The Doc sat down with Ann Barnhardt of the former Barnhardt Capital Management Tuesday night for an exclusive interview discussing the shocking precedent set by the 7th Circuit Court of Appeals’ decision last Friday that Sentinel’s use of $500 million segregated client funds to secure a loan from the Bank of NY Melon for it’s prop trading desk is not fraudulent but is rather perfectly legal.

Barnhardt’s interview with SilverDoctors will serve as a startling wake-up call for any still participating in the fraud known as the US markets, stating that ‘What we’re seeing is the complete disintegration of the financial system before our very eyes!  It’s Soviet!
Barnhardt tells readers ‘You have got to get your money out of the financial system!  Not just the futures markets, but the entire thing!  Stocks, 401k, IRAGET YOUR MONEY OUT OR ELSE IT IS ALL GOING TO BE STOLEN FROM YOU!  IT’S ALL A PONZI!!!

Barnhardt goes on an all-out rant stating that the 7th Circuit Court decision has set a legal precedent that will encourage banker theft of segregated client funds, and that she expects JP Morgan to make a play for Citigroup in the coming weeks or months.

When asked where the regulators were in the case of Sentinel, MF Global, and PFG Best Barnhardt stated,

‘Look.  The NFA is a CRIMINAL MAFIA!  The upper management of the NFA and the upper echelon of these auditors should do hard time.  I’m not talking camp cupcake.  I’m talking about DECADES OF HARD TIME THESE PEOPLE SHOULD BE DOING!  Because they are completely complicit in this, there is NO REAL REGULATORY OVERSIGHT OF THE FINANCIAL INDUSTRY IN THIS COUNTRY!!

The NFA isn’t auditing anybody in any realistic sense.  If you’re in the NFA’s mafia, they’ll coast you right through.    If you’re not in the NFA’s mafia, they will tear you apart and destroy you with malicious auditing and malicious litigation.

Who was the auditing oversight body for MF Global?  Well it was the CME.   Again, they weren’t doing any realistic auditing oversight, you know, ‘we’re not gonna mess with Corzine, we’re not gonna mess with MF Global, just sign off on them’ and now the coup de grace is that THE COURTS ARE NOW COMPLETELY COMPLICIT IN ALL OF THIS!!   The courts facilitated the fraudulent bankruptcy filing of MF Global, and now the 7th Circuit Court of Appeals- upholding a decision from the District Court- has now made this absolutely MIND-BLOWING decision, setting precedents that say customers have absolutely no right to their segregated funds held in any depository or financial institution

I don’t know what else people need.  MF Global stole $1.6 billion, PFG Best is $225 million gone, who’s going to be next?  It’s clear there’s no regulatory oversight.  If you’re still in these markets you’re either stupid or on drugs!  That’s the only conclusion that I can come to. ‘

When asked whether it was a coincidence that JP Morgan held the segregated client funds for both PFG and MF Global Barnhardt replied,

JP Morgan has just announced that it wants to hold customer collateral.  It wants to be the body that holds customer collateral for FCM’s.
Now the argument they’re making is, ‘look at these FCM’s.  You can’t trust them, so now we need a third party to hold customer collateral’.  Guess who’s going to get to be that third party?
IT’S GOING TO BE JP MORGAN!!  Look, they know that the end is in sight, and they know that in a lawless environment, possession is EVERYTHING!   They want as much in their physical possession as they can possibly get because they know that when the poop hits the fan and this whole deal collapses, they’re going to be able to keep everything that they have.  They want as much as possible!

No, this is all completely revolving around JP Morgan and Goldman, and I would personally be looking for within the next few weeks to months- I think that what they’re going to try to do is to try to consolidate these mega banks even more, and I think that JP Morgan is probably going to end up making a play for Citi at some point, and they are just going to try to have as much as possible under Jamie Dimon’s roof, because I think they know that the end is coming.  It’s rotten to the core!

When asked whether the court’s ruling means open season on segregated client funds Barnhardt stated,

That’s exactly right.  The other thing people have to remember is people are focused on all this as happening exclusively inside the futures industry.    This has ramifications throughout all financial markets, every sector of the financial industry, and even into simply street corner depository banking.
They’re all doing this rehypothecation.  They’re all doing this, and now they’ve just been given a green light that they are legally protected, and the depositors or investors who are sending their margin to be held in these customer seg accounts have been completely, legally hamstrung!  There is now no legal recourse whatsoever!
The court has explicitly stated that taking somebody else’s money, and using that as collateral on your own personal loan is not fraud

I don’t even know what to say!  What in the HELL IS GOING ON!?! –  OTHER THAN THE ONLY EXPLANATION- WELCOME TO MARXIST FACSIM LADIES AND GENTLEMEN!!!  It’s here!  Welcome to hell!
Again, reiterating, you have got to get your money out of the financial system!  Not just the futures markets, but the entire thing!  Stocks, 401k, IRA
– and so help me if one more person emails me or calls me and says well what about my 401k with such and such a firm?    I’m going to just go and stick my hand through the wall!   What is the matter with you people?  What part of GET THE HELL OUT are you not understanding?  What is so difficult about this?  It’s the ENTIRE FINANCIAL SYSTEM!



Ann Barnhardt’s full exclusive interview covered the Sentinel ruling, JP Morgan, what the drought will mean to food prices over the next 6-12 months, Barnhardt’s recommendations for protecting your personal assets, and MUCH MORE!

The Doc’s FULL audio interview and transcript of this most relevant and riveting interview is NOW AVAILABLE BY CLICKING HERE: