One wonders what the Bilderberger Rothschild puppets are smiling about

See how pathetic global moron leaders are these days - Ms Merkel smiling as she had some glorious victory although she just started the proccess of the EU titanic ramming the iceberg.
As Manduca puts it correctly in the excerpt below - I had written about the undeserved rise of the EURO as its fundamentals were even more rotten than theone of the USA as their social security system will collapse with the aging population anyhow.

By CHARLES FORELLE And MARCUS WALKER

BRUSSELS—Leaders of the 16-nation euro zone, bridging sharp philosophical divides that tested the decade-old currency bloc, backed a deal under which they and the International Monetary Fund would jointly bail out Greece should the country's debt troubles intensify.

The agreement won't immediately trigger a Greek rescue, but it lays the groundwork for both the first intervention by the IMF in a euro-zone country and a major relaxation of the tight restrictions on country-to-country bailouts that have been a feature of the currency union since its birth. The accord suggests Greece's financial travails are forcing the euro zone further along a path to greater economic coordination that has been resisted by national governments.

France gets on board for a possible Greek aid package as a senior Chinese central bank official criticizes the handling of the Greek debt crisis. Plus, Texas attempts to collect a "pole tax" that would include a $5 fee from everyone who patronizes a strip club in the state.

The European Union has been riven for weeks by disagreements over how to handle the troubles with Greece, which is running heavy budget deficits and struggling to refinance its hefty debt.

Germany, Europe's largest economy, made the IMF's involvement a condition of its own participation in any Greece bailout. Voters and lawmakers in fiscally frugal Germany are loath to open their wallets to bail out more free-spending peers, and the IMF would absorb a chunk of the cost. France saw turning to the IMF—normally a route for developing nations—as an embarrassment to the wealthy bloc, but it dropped its objections in exchange for Germany's agreement to lay out explicit arrangements for a rescue.

Only one western European nation—Iceland, in 2008—has received aid from the IMF since 1976, when the U.K. took a humbling loan from the fund.

excerpt 2

ECU Group's Philip Manduca "We Are At A Tipping Point" And The Only Thing That May Save The Euro Is A Collapse Of The USA

For once, some actually good insight from a CNBC guest. Philip Manduca, Head of Investment of the ECU Group, discusses Greece and the very severe implications of what the final outcome will look like. "Trichet said the Greeks are crooks, and they've been lying about the numbers. There is a deeply embedded corruption within the Eurozone. Combined with the endemic European socialism and there is just no way you are going to get spending cuts and tax raises and maintain a GDP that makes any sense of the percentage aspect of debt to GDP. So the whole show is wrong. This is an intractable situation, this is going to continue on and on. The onle hope for the Eurozone, and the Euro as a currency, is that sameone takes the spotlight soon, and that may be the United States." Watch the rest as Philip's perspective is spot on...Not to mention that he sees gold as the only alternative to the fiat bonfire soon to engulf the western world.

Must read -Whistleblower explains how JP Morgan manipulates Silver down

Amazing is that if you follow markets closely we have seen the same manipulation pattern in stock markets - we had that in 2007 towards the highs and we have it now again. Especialy obvious on days with bad news where the market is down for most of the day and sudenly inthe last hour mostly last 30 minutes is turned around by massive buying by one entity ( mostly JP Morgan again in SPY's and Goldman in ES Futures) and they always trigger short covering and these days get the HFT to join them. The SEC and CFTC who are also controlled by JP Morgan and Goldman do not act at all as it would be there duty - they rather cover it up and sit tight waiting for their bribe hire to one of those banks mio dollar bonus pools.

excerpt

Whistleblower Exposes JP Morgan's Silver Manipulation Scheme

Submitted by Tyler Durden on 03/25/2010 21:49 -0500

Earlier today the CFTC held a sham hearing in which, among other thing, the organization discussed position limits in PM speculation, because, you know, it's the mom and pop speculators that destroy the precious metal market (not JP Morgan or the New York Fed mind you). The hearing could not have come at a more opportune time. GATA has just broken a major story, in which a London metals trader-slash-whistleblower exposes JP Morgan's silver price suppression/manipulation scheme. At this point none of this should be at all shocking, and the only thing that matters is when CFTC's ex-Goldmanite Gary Gensler will be fired for allowing hundreds of billions of dollars to be sucked out of the PM market on behalf of such major market manipulating entities as JP Morgan and the New York Federal Reserve, for whom it transacts. Don't worry - the answer to that rhetorical question is "never", as it is the administration's goal to make all the millionaires among the bulge bracket firms billionaires, via legalized theft from honest investors. Furthermore, if indeed the CFTC is complicit in these manipulative events, as GATA suggest, we hope our objective mainstream media readers enjoin GATA in seeking justice for this criminal breach of proper regulatory enforcement.

From GATA:

Additional Statement by Bill Murphy, Chairman
Gold Anti-Trust Action Committee

to the U.S. Commodity Futures Trading Commission
Washington, D.C., March 25, 2010

On March 23, 2010, GATA Director Adrian Douglas was contacted by a whistleblower by the name of Andrew Maguire. Maguire is a metals trader in London. He has been told first-hand by traders working for JPMorganChase that JPMorganChase manipulates the precious metals markets, and they have bragged to how they make money doing so.

In November 2009 Maguire contacted the CFTC enforcement division to report this criminal activity. He described in detail the way JPMorgan Chase signals to the market its intention to take down the precious metals. Traders recognize these signals and make money shorting the metals alongside JPM. Maguire explained how there are routine market manipulations at the time of option expiry, non-farm payroll data releases, and COMEX contract rollover, as well as ad-hoc events.

On February 3 Maguire gave two days' warning by e-mail to Eliud Ramirez, a senior investigator for the CFTC's Enforcement Division, that the precious metals would be attacked upon the release of the non-farm payroll data on February 5. On February 5, as market events played out exactly as predicted, further e-mails were sent to Ramirez while the manipulation was in progress.

It would not be possible to predict such a market move unless the market was manipulated.

In an e-mail on February 5 Maguire wrote: "It is common knowledge here in London among the metals traders that it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC's allowing by your own definition an illegal concentrated and manipulative position to continue."

Expiry of the COMEX April call options is tomorrow, March 26. There was large open interest in strikes from $1,100 to $1,150 in gold. As always happens month after month, HSBC and JPM sell short in large quantities to overwhelm all bids and make unsuspecting option holders lose their money. As predicted by GATA, the manipulation started on March 19, when gold was trading at $1,126. Last night it traded at $1,085.

This is how much the gold cartel fears the CFTC's enforcement division. They thumb their noses at you because in more than a decade of complaints and 18 months of a silver market manipulation investigation nothing has been done to stop them. And this is why JPM's cocky and arrogant traders in London are able to brag that they manipulate the market.

This is an outrage and we are making available to the press the e-mails from Maguire wherein he warns of a manipulative event.

Additionally Maguire informed us that he has tape recordings of his telephone communications with the CFTC, which we are taking the appropriate legal steps to acquire.

* * *

From: Andrew Maguire
Sent: Tuesday, January 26, 2010 12:51 PM
To: Ramirez, Eliud [CFTC]
Cc: Chilton, Bart [CFTC]
Subject: Silver today

Dear Mr. Ramirez:

I thought you might be interested in looking into the silver trading today. It was a good example of how a single seller, when they hold such a concentrated position in the very small silver market, can instigate a selloff at will.

These events trade to a regular pattern and we see orchestrated selling occur 100% of the time at options expiry, contract rollover, non-farm payrolls (no matter if the news is bullish or bearish), and in a lesser way at the daily silver fix. I have attached a small presentation to illustrate some of these events. I have included gold, as the same traders to a lesser extent hold a controlling position there too.

Please ignore the last few slides as they were part of a training session I was holding for new traders.

I brought to your attention during our meeting how we traders look for the "signals" they (JPMorgan) send just prior to a big move. I saw the first signals early in Asia in thin volume. As traders we profited from this information but that is not the point as I do not like to operate in a rigged market and what is in reality a crime in progress.

As an example, if you look at the trades just before the pit open today you will see around 1,500 contracts sell all at once where the bids were tiny by comparison in the fives and tens. This has the immediate effect of gaining $2,500 per contract on the short positions against the long holders, who lost that in moments and likely were stopped out. Perhaps look for yourselves into who was behind the trades at that time and note that within that 10-minute period 2,800 contracts hit all the bids to overcome them. This is hardly how a normal trader gets the best price when selling a commodity. Note silver instigated a rapid move lower in both precious metals.

This kind of trading can occur only when a market is being controlled by a single trading entity.

I have a lot of captured data illustrating just about every price takedown since JPMorgan took over the Bear Stearns short silver position.

I am sure you are in a better position to look into the exact details.

It is my wish just to bring more information to your attention to assist you in putting a stop to this criminal activity.

Kind regards,
Andrew Maguire

* * *

From: Ramirez, Eliud [CFTC]
To: Andrew Maguire
Sent: Wednesday, January 27, 2010 4:04 PM
Subject: RE: Silver today

Mr. Maguire,

Thank you for this communication, and for taking the time to furnish the slides.

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]
Sent: Wednesday, February 03, 2010 3:18 PM
Subject: Re: Silver today

Dear Mr. Ramirez,

Thanks for your response.

Thought it may be helpful to your investigation if I gave you the heads up for a manipulative event signaled for Friday, 5th Feb. The non-farm payrolls number will be announced at 8.30 ET. There will be one of two scenarios occurring, and both will result in silver (and gold) being taken down with a wave of short selling designed to take out obvious support levels and trip stops below. While I will no doubt be able to profit from this upcoming trade, it is an example of just how easy it is to manipulate a market if a concentrated position is allowed by a very small group of traders.

I sent you a slide of a couple of past examples of just how this will play out.

Scenario 1. The news is bad (employment is worse). This will have a bullish effect on gold and silver as the U.S. dollar weakens and the precious metals draw bids, spiking them higher. This will be sold into within a very short time (1-5 mins) with thousands of new short contracts being added, overcoming any new bids and spiking the precious metals down hard, targeting key technical support levels.

Scenario 2. The news is good (employment is better than expected). This will result in a massive short position being instigated almost immediately with no move up. This will not initially be liquidation of long positions but will result in stops being triggered, again targeting key support levels.

Both scenarios will spell an attempt by the two main short holders to illegally drive the market down and reap very large profits. Locals such as myself will be "invited" on board, which will further add downward pressure.

The question I would expect you might ask is: Who is behind the sudden selling and is it the entity/entities holding a concentrated position? How is it possible for me to know what will occur days before it will happen?

Only if a market is manipulated could this possibly occur.

I would ask you watch the "market depth" live as this event occurs and tag who instigates the move. This would surly help you to pose questions to the parties involved.

This kind of "not-for-profit selling" will end badly and risks the integrity of the COMEX and OTC markets.

I am aware that physical buyers in large size are awaiting this event to scoop up as much "discounted" gold and silver as possible. These are sophisticated entities, mainly foreign, who know how to play the short sellers and turn this paper gold into real delivered physical.

Given that the OTC market (where a lot of the selling occurs) runs on a fractional reserve basis and is not backed up by 1-1 physical gold, this leveraged short selling, where ownership of each ounce of gold has multi claims, poses a very large risk.

I leave this with you, but if you need anything from me that might help you in your investigation I would be pleased to help.

Kind regards,
Andrew T. Maguire

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Sent: Friday, February 05, 2010 2:11 PM
Subject: Fw: Silver today

If you get this in a timely manner, with silver at 15.330 post data, I would suggest you look at who is adding short contracts in the silver contract while gold still rises after NFP data. It is undoubtedly the concentrated short who has "walked silver down" since Wednesday, putting large blocks in the way of bids. This is clear manipulation as the long holders who have been liquidated are matched by new short selling as open interest is rising during the decline.

There should be no reason for this to be occurring other than controlling silver's rise. There is an intent to drive silver through the 15 level stops before buying them back after flushing out the long holders.

Regards,
Andrew

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Cc: BChilton [CFTC]; GGensler [CFTC]
Sent: Friday, February 05, 2010 3:37 PM
Subject: Fw: Silver today

A final e-mail to confirm that the silver manipulation was a great success and played out EXACTLY to plan as predicted yesterday. How would this be possible if the silver market was not in the full control of the parties we discussed in our phone interview? I have honored my commitment not to publicize our discussions.

I hope you took note of how and who added the short sales (I certainly have a copy) and I am certain you will find it is the same concentrated shorts who have been in full control since JPM took over the Bear Stearns position.

It is common knowledge here in London among the metals traders that it is JPM's intent to flush out and cover as many shorts as possible prior to any discussion in March about position limits. I feel sorry for all those not in this loop. A serious amount of money was made and lost today and in my opinion as a result of the CFTC's allowing by your own definition an illegal concentrated and manipulative position to continue.

Bart, you made reference to it at the energy meeting. Even if the level is in dispute, what is not disputed is that it exists. Surely some discussions should have taken place between the parties by now. Obviously they feel they can act with impunity.

If I can compile the data, then the CFTC should be able to too.

I would think this is an embarrassment to you as regulators.

Hoping to get your acknowledgement.

Kind regards,
Andrew T. Maguire

* * *

From: Andrew Maguire
To: Ramirez, Eliud [CFTC]
Sent: Friday, February 05, 2010 7:47 PM
Subject: Fw: Silver today

Just logging off here in London. Final note.

Now that gold is undergoing short covering, please look at market depth right now in silver and evidence the large selling blocks in a thin market being put in the way of silver regaining the technical 15 level, which would cause a short covering rally and new longs being instigated. This is resulting in the gold-silver ratio being stretched to ridiculous levels.

I hope this day has given you an example of how silver is "managed" and gives you something more to work with.

If this was long manipulation in, say, the energy market, the shoe would be on the other foot, I suspect.

Have a good weekend.

Andrew

* * *

From: Andrew Maguire
Sent: Tuesday, February 09, 2010 8:24 AM
To: Ramirez, Eliud [CFTC]
Cc: Gensler, Gary; Chilton, Bart [CFTC]
Subject: Fw: Silver today

Dear Mr. Ramirez,

I hadn't received any acknowledgement from you regarding the series of e-mails sent by me last week warning you of the planned market manipulation that would occur in silver and gold a full two days prior to the non-farm payrolls data release.

My objective was to give you something in advance to watch, log, and follow up in your market manipulation investigation.

You will note that the huge footprints left by the two concentrated large shorts were obvious and easily identifiable. You have the data.

The signals I identified ahead of the intended short selling event were clear.

The "live" action I sent you 41 minutes after the trigger event predicting the next imminent move also played out within minutes and exactly as I outlined.

Surely you must at least be somewhat mystified that a market move could be forecast with such accuracy if it was free trading.

All you have to do is identify the large seller and if it is the concentrated short shown in the bank participation report, bring them to task for market manipulation.

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.

All I ask is that you acknowledge receipt of my information. The rest I leave in your good hands.

Respectfully yours,

Andrew T. Maguire

* * *

From: Ramirez, Eliud
To: Andrew Maguire
Sent: Tuesday, February 09, 2010 1:29 PM
Subject: RE: Silver today

Good afternoon, Mr. Maguire,

I have received and reviewed your email communications. Thank you so very much for your observations.

SOX update - still Defcon 1

Sox is topping out as well after the VIX and TRANS and with the very agressive BTK - just a matter of another1-2 weeks before the correction will start as the price levels have basically been reached. Sentiment has also improved sharply which is important for a severe correction potential. Now quarter end will keep markets up until the earnings season kicks off which I rather think will be relativly weak with a strong Dollar.

part 2

3. Thats an excellent read

http://www.scribd.com/doc/24251265/Thunder-Road-Report-18-17th-December-2009

4. Sentiment improves towards the bearish end



5. May be the EU plays a game if they were really smart to lower the EURO but I am afraid they are not smart enough for that as local interests are overbearing. French banks have much more exposure to Greece than German banks alomst double the amout - if Ireland would be in trouble which they are but its not acute Germany would be much more willing to assist. Inay any case the brief bull ran ended quickly and is not in strong hands it seems but we will see more zigzag til early April for reasons explained in earlier posts. One reason can be found in the above post which gives some dates - you should read it.

Euro Plunging As Trichet Says Greek Bailout Blows And Is "Evidently Very, Very Bad"

Submitted by Tyler Durden on 03/25/2010 13:00 -0500

Dollar surging, euro plunging as Trichet says Greek bailout involving IMF is a very bad idea. Next up: Merkel-Trichet at ten paces. So much for a unified Europe backing Greece. And now with China also a net importer, a surging dollar will do miracles for US manufacturing.

From Reuters:

The International Monetary Fund or any other body must not assume the responsibilities of euro zone governments in dealing with economic problems, European Central Bank President Jean-Claude Trichet said on Thursday.

Speaking to French Public Senat television, Trichet said that members of the 16-nation euro zone needed to remain faithful to responsibilities laid out in the Maastricht Treaty, which incorporates stability and growth goals.

"Everything going in the direction of euro zone members shying away from responsibilities is bad in our eyes," he said.

"If the IMF or some other body exercises the responsibility in lieu of the Eurogroup or instead of governments, it is evidently very, very bad," he said.

Trichet pointed to Greece as an example of a country that had shown negligence on budget issues.

"We see the result of past negligence. This said, it was negligence on the part of surveillance and also negligence on the part of the Greeks," he said.

"The Greeks provided wrong figures, something that is absolutely unforgivable and must never be repeated," he added

Brainstorming Thursday - part 1

1. Reaching the hot zone again in sentiment as the expected sideways swings keep the bulls running into a trap. Always a sign for a correction is if 5 out of 6 closes are almost the same as recent days in the SPX are more or less at 1165.

excerpt

Date Published	Percent Bullish	Percent Bearish
03/24	48.9	20.5
03/17	46.1	21.3
03/10	44.9	23.6
03/03	42.1	22.7
02/24	41.1	23.3
02/17	35.6	27.8
02/10	34.1	26.1
02/03	38.9	22.2
01/27	40	23.3
01/20	52.2	18.9
01/13	53.4	15.9
01/06	48.3	16.9
12/30	51.1	15.6
12/23	52.2	16.7
12/16	52.2	16.7
12/09	48.4	16.5
12/02	50	16.7
11/25	50.6	17.6
11/18	46.1	21.3
11/11	44.4	26.7

2. Earnings will rather be disappointing in the USA as the weakness of the EURO is erasing some of the margin or competitiveness. That might be part of the hidden agenda of Ms Merkel`s tough stance on Greece besides the remain that in May are crucial elections in Germany and the current new coalition has already lost quite some ground. Therefor the argument of the bullish Mr Jones is a bit puzzling to say the least.

excerpt

Earnings Will Continue to Be 'Very Robust' This Year

Published: Wednesday, 24 Mar 2010 | 2:48 PM ET

By: JeeYeon Park
CNBC News Associate

Markets remained lower on Wednesday after sales of newly built U.S. homes fell for a fourth straight month to a record low in February. What should investors expect going forward? Michael Jones, chief investment officer at Riverfront Investment Group, and Andrew Kanaly, chairman of Kanaly Trust Company, shared their insights.

“The decline in home sales puts us right back where we were a year ago and that’s probably where we’re going to stay for some time, until employment turns around,” Kanaly told CNBC.

“It was all related to the stimulus and everything else the government’s doing.”

Kanaly said although the housing recovery is precarious and expects foreclosure rates to continue climbing, it will be a good year for stocks.

“We’re going to pull a lot of activity from 2011 into 2012, so corporate earnings are going to continue to be very robust this year," he explained. "So stocks in terms of earnings are going to look good through the first half of the year this year, but beyond that into 2011 and 2012, we’ve got to be pretty cautious."

Jones' Take:

In the meantime, Jones attributed the weak housing numbers to weather-related issues.

He said he is bullish because of the positive corporate earnings.

“We have a great earnings story right now going on in the market,” Joneds said. “That growth is coming from overseas—nearly 50 percent of the earnings from the S&P are coming from overseas sales—so the domestic story isn’t quite as powerful on the domestic stock market as it might have once been.”

Some good stuff in the web - check it out if your persuit is truth besides happiness

“ Anyone who cares about freedom of expression should dig deep. (...)
If you want to read the exposes of the future, it's time to chip in. ”
— The Guardian, January 29, 2010

15. Mar. 2010: U.S. Intelligence planned to destroy WikiLeaks, 18 Mar 2008

This document is a classifed (SECRET/NOFORN) 32 page U.S. counterintelligence investigation into WikiLeaks. ``The possibility that current employees or moles within DoD or elsewhere in the U.S. government are providing sensitive or classified information to Wikileaks.org cannot be ruled out''. It concocts a plan to fatally marginalize the organization. Since WikiLeaks uses ``trust as a center of gravity by protecting the anonymity and identity of the insiders, leakers or whisteblowers'', the report recommends ``The identification, exposure, termination of employment, criminal prosecution, legal action against current or former insiders, leakers, or whistlblowers could potentially damage or destroy this center of gravity and deter others considering similar actions from using the Wikileaks.org Web site''. [As two years have passed since the date of the report, with no WikiLeaks' source exposed, it appears that this plan was ineffective]. As an odd justificaton for the plan, the report claims that ``Several foreign countries including China, Israel, North Korea, Russia, Vietnam, and Zimbabwe have denounced or blocked access to the Wikileaks.org website''. The report provides further justification by enumerating embarrassing stories broken by WikiLeaks---U.S. equipment expenditure in Iraq, probable U.S. violations of the Chemical Warfare Convention Treaty in Iraq, the battle over the Iraqi town of Fallujah and human rights violations at Guantanamo Bay.

17. Mar. 2010: Update to over 40 billion euro in 28167 claims made aganst the Kaupthing Bank, 3 Mar 2010

This document contains an update to a list of 28167 claims, totaling over 40 billion euro, lodged against the failed Icelandic bank Kaupthing Bank hf. The document is significant because it reveals billions in cash, bonds and other property held with Kaupthing by a vast number of investors and asset hiders, including Goldman Sachs, Deutsche Bank, Credit Suisse, Morgan Stanly, Exista, Barclays, Commerzbank AG, etc. It was confidentially made available to claimants by the Kaupthing Winding-up committee.

For exampla a study for the German government found out that private health insurance is not sustainable and will not work was locked away.

Ärzte Zeitung, 11.02.2010

Kommentare (1)

Brüderle steckt PKV-Studie in den Giftschrank

Rürup/IGES: Primär Wettbewerb um junge Gesunde

BERLIN (HL). Die private Krankenversicherung ist kein Geschäftsmodell, das Ältere und Kranke effizient absichert - dieses Fazit einer vom Bundeswirtschaftsministerium in Auftrag gegebenen Studie passte Ressortchef Rainer Brüderle (FDP) überhaupt nicht. Von höchster Stelle wurde angeordnet, die Expertise im Giftschrank verschwinden zu lassen.

Studienergebnis zu "giftig" für die Öffentlichkeit? © WOGI / fotolia.com

Die Gutachter, das Berliner Institut für Gesundheits- und Sozialforschung (IGES) und der Ökonom Professor Bert Rürup, äußerten Zweifel, "dass die PKV ihren Ansprüchen gerecht wird, einen besseren Schutz gegen Beitragssteigerungen zu bieten" als die GKV es tut. Zwischen 1997 und 2008 seien die Ausgaben je PKV-Versichertem um 49 Prozent, die der GKV-Versicherten nur um 31 Prozent gestiegen.

Achilles-Ferse der PKV sind - auch nach eigenem Bekenntnis - die steigenden Arzthonorare. Weiterer Kritikpunkt von IGES/Rürup: Wettbewerb findet hauptsächlich um junge gesunde Mitglieder statt, die mit preiswerten Tarifen geworben werden. Das führe zu überdurchschnittlichen Prämienzuwächsen bei älteren Versicherten.

Den FDP-geführten Ressorts für Wirtschaft und Gesundheit liegt das schwer im Magen. In der Koalitionsvereinbarung war ausdrücklich die PKV als zweite eigenständige Säule der Krankenversicherung bestätigt worden. Die Studie offenbart Konfliktpotenzial für Gesundheitsminister Rösler: Will er die GOÄ reformieren, muss er sich mit zwei Klientelgruppen seiner Partei anlegen - den Ärzten und ihren Organisationen sowie der PKV.

They even admit their manipulatons - but in no way its acceptable since its outright theft from taxpayers

If there is any truth to the stupid action but even more so criminal manipulation of Gold on behalf of the British people - who are faced now with ample debt and no asstes left. Jail is the least you can do for those morons as they have lost billions ( 10 bil Dollar) in order to have saved some moron bankers but Rothschild if involved as suggested should repay those losses and hand over some of their plenty real estate or stocks in BP, Rio Tionto, of HSBC. On the other hand the idea that someone keeps Rothschild solvent seems to be a bad joke as theyought to be in the trillions - thats the part which does not make sense as much as the declaration they pulled out of commodities trading _ i rather think thats a decoy and or distraction.
Well and the JP Morgan who has been in all scandals and frauds but was clever enough to stay out of the spotlight ( seems to be more clever than their partner Goldman) is nothing but the Rockefeller family

Excerpt

Did Gordon Brown Sell UK's Gold To Keep AIG And Rothschild Solvent; More Disclosures On How The NY Fed Manipulates Gold Prices

In the neverending saga of new disclosure of gold price manipulation, here is the most recent pearl, courtesy of Jesse's Cafe Americain:"In front of 3 witnesses, Bank of England Governor Eddie George spoke to Nicholas J. Morrell (CEO of Lonmin Plc) after the Washington Agreement gold price explosion in Sept/Oct 1999. Mr. George said "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K." Makes one wonder just how much the gold price was pushed down today alone to make Gordon Brown's most recent budget reception a little more palatable. It also confirms yet again, that there is no such thing as an unmanipulated gold market. Lastly, it demands the question: on how many other occasions has the UK's massively unpopular prime minister sacrificed his people's interest merely to make criminal organizations such as AIG whole?

Jesse also speculates that Gordon Brown sold UK's gold at the lowest price in the past 20 years, a thorny topic touched upon earlier by the Telegraph, simply to bail out mega banking empire Rothschild and, surprise, AIG, as well as who knows how many other members of the LBMA:

There is also a credible speculation that the sale was designed to benefit a few of the London based bullion banks which were heavily short the precious metals, and were looking for a push down in price and a boost in supply to cover their positions and avoid a default. The unlikely names mentioned were AIG, which was trading heavily in precious metals, and the House of Rothschild. The terms of the bailout was that once their positions were covered, they were to leave the LBMA, the largest physical bullion market in the world.

"LONDON, June 1, 2004 (Reuters) -- AIG International Ltd., part of American International Group Inc., will no longer be a London Bullion Market Association (LBMA) market maker in gold and silver, the LBMA said on Tuesday."

LONDON, April 14, 2004 (Reuters) — NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild, will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.

The manner in which the sale was conducted, and the speed at which it was undertaken, without consultation of the Bank of England, made many of the City of London's financiers a bit uneasy.

While this had been reported previously on many times, most notably by Ron Paul back in 2002, it does beg the question under what circumstances will the Federal Reserve finally acknowledge that it is constantly manipulating gold prices lower to benefit JPM and other members of the LBMA whose short positions will likely blow them if the fair price of gold is attained, but also when will "gold bugs" finally stop being ridiculed for their assertions that the gold market is manipulated in light of glaring evidence on a day to day basis. Lastly, when will the people of the UK demand some justice from their Prime Minister, whose borderline act of treason merely to bailout a few financial institutions, set the precedent which Paulson and Geithner, not to mention the Fed, but they have always been there, have so well immitated.

As for Brown, the Telegraph says it all:

The decision to sell the gold – taken by Mr Brown when he was Chancellor – is regarded as one of the Treasury's worst financial mistakes and has cost taxpayers almost £7 billion.

Mr Brown and the Treasury have repeatedly refused to disclose information about the gold sale amid allegations that warnings were ignored.

Following a series of freedom of information requests from The Daily Telegraph over the past four years, the Information Commissioner has ordered the Treasury to release some details. The Treasury must publish the information demanded within 35 calendar days – by the end of April.

The sale is expected to be become a major election issue, casting light on Mr Brown's decisions while at the Treasury.

Hopefully once Brown has been dethroned, the American people follow suit and get rid of all those in charge of the Fed, the Treasury, the Congress, the Senate, and White House, and the one who runs it all - our very owen Wall Street.

And just because it bears bringing back to the fore, now that it is without a trace of doubt, that the NY Fed will manipulate any and every market it can get its hands on, here is Ron Paul's seminal 2002 Valentine's Day speech:

Congressman Ron Paul
U.S. House of Representatives
February 14, 2002

Mr. Speaker, I rise to introduce the Monetary Freedom and Accountability Act. This simple bill takes a step toward restoring Congress' constitutional authority over U.S. monetary policy by requiring congressional approval before the President or the Treasury secretary buys or sells gold.

Federal dealings in the gold market have the potential to seriously disrupt the free market by either artificially inflating or deflating the price of gold. Given gold's importance to America's (and the world's) monetary system, any federal interference in the gold market will have ripple effects through the entire economy. For example, if the government were to intervene to artificially lower the price of gold, the result would be to hide the true effects of an inflationary policy until the damage was too severe to remain out of the public eye.

By artificially deflating the price of gold, federal intervention in the gold market can reduce the values of private gold holdings, adversely affecting millions of investors. These investors rely on their gold holdings to protect them from the effects of our misguided fiat currency system. Federal dealings in gold can also adversely affect those countries with large gold mines, many of which are currently ravished by extreme poverty. Mr. Speaker, restoring a vibrant gold market could do more than any foreign aid program to restore economic growth to those areas.

While the Treasury denies it is dealing in gold, the Gold Anti-Trust Action Committee (GATA) has uncovered evidence suggesting that the Federal Reserve and the Treasury, operating through the Exchange-Stabilization Fund and in cooperation with major banks and the International Monetary Fund, have been interfering in the gold market with the goal of lowering the price of gold. The purpose of this policy has been to disguise the true effects of the monetary bubble responsible for the artificial prosperity of the 1990s, and to protect the politically-powerful banks that are heavy invested in gold derivatives. GATA believes federal actions to drive down the price of gold help protect the profits of these banks at the expense of investors, consumers, and taxpayers around the world.

GATA has also produced evidence that American officials are involved in gold transactions. Alan Greenspan himself referred to the federal government's power to manipulate the price of gold at hearings before the House Banking Committee and the Senate Agricultural Committee in July, 1998: "Nor can private counterparts restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise." [Emphasis added].

Mr. Speaker, in order to allow my colleagues to learn more about this issue, I am enclosing "All that Glitters is Not Gold" by Kelly Patricia O'Meara, an investigative reporter from Insight magazine. This article explains in detail GATA's allegations of federal involvement in the gold market.

Mr. Speaker, while I certainly share GATA's concerns over the effects of federal dealings in the gold market, my bill in no way interferes with the ability of the federal government to buy or sell gold. It simply requires that before the executive branch engages in such transactions, Congress has the chance to review it, debate it, and approve it.

Given the tremendous effects on the American economy from federal dealings in the gold market, it certainly is reasonable that the people's representatives have a role in approving these transactions, especially since Congress has a neglected but vital constitutional role in overseeing monetary policy. Therefore, I urge all my colleagues to stand up for sound economics, open government, and Congress' constitutional role in monetary policy by cosponsoring the Monetary Freedom and Accountability Act.

All That Glitters Is Not Gold
By Kelly Patricia O'Meara
Insight Magazine
March 4, 2002, edition

Even though Enron employees and the company's accounting firm, Arthur Andersen, have destroyed mountains of documents, enough information remains in the ruins of the nation's largest corporate bankruptcy to provide a clear picture of what happened to wreck what once was the seventh-largest U.S. corporation.

Obfuscation, secrecy, and accounting tricks appear to have catapulted the Houston-based trader of oil and gas to the top of the Fortune 100, only to be brought down by the same corporate chicanery. Meanwhile, Wall Street analysts and the federal government's top bean counters struggle to convince the nation that the Enron crash is an isolated case, not in the least reflective of how business is done in corporate America.

But there are many in the world of high finance who aren't buying the official line and warn that Enron is just the first to fall from a shaky house of cards.

Many analysts believe that this problem is nowhere more evident than at the nation's bullion banks, and particularly at the House of Morgan (J.P. Morgan Chase). One of the world's leading banking institutions and a major international bullion bank, Morgan Chase has received heavy media attention in recent weeks both for its financial relationships with bankrupts Enron and Global Crossing Ltd. as well as the financial collapse of Argentina.

It is no secret that Morgan Chase was one of Enron's biggest lenders, reportedly losing at least $600 million and, perhaps, billions. The banking giant's stock has gone south, and management has been called before its shareholders to explain substantial investments in highly speculative derivatives C hidden speculation of the sort that overheated and blew up on Enron.

In recent years Morgan Chase has invested much of its capital in derivatives, including gold and interest-rate derivatives, about which very little information is provided to shareholders. Among the information that has been made available, however, is that as of June 2000, J.P. Morgan reported nearly $30 billion of gold derivatives and Chase Manhattan Corp., although merged with J.P. Morgan, still reported separately in 2000 that it had $35 billion in gold derivatives. Analysts agree that the derivatives have exploded at this bank and that both positions are enormous relative to the capital of the bank and the size of the gold market.

It gets worse. J.P. Morgan's total derivatives position reportedly now stands at nearly $29 trillion, or three times the U.S. annual gross domestic product. Wall Street insiders speculate that if the gold market were to rise, Morgan Chase could be in serious financial difficulty because of its "short positions" in gold. In other words, if the price of

gold were to increase substantially, Morgan Chase and other bullion banks that are highly leveraged in gold would have trouble covering their liabilities. One financial analyst, who asked not to be identified, explained the situation this way: "Gold is borrowed by Morgan Chase from the Bank of England at 1 percent interest and then Morgan Chase sells the gold on the open market, then reinvests the proceeds into interest-bearing vehicles at maybe 6 percent.

At some point, though, Morgan Chase must return the borrowed gold to the Bank of England, and if the price of gold were significantly to increase during any point in this process, it would make it prohibitive and potentially ruinous to repay the gold."

Bill Murphy, chairman of the Gold Anti-Trust Action Committee, a nonprofit organization that researches and studies what he calls the "gold cartel" (J.P. Morgan Chase, Deutsche Bank, Citigroup, Goldman Sachs, Bank for International Settlements (BIS), the U.S. Treasury, and the Federal Reserve), and owner of www.LeMetropoleCafe.com, tells Insight that "Morgan Chase and other bullion banks are another Enron waiting to happen." Murphy says, "Enron occurred because the nature of their business was obscured, there was no oversight and someone was cooking the books. Enron was deceiving everyone about their business operations C and the same thing is happening with the gold and bullion banks."

According to Murphy, "The price of gold always has been a barometer used by many to determine the financial health of the United States. A steady gold price usually is associated by the public and economic analysts as an indication or a reflection of the stability of the financial system. Steady gold; steady dollar. Enron structured a financial system that put the company at risk and eventually took it down. The same structure now exists at Morgan Chase with their own interest-rate/gold-derivatives position. There is very little information available about its position in the gold market and, as with the case of Enron, it could easily bring them down."

In December 2000, attorney Reginald H. Howe, a private investor and proprietor of the Website www.goldensextant.com, which reports on gold, filed a lawsuit in the U.S. District Court in Boston. Named as defendants were J.P. Morgan & Co., Chase Manhattan Corp., Citigroup Inc., Goldman Sachs Group Inc., Deutsche Bank, Lawrence Summers (former secretary of the Treasury), William McDonough (president of the Federal Reserve Bank of New York), Alan Greenspan (chairman of the Board of Governors of the Federal Reserve System), and the BIS.

Howe's claim contends that the price of gold has been manipulated since 1994 "by conspiracy of public officials and major bullion banks, with three objectives: 1) to prevent rising gold prices from sounding a warning on U.S. inflation; 2) to prevent rising gold prices from signaling weakness in the international value of the dollar; and 3) to prevent banks and others who have funded themselves through borrowing gold at low interest rates and are thus short physical gold from suffering huge losses as a consequence of rising gold prices."

While all the defendants flatly deny participation in such a scheme, Howe's case is being heard. Howe tells Insight he has provided the court with very compelling evidence to support his claim, including sworn testimony by Greenspan before the House Banking Committee in July 1998. Greenspan assured the committee, "Nor can private counterparties restrict supply of gold, another commodity whose derivatives are often traded over the counter, where central banks stand ready to lease gold in increasing quantities should the price rise." Howe and other "gold bugs" cite this as a virtual public announcement "that the price of gold had been and would continue to be controlled if necessary."

According to Howe, "There is a great deal of evidence, but this is a very complicated issue. The key, though, is the short position of the banks and their gold derivatives. The central banks have 'leased' gold for low returns to the bullion banks for the purpose of keeping the price of gold low. Greenspan's remarks in 1998 explain how the price of gold has been suppressed at times when it looked like the price of gold was increasing."

Furthermore, Howe's complaint also cites remarks made privately by Edward George, governor of the Bank of England and a director of the BIS, to Nicholas J. Morrell, chief executive of Lonmin Plc: "We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have

taken down all the rest in their wake. Therefore, at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control, but we have now succeeded. The U.S. Fed was very active in getting the gold price down. So was the U.K. [United Kingdom]."

Whether the Fed and others in the alleged "gold cartel" have conspired to suppress the price of gold may, in the end, be secondary to the growing need for financial transparency. Wall Street insiders agree that as long as regulators, analysts, accountants, and politicians can be lobbied and "corrupted" to permit special privileges, there will be more Enron-size failures.

Securities and Exchange Commission Chairman Harvey L. Pitt, well aware of the seriousness of these problems, recently testified before the House Financial Services Committee that "it is my hope there are not other Enrons out there, but I'm not willing to rely on hope."

Robert Maltbie, chief executive officer of www.stockjock.com and an independent analyst, long has followed Morgan Chase. He tells Insight that "there are a lot of things going on in these companies, but we don't know for sure because much of what they're doing is off the balance sheet. The market is scared and crying out to see what's under the hood. Like Enron, much of what the banks are doing is off the balance sheet, and it's a time bomb ticking as we speak."

Just what would happen if a bank the size of Morgan Chase were unable to meet its financial obligations? "It's tough to go there," Maltbie says, "because it could shake the financial markets to the core."

Brainstorming Wednesday

1. Euro did not even make it to 1.40 before it broke the consolidation pattern heading now for the 1.28/30 target.

UST-Bund Spread At Three Year Wides As ECB Warns IMF Involvement Would Be Beginning Of End For Eurozone

The spread between the 10 Year and the Bund has surged today to a 3 year wide. After hitting an intraday slide of 14 bps (a massive move in a world in which each basis point is leveraged thousands of times), the UST-BUND is now at 73 bps. The risk aversion trade in Europe has made 10 year Geman bonds yield just over 3%, even as the near-failed 5 Year auction in the US has spooked the bond market, and an unexpected drill has forced the Primary Dealers out of hiding and into purchasing everything past 5 years to prevent a full out rout in bonds. And all this is occurring as the ECB just warned that IMF involvement in the overhyped and two-month delayed Greek bailout will be the beginning of the end for the euro and will throw the Eurozone's economy, "which has shown fresh signs of recovery, into renewed turmoil."

A chart of the intraday spread

A longer-term perspective shows that more divergence may be in the works.

And meanwhile in Euroland, courtesy of Market News:

European Central Bank Executive Board member Lorenzo Bini Smaghi Wednesday starkly warned Eurozone leaders that they must agree on aid for Greece and not let the International Monetary Fund do the job for them.

Their failure on this score could undermine the monetary stability of the Eurozone and throw the real economy, which has shown fresh signs of recovery, into renewed turmoil, he said.

Bini Smaghi's views roughly reflect previously issued comments by other Council members but are much more assertive. The ECB's new tough stance, however, may come too late, as Berlin appears set on an IMF involvement and is slowly winning Paris over.

2. Someone bought plenty of calls early today in the US market, confirming the topping out scenario as pointed out the last weeks.

excerpt

All Securities Time Calls Puts Total ISEE 15:50 464731 295690 760421 157 15:30 438075 268383 706458 163 15:10 387327 229298 616625 169 14:50 372386 218987 591373 170 14:30 358138 211816 569954 169 14:10 345770 207087 552857 167 13:50 332175 195778 527953 170 13:30 322803 172678 495481 187 13:10 303090 160985 464075 188 12:50 284630 148457 433087 192 12:30 275528 139682 415210 197 12:10 261266 128636 389902 203 11:50 240355 121352 361707 198 11:30 227536 107407 334943 212 11:10 203690 90737 294427 224 10:50 169176 73346 242522 231 10:30 144014 63281 207295 228 10:10 87192 50104 137296 174 09:50 53732 29613 83345 181

All Equities Only Calls Puts Total ISEE 366662 188301 554963 195 342831 167267 510098 205 294996 130978 425974 225 283213 125305 408518 226 272369 119721 392090 228 262585 116735 379320 225 251332 109765 361097 229 244871 105274 350145 233 229099 97341 326440 235 215733 87109 302842 248 208464 80601 289065 259 197098 73617 270715 268 180823 67710 248533 267 169314 59144 228458 286 150427 48703 199130 309 122919 40811 163730 301 100812 32397 133209 311 73881 24704 98585 299 45653 17444 63097 262

All Indices & ETFs Only Calls Puts Total ISEE 97976 107337 205313 91 95152 101065 196217 94 92239 98269 190508 94 89101 93632 182733 95 85697 92045 177742 93 83113 90302 173415 92 80771 85963 166734 94 77877 67355 145232 116 73936 63595 137531 116 68876 61319 130195 112 67045 59052 126097 114 64158 54990 119148 117 59522 53613 113135 111 58212 48235 106447 121 53257 42009 95266 127 46251 32510 78761 142 43196 30859 74055 140 13305 25375 38680 52 8074 12147 20221 66

3. Some very valid points on the markets

excerpt

Son of Texas and financial seer, John Mauldin, believes the stock market could shed 40% in the near future (SPX). John is the president of Millennium Wave Advisors, LLC, a Dallas, Texas based investment advisor, with $600 million in assets under management.

John worries that the velocity of money, an indicator of how many times a dollar is reused in the economy, is collapsing. This ratio, which is defined by the GDP divided by the money supply, bottomed at 1.15 in 1946. It then reached a mean of 1.65 in the fifties, sixties, and seventies, and peaked at a breathtaking 2.2 times in 1997, near the top of the Dotcom bubble. It has been retreating ever since, has recently accelerated down to the 100 year mean, but still has much farther to fall to get to the bottom of the 100 year range.

The collapse of velocity signals the end of a 50 year super cycle in lending. For you and I, this means lower economic growth for perhaps another decade. It is partly the result of banks getting generous funding from the Treasury, and then sitting on it. The bucks simply stop there. It suggests that no matter how much money the government pumps into the economy, it might as well be pushing on a wet noodle.

The gold bugs have got it all wrong, simply focusing on money supply growth and expecting hyperinflation. A lot of money can sit and go nowhere. The inflation will come back with a vengeance when the economy revives and banks finally resume lending. With so much new money being created in the last two years, the chances of the Fed being able to head this off are close to nil.

Similarly, the bond vigilantes may have to wait a couple of years for their big move down in the 30 year Treasury bond (TBT). When the bond markets call “times up,” the US will be forced to embark on some highly deflationary spending cuts. If this happens during a recession, it could be a disaster.

John thinks there will be a substantial slowdown in growth in Q3 and Q4. With anticipated federal tax increases of 2% of GDP in 2011 added to a further 1% in state tax hikes, the recovery will be strangled in its crib. That’s when the risk of a double dip recession explodes. Over 3-4 years higher taxes could add up to a burdensome 9% drag on GDP.

John says that emerging markets (EEM) will decouple from the US and keep powering up, as this is where the real economic growth is (EEM). Japan is “a bug in search of a windshield.” With savings rates falling and deficit spending soaring, it may only have a couple of years left.

John has been a gold bull since 2002 (GLD), when it was below $300/ounce, and isn’t backing off from that position, but prefers to own it against Euros at this point. He thinks the entire premise for the existence of the European currency (XEU) is questionable, and sees it eventually moving to parity against the dollar.

John doesn’t manage money directly himself, but outsources assets with market timers employing a number of different models. One firm he has particular success with is CMG in Philadelphia (CMGTX). He really only selects individual stocks in the biotech area, which he thinks have the potential to develop into a bubble, and has a variety of small cap and microcap holdings.

Not pulling any punches, John said that the Republican leadership of the last congress was “criminally incompetent” in the way they unnecessarily squandered surpluses and spent their way into oblivion, leaving us without dry powder to fight the current crisis.

John has an incredibly diverse past, which includes a degree from Rice University, a stint at divinity school, and time spent running a check printing company which led him into newsletters. John then rose to the top of the American Bureau of Economic Research, and entered the fund management business in the late eighties. Today, his two letters, Outside the Box and Thoughts From the Frontline, go out on the Internet to 1.5 million readers a week. John is the publisher of three investment books, The Millennium Wave, Just One Thing, and Bulls Eye Investing. To learn more about John’s many activities in the markets, please visit his website at http://johnmauldin.com/ .

To catch my entire insightful interview with John Mauldin on Hedge Fund Radio, please go to www.madhedgefundtrader.com/ and click on the “Today’s Radio Show” menu tab on the left. To see the data, charts, and graphs that support this research piece, as well as more iconoclastic and out of consensus analysis, please visit me at www.madhedgefundtrader.com . There you will find the conventional wisdom mercilessly flailed and tortured daily.