to accelerating additional theft and scams of 'We The People' hard assets, labor, and property. INSANITY OF $700 BILLION INSTANTANEOUS THEFT The Big Bank Job: The Insanity of the $700 Billion Giveaway Michael Hudson..."What it can do is provide a one-time transfer of wealth to insiders who already have been playing the debt-credit system and siphoning off its predatory financial proceeds to themselves." paragraph "The very first course in economics –starting in high school, followed up in college and then refined in graduate school – should explain to students why it is false to believe the advertisement that Wall Street has been trying to sell for the past half century: The deceptive promise that an economy can get rich off the mathematical “magic of compound interest.” The unreality of this promise should be immediately apparent by looking at the math of exponential growth. The “magic of compound interest” refers to the tendency of savings to double and redouble exponentially, with a matching rise in what debtors owe on the other side of the balance sheet. The power to indebt others to oneself can be achieved by free credit creation. However, the resulting mushrooming exponential growth in indebtedness must collapse at the point where its interest and other carrying charges (now augmented by exorbitant late fees, bounced-check fees, credit-card costs and other penalties) absorb the entire economic surplus. But there is a great reluctance to accept the fact that debts cannot be paid. “The poor are honest,” as one banker explained to me, poor people believe that “a debt is a debt” and must be paid. (This is not what Donald Trump, Bear Stearns or A.I.G. believe, but they are at the top of the economic pyramid, not its base.) SYSTEMIC FINANCIAL BANKING SCAMS CANNOT BE SUSTAINED Pyramid schemes or market trading exchange is transferring saps suckers and chumps hard earned work labor assets property and capital to autonomous monolithic parasitic operators over decades. Reverse pyramids practiced today by Mr. Paulson [source] are criminal illegal bailouts that transfer future forced public taxpayer debt instantly to autonomous operators not over decades. Both pyramid schemes result in a zero sum scam for millions of citizenry including not limited to 'We the People,' labors, pension funds, organizations, states, cities retirement funds, and countries with massive transfer of value wealth and power transferred to the apex of pyramid opportunists. Analogy: controlled interest and tax rate consequences 'We The People' vs GangBanksters.... US citizenry labors create property this accumulated wealth has no incumbrances mortgages, car loans, credit cards, is free and clear of all debts. Goldman Sachs, which was a heartbeat away from failure in 2008 and received $40 billion in federal aid, paid out $16 billion in bonuses and compensation in 2009 -- an average of nearly $500,000 per employee. The bank paid just $14 million in taxes [source] The Detroit News. [source] LA Times... LA Dodger owner pays no taxes on $108 million income. Enter autonomous Federal Reserve banking cartel corporation a monopoly on monetizing debt including the absolute rigged control over interest rates and future taxe rates. An individual with no debt load is considered in the top 70 to 90 percentile of taxable income wealth. Systemic financial pyramid reverse pyramid scams operating with artificial autonomous authority to tax and control interest rates outside the US Treasury transfer and confiscate all labor, property, wealth and value, circumventing US Constitution Laws, operating to the detriment of 'We The People', and finally distracting from a perverted veneer on the Spirit of Democratic Laws and Values. [source] Andrew Jackson veto against monopoly private banks. c. July 10, 1832 To the US Senate KLEPTOCRATS AS METAPHORIC IVY VACUUM CLEANERS Wall Street oligarchs eyeing Social Security article by Paul Craig Roberts writes "Hank Paulson, the Gold Sachs bankster/U.S. Treasury Secretary, who deregulated the financial system, caused a world crisis that wrecked the prospects of foreign banks and governments, caused millions of Americans to lose retirement savings, homes, and jobs, and left taxpayers burdened with multi-trillions of dollars of new U.S. debt, is still not in jail. He is writing in the New York Times urging that the mess he caused be fixed by taking away from working Americans the Social Security and Medicare for which they have paid in earmarked taxes all their working lives." NO SURPRISE THEN AT FAILURE Failure transformed by farcical opportunist diversions example the theft of labor and property of 'We the People' $1 trillion, would have had to commence the confiscation of labor and property at $1 million daily soon after Rome was founded and continue for 2,738 years until today... Then it should be no surprise that contentious zombie supreme predatory political and racketeering economic systems that refuse to provide health care, public services or financial opportunity to its own citizenry is resorting to war and militarism using the diversion of reverse methodologies. Unaccountable above the law, in a desperate effort to feed its insatiable appetite for imperial divide conquer world conquest. All pyramid power structures and impending scams by laws of nature and mathematics cannot sustain itself over time and inevitably collapses. Thereby creating systemic colossal demise and death warrant for the future. American double standards hypocrisy is calculated, designed, manufactured, to result in great failure. This is the reality of 21st Century America decline and fall of empire a sorry, tragic saga. see Op-Ed Columnist - Virtuous Bankers? Really!?! Maureen Dowd - NYTimes.com see Coinage Act US CONSTITUTION c.1792 read reverse baiting news [source] ADL covering up for crimes of financial elites by Robert Stark LA Nonpartisan Examiner # # # Author Sources: http://www.globalresearch.ca/ http://onlinejournal.com/ http://dandelionsalad. http://www.alternet.org/story/ http://www. http://www.nytimes.com/2009/ http://www.constitution.org/ http://www.nytimes.com/2009/ website: ak47 21stCenturyreversePyramid blog: http:// http://www.thetruthseeker.co. http://coyoteprime- http://en.wikipedia.org/wiki/ | |||||||||
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Is the Fed Helping the Big Banks to Cook Their Books?
Published on 04-12-2010
By MIKE WHITNEY - BLN Contributing Writer
On Friday, the Wall Street Journal revealed details of a cover up by the nation’s largest banks that have been engaged in potentially-criminal accounting activities to conceal the amount of debt on their balance sheets. The SEC has been notified of the allegations and has launched a probe to determine whether further action is needed. Among the banks implicated, are Goldman Sachs, JP Morgan, Bank of America, and Citigroup. According to the WSJ:
"Major banks have masked their risk levels in the past five quarters by temporarily lowering their debt just before reporting it to the public, according to data from the Federal Reserve Bank of New York. A group of 18 banks....understated the debt levels used to fund securities trades by lowering them an average of 42 per cent at the end of each of the past five quarterly periods, the data show. The banks, which publicly release debt data each quarter, then boosted the debt levels in the middle of successive quarters." ("Big Banks Mask Risk Levels", Kate Kelly, Tom McGinty, Dan Fitzpatrick, Wall Street Journal)
The article has set off alarm bells on Wall Street because of the similarity between Lehman Bros. "repo 105" transactions and these new signs of obfuscation by other large banks. "Repo 105" is an accounting device that Lehman used to hide $50 billion in debt off its balance sheet in an attempt to mislead investors about the true state of its financial health. The WSJ story suggests that the practice may be more widespread than originally thought. The "repo 105" scandal is further complicated by suspicions that Lehman was assisted in its effort by the Federal Reserve Bank of New York which, at the time, was headed by the present Secretary of the Treasury, Timothy Geithner. Here is a short recap of what transpired between the Geithner's NY Fed and Lehman according to ex-regulator William Black and former NY governor Eliot Spitzer from an article on Huffington Post:
"The FRBNY [i.e., New York Fed] knew that Lehman was engaged in smoke and mirrors designed to overstate its liquidity and, therefore, was unwilling to lend as much money to Lehman. The FRBNY did not, however, inform the SEC, the public, or the Office of Thrift Supervision (which regulated an S&L that Lehman owned) of what should have been viewed by all as ongoing misrepresentations.
The Fed's behavior made it clear that officials didn't believe they needed to do more with this information. The FRBNY remained willing to lend to an institution with misleading accounting and neither remedied the accounting nor notified other regulators who may have had the opportunity to do so...... We now know from Valukas and from former Treasury Secretary Paulson that the Treasury and the Fed knew that Lehman was massively overstating its on-book asset values." (Time for the Truth" William Black and Eliot Spitzer, Huffington Post)
So the question is whether the NY Fed helped other banks conceal important financial information from investors, too. And--if that's the case--then how can the public be confident that the biggest banks in the country are truly solvent?
According to the WSJ: "An official at the Federal Reserve Board noted that the Fed continuously monitors asset levels at the large bank-holding companies, but the financing activities captured in the New York Fed's data fall under the purview of the Securities and Exchange Commission, which regulates brokerage firms."
The Fed's explanation is a tacit denial of its responsibility to regulate or report suspicious accounting practices to the appropriate agencies. The response is not just "buck passing", but also suggests collusion. So far, there's no clear link between the Fed and the shady bookeeping at the banks. But many now believe that -- in the case of Lehman -- the Fed acted as an "enabler", either by serving as a counterparty in repo 105 deals or by looking the other way while the transactions were executed. Either way, the situation demands an independent investigation.
To put the WSJ article in context, it helps to review the details of the Lehman case. Here's an excerpt from an article by Eric Dash in the NY Times:
"Newly released report on the collapse of Lehman Brothers ... sheds surprising new light on Lehman’s dealings with the New York Fed. Lehman engaged in a series of transactions with the New York Fed that were similar to the ones that drew criticism from the bankruptcy court examiner who investigated its collapse....
“The report by Mr. Valukas nonetheless raises fresh questions about the role of the New York Fed in supporting Lehman during the frantic months leading up to its collapse. It suggests that Lehman executives believed the Fed would be able to help the bank avert disaster and provide it with a business opportunity...
“Lehman, desperate for financing, seized its chance. It packaged billions of dollars of troubled corporate loans into an investment called Freedom CLO. Then, in a series of transactions, it shifted Freedom back and forth to the New York Fed, in exchange for cash. Those moves helped make Lehman look healthier.
“Essentially, Lehman was able to temporarily warehouse illiquid investments that were worrying its investors at the New York Fed in return for cash. The Fed created this facility immediately after the near collapse of Bear Stearns. Some suspect that other banks engaged in similar maneuvers.” ("Fed Helped Bank Raise Cash Quickly", Eric Dash, New York Times)
So why did "Lehman executives believe the Fed would be able to help the bank avert disaster and provide it with a business opportunity"? Most likely, because that had been standard operating procedure. The Fed was merely acting as it had before. Lehman used the repo market to amplify leverage to maximize profits, (the same as the other banks) and when they couldn't find a counterparty to accept their garbage collateral, the Fed would step in and provide short-term loans and "warehouse" their toxic assets. In essence, the Fed was helping to defraud investors who believed the banks reports were accurate. Here's Yves Smith at Naked Capitalism who sums it up perfectly:
"The NY Fed, and thus Timothy Geithner, were at a minimum massively derelict in the performance of their duties, and may well be culpable in aiding and abetting Lehman in accounting fraud and Sarbox violations...…at a minimum, the NY Fed helped perpetuate a fraud on investors and counterparties. This pattern further suggests the Fed, which by its charter is tasked to promote the safety and soundness of the banking system, instead, via its collusion with Lehman management, operated to protect particular actors to the detriment of the public at large. And most important, it says that the NY Fed, and likely Geithner himself, undermined, perhaps even violated, laws designed to protect investors and markets."
So if the NY Fed had no moral qualms about its "repo 105" dealings with Lehman, than why would hesitate to do the same thing for the other banks? Tyler Durden at Zero Hedge answers the question like this:
"We contend that Repo 105 type book-cooking and quarter end balance sheet window dressing was a prevalent phenomenon among all the banks. The fact that over the past two and a half years this resulted in a differential from the peak quarterly assets of over $65 billion is unbelievable, and the fact that this had slipped through the regulators' fingers is inexcusable.....
“We are confident that armed with this data, the SEC will be able to provide a prompt and logical response to why the primary dealers have such a peculiar pattern in downshifting their assets toward quarter end, and much more relevantly, who the counterparties are that would consistently take the other side of these quarter end window-dressing trades." ("Evidence That Primary Dealers Have Collectively Engaged In Repo 105 And Qtr-End Book Cooking Type Schemes For Years" zero hedge, 4-9-10)
Durden's logic looks good. If Lehman was being aided in its "book cooking" by the NY Fed, then the other banks were probably being helped, as well. It looks like Geithner left his fingerprints everywhere.
If we add these new developments to the fact that the Financial Accounting Standards Board's (FASB) "mark to market" rule has been suspended (allowing banks to arbitrarily assign whatever value they choose to the own illiquid assets) and, the fact that the Federal Reserve still refuses to allow an independent audit of the dodgy collateral it accepted from the banks in exchange for Treasuries and other loans; then it still looks like the banking system is either teetering or insolvent.
And don't expect the Securities and Exchange Commission to get to the bottom of this either. SEC chairman Mary Schapiro is a proven financial industry loyalist who has no intention of upsetting her Wall Street overlords by digging too deep or issuing subpoenas. If she pursues the investigation at all, it will only be to placate the public and to apply liberal amounts of whitewash to the whole matter.
http://www.blacklistednews.com/news-8236-0-5-5--.html
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THIS IS ALL PART OF THE PLAN......THE BIGGER PICTURE!
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