Tuesday, December 16, 2008


December 16 - Gold $841.70 up $5.20 $16.60 - Silver $10.67 up 5 cents

JP Morgan In Big Trouble/Fed Printing In Effort To Keep Them Afloat/... Gold/Silver Fly

"If you have an important point to make, don't try to be subtle or clever. Use a pile driver. Hit the point once. Then come back and hit it again. Then hit it a third time - a tremendous whack." … Winston Churchill, Sir (1874-1965)


From My Favorite Favorite Southern Gent - Franklin Sanders

The Money Changer -

Tuesday, 16 December a.d. 2008

Whoa! You men paying attention? Stand up where

you are, twist your body to the right, place your right

hand in your back pocket, withdraw your wallet, pull

out a green federal reserve note, lift it to your lips,


You women will have to fish in your purses ten

minutes to find your wallets, then dig out a

out a buck and kiss it good-bye.

Not only have the Fed & the Treasury executed a

coup d'etat & taken over the yankee government entire, the

Fed reduced the Fed Funds rate to 0.5%, lowest level

in history. But in case that doesn't work, they also have

yet another new strategy: "quantitative easing." That

is "Fedspeak" for printing money. Let the presses begin!

Let there be money, and let it flood the hills & valleys,

yea, let it flow into the shallowest pockets in the land,

& let the desert economy bloom!

Folks, if any of y'all yet cling to the "deflationary"

outcome, you had best let it go today. Although the

economic outcome will be depression, the monetary

outcome will be massive inflation, & quite likely,

hyperinflation. The dollar will evaporate, while silver &

gold will skyrocket, unless the laws of cause & effect

have been repealed by a compliant congress.

Gold closed at US$841.70, up 6.30, until the Fed announced

its "plans", sending gold up to US$861, another US$19.30.

Silver, which had closed up 8.5 cents to 1067.40 cents,

jumped 70 more cents to 1137 cents. The prices show for

gold & silver items below derive from those higher

aftermarket prices.

All bets are off, friends, for any sort of peaceful landing.

Every man for himself! Today your government & the

private corporation that controls the economy & the

money, the Federal Reserve, threw you, and the US dollar,

out of the boat, with an anvil tied to your feet. Every

one of us had better learn to swim.



JUST IN … OK, here’s the latest on the coming JP Morgan blow up.

The information I sent your way yesterday was re-confirmed today. The lack of trust in the financial world over counterparty risk is "accelerating." This is forcing "remaining contracts" of all kinds, especially in the Over The Counter markets, to be "settled."

What is stressed to me is that it is a "currency" problem … so I did my best to nail that down. It has to do with the dollar, US interest rates, AND gold and silver, which represent a SUBSTANTIAL part of the JP Morgan derivatives book … and it is TRILLIONS and TRILLIONS … the magnitude of the problem is that large.

JP Morgan, the Fed’s bank supposedly can’t handle it, so the US Government is stepping in … and the only way the Fed can handle the GROWING problem, is to PRINT money. BUT, they can’t PRINT the money fast enough.

And yes ... this a major reason why the dollar is suddenly falling apart. If I, WE, know … much of the BIG MONEY has to know and they are dumping dollars as fast as they can, ergo the dollar is TANKING, and will continue to tank.

The Madoff mess, and $50 billion catastrophic loss, could not come at a worse time for the US Government and JP Morgan. Our government knows they CANNOT let Morgan fail and they are going all out to prevent that from happening. However, the Madoff scandal, and loss of capital, has those fearful of counterparty risk problems accelerating their exit from dealings with Morgan and other US institutions, in which they have dollar based, counterparty contracts. It is so bad that word to me is that the US cannot "waste time" on the relatively insignificant Madoff "disintermediation" nightmare, the JP Morgan problem is so MONSTROUS … because disintermediation is spreading like a horrible, malignant cancer and the numbers are mounting daily.

So, what are we left with? Bernanke’s helicopter drill is NOW in effect. The problem is Bernanke needs B-47’s or some gorilla plane like that. We have talked about this sort of scenario in MIDAS for some time. Well, we are here for sure and it is in play (Bill H and others have been all over this).

What will be critical for JP Morgan to stay afloat is for the Fed to be able to print money fast enough to meet the demand of those closing out contracts with Morgan.

The bottom line: HYPERINFLATION is upon us, or the eve of hyperinflation is.

As far as I know, no one else out there is delving into the JP Morgan mess. The insiders are trying to keep this horror show as quiet as possible.

One more thing, I asked my source about "settling" in regards to gold and silver contracts. Let the shorts cover I said. To cover anywhere near here, after THEY forced the prices down and caused billions of dollars of spec losses, would be more than just a travesty of justice, It would open the potential for hundreds of billions of lawsuits for what would be clear cut fraud by the concentrated shorts who took the market down the past many months. It is one thing to have gold go $1500 bid overnight (or in a few weeks) and silver go $30 bid, and then declare a force majeure (unable to deliver for unforeseen reasons) after letting the free markets play out until there is a legitimate reason WHY something HAS be done. It is another to force settlement of gold and silver contracts in what Dennis Gartman calls a BEAR MARKET!

Now, I am not saying that this gold/silver settle scenario is in the cards at this point in time, so don’t go running to the CFTC, and others, and raise a ruckus, it is just something to be aware of. In the meantime, it seems to me that owning as much gold, silver and the shares is the way to go. That’s where my head is.

GATA BE IN IT TO WIN IT! We Love You GATA & Franklin! Thanks A Bunch!

No comments: