Friday, December 16, 2011

Get On A Gold and Silver Ark NOW!

Gold is pulling back temporarily for a couple primary reasons, 1) because the paper traded funds are taking a hit, You’ve got the speculative players many of whom are driven by technicals and momentum, rather than fundamentals, who have been selling gold cause they flipped out over the MF scare. The people who don’t look beyond the 140 character event horizon of last moments trending stock symbol. Ultimately paper, all paper, including the dollar is going down the toilet bowl, just at different speeds. Gold ETFs are just going first because that was what MF Global was entangled with. Thousands of clients who owned 6, 7 figures in paper gold in the form of futures contracts at MF called up their brokers getting the response that they’ve received a “margin call” and that the money is “with a trustee”. The CME group, the supposed “guarantors” had only question dodging. Essentially, this and gold *paper* was all stolen, and there is an honest broker’s chance at Goldman of the clients ever seeing their physical assets. This is leading to massive bailouts of the paper gold market, and a switch to owning physical, as I’ve been saying is the course of action you MUST take. The only assets you own are those you actually *have* that are not some promise on a certificate by a counterparty. All paper is going boom, just with different length fuses.

The second reason is because dollars are needed in the brief term because banks need liquidity. There is a massive global run on banks, which is being spotlit in Europe (i.e. Greece where an unprecedented 6.8 billion Euros was withdrawn in a month) but is really occurring everywhere. Banks need the dollars to stay afloat. They would much prefer to hold on to the gold – this is why the ECB was demanding Germany put up it’s gold as collateral, same for Italy, and why all the central banks have all flipped to net buyers of precious metals – but because the banks need the cash right now to remedy the liquidity crisis, they are forced to sell the gold.

None of the gold bulls / doomsayers who have a solid understanding of the totality of things and don't just look at a descending red line on a chart while listening to a news report are holding their breath. The fundamentals on the ground for gold have not changed, despite wild swings in perception. The key is the continued excess of paper money relative to gold and the potential loss of confidence in fiat paper money that’s going to hit from over-printing. The ECB will print at the first sign of deflation. Bernanke will print to kick the can, and if the dollar gains in strength because the Fed needs the dollar to be weaker. There’s a currency war afoot and you don’t want to be caught out in the trans-continental crossfire. And now it seems the US is opening up a credit line to the IMF to help bail out Europe as well. Given that the US will be payed back not in dollars but in SDRs, it is implied that the [i]US Treasury itself[/i], which signs the dollar bills, is in fact SHORT the dollar.

If anything, the dip is a Christmas gift, an opportunity for everyone to buy up more gold and silver at a bargain price, and great news as paper gold has been fucking and warping the gold markets for a long time. As people switch to physical the artificial price depression of fabricated supply (through “closed pools”, derivatives, and rehypothecation) will decrease and the true supply of gold will be better reflected, thus pushing gold higher, and speeding the bullion explosion day when people figure out the above ground supply of PMS (especially silver) is not there to meet demand. If you take a ten year outlook on gold and silver you’re seeing returns on the order of 500%, outdoing every hedge fund, mutual fund, you name it, despite their constant labeling of taking physical delivery on PMs as “nutso Alex Jones shit”. But that’s just broker’s defending their own scheme-security because they don’t get to wealth-strip you for a percentage if YOU are in control of the hard assets (nor do they get to steal them out from under you in a puff of MF Smoke.) And this trend is not abetting despite this technical blip. If you had left your money in cash, sure it would’ve been a little safer than having it elsewhere, getting maybe a 2% (now zero% CD), but that’s all moot since you’d’ve lost nearly half your savings to inflation, the real rate of which for 2011 is estimated to be as high as 11%. Bottom line, cash is just for liquidity and basic operating costs; gold and silver are king for investments. PHYSICAL gold and silver. Don’t say you weren’t warned.

Which brings us to MF and its “rehypothecation”. Thanks to the Greatest Minds of Our Generation in the financial sector and all their brilliant “financial innovation” you can have your cake, eat it, eat your client’s cake, eat those cakes you’ve just eaten again, eat the cakes you’re eating whilst SIMULTANEOUSLY other firms are eating that cake, put the crumbs in a magic hat and pull out another cake, nanofax the same cake out of your butthole and eat it yet again.

In hypothecation, a borrower pledges collateral to secure a debt, retaining ownership of the collateral but is “hypothetically” controlled by the creditor who has the right to cease possession if the borrower defaults. Rehypothecation is when a bank or broker re-uses collateral posted by clients to back the broker’s own trades and borrowings. The practice of re-hypothecation runs into the trillions of dollars and is perfectly legal. It is justified by brokers on the basis that it is a “capital efficient way of financing their operations”. In the US, rehypothecation is limited to 140% of collateral. However in the good ‘ol U of K in London, through loopholes in their regulatory system, rehypothecation can go on essentially to infinity. It’s a perpetual collateral machine. Not surprisingly, this is precisely where MF Global was funneling their rehypothecation of sovereign debt through many many many times over. And MF Global is just the tip of the iceberg in this. JP Morgan, Goldman Sachs, Barclays, all the usual suspects have hundreds of billions or trillions of exposure due to this same ad-infinitum fraud of rehypothecation.

The Master Sharks are all bullshitting out one end of their mouth on TV talking about shoring up financial system X or saving Euro Y while they are fighting a tug of war to steal gold from the oblivious unwashed masses and each other, whilst simultaneously keeping the axiomatic unit of currency (the dollar) propped up through mass printing and market manipulation, long enough so that they can get their own gold-plated silver-lined ark constructed and lined with enough loot to weather the coming financial shitstorm that will make Lehman and 2008 look like a salubrious stroll through the garden of Eden. The United states seems safe relative to other countries *for now*, but if you look at the US fiscal predicament it’s exactly the same as Europe. We just have the largest “bullshit blower” media, market-manipulating banks, and “punting ability” in terms of our ability to keep can kicked with the help of the Fed. We have the greatest illusion of stability. We’ve fixed zero of the problems we had in 2008, just pushed the REAL crisis downstream, and everything is ten times worse in terms of debt, fraud, TBTF, off balance sheet WMDs, all the issues that matter. It's not just a liquidity crisis, nor even a solvency crisis. Now it's become an actual *systemic* crisis where the underlying basis for markets are imploding. The Eurozone is being sandblasted through the news to distract the non-0.01%ers from the fact that the rest of the world – that’s Asia, US, the dollar, everybody – is just as toast as Europe. Distract long enough so they can hoard all the gold. Because not if, but *when* we end this fiat experiment/scam version 3 and revert back to a gold standard, as always, whoever is holding the most yellow metal at the end of the song wins.

In the case of a collapse, it’s of course the weakest links which reveal their rotten cores first. The shallow stones are first to be exposed as the tsunami water recedes. That is Greece and Ireland, and as the rolling crisis continues Portugal, Italy, Spain, and France. The UK, the Global Greater Attractor of fraud through which the Lehman, AIG, Bear Sterns, and MF Global heists were all facilitated by David Cameron’s doctrine of Looters First, is itself beating out Japan for deepest underwater sovereign with total outstanding debt of over 1000% of GDP. And this is why Cameron is thumbing his nose at the Euro under the guise of “I am Churchill II, defending Britain from the continental invaders!”, because rather than allow French and German regulators to come in and implode the city of London’s business model as the “Financial Terrorism Exchange”, he would rather the destruction of the global financial system and his own 99% Brits continue so he can keep his high paying whore job with his Goldman and Barclay’s pimps.

Saturday, December 10, 2011


Perhaps you've by now heard of BitCoin, the first functioning peer-to-peer currency.

Some detractors describe BitCoin variously as a Ponzi Scheme, or "A libertarian pipe dream traded via a program designed for Magic: The Gathering cards."

They said the same thing a few millenia ago about those new fangled toga-wearing hipsters with their "open source government" startup down at the Acropolis. That "Democracy" thing. Those DnD playing "philosophers" would never get any traction. "The Greek joke" a certain British monarch called it. The RIAA, MPAA and the rest of Media Mafia snubbed their coke-powdered noses at the notion of musical CDs being "ripped" and beamed at the speed of light to anywhere on the planet. That 'net thing's just a bunch of nerds reading too much William Gibson, fiddling with their vacuum tubes and peewee whistles between LARP sessions. Attempting to create "MUDS", collaborative Tolkien rehashes from the safety of their own mother's basements and university rooms. Book publishers, newspapers joined in the fun with the recording music industry. The CNN Empires, the Citizen Kanes of the 21st century continue to hide behind crumbling fortresses of Industrial Rev barriers-to-entry, continue to grasp at the strands of finely printed incantation that once held The Networks together as they're blown adrift on a tempest of off-message, infringing, and user dreams.

But I'm sure massively overgrown, apocalyptically destructive, completely obsolete institutions whose purpose is to hold a number in a database* for you and charge you 40% of your GDP to do it have nothing but sunny upside, smooth sailing for the next century.

*And they can't even manage THAT as proven by MF Global's vanished 1.6 billion in supposedly 'untouchable' client accounts, JP Morgan's MIA 16 billion, the CME and NYMEX trader's "ninja funds" which vanish into the ETF ether, along with the fact that the smart money is scheming up ways to bail out of the dollar. As Marc Faber (bravely) said on Bloomberg the other day when asked for investment advice, "I have a very special stock tip for you. The symbol is "G-O-L-D".

Other arguments against BitCoin: "the value of currency is largely set by the ability of the market to predict policy and supply, as well as the ability of ratings agencies to determine the value of bonds backed by the currency. Without those options a currency like Bit coin is essentially worthless except to individuals that place a value in it because it is NOT valued."

While this is may be true of traditional fiat currency, it does not hold for BitCoin. This is thinking in 20th century, bank-funded economics establishment paradigms. Firstly, governments, and ratings agencies have both proven to be completely bankrupt, untrustworthy, kowtowing flunkies to their monetarchy masters. Markets and rating agencies do not “predict policy and supply”. Beyond the restaurant/Craigslist level, there is no market. The “Market” is the Scottish Joke. Rather, Jamie Dimon, Lloyd Blankfein, David Cameron, Ben Bernanke, Mario Monti, and the rest of the gang sit down in the President Wilson suit (or teleconference on Fuckerbook, whatever) and figure out what value currency X should be that will best maintain their CEO and government positions and fortunes, then execute their plan. The dollar losing its value? Ok JP Morgan, you’re on point. Go counterfeit another two times global GDP worth in CDS and short the fuck out of gold and silver to manipulate the price of Benjamins back up so we can keep the shell game going. Guys, MF Global is set to blow this week, so make sure you triple-short it and do all your insider shadow trades before the opening bell. How’s Italy looking, Monti? Great, we’re shoving through another godzillion dollars in austerity, they’re on the fast track to the Greek wasteland. Heroin use up 20%, that’s a great sign.

And these ratings agencies are the same agencies that rated the 90% fraudulent, guaranteed-to-blow-up NINJA and LIARS loans, pressed through a salad shooter and formed like chicken McNuggets into CDOs, as “AAA” gold-plated zero-risk investments. YEARS after the FBI and other studies had reported incidents of fraud made up almost the entirety of the packages. The “governments” we have right now are just oligarchal wolves in democracy clothing, who will demand ten years in the slammer for starving black kids who jack a bottle of milk in Oakland or London, but who look the other way when former treasury secretary / ex Goldman Sachs CEO Hank Paulson tips off his cadre of white shoe boys (mostly former Goldman employees-cum-hedge fund managers) about what Fannie or Freddie or Lehman or AIG or other monstrosity is going to fail this week, allowing massive wealth-ripping insider trading, and destroying the concept of a “market” in which individuals participate equally. It’s a two-tier system, financial Apartheid: if you’re a Made Man in the inner bankster circle, like an Obama or a Paulson or a Corzine or a CEO of an oil company, then you get all the “first shot” warnings to bail at the peak before the star destroyer blows up, you get first-in-line precedence over the long line of “second-class citizens”. But when MF Global goes down, if you're one of the 99% "undesirables", you discover Corzine has shifted all your physical gold out to some small secret atoll a dozen miles off the Caymans. If you’re in the Washington-Wall Street Mafia, then you get a) the early-warning before Bank of America goes Lehman and thus the opportunity to bail and short b) to be at the front of the line of derivative counterparties of BoA who get first shot at that 21 cents to 60 cents on the dollar, and at the very end of the line is FDIC insured bank depositors. The 99% “black people” who get to sit at the back of the bus as it sinks below the waves of bankruptcy. And, again, this is not an “if” but a “when” question. BoA was already insolvent if you count all the skeletons in their closet being hidden through peekaboo accounting fraud, and that’s before its Merril acquisition which merely made it three times Bigger To Fail and ten times Guaranteed To Fail, with their 78 trillion in toxic derivatives, which the FDIC (funded by Joe taxpayer) is on the hook for – yes, we’re on the hook for 6 times the ENTIRE US GDP, just vis-a-vis BoA. After the Made Men are finished stripping down the carcass of the Too Big To Exist bank, what would you think is left over for the Uncle Joes, the 99% with their life savings tied up in CDs paying .23%, which they were perfectly willing to accept in exchange for the safety and protection of the US government and the FDIC?

In the case of fiat money, federal reserve notes which are fabricated and “backed” by a government, the value of a currency does depend to a degree on how much faith people have in the government which is doing the printing. But in the case of hard currencies, which are zero-counterparty currencies, such as precious metals like gold and silver, and now BitCoin, the value is simply intrinsic, as there is a [b]limited supply[/b] of these items and they are non-fabricatable. A federal reserve note, like that $1 bill, was originally simply the “promise” that some bank will pay you one dollar – a measurement of silver bullion. These made it easier for security purposes (outsourced to a large central bank vault protected by armed guards), and for convenience (instead of lugging around the heavy metal up and down the Silk Road, just carry light notes). But ultimately these pieces of holograph-etched green paper are simply “promises” that they can be redeemed for items of actual value: like a gallon of milk or Toyota Prii or a 10,000 square foot house. And unlike the hard currencies, there is an [b]unlimited supply[/b] potentially for fiat currencies, which can be printed willy-nilly by governments who want to cover up the termite-eaten unsustainable carcass of the economy for another election year. Which is why gold and silver have outperformed every pension fund, hedge fund and money market over the past decade.

The exchange is where the value is. And BitCoin can and is exchanged all the time. Just like US dollars are exchanged for WoW dollars which are exchanged for enchanted flaming swords of fire, or Facebook bucks are exchanged back and forth between Farmville turnips and yen. And more and more people are using BitCoin as a means of exchange, thus it is going up in value. Why? Because of the countless advantages BitCoin has on traditional government-issued currency.

BitCoins are encrypted files stored on your computer or any personal digital storage device like a flash drive. The money is in a cryptographic signature that is recognized by the bitcoin network, which means any given signature can only be transacted a single time from buyer to seller. This means you can copy paste the file as many times as you want, but unlike paper money, you cannot simply print more (this applies to both small-time crook counterfeiting operation, or big time banker-baron multi-trillion wealth-destroying Federal Reserves).

Say you want to send your friend in Australia half a coin, about the price of a burger (or the net value of Goldman Sachs if you marked all their off-balance sheet “assets” to market). You open up your BitCoin account (which looks very similar to a bank statement), choose your friend from the address book, click “Send Coins”. Your friend gets the money [i]instantly[/i], and the money is deducted from your balance. That’s it.

So what are the advantages of this over the US dollar or other currency?

- Nobody logged on to a bank of any kind.
- No bank page for complicated foreign transactions was loaded into any browser.
- No expensive foreign transfer fees were applied. In fact, no transfer fees were applied at all.
- No banks were holding on to the money for a couple of days. Your friend had the money instantly.
- No bank holidays were relevant. You did this on a Sunday.
- No governmental economic blacklist was consulted. He could be a criminal under Australian law for all you care, but what matters to you is that he is your friend.
- Nobody got the chance to seize the money before your friend in Australia got it. Or afterwards.
- An alternative to a bank transfer would have been to use Visa or MasterCard. They did not get a cut, either.

The BitCoin currency increased in value one-thousandfold against the US dollar in fourteen months. Yes, that is no typo: a dollar’s worth of BitCoin cost *one thousand times* more than it did in a little over a year. There is currently no indication for market saturation, quite the opposite. Who’s the idiot who didn’t get in on that investment? If you moved your life savings out of Bank of America, JP Morgan, MF Global, your 401k, mutual fund, any “AAA” gold plated “money management” fund and into BitCoin, you would’ve not only saved your money from being stolen out the back end through a London-based rehypothecation loophole to cover the bad bets tossed at European sovereign debt by banksters, or from being converted into Jamie Dimon’s next fleet of yachts, you would’ve MULTIPLIED YOUR NET WORTH BY ONE THOUSAND. Please tell me you didn’t not put any money in BitCoin. Bummer, dude.

BitCoin has seen it's ups and downs, and has presently stabilized after the "inflated expectations" stage of the Hype Cycle peak earlier in the year. If BitCoin can remain stable and mature, then we haven’t even seen the 1949 “Gold Rush” event from the Wall Street investors, who are looking into their accounts and discovering even their meager 2% yearly returns vanishing before their very eyes. They jump at the sign of even a 25% year ROI. But these numbers are in the three-to-four digit percentile. It is therefore very likely that larger amounts of money will start pumping into BitCoin just to ensure that they get in on the lowest floor of that boom that they can.

BitCoin is virtualized hard currency, it’s what Blade is to vampires and humans: all the advantages of precious metals (no counterparty), without their weaknesses (lugging kilo bullion bars around in your pocket is inconvenient, difficult to make payments on Ebay). It has the boons of paper money (easy to move around) without the drawbacks (does away with all bureaucracy, all transaction fees, and perhaps foremost, all transaction delays and gatekeepers in the financial system.) No wealth extraction via inflation or hyperinflation, no stealing money through hidden fees, no blowing of malicious speculation bubbles via zero interest rates. This is why the bank-government Crime Lords hate even the idea of BitCoin so much, because it is the invention of the h-bomb in the financial war on the side of the 99%; it is a legitimate threat to their continued reign of terror.

Still, it is not a perfect risk-free system. It is still in its early rag-tag stages, as all startups must begin, and thus is more volatile than a solid, mature market like gold and silver. If you lose your encrypted BitCoin files to a hard drive failure or just loose them out of your pocket, then you've lost them. But that's why you make multiple backups. And the same happens if you lose a ten dollar bill. But there is no such thing as a risk-free asset; even the 1%'s money in the safest vaults in the world are being looted by the 1% of the 1% (0.01%) banksters as Gerald Celente painfully discovered when he called his agent about his 600k in gold and received a big question mark. Holding dollars even in your local bank is a risk as the money presses continue to run making us ever-more resemble Weimar Germany and the market manipulation schemes propping up the dollar continue to grow weaker and falter. It's just a matter of looking at the fundamentals and assessing whether the benefits of having some money in BitCoins etc. outweigh the risks.

There are some things you can’t yet buy with the coins, however the BitCoin “Craigslist”s are growing and you can get even cutlery, solar panels and gold/silver bullion with BitCoins last I checked. If nothing else, you can always buy that hotdog on the corner if you just convert BitCoins into another currency by selling them. I could see some blend of BitCoin or a similar virtualized hard currency utilized for making long-distance purchases and paying the electricity bill operating in tandem with silver/gold rounds for more local exchanges at the grocery for the laundry soap and such. A hybrid physical/virtual hard currency system. Like a non-fucked up, non-wealth-stripping, non-real economy-nuking version of paper dollars and credit cards – silver dollars and BitCoins.

Is it a perfect system? No. But I think the fundamentals for BitCoin are looking pretty good. Especially in comparison to the other options. To paraphrase Churchill’s aphorism on democracy and the best form of government: “hard currency (like BitCoin) is the worst form of money, except all those other forms that have been tried from time to time.”

Sunday, December 4, 2011

Zombie Banks, Vampire Bankers, Silver Bullets

Wall Street (metonym, not the physical tourist attraction / financial ground zero) is fundamentally a set for Dawn of the Dead. These are zombie banks – irrevocably bankrupt banks being reanimated with trodes of taxpayer credit lines jammed into their heads, eating the population left and right, turning every sovereign they bite with their toxic fraud teeth into another undead shambling Greece or Italy. If their actual stocks were ever marked-to-market, they would all instantly go under. They could easily be broken up into hundreds of smaller banks and credit unions who could do the actual work of providing capital to productive businesses (what banks are supposed to do) many times more efficiently and without the systemic risk or the looting or economic genocide etc.. The big banks and corporations have absolutely massive net negative effect on the underlying economy, The Global Well Being Index (estimated in the tens of trillions if you count all the bailouts, lost productivity due to hyperinflated fraud bubbles, etc). Each and every American is now over $300,000 in debt thanks to them, and all the money we've given in bailouts to the banks, instead of lending it to people they blow it on food and energy speculation resulting in impoverishment, use it to buy out of other failed banks becoming bigger to fail, and shower the rest on themselves. So why are they still around? Because the people in power positions to destroy them are all sucking the zombie teats. The sole purpose of their continued existence is to allow the CEOs like Jamie Dimon, like Lloyd Blankfein to continue to pay themselves the hundreds of millions of undeserved, criminally stolen bonuses that they have leeched themselves upon for over a decade. Giant zombie banks are fundamentally looting-machines, and nothing more. They could be gone tomorrow. It's a matter of how much of our economic and physical body (in the case of deadly austerity and artificial food shortage) they're going to get away with eating before we finally decide to double tap them.

This is essentially like if you or I threw on a doctor uniform, forged up some hospital ID material, waltzed into the ER and started pretending to perform quadruple bypasses and brain surgery. Of course we’d botch most of the surgeries with absolutely no training or experience, killing hundreds of people (pension/bank account looting, bailouts, inflation, austerity, Greece, Italy, famine) but as long as we can hold up the veneer and get paid six figures, who cares, right? The nurses and hospital staff (politicians, economists, media) applaud our valiant efforts, our attempts to “save the economy”. But as the patients keep dying, we blame it on them: the government forced us poor megabanks to give poor people and minorities subprime NINJA loans! These unhealthy Greeks and Americans didn't take our prescribed dosage of Austerity medicine! The blood is on the hands of the poor and the public sector. We need to be paid more money, given more freedom and more powerful bonesaws in order to do our job properly. The patient will surely die without more bailout and fiat currency IVs. 700 billion ccs, stat! Oh darn, Lehmans gone, another one bites the dust. This is a sad day for all of us surgeons. Let’s make sure this never happens again, by giving us more money.

Getting rid of these homicidal psychopaths masquerading as surgeons is an absolute no-brainer, like the equivalent of curing cancer. The same goes for all the biggest names on Wall Street. It's a matter of how many people, savings, and economies we'd like to see murdered before we've had enough.

Virtually all of the major banks are bankrupt. The Lehman, Bear Sterns, the Madoffs, the MF Globals, these are just the tip of the iceberg, the tiny fraction of visible matter in the Fraudiverse that got blown up cause they tripped up or crossed the bigger mob bosses while there remains hundreds or thousands more firms and corporations still sneaking around through shadow banking and shadow accounting. Not only all the usual suspects, the JP Morgans, the Goldman Sachs and other major investment banks, but General Electric, IBM, Warren Buffet all regularly engage in this kind of accounting fraud. When regulators come in to record your end of the quarter liabilities, you move it off of your balance sheet for a few days with the complicity of another corrupt hedge fund or broker or a banker or corporation. They’re all based on accounting fraud. MF Global just happened to botch their peek-a-boo accounting the past quarter, or failed to pay off some regulator at the SEC, and so they were toasted. But you could pull the tail on almost any of the big banks and their stock all goes to zero.

Despite the “officially” reported 160 billion JP Morgan is supposedly “worth”, it is absolutely a dead firm walking if you priced in all the ‘off-balance-sheet’ toxic waste refuse dredged through the debt megabubble that they’re still lugging around. All the 78 trillion in illusory horse feces derivatives – equivalent to you or I writing on a cocktail napkin an insurance certificate for a trillion dollars and then declaring that as “assets. If you put a hundred million troy ounce silver bullet through the heart of the werewolf, shove the basilisk tooth of capital depletion and risk-unveilment through the Dark Financial Lords’ own Holcruxes keeping it alive indefinitely, JP Morgan and many other firms would evaporate into flecks of ash, blown away in a colony on a breeze, like a waning bad dream. It really will not take a lot, given the extremely thin ice they are already on in terms of capital, liquidity, popular image, and the fact that their Ponzi games running out of suckers to con, real economy to drain, as people are waking up to what’s really going on. JPM is in extremely deep shit as they had significant counterparty risk tied up with MF Global, and is most recently having to buy up MF’s 4.7% stake in the London Metal Exchange. And why do they need to do this? Because they need to defend their massive but slipping stranglehold on the physical silver market. Then let's raise that a 2.1 billion dollar lawsuit for *gasp* fraud in their mortgage backed securities . Of course, the first substantial legal action against a major firm has to come from a pissed off German counterparty, rather than the US regulators or the DoJ. Then add to that litany of red ink the fact that it has come out now that JPM engaged in client fund co-mingling to the tune of $16 billion; a massive blow. Sunlight on the hidden risk, burning this financial vampire alive.

Capital can flow, but it is a two-way-stream. There are major players out there, activist hedge funds, good and honest investment managers who see the malignancy, unsustainability, and outright abomination that is the current iteration of our fraud-debt-fiat based financial system. These entities and individuals are actively flash flooding their capital in a contraforce against these predatory Ponzi institutions. Already Anonymous Analytics has fought fire with fire, outing hidden risk and toxicity, then applying reverse-capitalism to blow up the fraudsters with their own weapon of choice: shorting. They've already taken down Chaoda, one of the Hong Kong Exchanges' largest and longest running frauds as a proof of concept. We’ve just seen what happens to so called “foreclosure mills” when their true nature and practices are exposed. Goldman Sachs has already laid off tens of thousands of employees, and many of Lloyd Blankfein’s bankers won’t even be seeing any of their cherished bonuses this year. This is due at least in part to the negative attention and scrutiny raised by individuals and groups about Goldman's practices and situation, in turn leading to the unwinding of their "machine"ations and pyramid schemes exacerbated as the debt can continues to fill with cement. Even the Occupy-supported “Bank Transfer Day” and similar actions have a big knock on effect, especially as the larger clients, the 1%ers, the owners of hotel chains with kids getting maced at UC Davis, the Gerald Celente marquee-name investors getting stuck with “margin calls” are being moved to follow the trend: which you can bet has the big firms shaking in their sealskin boots. Because they are all Ponzi schemes, and like any Ponzi scheme, once enough people start pounding on the door demanding "Show Me The Money!" and start pulling it out, the scheme unravels.

Then there’s Silver Vigilante #1,
CEO Eric Sprott of Canada-based Eric Sprott Asset Management, announcing his purchase of 1.5 BILLION dollars worth of silver bullion. Given that the previous megapurchase from Sprott last year of $580 million sent silver soaring 177%, and the fact that this purchase is nearly *three times* that size, this will be like a bombardment of Jericho missiles on JP Morgan’s gold and silver price manipulation edifice. If the proportionate upswing is even half of the boom last year, it will almost certainly be the silver steak through the heart of JP Morgan, with immense knock-on effects repercussing throughout financial Mordor. Not to mention Chinese and Indian purchases of the precious metals which are up several hundred percent in the past month alone, and the increased purchasing at the grass roots level AKA the Silver Liberation Army. The thing with this strategy is that the vampire cannot simply turn into a bat, squirt some black derivative ink and perform a “capital shift” or reduction of exposure to a precious metal bull market. Firstly, because letting go of the silver short will take the lid off the precious metal Pandora's Box leading to a sinking of the dollar and JPM destruction, yet if they hold the short, they are forced to take tens, hundreds of billions in short losses ALSO leading to JPM destruction: they're caught between a bullion rock and a short hard place. Secondly, the toxic funds they have are massively illiquid – because who the hell is going to buy a swimming pool of nuclear waste? That was the plotline of the 2008 credit crunch -- and the only ones they can effectively offload them to are the (formerly) sovereign governments, the 99% taxpayers, like Greece, like Ireland, like Spain, like Italy, like the US whose whore politicians collude with bankers to allow the continued economic Hiroshimas (AKA ‘bailouts’) in exchange for a cut of the blood money. Or as in Greece and Italy, outright coup-ed out by "technocrats" (coughbankers). But even these “atrocity sinks” are dwindling and the gangsters holding the timebombs cannot shift their risk at a rate fast enough to counteract the rate at which it is being exposed, and the rate at which gold and silver vigilantes are tearing down their dark fortresses and Dracula coffins made of fiat, derivative, and other nightmare hallucinations. The bad capital flow, the malignant ectoplasm wraith is being cornered between the crossed ghostbuster streams of the risk-raking vampire banker hunters, the silver-bulleted financial activists, the pissed off half-vampire Blades in the 1% who are being robbed blind by the Frosts, and the result?

Wall Street announces massive *structural* layoffs of more than 200,000. Bonuses decimated, the fifty million end-of-year goes the way of the Dodo. One economist guesses that Wall Street won't regain jobs "until about 2023." Now we’ll see who cries for those who laughed haughtily, waved diamond champagne flutes, sprinkled McDonald’s applications on the seas of the homeless, jobless, and futureless “Plebians” Occupying the sidewalks around the lofty Two Towers of CME and NYMEX. The Wall Street in-fighting fiascos bleeding into the news cycle are the final shuffling of the deck chairs, the ship rats scrambling tooth and nail for the last morsel of food before the vessel sinks. No doubt fervent prayers are being recited to shrines of Milton Friedman and Ayn Rand and the rest of the pantheon in the Presidential Suite of the Plaza Hotel tonight.

CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe. Just as I said a page ago. The potential gains of moving your funds virtually anywhere in the market are now outweighed by the risks of losing it all to some Corzine or Jamie Dimon or other fundsucking parasite who can drain you with impunity. We’re at the start of a global liquidity run. There will be rallies. Finance clowns like Kramer or CNN anchors will waddle onto TV, inform you of the impending bull market in Goldman Sachs shares and What You Can Do To Help Save The Dollar! But ultimately, capital will begin “flowing” in tsunamis away from Wall Street and big banks and into gold and silver. This will create a feedback loop in which the dollar see-saws in the opposite direction, in turn drying up the dark pools exposing more zombie banks, creating more incentive to dive towards the stratospheric hard currencies. And no matter how hard Bernanke cranks up his monetary firehose, even if he gets his Weimar on and blows a Googleplex dollars our of his ass sending the price of a gallon of milk to a billion dollars; an ounce of silver will simply be worth 15 trillion dollars, gold at 150 trillion. Fiat will be tossed back into the recycle bin of history, just like it did centuries ago after the French iteration of our plight when their government buried the Francais in paper assignats from Pigalle to Marsaille, after which their 99% started beheading kleptaristocrats left and right with the guillotine. (not that we’ll see literal decapitations, but *decapitalization* of the Louis XIV and Marie Antoinettes has already begun). Whether it’s two weeks, three months, or a year, the end-game has begun, and now it’s only a matter of time.

Sure, the MSM, themselves debtslaved to the bankers, underwater to their eyeballs and reliant on Wall Street's blessing for their next episode will scream Apocalypse, Now! Will call it the end of the world, just like Hank Paulson threatened congress in 2008, just like the EFSF threatened Greece in 2011, just like we’re told hundreds of thousands of times by almost every news report and pundit, in the post-modern version of Orwell’s truthification machine. THE SKY WILL FALL IF WE DON’T SAVE THIS TUMOR! The truth is, this will be the collapse of the bankrupt and decrepit Gormenghast, the implosion of the financial castle Wolfenstein, and the rebirth of the global economy as decades of debt, deceit and general malignancy are cleared from the system. Will some rats escape the sinking ship? Probably a few stragglers will, just like a few 1%ers and IBM and Coke moguls managed to Shanghai some of their Third Reich blood money out of collapsing Nazi Germany, set up a pina colada stand in Argentina. But the greater swath of the cancer will be excised; the core engine of the Death Star which allows it to function and wreak havok – the edifice of debt, fraud, and fiat – will be destroyed. Whether we learn from the mistakes – break up the too big to fails, return sane leverage limits, separate corporation and government, get ACTUAL COPS on the financial beat, etc – is up to us as a nation and as a world.

Capitalism may be predicated on crisis, but until we’re magically transported to Marxian Utopia, the death and devastation of crisis can and should be shifted away from the innocent villagers and onto the barons who instigate the crises. The other option is to sit there, the looters in chief make bank, as your home sinks below the waves, your pension ablaze, your job crumbling beneath a wage arbitrage contagion, and complain that crises happen. As the heart of Occupy has always been: you cannot rely on governments, corporations, nor “experts” to solve your problems, because they are all the problem. You have to do it yourself. Just as a democracy in which people check out to Dancing with the Stars and remain unengaged results in no democracy, so a financial-economic system in which people just check out, let the default suit-n-tie manage their money, and remain oblivious results in a broken and exploitative financial-economic system. That AND no democracy as a hostile takeover is performed resulting in monetarchy: rule by the biggest money. That means investing in yourself, in your own financial education before you check a box on your job app or W-2 and start dropping savings into a fund managed by “experts” whose goal is not to make you money but to inflate their own wealth by giving you the *illusion* that they're making you money, often at the expense of your pension, 401k, or other fund, as everyone including the white-shoe crowd are painfully discovering.

And if you haven't already, it's time to start getting yourself out of paper. If you can that is: if you've still got your money digitized in the numerati's supercomputers somewhere in any kind of managed fund, it's highly probably that your money is already gone, vanished into monetary Never-Never Land (probably was used to build some banker's gold-sided corporate tower). Madoff was just the tip of the iceberg: the entire system is Madoff, through and through, as MF Global and JP Morgan clients and all therein subsumed owners of small businesses, 401ks, pensions, fireman and nurse bank accounts that woke up to find their life savings disappeared are only now realizing. It is highly likely that the monthly statements you get in the mail from any large firm are lies; the family jewels have been replaced with plastic replicas by the thieves but you don't know it yet. Get the hell out of all paper, digital and otherwise: that's not just stocks, but IRAs, 401ks, and yes, even those green "Federal Reserve Notes" wadded up in your wallet. Yes, not even the money in your bank account is safe. Once the Euro is finished toasting to ash, the dollar is next in line, and bet that the printing that allows the tables to be run till the house of cards collapses will only accelerate as it did in Germany half a century ago, in France three centuries ago, at the end of every fiat scam, ending always with a return to hard money. The only currency that will be worth anything, the only protagonist that will survive this zombie horror movie, the massacre that is the Day of the Dead Global Financial and Monetary System are the assets without any counter-party risk, and those are gold and silver.*

There's your Zombie Bank Survival Guide. Don't say you weren't warned.

EDIT: some recent and vindicating news:

CNBC in a cash crunch . Looks like the bankers' Goebbelian price propaganda arm and sucker-maker is flailing as the body goes into critical condition. Looks like Goldman Sachs has run out of scraps to toss to their ponzi-fluffing court jester, Jim Cramer. Coincidence that this is occurring immediately after major bonus cuts and 200,000+ firings on Wall Street? I think not.

Groupon scam strips billions from dupes

Don't say I didn't warn you.

[QUOTE] originally posted by TwiliteMinotaur, November 14, 2011:

I suppose you're going to start taking stock pointers from Jim Cramer and shift your nestegg into Groupon.[/QUOTE]

Uhh, that's good.

(*And that's PHYSICAL gold and silver: the actual precious metal that ETFs and paper gold/silver are supposed to point to have already been ripped off by the pirates, and the booty has been buried in their own treasure islands. Just ask Gerald Celente how that paper bullion strategy worked out.)