Jim Willie: Next Segregated Client Fund Theft Will Be Private Segregated STOCK ACCOUNTS!!

The Doc sat down with the Golden Jackass himself Monday for an exclusive MUST LISTEN interview.

Willie informed The Doc that it appears that Morgan Stanley was used by the cartel to prevent a collapse in treasury bonds in 2010, and believes that Morgan Stanley was set up at the time by cartel banks as the next major financial firm to fail.

Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010.  I call them the designated hitter for Wall St.   Why wasn’t it JP Morgan, BOA, or Goldman Sachs?  My theory is simple: THEY EXPECTED LATER TO KILL MORGAN STANLEY!  Lehman Brothers was killed because they had huge mortgage bonds and other things that weren’t exactly desirable.  Bear Stearns was killed because they were pro gold and short the dollar.

Morgan Stanley created the false impression of a flight to safety in US treasury bonds.  Take a look at the 10 year yield early in 2010.  It was moving up to the 3.5% range! Alarm bells were going off!  They were talking about QE and bond monetization by the Fed! China was backing out of buying treasury bonds!  We had more supply, and less demand, and a rising 10 year yield.  Suddenly we had a tremendous ‘flight to safety’.  What a bunch of propaganda!

Willie also discusses reports from sources within MS that the firm’s veteran fund managers have been selling long-term stock positions, and states that whether it is MS or another brokerage, the next step in the chain of segregated client fund thefts will be the theft of PRIVATE SEGREGATED STOCK ACCOUNTS!

 

Jim Willie began the interview by discussing market rumors regarding troubles at Morgan Stanley:

One of my source’s father is a fund manager at Morgan Stanley.  The word that I have heard is that ‘everything is going to hell.’
Morgan Stanley has big problems with their liquidity and insolvency.  They are having problems with antiquated software from Smith-Barney era.  He said that there are many long-standing veterans at Morgan Stanley who are SELLING ALL OF THEIR STOCK BECAUSE THE VETERANS EXPECT MORGAN STANLEY TO BE THE NEXT LEHMAN BROTHERS AND TO FAIL SOON!

Morgan Stanley is one of the largest brokerage houses in the US.   Several years ago they merged with Dean Witter.  They also merged with Smith-Barney. If you take their 7,500 brokers, and 200 accounts per broker, that’s 3.5 million accounts.

We’ve had MFGlobal erupt last Oct 31st.  PFGBest collapsed earlier this summer.  We’ve had a court ruling from the Sentinel management fun- a case from 2007- the court actually ruled that since they couldn’t prove malicious intent and motive to deceive and to steal, all those segregated private accounts have indeed been lost, and there’s nothing illegal about the action.

We’ve got all these cases where the courts are basically saying Doc that private accounts, even if they’re segregated, in brokerage firms can vanish.  The billboard is very clear.  Private accounts, even though segregated, CAN BE STOLEN!

The courts are saying these accounts aren’t segregated and should not be first in line, even though they are segregated!

The Doc asked whether the rehypothecation issues could escalate from futures accounts to brokerage accounts and deposit accounts:

That’s where I think we are going.  There is a chain of priority- it’s like an upside down pyramid. The most risky brokerage accounts are futures accounts.  We’ve seen futures accounts lost with MF Global and PFG.  They have stolen segregated accounts.  Next in the chain is private segregated stock accounts.
Unless and until the public sees private segregated stock accounts vanish at a giant conglomerate firm like Morgan Stanley, they will not wake up!

No one is protesting against these big banks for stealing from these segregated futures accounts.  It’s because they’re futures accounts!  The point is they’re segregated private accounts, and in bankruptcy law they are 1st in line during bankruptcies!!

This is very big, and I expect we’re going to see a jump into private brokerage accounts. It doesn’t look like it’s going to be Merrill Lynch, it looks like it could be Morgan Stanley.  If a brokerage firm like Morgan Stanley goes to dust and customers have no access to their accounts, I’m expecting some of the private segregated accounts are going to go missing.
That’s how the public wakes up.

 

The Golden Jackass states that the cartel used Morgan Stanley to control the 10 year rate in 2010 using $8 Trillion in interest rate swaps and that MS is being set up as the next firm to fail by Goldman and JPM:

 

If you look at the office of the comptroller of the currency, you will see reports issued quarterly.  In late 2010, these OCC reports on the derivatives showed that the big 4 banks were loaded with derivatives, but one stuck out- Morgan Stanley.

Morgan Stanley put on $8 TRILLION in interest rate swaps in the first half of 2010.  I call them the designated hitter for Wall St.   Why wasn’t it JP Morgan, BOA, or Goldman Sachs?  My theory is simple: THEY EXPECTED LATER TO KILL MORGAN STANLEY!  Lehman Brothers was killed because they had huge mortgage bonds and other things that weren’t exactly desirable.  Bear Stearns was killed because they were pro gold and short the dollar.

Morgan Stanley created the false impression of a flight to safety in US treasury bonds.  Take a look at the 10 year yield early in 2010.  It was moving up to the 3.5% range! Alarm bells were going off!  They were talking about QE and bond monetization by the Fed! China was backing out of buying treasury bonds!  We had more supply, and less demand, and a rising 10 year yield.  Suddenly we had a tremendous ‘flight to safety’.  What a bunch of propaganda!

The OCC report’s report which reveals Morgan Stanley’s activity of $8 trillion in interest rate swaps, during the exact 6 month period that the 10 year yield went from 3.5% to 2%!
This made history!  They called it a flight to safety!  This during a period of growing debt and shrinking buyers!  I believe Morgan Stanley was set up as the next Wall Street firm to fail!

When this all happens, it’s going to get ugly, and it’s going to get uncontrollable!  Like the Tower of Babel, the interest rate swaps tower is destabilizing, and it becomes more unstable whenever the 10 year makes a sharp move.  The 10 year recently dropped below 1.4%, and has now spiked back to 1.7%.  The 10 year’s move from 1.7% to 2.4% early in 2012 was the real cause of JP Morgan’s ICD9 losses which JPM blamed on bad European derivatives bets.

The bank’s entire system is to support the treasury bonds using the artificial demand of interest rate swaps!  There is no actual buyer at all!  It’s not the Chinese, it’s not the Japanese, it’s not the Russians, it’s not the Koreans, there are no buyers!
The only demand for treasuries are interest rate swaps creating false, artificial demand, and the IR swaps are what have caused the 10 year rallies and the ‘flight to safety’.

My sources tell me an entity from the East has sabotaged JP Morgan’s IR swap machinery.  It will break and will not stop in it’s deterioration until it’s completely broken.  It’s not stoppable!  It’s coming apart at the seams!
The European government bonds are showing that they’re broken by going to 7%.
The US bonds are showing they’re broken by going to 1.5%!

 

Jim Willie also discusses the recent massive movement of over 6,000 metric tons of gold Eastward, and makes the case that allocated private gold accounts are being improperly used by cartel banks to meet margin calls.
He also states THE WINDOW FOR ACQUIRING PHYSICAL GOLD AND SILVER IS RAPIDLY CLOSING, and that PHYSICAL METALS MAY BE UNATTAINABLE IN ANOTHER 3-4 MONTHS!!!


You won’t want to miss this or any of the rest of Jim Willie’s SHOCKING & EXPLOSIVE FULL INTERVIEW which will be released Wednesday morning!

 

 

Comments

  1. Personally I thought the stock market was going to take a fall during the fall of 2010. I thought 2010 would be the year SHTF back in 2006. I am actually pretty surprised they have kept it going this long. The only reason the stock market didn’t fall that year was because of all the QE programs.

    As for Morgan Stanley its only a matter of time. I think if they go down it will be maybe mid November right after the election.

    As for our buying window closing by the end of the year. That would mean Silver past $50 and Gold past $2,000. Once Silver passes $35-37 it will clear $50 within 3 months unless the Euro, Stock or Bond market crashes. 

  2. Banknotes are created by coincident creation of government bonds. The ‘stupid’ question is … with the tens of trillions indicated as necessary to create in the face of increasing reticence to ‘invest’ in these bonds, what alternatives are available for their ‘placement’? That those damned bonds will be crammed into private retirement accounts by force is pretty much a foregone conclusion. The precedent has been repeatedly set elsewhere and when the ‘chips’ pile up high enough, this government will act in exactly the same way.

  3. With the Seventh Circus Appeals Court ruling on the Sentinel case putting the owners of the segregated account behind  Sentinel creditors the criminal financial system now has a license to steal. If they have been allowed to steal commodities why would it be so difficult to think stock will not be next? This will happen because the legal precedent has been established in case law. The banksters will move quickly before an appeal gets to the U.S. Supreme Court on the seventh circuit appeals court ruling. In short. GET OUT anything you have in the system if you can, as fast as you can! 401Ks and other retirement accounts are a bear to get out of, because of IRS rules. Barrow As Much Of Your Money Out, If That Is The Only Way!

    • I’m not sure borrowing against your 401k is the way to get out of it. They can still require your retirement account have a percentage of bonds and you will still be on the hook for repayment of the loan. I’m still anticipating some additional legislation restricting access or withdraw of retirement accounts in “best interest of the country and the individual who owns the account”. Of course, when that happens, the cat is definitely out of the bag. The best course is to either get the fund in a self-directed account with physical PM’s as the assets or cash out completely…however difficult that may be. 

    • @NotSure: Take out 15000 buy about 400 oz of Ag. Every 10 Fiat $ increase is 4000 fiat $ to you. Use that to repay the 401K on a monthly basis. If we get QE4 the price should go way up. If the collapse happens a good chunk of your money is in your hands. The banksters can’t steal it if they can’t get to it! If the worst doesn’t happen you are just paying yourself back @ about 4% interest and you still have the metal in your hands. It isn’t like TPTB and the gov. are giving us a lot of options!
       

    • Borrowing from 401K’s has a LOT of strings attached.  You can only borrow the amount for a maximum of 5 years plus you pay interest.  They require you immediately start the monthly payment back and take it out of your pay check prior to you getting paid.  Just like if you owed child support they take their money before YOU get paid every paycheck.  The money never even hits your account as its withdrawn at the employer and involves corporate Human Resources to get involved and set the paperwork on their end so the money is taken out of each paycheck.
      You can only borrow upwards of 50% of account value. 
      If you left your work rumor has it there are some other gotcha’s waiting for you!
      So it gets tricky borrowing from 401K’s. Just realize this is not a normal loan. 
      Also, you NEVER want to roll over a 401K to your current employer because once again if you ever try to touch it then current employer Human Resources will get notified. The next question is does Corporate Finance plus your manager also get notified? Apparently this is a BIG no no at most companies and can put a target on your back.
      Remember most companies put in some match and all of this is NOT your money even though on paper you believe it belongs to you.  They can get really upset at corporate if you dare touch these funds, whether its borrowing or withdrawing.
      Lots and lots of catches and strings with these 401K’s. 

    • Exactly, Powerball. The 401k loans have a repayment schedule and, yes RRG, if the FRNs go down in value due to QE4, then your holdings of Ag will TYPICALLY increase. Unfortunately, we see how the Ag market is manipulated so there are no guarantees. I always find that, given two extremes, QE on one side and bank failure on the other, that reality falls somewhere in between. So what would likely happen is that inflation does occur due to money printing but the price of Ag and Au are suppress artificially by JPM et. al. (just like has been happening over the last year). So, now you have a hardy repayment schedule over 5 years and the Au you bought with the 401k has to be sold to repay the loan. What’s even worse is you lose your job and the loan has to be repaid ASAP or you take the withdraw penalty. They got you coming and going so playing a game in their court will not work out in your favor. Best to just take the hit and cash out……taking your ball and going home with the loss.
       
      Remember, time is our enemy and the bankers friend.

  4. Does there exist a list of brokerage firms and banking houses that Smith Barney owns or has their tentacles in?  Like MF Global if they go down all of these small firms (like the one Gerald Celente used) also end up being the fall guys.  So its very important to also know all of their subsidiaries.  I just don’t have that list and hope someone on Silver Doctors can provide.

  5. I would like to hear the SD members thoughts on what the aftermath of MS dipping their greedy paws into customer accounts would entail.  Say 1/2 of the accounts are snatched and dumped into the slowsky litigation machine and 1/2 are able to liquidate and pull their funds out.  Where does that leave the rest of the securities industry?  Will the MSM be forced to acknowledge that this has occurred or will they continue the “head in the sand” strategy that has kept the masses asleep?  Where will the remaining funds go for a safe harbor?  What effect will losing MS have on the death star (Goldman, JPM, HSBC)?

  6. Didn’t Willie recently say Treasuries were going down to at least 1.25% and possibly 1.0%? This makes it sound like he has reversed his position.

  7. The algos didn’t waste any time before whacking silver this AM

    • But they failed to crush gold and silver’s price. Whenever they try to crush gold and silver’s prices, the prices goes back a little bit higher. Even if the algos are successful to crush the prices, the price of silver drops for only 0.50$ or less and the price of gold drops for only 4$ or less for only a few hours.

  8. There is no shortage of bottom feeders in the banking industry during the last 5 years.  Citi is leading the pack with a loss of 93% followed by B of A around 84% then Barclays in England at 76% and good old Morgan Stanley at 75.5%.  While JPM has managed only a 15% loss.  I believe we would be happy to see them all go and if you have money in any of them you better get it out now as others have said.  Even Deutsche Bank has lost 72% so how about that German economy hey?
     
    I guess B of A with Uncle Warren being their best friend may get some kind of gentle out but it certainly looks like JPM is King with one eye in the land of the blind.  So they dwarf the others and are sitting with a market cap of $140 Billion which is several multiples of the rest.  So how big are they going to be?  Those in charge cannot be ignorant of where people are going to run when the stock market melts.  Anybody with a few bucks will eventually run to the PMs.
     
    So are the powers ruling the earth sitting there knowing the metals will explode in price and just continue to play the market until it dies?  Or is there another Plan B on how they also capture the PMs we all have diligently bought?  I cannot help but think there are multiple plans in action to maintain control of the world.  This isn’t science fiction anymore as we can see the numbers clearly.  When game one is over a new game begins.  Best out of 3 in the playoffs.
     
    Any thoughts on what is the 2nd phase of this diabolical plan?

  9. @allinagau…..Buy old U.S. silver coin for best security in keeping PM.  The gov won’t confiscate that….

  10. Ive gotten Jim Willies letter since the day he started. He hasn’t nailed everything correctly, but I wouldn’t bet against him on the continuing banking fiasco. There will be more failures and attempts to hide bodies under the rug that is jammed full of corpses already. If MS indeed does go down, all hell is going to break loose.

    We are on the cusp of another leg up for gold and silver. This one should be historic.  2000 and 50 seem reasonable targets.

  11. It looks like that the 2008 crisis is repeating again but this time, it’s even worst in my opinion. Lehman Brothers is Morgan Stanley and gold and silver’s prices are going up just like they did before the 2008 crisis.

  12. @Hapa  I did that.  When I first got into this I decided to spread it out over all the options.  90% silver, bullion, gold all has its place as a store of value.  Now it’s time to watch the future unfold just like a scary movie.  Thanks.

    • Yes, it is a dramatic scary movie…..I would guess that bullion could be confiscated, but coins and rounds should be another matter.  I can’t imagine 1 oz rounds minted by the U.S. being recalled, and even less so old coins of the realm.   Anybody think otherwise??

  13. Most everything I have has a $$ somewhere on it somewhere.
     
    When the authorities start going door to door to see what you have that will be an act of war on the public.  That will be the start of something very ugly and I hope nobody wants to even begin thinking about going there.

  14. I doubt if confiscation will be an issue or concern unless the US falls completely apart and martial law with teeth comes down on us. Then shovels and backhoes will be in scarce supply. There will be a line of cars and trucks headed into the hinterlands with boxes of phyzz.
    Cashing in on 401k and IRA accounts will be the order of the day as the government tries to snatch those account to pay its bills. As hard as the government tries to take these accounts, we have seen their plans and know how these thieves operate.
    The government will get a temporary boost in their revenues as you pay the required taxes but that will fade to nothingness after that rush to the exits. Securing the IRA with an SDIRA could work or just telling TPTB you are mad as hell and won’t take it any more: Cash in, get out, convert or pay up and you will sleep better at night.
    The government does not intend to allow you to have a comfortable retirement. That is an illusion promoted by a government who will steal pennies from a dead man’s eyes. The math is against you given the government’s plans. The only math that makes sense is the calculation that you are on your own and need to make plans for that eventuality. In my opinion, the only person who can change the calculus of Social Security and other retirement plans is you. The math seems to shout; yell from the rooftops—buy silver and gold, tuck it away for a rainy day, smile, enjoy life, kiss your spouse, hugs your kids and be ever vigilant. I’ve not slept so well as I have since exiting the paper market and gone to metal.

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