Greenspan, CNBC, PPT, J.P. Morgan Chase, The Brain Dead, Traficant, Lewis, Bono
What’s the point, watching the gold price action these days, that is? Early this morning, the S&P was down almost 20, the dollar was puking and the grain/soy complex was called a good deal higher. In addition, the Japanese and Hong Kong markets were hit hard, as were most European stock markets. Gold? The goons refused to let it poke its head up above $320 for more than an instant. And, as is almost always the case, The Gold Cartel brought the gold price down in New York
I could see this coming yesterday and it was blatantly obvious this morning where the cabal was going to take gold during the Comex session, no matter what happened in the financial world. The bullion banking/ESF/NY Fed crooks have no shame, nor any integrity. May the GATA ARMY win the day and find a way to put some of them in jail for all the harm they have done to so many.
The day was not without good news for our team. From a Café member:
“you probably know this already but apparently Europe is abuzz with rumours that the PPT was in yesterday PM and that JPM is in trouble,....apparently it was even reported by CNBC this AM in Europe.......by the way isn't it incredible how they managed to open Gold down this AM in New York in the face of this?”
J.P. Morgan denies rumors of liquidity problems
NEW YORK, July 16 (Reuters) - J.P. Morgan Chase & Co. Inc. (JPM) on Tuesday denied rumors in European markets that the No. 2 U.S. bank holding company was having liquidity problems.
"The rumors are untrue and irresponsible," a J.P. Morgan spokesman in New York said.
The bank's stock fell in European trade. Dealers cited rumors of liquidity problems.
J.P. Morgan will report second-quarter results on Wednesday, the company spokesman said. Its earnings per share are expected to nearly double from a year earlier, to about 65 cents a share, according to analysts polled by market data firm Thomson First Call.
Corporate loan problems have beset J.P. Morgan in recent quarters. The bank was a leading lender to bankrupt energy trader Enron Corp. (ENRNQ) and also to telecommunications company WorldCom Group (WCOME) , which recently disclosed what could be one of the largest accounting frauds ever.
“first sign of trouble is to dismiss rumour of trouble. The market is usually right. Look at their shares..... tick, tick, tick.” LM
-END-
J.P. Morgan closed at $28.50, down $1.50, breaking all technical support. J.P. Morgan Chase can deny and deny, like Enron and WorldCom did on their way down, but their chart says, “Uh-oh!”
Morgan is the “Queen Bee.” Café contributors, led by Adam Hamilton, have warned of coming J.P. Morgan Chase problems for a long time. Me too. Their gold and interest rate derivative positions are massive. Bob Pisani of CNBC mentioned the Morgan “liquidity” rumors today and said, “that usually means derivative problems.”
If Morgan heads further south, the pressure on The Gold Cartel will increase geometrically. It is important to keep in mind that J.P. Morgan Chase is the counter party for gold companies such as Barrick. We shall see what develops, but it surely is not in Barrick’s game plan, or hedging model, to deal with a blowing up Morgan.
Café member comments on CNBC and the PPT:
“Apparently CNBC is hearing rumblings of the activities of the Treasury's PPT over in Europe. Although they appeared dumbfounded that such a group exists, CNBC did seem to acknowledge they're might be such a group. Either the people at CNBC are some of the most incompetent, ill-informed reporters on the face of the earth; or, they truly are brokerage house shrills.”
Bill & Chris,
“It was reported on USA Gold this morning that there was discussion on CNBC regarding the Plunge Protection Team. It was suggested the people send in questions and comments about it. I did and to my SHOCK I actually got a response from a human! The response and my original message are shown below.
Regards, Carl H
"Bolland, Patrick (NBC, CNBC)"
patrick.bolland@nbc.com> wrote:
From: "Bolland, Patrick (NBC, CNBC)"
patrick.bolland@nbc.com>
To: "'Carl H'"
Subject: RE: Plunge Protection Team
Date: Tue, 16 Jul 2002 09:38:20 -0400
Carl,
I did see that Royal Bank report a while back ...your point is a good one.
Thanks for watching
Pat
Another plus: Even though the Dow was weak all day, bond prices were tagged. The 30 year CBT long bond fell 1.02 to 103.25. That is a big drop considering the stock market was so weak. If interest rates start to take off, which they should, Morgan’s problems, and those of others in the cabal, will multiply.
More good news for us. The CRB keeps going up. It closed in new high ground AGAIN at 213.07, up another .98. Corn (up 7 cents), wheat (up 10 cents) and soybeans (up 5¾ cents) led the way. Crude oil was no slouch either, as it is closing in on $28 per barrel. It rose sharply to $27.75 per barrel.
The CRB is up around 11% off its lows. But, there is no inflation.
CARTEL CAPITULATION WATCH
The DOW is trading like the DOG did weeks and months ago. It sank again, down another 166 points. Meahwhile, the S&P is making like the "RoadRunner," as it heads for 600.
If interest rates shoot sharply higher, J.P. Morgan Chase’s problems will accelerate dramatically. This does not help:
“The Bank of Canada again raised interest rates Tuesday amid a full-throttle economic recovery, but also warned that boardroom turmoil and market volatility could post a threat to this country's stronger-than-expected rebound.
The quarter-point increase puts the central bank's key target for the overnight rate at 2.75 per cent.”
How can this be? Almost to a man and woman, the Wall Street crowd tells the public that it is a great time to buy stocks. Most talk of phantom liquidation. But, who liquidated if they are all long and still buying? It makes no sense.
A Café money manager notes:
“As an aside I noted continued disturbing signs of complacency in the media as represented by CNBC, Virtually every strategist still wants you to buy stocks. They say things like "bottoming process" and "calm" and "buying opportunity" I have managed money of one kind or another since the mid 80's and I have never seen such complacency out of the Street and media in the face of such horrendous losses. I can only conclude that this is going to end in such a shocking set of market moves so as to simply numb the minds of these eternal optimists. And the gold powder keg is no doubt going to be an integral part (if not the cause). Keep up the great work.”
The economic/financial news worsens every day:
HONG KONG (AP) -- The unemployment rate surged to a record high 7.7 percent in the April-June quarter, the government announced Tuesday, in a fresh dose of bad news that further dimmed hopes for an economic recovery.
Washington, July 16 (Bloomberg) -- Raytheon Co. will be charged by the Securities and Exchange Commission with giving profit forecasts to stock analysts before telling the public in the agency's first case to enforce Regulation Fair Disclosure, people familiar with the matter said. -END-
This one is a bit scary. President Bush is an oil man. He keeps rattling the saber about Iraq. Now this:
S&P warns US of threat to energy supplies By Sheila McNulty in Houston
Published: July 15 2002 23:27
The US oil and gas supply is being threatened by the Bush administration's failure to counter the effects of plunging domestic supplies and tensions in other producing nations, according to Standard & Poor's.
Tina Vital, oil and gas equity analyst at the ratings agency, noted in an industry survey the depletion of US oil and gas wells, limited access to known low-cost reserves, trade restrictions, environmental regulations and political and economic unrest in the top producing regions of Latin America and the Middle East.
"One has to ask, where are we going to get our oil from?" Ms Vital said in an interview. "It just seems like America has got its head in the sand."
The US was not promoting new domestic exploration, she said, noting 91 per cent of all wells drilled in 2001 were development, rather than exploration, wells. It was not trying hard enough to change restrictions on land, domestic and international, that might be a possible source of oil and gas.
The US protects some potential sources, such as some in Alaska, for environmental reasons. Some foreign sources are off-limits, either because of a lack of infrastructure or of access, because the US has not built trading relations with them.
"We need to plan," Ms Vital said. She added that the threats to supplies suggested higher prices and a drag on economic growth.
S&P estimates a "war premium" of $4 per barrel is already reflected in global oil prices. Ms Vital said each $10 rise in oil prices would cut real GDP by 0.5 per cent.
So if oil rose to over $30 per barrel, from its price in the mid-$20 range, the impact would be significant, though not enough to cause recession. But if the price rose to $50 per barrel, "the implications for the economy would be much more ominous", she said.
S & P considers the supply risk from foreign sources, on which North America relies for about 40 per cent of its oil, to be significant. Political and economic unrest in Latin America was likely to deter investment in the energy sector, Ms Vital said. Shipments from around the Middle East and the Gulf could be threatened by growing conflict between Israel and the Palestinians or an extension in the war on terrorism.
-END-
The Brain Dead
Never has the manipulation of the price of gold been more obvious. Scandal after scandal is revealed on a daily basis in the U.S. media. Yet, when it comes to the biggest scandal of all (GOLD), most everyone clams up and acts clueless. What is the matter with these supposedly intelligent people? A vacationing John Brimelow brings Prudential’s Greg Weldon 7/15 commentary to our attention:
"Indeed, today's (7-15) action fully supports such thoughts-strength in gold and silver may become more of a US based phenomenon-as a few calls to London dealers this morning, revealed the belief among market-makers that a single large seller is sitting on the top of the Gold market. Conspiracy theorists may run all day long in the pop-media with talk like this...But. the reality of the situation is more likely linked to Japanese selling. We must "respect" the macro-message emanating from yen appreciation against gold, as it smacks of major deflation. Note the teetering TOCOM Gold contract, as seen below."
As to dollar/gold, he says he is bullish as the dollar declines against the Euro and that "Thus, within the context of a USD decline amid paper burning and capital flow reconciliation.. AND..noting the fact that France will now post a budget-busting deficit equal to no less than 3.2% of GDP...we should anticipate a positive influence to be unleashed upon the Gold and Silver markets.”
-END-
The price of the dollar and gold on recent dates:
06/04/02-------111.16--------$328.80
06/10/02-------111.12--------$319.50
07/16/02-------104.85--------$317.40
Talk about denial!
The dollar keeps going down and so does gold. The only relationship these days between the dollar and gold is that a falling dollar is gold bearish. Those are the facts. It should not be that way, but that is the way it is, BECAUSE OF THE PRICE RIGGING/MANIPULATION!
So-called gold analysts that do not deal with the manipulation issue are useless and do their followers a great disservice.
The U.S. Government has been in the toilet for some time. The Bush Administration has taken the relay toilet handoff from the Clinton Administration in full stride. From long time GATA supporter, Dale:
Bill - called several Congressmen on your list - whatever good that will do - they are as much good as hub caps on a tractor. But more importantly, I am from Ohio where Congressmen Traficant - who has been convicted of offenses in court - was in front of the House Ethics committee yesterday. I was told by a co-worker, who follows GATA, that Traficant in a press conference yesterday went off about Greenspan, Rubin, and the gold cartel. He said they had manipulated gold under Clinton, and when he raised the issue, they turned Reno and the IRS loose on him. This is what I am told he said in the press conference after the hearings.
You may want to investigate. Traficant's Chief of Staff is Charles Straub, at (202)225-5261. GATA may want to talk to these people. He is facing 10-15 in the Pen, and doesn't have many friends these days. He might want to help GATA, in order to help himself.
I called and left my number with Straub.
Then we have the following. Love to know if anyone else is hearing this:
“I am not sure how to phrase this and this is not for attribution,....hopefully you can find a concrete source to confirm.....I am told by a reliable source that a major hedge fund manager privately has said that there are huge political pressures being put on hedge funds not to bet against the U.S. ('you are either with us or against us' kind of thinking). Shocking if true. Or should I not be surprised.”
OK, so our government rigs our financial markets, but at least we have a free press; one that isn’t bought, right? WRONG! At least GATA is not alone on this one:
To: Maccallum, Martha (NBC, CNBC)
Sent: Sunday, June 23, 2002 6:52 PM
Subject: I told you so....
Dear Martha,
When you first contacted me last year, and you asked me about the market, I set up a page within our website and I showed you most of our proprietary indicators that examine the "signature" of market move. If you recall they all showed that the "signature" of the rally off the September lows had the "signature" of a BEAR market rally. Also, I told you that within six months the unity displayed by politicians due to the events of 9-11, will vanish, and the blame game will start which will further erode foreigners' confidence. We can see that now with the calls for investigation, at one point Democrats even asked "what did the President know, and when?" I also told you that the dollar will sink, and will take with it the stock market. And last, I told that the "recovery" in the first quarter was going to be a "statistical" one, and in real terms the economy will slow down significantly in the second half. I displayed for you many charts supporting my opinion.
My conclusions were not qualitative in nature, they were not just "thoughts" they were quantitatively based, and I had all the numbers and the charts to make the case. However, I never heard back from you! I am not the only professional in this business who had come to those conclusions. MOST people I know, even by using different methodology they had come to the same conclusions. However, what I find it particularly interesting, is the fact that over 90% of your guests have spent the last 9 months telling people how wonderful things were, and why they should buy stocks! Anyone who was unfortunate enough to listen to that advice, is now dead broke! I am sorry to say this, but CNBC with its biased coverage has inflicted as much pain on common people as the crooked analysts you talk about. I have the impression that you are an honest woman, so I would like to ask you this question: HOW DO YOU FEEL FACING THE MILLIONS OF PEOPLE WATCHING, KNOWING THAT CNBC HAS DONE NOTHING BUT PROMOTE LIES THAT HAVE COST PEOPLE THEIR LIFE SAVINGS?
CNBC is NOT interested in telling people the truth, is interested in selling advertising spots to Wall Street, and Wall Street wants people to buy stocks to their detriment. How can you stand for that?
Sincerely
Ike Iossif
President/ C.I.O
Aegean Capital Group, Inc.
By the time the stock market finishes its drop, CNBC will never be the same.
Dave Lewis on Bush, Greenspan and the U.S. economy:
Bill;
In the past two days we have heard the President of the United States and the Chairman of the Federal Reserve Bank tell the world that "the fundamentals are in place for a return to sustained healthy growth" in the US. What I wonder is, according to which theory of economics should current conditions lead to sustained healthy growth? US external accounts are out of balance to the tune of 4% of GDP and the trend, at least as far as the last data point received, is towards greater deficits. The US fiscal balance on both State and Federal levels is deteriorating rapidly and Friday's Budget report at 2:00PM should be illuminating in further detail. Further, what used to be known as "specie drain" but is now known as Gold price suppression is obviously accelerating. This is not my way of arguing that the US cannot recover, rather, my read of classical Liberal Economics suggests that certain policies need to change, certain trends need to be ended, and others begun.
Our leaders often speak of American Idealism, a term which, in a Philosophic sense, means that what you think is what is. Perhaps some think that repetition of the notion of "fundamentals being in place for recovery", might "self-actualize" into reality. Certainly this is a technique of which Corporate America availed itself during the boom phase. I take a different view. I don't know of any economic theories which argue for sustained recovery from current conditions in the US presuming current trends remain in place. Perhaps I am reading the wrong books. If policy makers want to convince "skeptics" like myself of the prospects of recovery given current policies and trends, perhaps they will share the theories which underpin these forecasts.
Regards
--
Dave Lewis
chaos-onomics.com
Nick Ferris, CEO of J-Pacific Gold, reports:
The Board of Directors of J-Pacific Gold Inc. (the “Company”) is pleased to announce that the Company has completed the acquisition of the Golden Trend Project in Nevada from Rubicon Resources Inc. of Reno, Nevada. The Company now holds a 100% direct interest in Golden Trend. -END-
Bono update:
GATA appreciates the effort that some of the ARMY are making to get our letter into Bono’s hand. So as not to duplicate the work load, I am reporting the following:
Thanks to the exhausting effort of my colleague, Sarge, I sent the Bono letter via fax to the correct person at Principle Management Ltd., Bono’s Dublin management company. I spoke with them today and shall follow up tomorrow.
I have also sent an email to an old apartment mate, Tony O’Reilly, who once lived in my apartment in New York, while I spent a good amount of time in my country home. Tony runs Arcon in Ireland. His father (same name) is an Irish legend. Not only is he in the Irish Rugby Hall of Fame, but he happens to be the richest man in Ireland. The last time I saw either of them was at Tony Jr.’s New York wedding.
I bring this to your attention because a good number of the Café membership is well-to-do and very worldly. Tony Sr. is chairman of Independent News & Media, the Irish media giant. Maybe one of our members can put in a good word for GATA with the right person to help us get to Bono as soon as possible..
The gold fundamental improve by the day in dramatic fashion. The Gold Cartel is huffing and puffing. It is only a matter of time before they are reduced to a bag of wind, as they run out of physical gold to continue their fraud. That will lead to a gold price explosion, the likes of which the world has never seen!
MIDAS |
