Over the past decade, “shadow worlders” have spoken of JP Morgan so ubiquitously in the context of market manipulation, its true role is at times obscured within anti-establishment babble. Actually, Goldman Sachs was the key figure in the early days of the Cartel’s current incarnation – no doubt, because the ambiguous “strong dollar policy” that governs its actions was established by Robert Rubin, upon leaving his long-time post as Goldman CEO to become Treasury Secretary in 1995. However, when Global Meltdown I occurred in 2008 – and JP Morgan assumed Bear Stearns’ hopelessly underwater silver short position – Goldman quietly slunk into the background, whilst JPM’s “bloody footprints” started to cover ALL financial markets.
In my view, JP Morgan is no longer an independent entity; but instead, a “quasi-government agency” – as ominously, Fannie Mae and Freddie Mac were deemed before being nationalized in 2008 (with their $5 trillion of debt, to this day, conveniently held “off balance sheet” by the U.S. government). In fact, ALL “TBTF” banks fit this description – given their all but explicit government backing. However, JP Morgan and Goldman Sachs have clearly been elevated to more important statuses – in JP Morgan’s case, as the “Fed’s bank”; and Goldman’s, the “Treasury’s Bank.” Operationally, these two behemoths act as the “ringleaders” for government manipulation; which, in turn, is why they can be profitable EVERY SINGLE DAY without regulatory scrutiny.
JP Morgan – the man – famously uttered “gold is money, and everything else credit” circa 1910; just as he and the day’s “elites” gathered at Jekyll Island, Georgia, to lay the foundation for forcing the Federal Reserve into existence in 1913. A century later, after the Fed had addicted the entire world to its cancerous, worthless dollars, JP Morgan – the firm – has its hand in all financial markets, government agencies, and, essentially, everything negative about the current, dying financial system. It secretly owns part of the Fed, and acts as the Fed’s “partner” in suppressing its long-time nemesis – i.e., the REAL MONEY that JP Morgan’s namesake endorsed a century ago.
For the past 13 years, JPM, Goldman, and their “henchman” have suppressed Precious metals enough to prevent the masses from recognizing their historical safe haven roles. Less so in historically gold-loving nations like China and India, but quite convincingly in PAPER-brainwashed regions like the U.S., UK, and even nations like France and Germany – where hyperinflations occurred not so long ago. However, as the global fiat Ponzi scheme – which commenced in 1971 – has entered its “death throes,” Central bank MONEY PRINTING has become so expansive – and endless – that more and more of the world’s citizenry is “getting it.” Thus, “the Cartel” – led by JP Morgan, in partnership with the U.S. government – has been forced to step up its efforts to hold PMs down; in essence, “kicking the can” that last mile.
Starting in April 2011, when silver reached the January 1980 high of $50/oz – and September 2011, when “Dollar-Priced Gold” reached an ALL-TIME high of $1,920/oz; we have seen the most intense, blatant, PAPER attacks of the entire precious metal bull market – by far. From May 2011’s “SUNDAY NIGHT PAPER SILVER MASSACRE”; to September 2011’s “OPERATION PM ANNIHILATION I”; to December 2011’s “OPERATION PM ANNIHILATION II”; February 2012’s “LEAP DAY VIOLATION; April 2013’s “ALTERNATIVE CURRENCIES DESTRUCTION”; and, of course, June 2013’s ‘post-tapering’ raids, PM holders have been under constant attack, while “PAPER PM Investment” holders have lost their shirts.
However, several “funny things occurred” whilst this summer’s suppressions took place. For one, the mining industry has all but been destroyed for perhaps a decade – yielding the likelihood of dramatic production declines in the coming years. Secondly, PHYSICAL precious metal demand has surged to unprecedented levels – especially in the Eastern Hemisphere. In fact, PHYSICAL demand has grown so strongly, we have now seen backwardation and negative GOFO rates for the past month; not to mention, dramatic inventory drains from both the GLD gold ETF and the COMEX itself – led by none other than JP Morgan.
At the same time, we have seen the Comex “commercials” – again, led by JP Morgan – dramatically covering (naked) PAPER shorts; and subsequently, achieving their largest “net long” position in decades. Ted Butler is perhaps the premier expert on COMEX data; and according to his analysis, JP Morgan has in the past nine months turned a 75,000 contract gold short position into an 85,000 contract long position. This $2 BILLION long position represents a whopping 25% of total COMEX net open interest, putting the Hunt Brothers’ supposed “cornering” of the silver market in 1980 to shame. Thus, you can see why the CFTC – i.e, another of JPM’s “sister” government organizations – refuses to issue COMEX position limits. Traditionally, the so-called “Commercials” never lose; and thus, it would seem a poor decision to blow against this government-supported wind.
Back in April 2012, the incarnation of Cartel evil gave an interview with its counterpart in the financial MSM – when JP Morgan’s commodities chief, Blythe Masters, made a rare appearance on CNBC. Amidst heightened accusations of manipulation given JPM’s enormous, documented silver short position ahead of the aforementioned “LEAP DAY VIOLATION” of February 29th, 2012, she famously stated that “our commodity business is not about betting on commodities prices, but assisting clients in managing risks.” To this statement, I respond by asking what “client” would need to sell gargantuan amounts of unbacked PAPER silver contracts to “manage their risks.” And equally puzzling, what institutions on the planet – other than sovereign governments – would have pockets deep enough to place such orders?
The answers, of course, are NONE, and NONE; as clearly, JP Morgan is acting in its role as the “Fed’s bank” to suppress precious metal prices under the auspices of the aforementioned “strong dollar policy”; you know, the one that has led to RECORD inflation and debt, and a near RECORD low against even the lowly Euro.
Since then, the world’s economic situation has badly deteriorated – leading to the most maniacal MONEY PRINTING schemes ever recorded; and thus, the aforementioned PAPER PM smashes, COMEX inventory drains, and commercial short covering. But the story only gets stranger, as the list of “coincidences” grows longer and longer. Back in that April 2012 interview, Masters said the following of its global commodities business:
We are very excited about the prospects for growth in this area.
Yet, just last month, it decided to entirely exit the commodities business. Simultaneously, it was reported that a massive fire may have occurred in or near JP Morgan’s secretive Wall Street gold vault – which may or may not have been used to house a portion of the infamous German custodial gold, which will supposedly be returned “within seven years.” And now, just as JPM shockingly tells clients to buy gold, it announces it will be selling One Chase Manhattan Plaza; i.e., the very building that houses said gold vault:
This may be delivering an exclamation mark defining the end of the 10-month, 25% fall in gold.
I have long stated that essentially EVERYTHING that emerges about JP Morgan should be taken with a “grain of salt”; as at this point, the “evil Troika” of Washington, Wall Street, and the MSM has commandeered both free markets and truthful information. However, the mosaic of intertwined factors paints a picture of both Cartel desperation and a “breaking of the ranks” out of survival mode.
JP Morgan, for instance, may work in cahoots with “higher powers”; but it still remains a publicly-owned company – and thus, makes as many independent decisions as “quasi-government” ones. The fact that it is exiting its supposedly “strong” commodities business, selling its gold vault, covering its gold shorts (and going MASSIVELY long), and recommending gold to clients should be enough to tell you a sea change is occurring; and subsequently, it is up to you to decide how to proceed.
How “THE JP MORGAN MYSTERY” ultimately ends, I care not. However, I do know how the current, worldwide fiat Ponzi scheme will end; i.e., as ALL past MONEY PRINTING schemes have. That is, with plunging currencies and soaring purchasing power of the only REAL MONEY the world has ever known – PHYSICAL gold and silver.