Tuesday, June 5, 2012

Jon Corzine And George Zimmerman Should Have A Lot In Common...

To be a “sophisticate” in the 21st century requires the same ability that has been required in almost all the previous ones. It requires the ability to shut one’s eyes and one’s mind to anything one does not want to see or think about. The more glaring the contradiction between what is said and what is done becomes, the harder it is to remain sophisticated. The tragedy here is that the only alternative - that of becoming independent - is looked upon as more terrifying than to go on pretending to be deaf, dumb and blind. One has to be all three to maintain the ridiculous notion that the Fed can “save” the system it has destroyed.  - Bill Buckler, The Privateer
Is anyone besides me disgusted with all of the focus in the media on the queen Elizabeth thing going on in Britain?  I mean, why should anyone in this country give a rat's ass?  It's a meaningless, ceremonial position in a country that has become largely irrelevant on the world scene, other than to help our Government manipulate markets and maintain a highly leveraged, fraudulent monetary and banking system.  It's not coincidental that JP Morgan had its CIO derivatives unit set up in London (see below).

I'll tell you why Americans care.  Read the above quote.  It's a distraction.  "People need something to make themselves feel good."  Right.  Feel good about what?  That some person deemed "royal" by lineage gets to sponge off the public wealth (confiscated and taxed)?  The only thing a distraction does is keep the public from focusing on the fact that the people in control of the system are robbing and pillaging the public, holding the system up long enough to take what they can while the public remains "distracted."  Taking your mind off a problem doesn't fix it.  And the longer the problem goes unfixed, the worse it will be when it really hits hard...

Let's take a look at a couple ways in which the elitists are robbing the public blindly, while the public focuses on "distractions."

MF Global - Jon Corzine and all of the MF Global management should be in a jail cell sitting next George Zimmerman (I'm sure everyone knows who that is, as its an example of a "distraction") awaiting arraignment.  But Corzine is running around raising more campaign money for Obama.   Despite headlines yesterday which announced that MF Global bankruptcy trustee James Giddens "might" file charges against Corzine, this article was posted on Marketwatch which suggested that Corzine would likely get away with his fraud:  LINK 

Not only is Corzine guilty, the entire upper management knew that the firm was going to hit the wall way before it starting illegally using customer funds to keep MF alive:  "Facing pressure last summer to increase its capital cushion, MF Global moved some of its risky European debt holdings to an unregulated entity in an effort to avoid having to raise the extra money."  LINK  Someone really want to try and tell me with a straight face that Corzine didn't know exactly what was going on with customer funds?

Here's one that should piss everyone off.  The Government/FHA is introducing a new FHA mortgage refinance program - using taxpayer money of course - to incentivize homeowners to refinance their existing mortgage into one that carries much lower mortgage insurance fees.  And guess what?  This refi program is a no-income, no employment verification and it's okay to be under water program:  "The new lender is not required to verify homeowner's income, employment or credit score. And no appraisal is required, so the homeowner can be underwater."  LINK

Really what this program does is it takes taxpayer money and taxpayer guarantees, applies them to bank mortgages that are not yet delinquent, and enables the existing lender to convert the mortgage into a mortgage with lower monthly payments. It helps the bank keep the borrower current.  It's back to the mortgage bubble days where the borrower's credit quality is ignored.  It does free up some income that can be used to buy "thinga-ma-jigs," but it does so using taxpayer money and shifts more of the risk of mortgage onto the taxpayer.  Like that everyone?

Here's a biggie.  With very little public notice, and something of which 99.5% of this country is unaware, the Government has quietly put in place taxpayer guarantees of the Comex, CME and a couple of other lesser known derivatives clearinghouses: 
Readers know Mr. Gensler as the chief regulator of MF Global, which was run into bankruptcy by his old Beltway and Goldman Sachs pal Jon Corzine. An estimated $1.6 billion is still missing from MF Global customer accounts. What an amazing feat Mr. Gensler will have performed if, through his agency's oversight, he can manage to have U.S. customers eat the cost of Mr. Corzine's bets on foreign debt and have U.S. taxpayers underwrite bets in foreign derivatives trading.  LINK
Even worse, via FDIC, the Taxpayer now is on the hook for derivatives blow ups at the Too Big To Fail Banks.  This has been in effect for awhile, but here's an article from the Financial Times on the hold-up in Morgan Stanley's move to get FDIC guarantees using the same legal maneuvering already approved at other banks:  LINK

How many of you reading this knew that your tax dollars were backstopping the derivatives risks being taken at banks like JPM?  For those of you who don't know about this, or don't care, enjoy your "sophisticate distractions" while they last.  By the time the public really takes a good look at reality, it will be too late to do anything about it.  It likely is too late already - got gold?

20 comments:

  1. The Queen should be gassed. One of the biggest mass murderers in global history.

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  2. Got gold? How about land that can grow some food and a water well. Anybody that thinks they can go off somewhere, grow some crops and be self-sufficient the first season is nuts. I'm on my second season in my backyard with decent dirt and it ain't easy.

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  3. I'm feeling pretty good about myself today! I knew about nearly everything you wrote about except the queen. I just knew the markets were closed over there for some kind of holiday. All that without referring to my English Spanish dictionary. Once my eyes were opened I pulled out. Phyzz only for me. I had rather be years early than a minute too late.

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  4. Got gold? How about land that can grow some food and a water well. Anybody that thinks they can go off somewhere, grow some crops and be self-sufficient the first season is nuts. I'm on my second season in my backyard with decent dirt and it ain't easy.
    ==================================================

    David in AZ...enjoy this.

    Welcome to BACK TO EDEN Film

    http://backtoedenfilm.com/#movie

    Grow Life.

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  5. " It requires the ability to shut one’s eyes and one’s mind to anything one does not want to see or think about."
    Even Hitler was known for pulling the drapes closed in his car when passing by any carnage that was present at the time that he was riding by. His actions were to completely separate himself from anything remotely having to do with being horrific in nature.
    What a pattern. Take note Jon.

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  6. "Even worse, via FDIC, the Taxpayer now is on the hook for derivatives blow ups at the Too Big To Fail Banks."

    I love it! It's just as if Reno city hall guaranteed to make up any losses from the gamblers playing at all the tables in town. I wonder how long that would work?

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  7. AUMN leading the juniors higher!!!

    Man am I glad I loaded up when it went below 4!!!

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  8. Dave do you know of a site or a way to find out how much of the buying is fresh and how much of it is short covering? AUMN has such a massive short position that it would be nice to know how much of the move is being driven by short covering. All the data I have updates too slow.

    Thanks!

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    Replies
    1. I think if you subscribe to Stockwatch or NASDAQ.COM you can the most currently available data. I think. Google it.

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  9. Dave,
    There is a trick that I'm not sure what to make of.
    Thought about this site when reading.
    http://io9.com/5710434/train-yourself-to-see-impossible-colors

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  10. Dave...help.

    GLD...does it actually hold 100% Physical Gold Bullion. Punk-a@@ hedgie pulled it up on his Bloomberg Terminal and it said 100% Physical; clear as day. Say it isn't so!

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    Replies
    1. Dude, all Bloomberg does is reflect the public filings of the entities it tracks. If GLD holds legal title, unencumbered by leases, to all of the gold it is supposed to hold, I'll eat Oprah's dirty underwear. Hell I win that one anyway because it doesn't have any gold to cover the short interest shares.

      Here, read this and tell me if you think it holds even 50% of the gold it is supposed to hold: http://truthingold.blogspot.com/2009/12/owning-gld-can-be-hazardous-to-your.html

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  11. Joe Kernan please explain how a constitutional monarch, with no power beyond ceremonial duties, be a mass murderer? What a pillock. I think you might look closer to home for mass murderers, orders resulting in civilian deaths in recent wars for example, or perhaps ongoing "collateral damage" through drone attacks?

    As for the cost of the monarchy Her Maj more than pays for herself & her crew through incomes received from starry eyed tourists who just love the Royal family and who visit the UK and spend their hard earned cash on the tourism industry, not to mention all the global industrialists who desperately try to be seen with the Royal family in the hope of reflected glory.

    On balance I think the only solution to the mess we are in is global debt forgiveness. Domestic, consumer, sovereign, zombie banks, mortgages the whole lot. No way it will be paid off. I kow the UK is just hoping the PIGS go first so we can blame them when we default.

    Keep up good work Dave!

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    1. Totally agree GGSG and my thoughts exactly. A good ole Debt Jubilee for ALL combined with a gold revaluation in there somewhere too please! Great comment btw!

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  12. @Shill +1 one on the hard work. I too am in my second year of trying to grow food on my little patch of dirt. I'm finding fruit is much easier than veggies, heirloom seeds aren't always heirloom, and hybrid seed can reproduce year after year. But it is much more work than most realize.

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    Replies
    1. You're living in the dark ages dude!

      You should invest in a printing press. And then trade your little pieces of paper for food and oil and basically anything else you need.

      If you have any questions, please e-mail this guy. He's an expert:

      http://www.federalreserve.gov/aboutthefed/bios/board/bernanke.htm


      -Sicilian Gold

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  13. Na tried those. Even NASDAQ is delayed by days. Thanks though

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  14. The "Queen" thinks she and her "royal" family own more than 50% of the worlds land. And everyone residing on their land must pay his/her due. Why do you think Canada, Australia, New-Zealand still have the old hags face on their currency!

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    Replies
    1. Unfortunately, I have to agree with you.

      I've always hated the fact that on the obeverse of my gold and silver Canadian minted coins, it potrays my mafia overlord.


      -Sicilian Gold

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