Filed under: Andrew Maguire, Big Banks, corruption, CTFC, Dollar, Federal Reserve, gold, Goldman Sachs, Greenback, Inflation, LBMA, madoff, manipulated market, manipulation, market manipulation, scam, scandal, silver | Tags: gold manipulation, silver manipulation
MUST READ!
Goldman Sachs Whistleblower Exposes Gold and Silver Price Manipulation by JPMorgan Chase
Michael Snyder
Black Listed News
April 12, 2010
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.
Filed under: Barack Obama, bolivar, Caribbean, chavez, Chile, CIA, Colonialism, Coup, Cuba, declaration of war, destabilization, Economic Collapse, economic war, Economy, Empire, future war, gas prices, george soros, Honduras, Hugo Chavez, hyperinflation, Inflation, latin america, manipulated market, market manipulation, military base, Military Industrial Complex, NGOs, obama, obama deception, obamas war, Oil, resource war, secret war, South America, USAID, Venezuela, war provocation, White House, zelaya | Tags: ALBA, Bolivarian Alternative for the Americas, CITGO, Curaçao, national endowment for democracy, NED
Obama authorizes covert economic war against Venezuela
Wayne Madsen
Online Journal
January 21, 2010
WMR’s intelligence sources have reported that the Obama administration has authorized an economic war against Venezuela in order to destabilize the government of President Hugo Chavez.
After a successful coup against Chavez ally, President Manuel Zelaya of Honduras, and the very thin 51-49 percent electoral win by Chile’s billionaire right-winger Sebastian Pinera on January 17, a buoyed Obama White House has given a green light for political operatives in Venezuela, many of whom operate under the cover of non-governmental organizations (NGOs), to set the stage for massive street demonstrations to protest Chavez’s devaluation of the bolivar, Venezuela’s currency.
Chavez devalued the bolivar by 50 percent to make Venezuelan oil exports less expensive, thus boosting revenue for his country. However, the devaluation has also seen price rises and inflation in Venezuela and the CIA and its subservient NGOs have wasted little time in putting out stories about consumers rushing to the stories ahead of an increase in consumer products, with imported flat-screen televisions being the favorite consumer item being hyped by the corporate media as seeing a huge price increase and long lines at shopping malls favored by the Venezuelan elites.
The state has exempted certain consumer goods such as food, medicines, school supplies, and industrial machinery from being affected by the bolivar’s devaluation through a different exchange rate and price controls, but it is the price increases on televisions, tobacco, alcohol, cell phones, and computers that has the anti-Chavez forces in Venezuela and abroad hyping the ill-effects on the Venezuelan consumer.
To battle against businessmen who are trying to capitalize on the devaluation of the bolivar, Chavez has threatened to close and possibly seize any business that gouges the consumer by inordinately raising prices. The first target of a temporary closure was a Caracas store owned by the French firm Exito.
International investment analysts praised Chavez’s decision to devalue the bolivar and said the decision was overdue considering the fall of oil prices worldwide. However, the CIA and NGOs, many aligned with George Soros’s Open Society Institute and the U.S. National Endowment for Democracy are planning large street demonstrations against Chavez’s handling of the economy.
National Assembly elections are scheduled for September but the Obama administration has decided that if Chavez can be removed now, his allies in Bolivia, Ecuador, Nicaragua, Paraguay, and some Caribbean island states will quickly abandon Chavez’s alternative to American-led Western Hemisphere financial contrivances and free trade pacts, the Bolivarian Alternative for the Americas (ALBA).
The Obama planners then see Cuba, once again, being isolated in the hemisphere and ripe for increased U.S. political pressure. Cuba was placed on the list of 14 countries requiring additional airline passenger screening as part of the policy to pressure and isolate Cuba. There is a possibility that with the outbreak of U.S.-inspired violence in the streets of Venezuela, that nation could join Cuba on the list as the 15th country.
The Obama administration’s assault is two-fold: economic and political. Pressure is being applied against the gasoline chain Citgo, which is owned by the Venezuelan state oil company, PDVSA, and Venezuelan investment favorability ratings. Politically, the U.S. is overtly and covertly funneling money to anti-Chavez groups through the National Endowment for Democracy (NED), U.S. Agency for International Development (USAID), and groups affiliated with George Soros.
There is also a small military component to Obama’s strategy of undermining Chavez. U.S., P-3 Orion overflights of Venezuelan airspace from bases in Aruba and Curacao are designed to intimidate Chavez and activate Venezuelan radar and command, control, communications, and intelligence (C3I) systems to gather electronic and signals intelligence data that would be used by the United States to jam Venezuelan military networks in the event of a U.S.-inspired uprising against Chavez by U.S. loyalists embedded in the Venezuelan military, police, PDVSA, and media. The U.S. is also stoking cross-border incursions into Venezuela by Colombian paramilitaries to gauge Venezuela’s border defenses. Last November, Colombian right-wing paramilitary units killed two Venezuelan National Guardsmen inside Venezuela in Tachira state. Weapons caches maintained by Colombians inside Venezuela have been seized by Venezuelan authorities. Venezuela has also arrested a number of Colombian DAS intelligence agents inside Venezuela.
Obama signed a military agreement with Colombia that allows the United States to establish seven air and naval bases in Colombia. An additional agreement by Obama with Panama will see the U.S. military return to that nation to set up two military bases.
It is estimated that some 25 percent of Venezuelans are likely Fifth Columnists who would take part in a revolt against Chavez. Many of them based in the Venezuelan oil-producing state of Zulia and the capital of Maracaibo, where successive U.S. ambassadors in Caracas have stoked secessionist embers and where the CIA and U.S. Defense Intelligence Agency have concentrated much of their efforts. In November, Venezuelan police arrested in Maracaibo, Magaly Janeth Moreno Vega, also known as “The Pearl,” the leader of the right-wing United Self-Defense Forces of Colombia (AUC), which has been directly linked to Colombia’s pro-U.S. President Alvaro Uribe and members of his government, including former Colombian Attorney General Luis Camilo Osorio Isaza, appointed by Uribe as Colombia’s ambassador to Mexico.
Filed under: bailout, bank bailout, banksters, Barack Obama, Big Banks, celente, Credit Crisis, DEBT, deception, Dollar, dollar collapse, dollar dump, Economic Collapse, economic depression, Fascism, Federal Reserve, free market, gangsters, geithner, gerald celente, Goldman Sachs, Great Depression, Greenback, henry paulson, hyperinflation, Inflation, madoff, mafia, main street, manipulated market, manipulation, middle class, oligarchy, Paulson, socialism, Stock Market, Taxpayers, Timothy Geithner, Too Big to Fail, u.s. economy, US Treasury, Wall Street
Goldman Sachs Mafia Arming Themselves Against Public
Goldman Sachs gang; the modern day mafia
Alice Schroeder
Bloomberg
November 30, 2009
“I just wrote my first reference for a gun permit,” said a friend, who told me of swearing to the good character of a Goldman Sachs Group Inc. banker who applied to the local police for a permit to buy a pistol. The banker had told this friend of mine that senior Goldman people have loaded up on firearms and are now equipped to defend themselves if there is a populist uprising against the bank.
I called Goldman Sachs spokesman Lucas van Praag to ask whether it’s true that Goldman partners feel they need handguns to protect themselves from the angry proletariat. He didn’t call me back. The New York Police Department has told me that “as a preliminary matter” it believes some of the bankers I inquired about do have pistol permits. The NYPD also said it will be a while before it can name names.
While we wait, Goldman has wrapped itself in the flag of Warren Buffett, with whom it will jointly donate $500 million, part of an effort to burnish its image — and gain new Goldman clients. Goldman Sachs Chief Executive Officer Lloyd Blankfein also reversed himself after having previously called Goldman’s greed “God’s work” and apologized earlier this month for having participated in things that were “clearly wrong.”
Has it really come to this? Imagine what emotions must be billowing through the halls of Goldman Sachs to provoke the firm into an apology. Talk that Goldman bankers might have armed themselves in self-defense would sound ludicrous, were it not so apt a metaphor for the way that the most successful people on Wall Street have become a target for public rage.
Pistol Ready
Common sense tells you a handgun is probably not even all that useful. Suppose an intruder sneaks past the doorman or jumps the security fence at night. By the time you pull the pistol out of your wife’s jewelry safe, find the ammunition, and load your weapon, Fifi the Pomeranian has already been taken hostage and the gun won’t do you any good. As for carrying a loaded pistol when you venture outside, dream on. Concealed gun permits are almost impossible for ordinary citizens to obtain in New York or nearby states.
In other words, a little humility and contrition are probably the better route.
Until a couple of weeks ago, that was obvious to everyone but Goldman, a firm famous for both prescience and arrogance. In a display of both, Blankfein began to raise his personal- security threat level early in the financial crisis. He keeps a summer home near the Hamptons, where unrestricted public access would put him at risk if the angry mobs rose up and marched to the East End of Long Island.
To the Barricades
He tried to buy a house elsewhere without attracting attention as the financial crisis unfolded in 2007, a move that was foiled by the New York Post. Then, Blankfein got permission from the local authorities to install a security gate at his house two months before Bear Stearns Cos. collapsed.
This is the kind of foresight that Goldman Sachs is justly famous for. Blankfein somehow anticipated the persecution complex his fellow bankers would soon suffer. Surely, though, this man who can afford to surround himself with a private army of security guards isn’t sleeping with the key to a gun safe under his pillow. The thought is just too bizarre to be true.
So maybe other senior people at Goldman Sachs have gone out and bought guns, and they know something. But what?
Henry Paulson, U.S. Treasury secretary during the bailout and a former Goldman Sachs CEO, let it slip during testimony to Congress last summer when he explained why it was so critical to bail out Goldman Sachs, and — oh yes — the other banks. People “were unhappy with the big discrepancies in wealth, but they at least believed in the system and in some form of market-driven capitalism. But if we had a complete meltdown, it could lead to people questioning the basis of the system.”
Torn Curtain
There you have it. The bailout was meant to keep the curtain drawn on the way the rich make money, not from the free market, but from the lack of one. Goldman Sachs blew its cover when the firm’s revenue from trading reached a record $27 billion in the first nine months of this year, and a public that was writhing in financial agony caught on that the profits earned on taxpayer capital were going to pay employee bonuses.
This slip-up let the other bailed-out banks happily hand off public blame to Goldman, which is unpopular among its peers because it always seems to win at everyone’s expense.
Plenty of Wall Streeters worry about the big discrepancies in wealth, and think the rise of a financial industry-led plutocracy is unjust. That doesn’t mean any of them plan to move into a double-wide mobile home as a show of solidarity with the little people, though.
Cool Hand Lloyd
No, talk of Goldman and guns plays right into the way Wall- Streeters like to think of themselves. Even those who were bailed out believe they are tough, macho Clint Eastwoods of the financial frontier, protecting the fistful of dollars in one hand with the Glock in the other. The last thing they want is to be so reasonably paid that the peasants have no interest in lynching them.
And if the proles really do appear brandishing pitchforks at the doors of Park Avenue and the gates of Round Hill Road, you can be sure that the Goldman guys and their families will be holed up in their safe rooms with their firearms. If nothing else, that pistol permit might go part way toward explaining why they won’t be standing outside with the rest of the crowd, broke and humiliated, saying, “Damn, I was on the wrong side of a trade with Goldman again.”
Filed under: Barack Obama, bilderberg, Central Banks, China, commodities, common currency, Credit Crisis, DEBT, Dictatorship, Dissent, Dollar, dollar collapse, dollar dump, economic depression, econommic collapse, Economy, Empire, g20, george soros, global central bank, global currency, global economy, global elite, global fascism, global government, global oligarchs, global treasury, Globalism, globalist, gold, Great Depression, Greenback, hyperinflation, imf, IMF bonds, Inflation, internationalism, internationalist, internationalists, manipulated economy, manipulated market, manipulation, market manipulation, New World Order, NWO, obama, Oil, oligarchy, One World Government, Petrol, SDR, SDRs, single currency, slavery, socialism, soros, Stock Market, UN, united nations, US Economy, World Bank, world currency, world government
Soros: “An Orderly Decline of the U.S. Dollar is Acceptable”
Billionaire globalist says China must be more subservient to the IMF’s New World Order, warns Americans that it would be unwise to resist a new world currency
Paul Joseph Watson
Prison Planet.com
October 28, 2009
Billionaire globalist George Soros told the Financial Times during an interview that China will supplant the United States as the leader of the new world order and that America should not resist the country’s decline as the dollar weakens, living standards drop, and a new global currency is introduced.
Asked what Obama should discuss when he visits China next month, Soros stated, “This would be the time because I think you really need to bring China into the creation of a new world order, financial world order,” adding that China was a reluctant member of the IMF who didn’t make enough of a contribution.
“I think you need a new world order that China has to be part of the process of creating it and they have to buy in, they have to own it in the same way as the United States owns…the current order,” said Soros, adding that the G20 was a move in this direction.
Soros said that there was a flight from currencies across the board, and that this is why the price of commodities, notably gold and oil, were generally rising. He also stated that an orderly decline of the dollar was “desirable” and that the entire system needed to be reconstituted towards a global currency.
“You need a new currency system and actually the Special Drawing Rights do give you the makings of a system and I think it’s ill-considered on the part of the United States to resist the wider use of Special Drawing Rights, they could be very useful now when you have a global shortfall of demand, you could actually internationally create currency through Special Drawing Rights,” said Soros, explaining that this was already in process after the IMF injected an allocation of Special Drawing Rights (SDRs) equivalent to $250 billion into the global economy.
Soros also stated that richer countries were already transferring wealth to poorer countries via SDR’s, with the IMF paying for the half per cent transaction cost.
Soros said the world would have to go through a “painful adjustment” following the decline of the dollar and the introduction of a global currency. Reading between the lines, he essentially threatened to kill the dollar completely if the United States did not get on board with the global currency.
Soros predicted that China would become the new engine of the global economy, replacing the U.S., and that this would slow economic growth and reduce living standards. Soros characterized the United States as a drag on the global economy because of the declining dollar.
Watch the video interview below.
noworldsystem.com 