Jamie Dimon

The Wall Street Journal reports this evening that “prosecutors in the Justice Department’s antitrust division are scrutinizing the price-setting process for gold, silver, platinum and palladium in London, while the Commodities Futures Trading Commission has opened civil litigation”  (Wall Street Journal).
Ten of the biggest banks in the world are allegedly under “scrutiny:”  HSBC, Bank of Nova Scotia , Barclays, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan, Société Générale, Standard Bank and UBS.
Will the Justice Department finally clean up the CFTC’s mess as Eric Holder attempts to play tough cop on his way out the door?

Is this the beginning of the end for the Eurozone?  On Thursday, Germany rejected a Greek request for a six-month loan extension. 
The Greek government will run out of money in just a couple of weeks, and without a deal there is a very good chance that Greece will be forced to leave the euro.
In fact, this week Commerzbank AG increased the probability of a “Grexit” to 50 percent.  And if Greece does leave the eurozone, it could spark a full blown European financial crisis. 

china gold

If the price of gold is determined by physical supply and demand of gold we are supposed to believe that since April 2013 (see chart below) there has been far more supply than demand as the price has come down substantially.
Supposedly there has been so much supply, that Swiss refiners expanded their plants and worked in three shifts 24 hours a day to refine all this gold, which they fortunately could dump in China!
The decline in the price was an enormous flood of supply and feeble demand!

warning

The largest source of exported physical goods is China. Demand from other countries for China’s goods is declining, confirmed by the Baltic Dry Index* which is plumbing new lows. This slow-down in economic activity could easily burst the bubble of bank credit, which is in danger of collapsing under the massive burden of bad debts.
The signals are clear: the world has already entered a downturn in economic activity.
Therefore we can expect accelerated money-printing and the imposition of more negative interest rates in a forlorn attempt to avert economic reality.

nuclear bomb

A Monopoly No More!
This week we take a razor sharp look at the checkered and troubled past of the world’s premiere international wire transfer system for banks: SWIFT.
We examine the nearly unmentioned law that that DC passed,which pressured those within the SWIFT system to become a venue for financial terrorism.
We review SWIFT’s use as a recent political weapon against an unfortunate, sovereign country. Lastly, we take a gander at Russia and China’s progress in creating a counter-weapon to neutralize the ominous threat which SWIFT poses.
Is Russia finally in the position to neutralize the ominous, bankster threat of “SWIFT Deletion”? 

China dragon

I would like to point out that the Chinese traders have been absent from gold/silver trading as this is their New Year.  They will be back Wednesday.
No doubt that due to their absence our bankers are having an easy time of knocking our metals down….which I expect will end on Wednesday.

cliff

The Baltic Dry Index hit a new all-time low yesterday of 522.  It was over 2200 as recently as late 2013.  The stunning collapse in this index is similar to the stunning collapse in the price of oil since July 2014.  
Not one single Wall St. analyst was forecasting a decline for oil.
Similarly, many of the indices of many of the reports which measure economic activity in this country are beginning to drop sharply, with several back to their levels of 2008/2009.  

Folks, our economy is getting ready to fall off a cliff again…