CFTC lays charges in Oil Manipulation/Low silver deliveries

Harvey Organ, Tuesday, May 24, 2011

CFTC lays charges in Oil Manipulation/Low silver deliveries

 

In The News Today

May 24, 2011, at 1:16 pm
by Jim Sinclair 

 

Dear CIGAs,
Today a report showed a May drop in a regional index of manufacturing activity.




Jim Sinclair’s Commentary
From CIGA Las:
"The smart money in Asia continues to accumulate." CIGA Las

CHART: China Passes India As World’s Biggest Gold Buyer
Chinese investors are snapping up gold bars and coins, buying more than ever before in the first quarter of 2011 and overtaking Indian buyers as the world’s biggest purchasers of the metal.

More…




Jim Sinclair’s Commentary

It should really read "What Happens When (not if) New York, Illinois, California and 46 other States of the USA default."

What happens when Greece defaults By Andrew Lilico Last updated: May 20th, 2011
It is when, not if. Financial markets merely aren’t sure whether it’ll be tomorrow, a month’s time, a year’s time, or two years’ time (it won’t be longer than that). Given that the ECB has played the “final card” it employed to force a bailout upon the Irish – threatening to bankrupt the country’s banking sector – presumably we will now see either another Greek bailout or default within days.
What happens when Greece defaults. Here are a few things:
- Every bank in Greece will instantly go insolvent.
- The Greek government will nationalise every bank in Greece.
- The Greek government will forbid withdrawals from Greek banks.
- To prevent Greek depositors from rioting on the streets, Argentina-2002-style (when the Argentinian president had to flee by helicopter from the roof of the presidential palace to evade a mob of such depositors), the Greek government will declare a curfew, perhaps even general martial law.
- Greece will redenominate all its debts into “New Drachmas” or whatever it calls the new currency (this is a classic ploy of countries defaulting)
More…

CFTC Charges Traders Controlled By World's Largest Tanker Company With Oil Price Manipulation After Making "Shitload" Of Money

Submitted by Tyler Durden on 05/24/2011 16:57 -0400

Today's case of alleged (and rather substantial) commodities manipulation comes courtesy of two veteran BP traders and Norwegian tanker giant Frontline. Earlier today the CFTC charged James Dyer and Nick Wildgoose -- former senior traders at oil major BP -- with a manipulative trading scheme. Reuters reports: "The complaint, among the agency's biggest charges of wrongdoing in energy markets, said the scheme yielded more than $50 million in unlawful profits." The two traders, currently working at Arcadia and Pernon Energy, are controlled by Cyprus-based Farahead Holdings, a company controlled by Norwegian shipping magnate John Fredriksen who runs the Frontline, the world's largest tanker company. And since tankers tend to benefit from high crude prices, the question is not why Frontline was doing it, but which other tanker companies have also dipped in the pot but yet not been caught. Also not unexpectedly, at the heart of the charge is the easily manipulated linkage between physical and derivative commodities, which the traders exploited profitably for quite a while. 

 

 

 

 

 

Contrary To French Misinformation, The BRIC Block (And South Africa) Demands Non-European IMF Head, Questions Legitimacy Of Fund

Submitted by Tyler Durden on 05/24/2011 18:29 -0400

Today, France tried the oldest trick in the diplomatic book, presenting what it wishes was reality as reality, when it said that China had backed its candidate for the IMF presidency under Christine Lagarde. That's great, only it's totally false. Not only has China not endorsed Lagarde, but according to a statement just released by Jianxiong He of China, as well as every other BRIC, the developing world has just put its stake in the ground and is firmly behind a non-European candidate, stating that "we also believe that adequate representation of emerging market and developing members in the Fund’s management is critical to its legitimacy and effectiveness." Not surprisingly, the BRICs reference an old promise by none other than Jun(c)ker which "declared that “the next managing director will certainly not be a European” and that “in the Euro group and among EU finance ministers, everyone is aware that Strauss-Kahn will probably be the last European to become director of the IMF in the foreseeable future”." By creating the BRICs (and South Africa which is a co-signator of the statement), Goldman may have just created a New New World Order Frankenstein monster which will refuse to blindly go with the demands of its now insolvent master. In the meantime, the diplomatic faux pas by the French, if anything, will merely antagonize China, which has so far refused to unpeg the CNY only due to demand by the US to do precisely that, as any accession to foreign demands would be seen by China, and its billion plus producers (and eventual consumers), as a sign of weakness.

"The ECB Would Like To Thank The Academy" - Here Is What Happens After Greece Defaults: (The PG-13 Theatrical Version)

Submitted by Tyler Durden on 05/24/2011 19:00 -0400

A few days ago we presented a realistic, if somewhat somber, outlook of what would happen when (not if) Greece finally pulls the plug on its vegetative existence, and its paralyzed body will no longer serve as a breeding ground for maggots of the financial innovation variety. Today, we present a far more comedic one, courtesy of the ECB's Christian Noyer, who makes it all too clear: Europe is not in it to bail out itself and its banks which would topple like a house of undercapitalized, under-MTMed, and uber mismarked cards, but only to protect those poor sad souls of Greece from the "Horror" that would be unleashed when a Greek free fall bankruptcy finally arrives. Truly, the humanist ECB is doing god's work on earth. Try not to laugh while reading this.