Problems continue at the silver comex/JPmorgan finds allies to hide the silver shorts

Problems continue at the silver comex/JPmorgan finds allies to hide the silver shorts

 

Commodity market concentration starts to worry even Wall Street Journal

 

Fed Treasury Holdings: $1,000,341,000,000

 

Assange Confirms that Bank of America Is the Target of Bank Leak 

Obama Prepares Executive Order For Indefinite Detention

 

Mike Krieger On Intensifying Police State Measures And Internet Demonization

 

A Single Trader, JP Morgan, Holds 90% Of LME Copper

 

We Are Already Hyper Inflating




Bernanke Denies Printing Money. Mogambo Not Convinced.



Jim Sinclair’s Commentary

Here is where the bad stuff hits the fan.

The accounting firm opined on the OTC derivatives. That subject cannot stand the light of day a criminal investigation is sure to put on it.

N.Y.’s Cuomo Sues Lehman Accounting Firm Ernst & Young By Karen Freifeld and Linda Sandler – Dec 21, 2010 9:18 AM PT
New York Attorney General Andrew Cuomo sued Ernst & Young LLP, accusing the firm of facilitating a “major accounting fraud” by helping Lehman Brothers Holdings Inc. deceive the public about its financial condition.
For more than seven years before Lehman declared bankruptcy in 2008, the investment bank engaged in transactions approved by Ernst & Young whose purpose was to move debt off its balance sheet and make it appear less leveraged, Cuomo said in a statement. This was done through what are known as “Repo 105” transactions.
“This practice was a house-of-cards business model designed to hide billions in liabilities in the years before Lehman collapsed,” Cuomo said today in one of his last cases as attorney general. “Just as troubling, a global accounting firm, tasked with auditing Lehman’s financial statements, helped hide this crucial information from the investing public.”
The state seeks to recover fees collected by Ernst & Young for work performed for Lehman between 2001 and 2008, which exceed $150 million, and investor damages and equitable relief, Cuomo said. He will be sworn in as New York governor on Jan. 1. His successor will be New York Democratic state Senator Eric T. Schneiderman.
Charles Perkins, a spokesman for Ernst & Young, didn’t immediately respond to a call and e-mail seeking comment.
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Jim Sinclair’s Commentary
You have to know this is all coming to a head very soon.
Those that heaped criticism on Bernanke are now at the door of the Fed with their Begging Bowls. The Fed created the money in the first place with QE to infinity.

Fed extends USD swaps with major central banks By Sakari Suoninen
FRANKFURT | Tue Dec 21, 2010 12:23pm EST
FRANKFURT (Reuters) – The world’s major central banks said on Tuesday they would extend emergency supplies of U.S. dollar funding to money markets, in a sign that authorities remain concerned about financial instability as governments grapple with debt problems.
The European Central Bank, the Bank of Japan, Bank of Canada, the Bank of England and the Swiss National Bank extended their U.S. dollar liquidity providing operations with the U.S. Federal Reserve until August 1, an indication they view the money markets as still fragile.
The swap lines, which had been due to expire next month, were established to ease strains in short-term money markets by ensuring banks do not have trouble obtaining dollars, although banks have used the lines relatively little since the middle of this year.
The Fed’s policy-setting panel opened swap lines, first with the ECB and the SNB in December 2007 and later with other central banks, including those of Sweden, Mexico and Brazil.
These lines were discontinued in January this year because market conditions had improved, but in May the central banks decided to reopen the operations after the sovereign debt crisis ignited. Now they have been extended again.
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Jim Sinclair’s Commentary
How is this situation going to be rectified?

The simple answer is that it won’t be fixed in any manner. It will be papered over by the Fed buying new State debt, a classic form of QE.
$2tn debt crisis threatens to bring down 100 US cities
Overdrawn American cities could face financial collapse in 2011, defaulting on hundreds of billions of dollars of borrowings and derailing the US economic recovery. Nor are European cities safe – Florence, Barcelona, Madrid, Venice: all are in trouble Elena Moya
guardian.co.uk, Monday 20 December 2010 17.58 GMT
More than 100 American cities could go bust next year as the debt crisis that has taken down banks and countries threatens next to spark a municipal meltdown, a leading analyst has warned.
Meredith Whitney, the US research analyst who correctly predicted the global credit crunch, described local and state debt as the biggest problem facing the US economy, and one that could derail its recovery.
"Next to housing this is the single most important issue in the US and certainly the biggest threat to the US economy," Whitney told the CBS 60 Minutes programme on Sunday night.
"There’s not a doubt on my mind that you will see a spate of municipal bond defaults. You can see fifty to a hundred sizeable defaults – more. This will amount to hundreds of billions of dollars’ worth of defaults."
New Jersey governor Chris Christie summarised the problem succinctly: "We spent too much on everything. We spent money we didn’t have. We borrowed money just crazily. The credit card’s maxed out, and it’s over. We now have to get to the business of climbing out of the hole. We’ve been digging it for a decade or more. We’ve got to climb now, and a climb is harder."
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Jim Sinclair’s Commentary
There is no practical solution to the gathering economic and social clouds other than QE to infinity. Gold will therefore trade at $1650 and higher.

Wave of Muni Defaults to Spur Layoffs, Social Unrest: Whitney Published: Tuesday, 21 Dec 2010 | 5:03 PM ET
A wave of defaults by state and local governments in the coming months will spark a selloff in the municipal bond market, hurting US economic growth and stocks and causing social unrest as governments are forced to lay off workers and cut back on services, well known financial analyst Meredith Whitney told CNBC Tuesday.
Responding to the uproar over her "60 Minutes" interview broadcast on CBS Sunday night, Whitney defended her prediction that at least 50 to 100 cities and towns could default on their debt as states and the federal government cut back on financial support.
Muni experts, including an analyst from Standard & Poor’s, dismissed her predictions, saying the numbers don’t add up.
"I appreciate that the reaction is so violent," she said in a live interview with CNBC. "I didn’t put the debt on these states. We’re looking at the numbers. This is how it plays out."
The big problem is that cash-strapped states will no longer be able to provide the financial support to municipalities as they have in the past, said Whitney, who is CEO and founder of Meredith Whitney Advisory Group.
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Gold looks poised to move higher 12/21/2010 12:48:47 PM | David Banister
Following a period of volatility and year-end position-squaring, gold looks set to move higher, and may have a good shot at hitting the US$1,525 an ounce level.
For many years now, the gold bull has been moving in very dependable Elliott Wave and Fibonacci patterns. But every once in a while, the outlook becomes a little less clear.  In recent weeks, for example, as we approach the end of 2010, we have seen a lot of price volatility as position squaring and year-end machinations hold sway.
But having said that, it does look like gold should be poised to rise in the short term, and I’m looking for a completion to a 5 wave rally that began from about $1,040 per ounce in February of this year.
During the past couple of months, I see a clear Fibonacci trading day relationship on Gold’s swings from pivot highs to pivot lows. 8 days of correction, 13 days of rally, 8 days of correction is the recent pattern over the past 5 weeks or so. Below is a chart outlining these crowd behavioral based patterns that I rely on for both my trading service and market forecasting services.
You can see the clear relationships, confirmed by the stochastics indicators at the tops and bottoms as well:


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