We know market rigging occurs every day. We may not be able to see it, as it’s hidden in vast arrays of high frequency trading at the nanosecond level. The manipulators can conceal their work through offshore accounts. Proxy traders conceal their actions, but we still know it goes on.
Why do these excesses and criminal actions get punished only lightly, with no jail time and little more than a miniscule fine?
Because it is in the interest of the government to disclose only enough to the viewing public so that it is possible for a prosecutor to wage his little war against JPM, while, in the full knowledge that the real story is infinitely deeper.
It’s like prosecuting the Mafia. A don or two goes down but the enterprise continues to thrive. Every one prospers; banks, criminals, attorneys and the government. Its a win-win for all except the marks who suffered predations by these people.
But the one market that can never be prosecuted is the market in which the government is running the fraud. The government is in the precious metals market. That market belongs directly to the government. That market must be suppressed because if it is not, the government is screwed.
Legal beagles, attorneys general, and private lawyers cannot get a handle on this manipulation; they cannot be allowed to find the bodies and levy fines because the government cannot allow it.
The government is the market, manipulates the market and this game MUST continue.
Over the last few days I’ve been trying to get my head wrapped around the reason why there is no tangible substantive investigation into the PM price manipulation, or, in the case of Chilton and Gensler, nothing to see after 4 years of research. We’ve seen that virtually every other market and investment mode has been rigged, investigate AND prosecuted. The Brits are going after the LIBOR monkeys with criminal charges.
Yes, the prosecutors levy a fine but it represents a pittance when compared to the overcharges, thefts and profiteering taken in by the banks like JPM, B of A, Wells, HSBC, UBS and HSBC, to mention a few. Once the charges are settled, the offending bank pays, at most, 1 basis point penalty or fine compared 100 to 1,000 basis points of illegal profiteering and theft by these TBTF banks.
It makes you wonder why no one is going to jail.
Because it’s in the interest of the government to extract fines from $10 million to $1.7 billion and then allow the bank to continue business as usual, setting themselves for another regulatory action 5 years from now, but not before taking another $100 billion, fleeced from the marketplace. The unwitting investment population forgets they were taken by these bankers and their fraudulent actions. So once the heat is off and the con is back in place, the government vultures once again swoop in, prosecute and walk away waving their scalps, telling the aggrieved parties that these terrible people were ‘brought to justice and held accountable’ and only then send maybe 10 cents on the dollar to the people who lost money: The government pockets the rest.
The politicians who are bought and paid for by the same banks they fined can tell their constituents they are doing their jobs, whoo hoo!; prosecuting the bad guys, whoopie!; and then ask us to vote them back into office based on their Elliot Spitzer-like zeal. It’s almost like the Special Olympics for attorneys. Everyone wins a prize but we all know who really won. The banksters.
The implicit statement made by these political whores is that we, the people, are stupid, must be protected and when the scalps are flying on the mast, we must vote for them again and again.
All the while, the bankers are paying for the prosecutors’ $4,000 an hour hookers. But I digress.
I drew on my vast knowledge of quantum physicals and mathematics in an attempt to get a handle on this phenomenon.
In physics and quantum mechanics there are clear and obvious elements and matters that cannot be seen by conventional means. The scientists know that this ‘thing’ is there but they know this only by inference, not direct observation. Even if a thing cannot be seen can be inferred by its influence on other things.
Black holes cannot be observed directly but they are known by how they affect neighboring spatial bodies.
The Higgs Boson, nicknamed the GOD particle and aptly named since no one has seen God either, can be inferred by its influence on other particles. Its visual absence does not mean it doesn’t exists. We know it exists by inferrence. The Hadron Collider may have shown its existence in a recent experiment.
It’s estimated that Dark Energy and Dark Matter comprises 80-90% of the weight of our universe. We can’t see it or touch it but it’s there because we can see its affects on other celestial bodies.
If we bring this down to the planetary level, we can now look at some earthly phenomenons that we cannot see directly but can conclude their existence by inference. We know rigging occurs every day. We may not be able to see it, as it’s hidden in vast arrays of high frequency trading at the nanosecond level. The manipulators can conceal their work through offshore accounts. Proxy traders conceal their actions. But we still know it goes on.
Why do these excesses and criminal actions get punished only lightly, with no jail time and little more than a miniscule fine?
Because it is in the interest of the government, taking the role of the researcher and scientist, to disclose only enough to the viewing public so that it is possible for a prosecutor to wage his little war against JPM, while, in the full knowledge that the real story is infinitely deeper.
A scientist does his research in the hopes of grants and revenues to support his research. It could be concluded that he only pursue his research at a certain pace so that he can be assured a continued source of grant income.
These prosecutions involved the people from whom billions were stolen but the need of the government is greater and therefore it allows the crimes to continue and even grow.Crime pays to both the uber-criminal as well as Law Enforcement. Both want job security. A good con man knows never bankrupt his mark. The victims are good for the con time and time again.
The government can prosecute its allies and partners in crime at any time and for no other reason that $1 billion can be extracted; the criminal prosecution can be rolled out as a success story; and the scalps flap in the breeze.
It’s like prosecuting the Mafia. A don or two goes down but the enterprise continues to thrive. Prosecutors need job security and a leg up the ladder so criminals most be allowed to leave the scene, breed more criminals and thrive once again so they can be sheared by law enforcement just as the con men shear the sheep. Every one prospers; banks, criminals, attorneys and the government. Its a win-win for all except the marks who suffered predations by these people.
Which brings to my conclusion.
Of all the markets that can be manipulated and all the markets that can and must be investigated, if for no other reason than government fining income and scalp retrieval is such a big deal, there is one market that cannot be touched.
Note that nearly every prosecution results in a win and fine except this market.
The front page of the July 18 WSJ, above the fold, announced that BIG BANK STARING AT RECORD FINE OVER ENERGY. JPM, hand found in cookie jar, pays out $500 million for rigging energy markets.
Hmmmm, how much did they profit from these markets when Kleptofornia got hosed with 300% energy price increases?
More than $500 million I bet
Note that the only situations prosecuted are those which affect the Average Joe or Jane. The banks steals from Average Joe or his brokerage proxy. The government prosecutes. These are pursued with great zeal. Senators and Presidents are elected on their lawyerly abilities. But when the dust settles JQ Citizen ends up poorer and with no compensation for their loss. All they get is another set up for the next scam. They lose every time. And the important fact is that Average Joe is the ONLY one who loses. So the game rolls on ad infintum.
These Average Joes are sheep; expendable and replaceable. But the one market that can never be prosecuted is the market where the government ends up being the sheep. The government is in the precious metals market. That market belongs directly to the government. That market must be suppressed because if it is not, the government is screwed.
Legal beagles, attorneys general, and private lawyers cannot get a handle on this manipulation; they cannot be allowed to find the bodies and levy fines because the government cannot allow it. The government is the market, manipulates the market and this game MUST continue.
Average Joe can be hosed early and often. The government cannot.
Crime pays but only if the government gets its toke and rake. The reason government is so profitable is that it is the Capo Di Tutti Capi. The head shed. The top dog. Anything that takes away from that is not permissible. Thus the prosecution of Precious metal rigging cannot be permitted.
If Silver and gold see their real price in the real world, the one entity that will be smashed by this reality, this Higgs Boson that comes to lurches to life like some Zombie, is our government. This reality is just as distinct at dark energy and black holes. All of these phenomenon are there, but no one can actually see them. They hide in plain sight. You have to look closely to see their existence.
Our government must conceal this truth from the public and thus must never allow a successful prosecution of precious metals rigging. We’ll never a nickel of tribute paid to the US treasury based on a prosecution based on PM rigging. It will never happen because it is in the government’s desperate interest to conceal this Higgs Boson of price manipulation. Even their doppleganger bank, JP Morgan, will never be prosecuted for metal price supression because they are nothing more than the proxy for the Fed and the US Government.
The only real action ever taken against precious metals took place 33 years ago with the prosecution of the Hunt Brothers and their attempt to corner the silver market.
That action got away from the government. The prices went up 20 to 40 fold before the US government crushed this metal price surge. It couldn’t be allowed to happen because then, as now, the government spending was out of control, FIAT debt and printing was out of control and thus the price of precious metals threatened the very existence of our governmental fraud. While silver was the focus of the action, gold exploded up 2,000%. It was NOT being manipulated by the Hunt Brothers but it went parabolic because gold was the real issue, the canary in the mine field and gold was calling out the government and said BULLSHIT.
Gold at $800 an ounce was very effective in telling the people the US government was out of control, just like shouting fire in a theater when the curtains were in flames was a clear warning it’s time to flee. Or better yet, the little kid who said the emperor had not clothes. Gold was saying the emperor was naked and being gang banged in the village square.
If our government was found out and if they were stopped by the bulwarks and ramparts of silver and gold, it would have cost the government billions if not trillions in their graft, taxes and theft from the people. And exposed the government for what is really is today: A world-spanning criminal exterprise involved in virtually every bit of dirty business it can get it’s hands into. Armed with a military larger than the next 10 armies, thousands of nukes, and an ability to peer into the computers and phones of every person on the globe, this, our government, cannot be seen for the criminal enterprise it is.
We see this price rigging indirectly through statistics and speculations but we never see attempts to stop it. It will never stop because so long as this government continues its present course, precious metal prices have to be suppressed because it’ll be the government who needs to hold them down, keep their criminal actions secret and by this concealment, be allowed to continue the game as long as silver and gold are in the dog house.
And this government, acting simultaneously as the CLIENT, PROSECUTOR AND MANIPULATOR, must never be found at the scene of the crime. It must never even be seen leaving the crime scene.
Bernanke is just one in a long line of pet monkeys, capering around the halls of the Federal Reserve building, muttering stupid little monkey chatter, leaving us to starve while our houses burn.