Submitted by Ed_B

Interest rates have been artificially manipulated to very low levels and really only have one way to go now and that is up.  When rates rise, bond holders get slapped with principal losses because older lower rate bonds are not worth as much as newer higher rate bonds.  Once rates begin to rise, however, is probably not the best time to head for the bond exits, as there will be a mad stampede of other bond holders seeking escape at that same time and only so many can fit through the exits at one time.

In any case, this is NOT a place where anyone who wants to preserve their wealth should be.  Holding US Treasury paper is the financial equivalent of holding a lighted stick of dynamite without knowing just how long the fuse is or how quickly it is burning.  I would very strongly urge anyone holding US Treasury paper, perhaps in their retirement account, to sell it immediately

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: