Breaking reports indicate the London Whale, JPM’s ‘Achilles Heel’ and two other members of JPM’s CIO team face imminent CRIMINAL CHARGES over JPM’s CIO derivatives debacle. It wouldn’t surprise us if Mr. Dimon himself convinced authorities to bring charges simply to further extricate himself from the implications of the alleged criminal falsification of JPM’s financial statements (which Mr. Dimon would have signed off on).

Federal authorities are using taped phone conversations to build criminal cases related to the multibillion-dollar trading loss at JPMorgan Chase, focusing on calls in which employees openly discussed how to value the troubled bets in a favorable way.

Back in March, Eric Sprott informed the world in Sprott’s Markets At a Glance newsletter that The Recovery Has No Clothes.
In his latest update, former Bear Stearns trader Greg Mannarino discusses the fact that the illusion of economic recovery has now faded to such an extent that every Average Joe can see it.  Once again our friend Eric nailed it 7 months ago: the recovery truly has no clothes.

Mannarino’s full update below:

Mexican Billionaire Carlos Slim’s Minera Frisco SAB agreed Wedesday to acquire gold mines in Mexico from AuRico Gold Inc. for $750 million.
One of these days one of the world’s billionaires is going to decide to put three quarters of a billion dollars into silver and it will be all over for the cartel’s silver manipulation.

Billionaire Carlos Slim’s Minera Frisco SAB agreed to acquire mining assets in Mexico from AuRico Gold Inc. (AUQ) for $750 million in what would be the largest gold deal involving a Mexican company.

From Ron Paul:

The media insists on characterizing statements about dependency on government handouts as controversial, but in truth such statements are absolutely correct.  It’s not that nearly half of Americans are dependent on government; it’s actually more than half.  If one includes not just people on food stamps and welfare, but also seniors on Medicare, Social Security and people employed by the government directly, the number is more like 165 million out of 308 million, which is 53%.

Some argue that Social Security and Medicare benefits are a right because people pay into these programs their whole lives, or that we need a government safety net in place for people who fall on hard times.  However, this all becomes a moot point when the funds people depend on become worthless due to government default or rampant inflation.

Gold and silver rallied throughout the Asian and London overnight sessions in the wake of Wednesday evening’s downgrade of Spain by S&P.
Gold had risen almost exactly back to $1775 which the cartel has capped for nearly 3 weeks now, and silver had run to $34.44.
What happened next won’t surprise any of our readers, as both metals were once again smashed on the COMEX open.

A group of black-tie anti-bankster activists recently crashed the Investment Banking Awards by making it on-stage and presenting Barclays executives with an award for LIBOR manipulation innovation.  Perhaps next year the activists can recognize Blythe and Jamie for innovative manipulation of the silver market.

The Investment Banking Awards are the Oscars of the financial world. Dished out for so-called ‘innovation’, some of the world’s richest bankers gather together to congratulate each other on devising ever more creative ways to make obscene sums of money.

One of 2012′s most profitable scams was the bankers’ ‘innovative’ approach to a key interest rate called LIBOR. Virtually every bank at the event was involved in illegally colluding to rig LIBOR, ensuring that they would always be the winners in the multi-million pound bets they were making on the markets.

When we noticed that this money-spinner had been overlooked in the ceremony, we decided to show up and make sure the LIBOR-riggers got the recognition they deserve.

Full clip of the activists presenting the award (and then immediately being ushered off-stage) below:

At a Council of Foreign Relations event Wednesday, JP Morgan CEO Jamie Dimon had the audacity to claim that JP Morgan purchased Bear Stearns for $2 a share in 2008 (for a total purchase price of less than the value of Bear’s NY headquarters) ‘as a favor to the Federal Reserve.‘  Dimon further stated: ‘We did them a favor. We were asked to do it and we did it at great risk to ourselves‘.

Watch Dimon’s speech below:

MOPE is reaching spiritual to ∞ levels, as Bloomberg has released a piece arguing that the upcoming US debt downgrade threatened by Moody’s as the US reaches it’s fiscal cliff, is in fact a positive development.
Yes, up is down, young is old, wrong is right….you get the picture.

You’ve seen the infographics on total US debt, the TARP bailout, and the TBTF banks’ derivative holdings, but until now you’ve never seen an infographic detailing in vivid detail exactly why the world is running out of silver.

The infographic details silver’s supply/demand fundamentals propelling the metal to nearly 700% returns since 2000, and looks at whats to come on the PHYSICAL supply/demand over the next decade.
Is Silver the New Gold?

The Bank of England has released a study comparing fiat currency systems to gold standards and shockingly discovers that sound monetary systems are inherently more stable and produce less economic crises than monetary systems based on inherently worthless fiat debt notes.

The real shock is that one of the big 3 western central banks would allow such findings to be made public.

Full BOE study below:

In his latest update, former Bear Stearns trader Greg Mannarino discusses the massive exodus of the retail investor out of the equity markets.
Who is buying equities in bulk?  That would be Mr. Brian Sack, head of the Federal Open Market Committee, better known as the Plunge Protection Team.

Mannarino’s full update below:

Gold Slips in Tight Range But Monetary Outlook “Rarely More Bullish” as US Debt Grows $21bn, IMF Warns of Eurozone “Capital Flight”

After cutting East Asian and European growth forecasts sharply this week, the International Monetary Fund today warned that the Eurozone could see capital flight of $2.8 trillion unless the region’s leaders “act swiftly to restore confidence.”  Ahead of Wednesday’s $21 billion auction of new US debt – part of $66bn in fund raising due this week – Treasury bonds slipped, nudging 10-year yields further above 2.0%.

“The industrialized world is stuck in a severe debt and growth crisis,” says Andrew Bosomworth, head of portfolio management in Germany for US bond-fund giant Pimco, quoted by German news magazine Spiegel.  “Central banks are fighting the disease with monetary infusions of previously unknown proportions, and the side effect is a slow but dangerous devaluation of money.”  “Gradual inflation has a numbing effect. It impoverishes the lower and middle class, but they don’t notice.”

Writing in the Irish Times, “The monetary environment has rarely looked more favourable for gold,” says economic analyst and consultant Charlie Fell.