Preview of Corzine Congressional Testimony Over MF Global

Yesterday, the House Agriculture Committee moved to subpoena former MF Global head Jon Corzine over the theft of missing client funds at MF Global. 

The Doc has obtained a preview of how this testimony is likely to go down.





Sir, is it true you were the head of a major US financial institution and were not registered with FINRA?

Ah, I plead the 5th!

Sir, would you tell us about the cartel you dealt with in your time stealing MF Global client funds?

Um, no, but I can tell you that I plead the fifizeth!

Exactly how much gold and silver did you steal from MF Global clients?

There are so many amendments in the Constitution of the United States of America- I can only choose one- 5th!!!!!  Tell my boy Barack I’ll meet him this afternoon at the FIFTH!!!!!

Portugal Raids €5.6bn of Pension Funds in Scramble to Meet Deficit Targets

Portugal has raided €5.6 billion in Portuguese citizens pensions in a last ditch attempt to avoid default.
US readers should consider the Euro crisis a preview of what’s headed this side of the pond over the next 2 years.

From The Telegraph:
Portugal has raided €5.6bn (£4.8bn) of pension fund assets in a controversial scramble to meet its deficit targets.

The cabinet agreed to transfer the assets from four of Portugal’s biggest banks to the state balance sheet.

The assets will be used to bridge a gap needed to meet the fiscal deficit target of 5.9pc of GDP set by the terms of the country’s €78bn bail-out from around 10pc in 2010.

“This measure is more than sufficient to meet the budget deficit goal in 2011,” said Helder Rosalino, secretary of state for central administration, on Friday.

Portugal said it had informed the EU and IMF and assured them it would be a “one-off”. However the 2010 budget was met by shifting three pension plans from Portugal Telecom on to the public social security system. The liabilities don’t count, yet.

There have been no complaints from Eurostat but Raoul Ruperal from Open Europe said: “This can’t be seen as a future revenue stream in any way.”

Silver Update: Top 5

ThumbnailBrotherJohnF is back with another Silver Update: Top 5
In a MUST WATCH for newbies, BrotherJohn discusses his belief that silver is headed to AT LEAST going into 4 digits in today’s dollars (meaning a roll of silver eagles buys you a brand new car), and discusses the TOP 5 Silver Coins ever made. 

Ann Barnhardt: "Get the Hell Out of All Paper"

For those who haven’t listened to it yet (or read the transcript), Jim Puplava’s interview with Ann Barnhardt is literally the most explosive interview of the year- and is a MUST LISTEN!

Ann states that MF Global has destroyed the integrity of the entire system, and it is time to GET THE HELL OUT OF ALL PAPER ASSETS!  She also states that we have literally progressed to the point where the world’s central banks are attempting to kick the can down the road for a few more days at a time, and she will be surprised if we make it till Christmas.

Well get the hell out. Get out of all paper and it’s not just the commodities markets. This is going to cascade through everything. It is going to get into the equities. It is going to get into 401ks and IRAs, it is going to get into pension plans and so on and so forth. Total systemic collapse. Get out!

I don’t know how I can be anymore plain about this. I say this over and over and over again and then I get scads of emails saying, well I can’t get out of my 401k. Yes, you can. Yes, you can. Take the penalty and get the hell out of there. What would you rather do? Would you rather pay the 10% penalty or would you rather have it all go up in smoke? Because that’s what we’re staring down the barrel of…
What I saw this morning, what the Fed is getting ready to do in terms of Europe, is keep Europe going for another seven days. Well, fantastic. Thanks for that. That is literally the brain dead mindset of these politicians. All they are doing is looking to kick the can down the road. At first it was kick the can down another 10, 12 years. Then it is kick the can down the road for another year. And then it was well, let’s kick the can down the road for another few months. Now we’re literally to the point where all we can do is kick the can down the road for a matter of a few days. It’s not going to make it. I will be very surprised if we make it until Christmas.

The rest of Ann Barnhardt’s rant and full transcript of her interview with The Financial Sense Newshour can be found here:

The audio version can be found here:

And SD reader AGXIIK’s take on the interview:

I just listened to Ann’s entire dialogue and it ‘s worse than the post a few days ago when she said she was closing her firm.
She circled the wagons on Corzine, BHO and the whole group of crypto-klepto Fascist/Maxists.
Here is my take and recommendation

Cloward and Piven, along with Saul Alinski (Rules for Radicals) have been the mentors of this president for 30 years. Alinski thinks a body count of 25,000,000 Americans is acceptable
The reduction of Canadian sovereignty plays into this too. Lots of open space for the enemy. Sens Levin and McCain just got the home grown terrorist bill passed. But I digress.

Obama and his Marxist czars come up with the plan to collapse THE System. Corzine, an intimate of Obama, is given an outline of a plan that will precipitate the collapse of our financial system. It begins with Corzine’s intentional massive multi billion dollar bet that the Euro/greek debt would be bailed out. He knows it won’t get a bailout since that fix is in but goes along with the plan. His reward is the opportunity to loot MF Global of $1 billion or so. JPM gets the Phyzz.
JPM gets the ECB to call the Greek bad bond failure a ‘haircut instead of a default. With a haircut JPM loses maybe $5 billion in Greek bond value instead of the $50 billion they would lose as the guarantor of that debt default. $5 billion? A reasonable loss given the worst case scenario. I am sure JPM will be be made whole with some sort of counter party remuneration along the way.
Corzine goes underground and this massive sum of money simply disappears. If $700,000,000,000 in stimulus money can flow away like water into sand, I expect that $1,000,000,000 would be easy to make disappear. My bank made $900,000,000 disappear in bonds back in 1990. No one went to jail then either.
This utter disregard for the rule of law puts the fear of god into every trader. No one is safe. More firms, Jefferies being a good example, see themselves prey to these predatory actions. The inflection point of MF Global begins the slow collapse that will accelerate in the next few weeks or months.
The best case scenarios of Cloward, Piven and Alinsky begins to unfold in front of our eyes.

One comment that Ann made, and one certainly not made flippantly since women don’t talk of using assault rifles, is that we go to physical assets.
She recommends building a wall of prepper basics including food, water, meds, metals, guns and ammo. She left out a good BOB. I can see why she would think that way.
If you know cattle, cattlemen and feed yards, and I have been to and seen a few, the rough and tough need not apply. I am sure Ann has picked some manure from her boots in her time. Cattlemen don’t appreciate city slickers, particularly women, on their ranges. Get on your jeans and shit kickers and smell the smell, girl. And Ann did. She smelled this rat like the foul little rodent he is.

That said, if she is half right, we are only half dead in paper.
I will admit that I am a uber prepper. Sometimes I think I am one MRE away from being an episode of Hoarders. My wife is extremely patient She is on the same page as me too.
That’s about all I have to say this evening. Have a good weekend, Doc. I’m taking some time off I hope the world doesn’t go THIAHB

Jewish Coalition Bars Ron Paul from Dec 7th Republican Debate: "Would Be Like Inviting Barack Obama to Speak"

The Republican banksters would MUCH RATHER have a 2nd term for Barack Obama than see Ron Paul elected as the POTUS.
‘For no one is a Jew who is merely one outwardly, nor is circumcision outward and physical.
But a Jew is one inwardly…His praise is not from man but from God.

You think God has praise for these Shysters??

On Wednesday, Dec. 7, the Republican Jewish Coalition will host a presidential-candidates forum featuring Michele Bachmann, Herman Cain, Newt Gingrich, Jon Huntsman, Rick Perry, Mitt Romney, and Rick Santorum. Not invited is the GOP candidate currently polling around third in New Hampshire and second in Iowa: Rep. Ron Paul (R-Texas). The explanation:

Paul was not invited to attend the RJC’s candidates forum because the organization – as it has stated numerous times in the past – “rejects his misguided and extreme views,” said [RJC Executive Director Matt] Brooks.
“He’s just so far outside of the mainstream of the Republican party and this organization,” Brooks said. Inviting Paul to attend would be “like inviting Barack Obama to speak.”

Read more:

Jim Sinclair: MF Global is Lehman Brothers, But WORSE!

*MUST READ
The Legendary Jim Sinclair has sent the following email to subscribers tonight regarding the collapse of confidence in the clearing house system in the wake of the MF Global collapse.

MF is a Lehman Brothers, but worse. OTC derivatives have always been a fraud but could have, before Lehman failed, been globally netted to practically zero.

The lack of faith in the clearing house system breaks the mechanism of the marketplace, even for legitimate transactions. This leaves gold in your possession as the asset of last resort. This is quietly driving the gold price towards Alf’s objective of $4500.

 For your sake immediately take delivery of your gold and silver.

We all know bank’s balance sheets are cartoons due to FASB’s capitulation on the fair market value issue, that the euro financial leaders do not deserve the title leader, and that the Fed is the source of liquidity for Euroland in unlimited cheap dollar swaps, but there is more.
That more is the first failure of a major clearing house.
Clearing is the mechanism of all markets.
It is the guts of the system.
It is the engine under the hood of finance.
It is the pulleys that turn inside the watch.
It is basic to finance for without clearing trades cannot close.
Without faith in the clearing house system where is faith that what your account statement says means anything whatsoever?
Unless MF clients are made whole in every way, the system is broken. It is as if the heads blew off the engine of finance. Where can you keep your money and investments if a clearinghouse is allowed for whatever reason to go broke, therein leaving the clients to suffer?
Are you safe even in a custodial account if the clearing mechanism can erase assets across the board as a product of insolvency for any reason?
The system is in a critical seizure.
It may take some time, but even the financial sheeple are going to worry about their own funds. God help you if you hit gold right on a paper exchange with the wrong clearing facility.
You are wholly dependent on the ability of the clearing house to pay into your account the winnings by deducting those funds from the loser. You are wholly dependent on the ability of the clearing house to guarantee the safety and security (are T Bills securities?) beyond SIPC levels. SIPC is underfunded but would be made whole by funny paper.
God help all the exchange traded funds that are nothing more than houses of derivative paper requiring a sound clearing system to have even an excuse for existing.
If the clearing system fails then you have nothing whatsoever. God help you if you are a farmer hedging your crop or livestock if you the farmer have nothing whatsoever due to a broken clearing house. You are insolvent regardless of the fact that your hedge may have been perfect for the needs of your operation.
Unless MF clients are made whole in every way the system is broken.
People did not realize then and some even now that the failure of Lehman broke the technical procedures (mechanism) for the functioning of the OTC derivative and for that reason broke the Western world’s financial system for which we are paying dearly today.
MF is a Lehman Brothers, but worse. OTC derivatives have always been a fraud but could have, before Lehman failed, been globally netted to practically zero.
The lack of faith in the clearing house system breaks the mechanism of the marketplace, even for legitimate transactions. This leaves gold in your possession as the asset of last resort. This is quietly driving the gold price towards Alf’s objective of $4500.
For your sake immediately take delivery of your gold and silver.
For your sake immediately take paper delivery of your gold and silver shares from those very few companies still willing to facilitate that kind of transaction.
For your sake immediately make your general securities positions “direct registration” as a second best method of protection the asset against failure of your clearing facility.
You all have clearing facility dependence even if you do not know it. Unless MF clients are made whole in every way, the system is broken.
This is no time to take any unnecessary risk.
This is no time to be lazy.
If you do not know how to do direct registration, get paper securities or take delivery of paper gold and silver, ask me.
Respectfully,
Jim

You can subscribe to Jim Sinclair’s email alerts here:

Silver COT Report 12/2/11

The commercials reduced their silver shorts a net 1,043 contracts (5.215 million ounces) in the week ending 11/29/11.
As noted in this morning’s update, the non-commercials reduced their longs a net 530 contracts and remain near historic lows.

Silver COT Report – Futures
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
23,816
11,722
16,103
38,884
59,572
78,803
87,397
239
769
-6,195
-1,357
-2,400
-7,313
-7,826
Traders
57
31
36
35
40
111
93
Small Speculators
Long
Short
Open Interest
20,156
11,562
98,959
-2,276
-1,763
-9,589
non reportable positions
Change from the previous reporting period
COT Silver Report – Positions as of
Tuesday, November 29, 2011


Silver COT Report – Futures & Options Combined
Large Speculators
Commercial
Total
Long
Short
Spreading
Long
Short
Long
Short
24,809
8,283
35,900
48,325
74,097
109,034
118,280
460
869
-5,653
-1,367
-2,250
-6,559
-7,034
Traders
72
30
56
36
43
130
111
Small Speculators
Long
Short
Open Interest
22,962
13,717
131,996
-2,415
-1,940
-8,974
non reportable positions
Change from the previous reporting period
COT Silver Report – Positions as of
Tuesday, November 29, 2011
 

COMEX Silver Inventory Update 12/2/2011

The Doc has it easy today with the COMEX warehouse silver update- as there is NOTHING TO UPDATE.
Zero’s across the board.  Looks like the big boys were busy bailing out Europe with paper yesterday rather than playing musical chairs with the phyzz.

Zero Deposits.
Zero Withdrawals.
Zero Adjustments.

1.4 Million ounces of MF Global clients registered silver remains unaccounted for.

CME Hikes FX Margins for CAD, AUD, JPY, RMB

Whats a late Friday afternoon without a CME margin hike? 
This time gold and silver have been sparred the carnage, with the CME sticking to currencies.
The CME has hiked margins by up to 18.5% in the Australian Dollar, Canadian Dollar,Yen, Forint, Zloty, and the Koruna.

CME FX

Is Jamie Dimon About to be Indicted by Interpol Over $50 Billion in Laundered MF Global Derivatives?

Readers have inundated The Doc this morning with rumors that have gone viral that Jamie Dimon is being investigated and is about to be indicted by Interpol over laundering $50 billion of the missing MF Global clients’ assets into three European banks, which were allegedly used to purchase $200 Billion in Euro currency derivatives in an effort to prop up the collapsing Euro.
Here is the story:


The collateral for this latest Ponzi Scheme is $50 BILLION of overlapping derivatives tied to the alleged $1.2 BILLION of missing MF Global funds that J. P. Morgan and their financial terrorist Jamie Dimon laundered through Barclays Bank of England.
P.S. The financial World War is escalating and we will now divulge that IMF President Christine LaGarde, along with European INTERPOL, has frozen the $50 BILLION of MF Global derivatives tied to J. P. Morgan and has informed alleged President Barack Hussein Obama-Soetoro, as well as corrupt U. S. Treasury Secretary Timothy Geithner, that European INTERPOL will soon indict financial terrorist Jamie Dimon of J. P. Morgan for currency fraud, counterfeiting and money laundry.
We can now divulge that Fed Chairman Bernanke, along with current U.S. Treasury Secretary Timothy Geithner, and former BushFRAUD Treasury Secretary Henry Paulson and Clinton Treasury Secretary Robert Rubin, were all involved in this scheme, including laundering the $1.2 BILLION of alleged missing MF Global assets, from the J. P. Morgan custodial account in New York to three European banks and now sits in the secret Chinese government hedge fund account named “Hampton Lampoon”.

The $1.2 BILLION has now been turned into over $200 BILLION of 24-hour derivatives, which were used to buy euro currency and Japanese yen, as well as gold and silver futures on the New York comex exchange and the Hong Kong commodity exchange.

At this hour the Japanese government has informed the Chinese to immediately liquidate their positions and return the funds to Luxembourg banking institutions, which were used by the Fed, the ECB and the Chinese central banks that engaged in this worldwide money laundry aka PONZI SCHEME.
Word is out that the Japanese will soon intervene to depreciate the yen and smash the Chinese yuan.

After some research The Doc appears to have traced the origins of the reports to Tom Heneghan’s Intel Blog
Not the NY Times or Zerohedge, so we’ll let our readers determine the validity of said report themselves, but we couldn’t resist posting a story about Interpol investigating Jamie Dimon!  Let’s hope Tom’s Intel is even remotely accurate, but we wouldn’t hold our breath for the cartel indicting their own boy Dimon.

Caption Contest Friday: Phyzz, or Tungsten?

Smoke Rising From Iranian Nuclear Facility in Isfahan

If Israel/NATO drops a bomb on Iran but the MSM press doesn’t report it, did the bomb really drop?

The Australian’s Jerusalem
reports that another nuclear facility has been bombed in Iran, this time in Isfahan.

Waiting for the response from Russia/China who have threatened to start WW3 if needed in order to protect Iran.

Non-Commercial COT Indicating Silver Preparing for Big Move Up?

In the wake of the MF Global collapse/ silver confiscation, the commitment of non-commercial traders plunged from nearly 30,000 to 10,000- the second lowest total of the bull run to date.  The only time sentiment has been more negative among non-commercial traders was in October of 2008, when silver was smashed all the way to $8.
Does the recent bottoming in non-commercial traders COT indicate we have seen another long term bottom in silver, and prices will soon be MUCH HIGHER than the low $30′s level that silver has been consolidating in?

From the 2008 bottom near $8, with the corresponding bottom in the non-commercial COT of 10,000, silver gained 63% in the next 6 months to $13/oz, 125% over the next 12 months to $18/oz, and placed a 3 bagger over the next 24 months to $24.50 by Oct of 2010.   A similar move from $31 over the next 2 years would put silver near $100 by November of 2013.

New Border Deal to Allow US Police Officers to Operate in Canada

More Fascist Change We Can Believe In.

OTTAWA—Armed U.S. police officers will for the first time be allowed to operate in Canada along with the RCMP as part of far-reaching changes in Canadian-American border operations to be unveiled next week by Prime Minister Stephen Harper and President Barack Obama.

The joint action plan to be announced at the White House will also break new ground by introducing exit-entry records that will track the movements of everyone who leaves the United States or Canada, with the information available to authorities in both countries.
In the months and years ahead, the deal between Ottawa and Washington will reshape security, travel and commercial arrangements at the border in a variety of profound ways — some of which have already raised alarms among Canadians.
Read more:

NFP +120K, Unemployment Rate Drops to 8.6%

*NFP +120k on expectations of 125k
*Unemployment rate drops to 8.6% on expectations of 9%