Mark writes:

Doc, I was wondering why do the fools that play the Comex even put in a stop loss in the first place if they know the game/their job?

Why don’t they start making their own rules? No stops and let it play.
Thanks, Mark

Mark, the ‘fools’ playing the COMEX paper game using stop losses than are routinely raided and tripped by the cartel do so out of necessity.


Jim Sinclair has released an email alert to subscribers stating that next week will see the cartel make one final take-down attempt of the metals, which Sinclair states will fail, as did the 7 previous attempts.

Sinclair emphatically states not to hold any margin, and asks ‘How can anyone in Europe sleep tonight with cash in the bank?

By Jim Willie,

The LIBOR scandal is an extension of the JPMorgan loss story and the MFGlobal thefts
-The LIBOR rates are connected to the Interest Rate Swaps, the free feeder wellspring
-The Fascist Business Model is coming to a climax conclusion, the bitter fruit exposed
-Naked shorts of Gold & Silver and concealed hyper monetary inflation
-Looting of Fort Knox and phony bank accounting
-Gold motive for liberating Libya and missing Iraq Reconstruction Funds
The climax should occur in the upcoming months


Reuters reports German regulator BaFin has begun a special probe of Deutsche Bank into possible manipulation of LIBOR rates.

As we noted over the weekend, JP Morgan and Bank of America appeared to be submitting the most blatantly fabricated LIBOR rates during the depths of the financial crisis in 2008-2009, yet American regulators such as the SEC, CFTC, and DOJ have yet to even blink from their regularly scheduled porn.   While LIEBORGATE appears to be reaching contagion stage in Europe, what will it take for the 1st US bank to be officially implicated?

RBS’ NatWest, whose banking ‘glitch’ (which began only days after RBS’ downgrade) is now nearing 3 weeks with officials now stating accounts will not be functioning until the end of July!
It appears that either NatWest’s IT problems have gone viral, or else Sberbank has also been impacted by margin calls/ liquidity concerns, as the largest Russian bank has halted credit and debit card transactions due to an ‘IT glitch’.

After much kicking and screaming (and 2 years of delays/ feet dragging) the Fed has complied with the Frank-Dodd act and publicly released the living wills (resolution plans) of Wall Street banks including BOA, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, Morgan Stanley, UBS, and JP Morgan.

According to the Frank-Dodd legislation, each plan must describe the company’s strategy for rapid and orderly resolution under the Bankruptcy Code in the event of material financial distress or failure of the company.

The filing releases critical information, including JP Morgan’s interest rate derivatives positions at the end of 2011 ($54.5 trillion, down from $63.6 trillion at the end of 2010), total FOREX positions, equity positions, and total notional derivatives ($71.2 trillion!).

Those interested in reading how JP Morgan executives envision the death of their beloved Morgue can read the full crisis/ liquidation scenario below:

The Council of Europe presented a preliminary report in Strasbourg Wednesday on massive money-laundering by the Vatican.  As JP Morgan was the Vatican’s chief bank until the scandal broke, The Morgue may soon have a much bigger scandal and PR nightmare on its hands than a simply $9 billion derivatives loss.
It is clear that JPMorgan is complicit in money-laundering in Europe with the Vatican, having abetted Vatican bank money-laundering and fraud by allowing IRS-defined suspicious transactions pass through their institution.

Submitted by SD Contributor AGXIIK:

For the last 20 years I’ve been involved the financing of businesses.  One key part of the process was the   interest rates for business.  In almost all the rates I quoted, whether Prime rate, Treasuries or LIBOR, each had at its source  the basic LIBOR calculations. I found myself explaining LIBOR at length to my clients so they understood how this rate was going to drive their financing costs.

Not once in these conversations from 2002 to 2011 did I realize these rates were rigged and manipulated.

When rates are unfairly manufactured to benefit banks and others in the lending industry, to the detriment of the borrowers, this is both unfair and criminally illegal.
I see a wave of lawsuits so large and overwhelming coming in the next year or so that these legal actions will absolutely dwarf the tobacco settlements that hit  $250,000,000,000.
The loan rate rigging damages are easily in the tens of trillions of  dollars.

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Live 24 hours silver chart [ Kitco Inc. ]Gold and silver spiked immediately following the jobs report release, with silver spiking to .50 to $27.86, and gold popping $15 to $1611.
Obviously this was not acceptable (particularly with weekly closes above $28 and $1600 likely), so the cartel stepped back into their old role of raiding the metals post job-report, and subsequently smashed silver .81 to $27.05, and gold $30 to $1581!

(Editor note: readers may also be interested in The Causes & Results of Hyperinflation)
Following yesterday’s WGC reports about the role of gold in investment portfolios, this report looks at gold’s performance during inflationary and deflationary times. Gold, non-perishable and limited in supply, is seen as relatively immune to inflation, financial crises and credit default. Topically, periods of negative real interest rates are thought to support the demand for gold, because the opportunity cost of holding gold decreases when real interest rates fall. Weak dollar has also been seen to drive up the price of gold.

Paper pushing, flip/flopping Jim Cramer of Mad Money took a letter tonight from a follower of his show concerning diversifying assets into Gold.  With CNBC ratings falling faster than a Pre-FOMC silver smash, perhaps CNBC executives have advised Cramer to seek investment information from legitimate sources such as Zerohedge and SD.

“Alright, Here is one from Schultz in Arizona.”

“Hey Schultz!”

Question: Jim, How much gold should I hold as a % of my portfolio?

In a move that has slipped under the radar of even the alternative financial media, China celebrated Independence Day by handing the US Dollar’s reserve currency status another severe flesh wound.
China moved Wednesday to make Australia the first G20 nation with the ability to directly convert its currency into Chinese yuan, bypassing the US dollar.

The writing is on the wall for the dollar’s reserve currency status.

Australia is hoping to become the third country in the world to be able to directly convert its currency into Chinese yuan.

In this explosive interview focusing on the metals, The Doc & TF discussed the massive reduction in the cartel’s net short position in silver, the LIBOR manipulation scandal, the new downturn in the US, the manipulation of ALL markets, and physical supply issues with gold and silver.

Full MUST LISTEN interview and transcript below:

Matt Taibbi, Rolling Stone contributing editor, and Dennis Kelleher, president and CEO of Better Markets, analyze the Libor interest rate-rigging scandal engulfing the banking industry with “Viewpoint” host Eliot Spitzer.  Like TF stated in our interview this week- ‘ALL MARKETS ARE MANIPULATED! LIBOR is Manipulated, & Silver Isn’t? Are You Kidding Me?

Taibbi states: ‘LIBOR is like the sun at the center of the financial universe. If they’re monkeying around with LIBOR… this is like finding out the whole world is built on quicksand because LIBOR is in EVERYTHING!!


Yahoo Finance published a bankster’s wet dream Wednesday, reporting on it’s main page that gold and oil were both down 100%.

Every other market (NASDAQ, DOW, 10-year, and EUR/USD) was reported accurately, yet the YF main page lists oil -$87.66, -100%, and gold –$1,621.80, –100%.

Screen shot below:

Bloomberg reports JP Morgan is being investigated over manipulation of the power market.
We’ll refrain for electrical current jokes involving silver.
At this point, what does JP Morgan NOT manipulate?? ALL MARKETS ARE MANIPULATED!!!


JPMorgan Chase & Co. is being investigated over potential power-market manipulation that inflated payments for electricity, according to the U.S. Federal Energy Regulatory Commission.

JPMorgan Chase & Co. (JPM)’s refusal to turn over e-mails in a federal probe of potential energy-market manipulation is the latest challenge for Chief Executive Officer Jamie Dimon as the bank faces multiple investigations.

The ECB refrained from taking rates to negative territory this morning, but the Danish Central Bank has joined today’s global devaluation, becoming the first nation to institute a NIRP (negative interest rate policy), slashing certificate of deposit rates to -0.2%.
It won’t be the last.
QE to Infinity….AND BEYOND!!!

Full release below: