Massive Drain of Comex silver/almost all gold and silver at comex settled by paper

Must Read...Important...Harvey Organ, Monday, June 6, 2011

Massive Drain of Comex silver/almost all gold and silver at comex settled by paper

 

Comex Physical Silver Drops To Fresh All Time Low Of 28.8 Million Ounces, 3% Drop Overnight, 30% Drop In Six Week

Submitted by Tyler Durden on 06/06/2011 18:40 -0400

When we first started paying attention to the physical ("Registered") silver held in COMEX warehouses on April 20 following the explosion in the silver price, the total amounted to just over 41 million ounces. As of today, a short 6 weeks later, the total physical silver held throughout the entire Comex complex, has dropped by 30% over that period. As of close today, the total amount of Registered silver is now 28,773,375 ounces, a decline of 2.9% overnight from 29,636,513. This is due to a withdrawal of physical from both Brinks and Scotia Mocatta, as well as the ongoing reclassification of 438,708 ounces of Registered into Eligible silver over at HSBC (but wait, it will revert back to Registered any moment... we promise). At this rate of withdrawal and "adjustment", there will be no physical silver left in the entire Comex in about 5 months.

Guest Post: QE3 - Just A Matter Of Time

Submitted by Tyler Durden on 06/06/2011 18:59 -0400

The media has been replete lately with a variety of different government officials saying that there will not be a third round of Quantitative Easing. Even the great Ben Bernanke himself on April 27th spoke against the possibility of QE 3. This isn't surprising, of course, because in order for something like QE to have the most effect it needs to be, well, a surprise. However, I am throwing down the gauntlet and making the call - there will be Quantitative Easing, and a big one most likely, by the end of summer. There I said it; of course, I have actually been saying this for the last couple of months and it doesn't take much of a real genius to figure it out considering that we are heading into a presidential election year. However, it most likely won't be called QE 3 since the term QE is now politically and socially almost taboo.

 

 

 Pelosi Calls For Weiner Ethics Inquiry

First we had the bread (or some other Oscar Meyer product)...Now comes the circus. Politico reports that Pelosi has just called for a "Weiner Ethics Inquiry." Um... What is there to inquire: the guy sent out pictures of his wiener in clear abuse of his political position (leaving his family drama aside) from a Twitter account that was obviously that of an elected official. It's unethical - period (to spare various other adjectives that come to mind). He should resign immediately. Then again, New Yorkers once again get precisely the representatives that they deserve. A far better inquiry (and thus use of taxpayer capital) would be to discover who else among the political elite does just the same on a daily basis (Weiner is certainly not alone), and has merely not been caught yet.

Quantifying The Treasury's Plunder Of Retirement Accounts: $80 Billion Between The G- And CSRD Funds Since Debt Ceiling Breach

Submitted by Tyler Durden on 06/06/2011 17:48 -0400

Last Thursday we attempted a rough estimation of how much the Treasury has been dipping, or as it is also known "disinvesting", into the G-fund and the Civil Service Retirement and Disability Fund (CSRDF). Courtesy of Stone Mountain, we now have a definitive number. Even we did not realize how bad it is: in a nutshell, since the debt ceiling breach in mid May, Tim Geithner has replaced one IOU (that of the Fed) with another (that of the Treasury) in the G Fund to the tune of $57 billion, and in the CSRDF of about $22 billion. In other words, retirement funds have seen a "disinvestment" of nearly $80 billion in the past 3 weeks just to make space for further funding of bloated government, defense spending, and healthcare benefits. But don't worry: Tim promises it shall all be well.

James Turk and his charts show gold smashing the currencies

 

 

Maybe Germany would write off Greek loans in exchange for the Parthenon

 

 

Financial Repression: A Sheeplez Shearing Instruction Manual

Dow-Gold Ratio Breaking Support: Investors Fleeing Equities For Hard Assets

Waiting for Godot

Guest Post: Those Who Break The Law Must Be Punished Accordingly…

Submitted by Tyler Durden on 06/06/2011 17:08 -0400

Panama is an example of how I see governments moving in the future– like Singapore, Chile, Hong Kong, and may others, Panama is the kind of place that seeks to attract foreigners, to compete for them by providing a number of incentives. Panama does this most pointedly with its retirement ‘pensionado’ program, but there are a number of other such programs. In fact, the country’s immigration law has so many different categories, it’s possible for just about everyone to find a way to move here. In other places, immigration is unfortunately a four letter word. The borderless Schengen area in Europe is on the verge of disintegration as a number of countries in the region begin to put up border checkpoints to restrict the free movement of people (and capital). In the United States, the government has been eager to show that it’s not slacking on the illegal immigration issue. The result has been an increase in the size and scope of its persecution against “undocumented workers” as well as the businesses which hire them. I can just imagine the conversations within the hallowed halls of government: “those who break the law must be punished accordingly…”

Ron Paul On Holding The President Accountable On Libya

Submitted by Tyler Durden on 06/06/2011 13:39 -0400

Last week, more than 70 days after President Obama sent our military to attack Libya without a congressional declaration of war, the House of Representatives finally voted on two resolutions attempting to rein in the president. This debate was long overdue, as polls show Americans increasingly are frustrated by congressional inaction. According to a CNN poll last week, 55 percent of the American people believe that Congress, not the president, should have the final authority to decide whether the U.S. should continue its military mission in Libya. Yet for more than 70 days Congress has ignored its constitutional obligations and allowed the president to usurp its authority....I believe these resolutions and amendments indicate that the tide is turning in the right direction. I am confident we will see Congress move toward ending our unconstitutional wars. The American people are demanding no less. The president's attack on Libya was unconstitutional and thus unlawful. This policy must be reversed.

Latest Insider Tally: 8 Buys, 111 Sells; Ratio Of Insider Selling To Buying: 69.3x

Submitted by Tyler Durden on 06/06/2011 12:35 -0400

The good news: this week's insider sales to buys were half of last week's 147x. The bad news: this week's insider selling to buying came at 69.3x. As a reminder, a baseline bearish indication occurs whenever the insider selling surpasses 30x. That it has surpassed that threshold for virtually every week in the past two years seems to continue to be lost on investors. There were 8 insider purchases of S&P 500 stocks for $3.4 million, the bulk of which was in Marshall & Ilsley stock for $1.7 million, while the sales were focused on Heinz, Iron Mountain, Agilent, Broadcom and NetApp, where insiders dumped a total of $86 million.

In The News Today

June 6, 2011, at 2:01 pm
by Jim Sinclair 

Jim Sinclair’s Commentary

The real number is over one quadrillion in OTC derivatives, not 600 trillion.
I have outlined this to you so many times.

Banks may need more cash to clear derivatives Reuters, Sunday June 5 2011
By Huw Jones
LONDON, June 5 (Reuters) – The world’s top 14 derivatives dealers may need extra cash to handle a surge in transaction clearing, especially in choppy markets, the Bank for International Settlements (BIS) said.
Clearing is being favoured by regulators because it is backed by a default fund that ensures a trade is completed even if one side goes bust, as with the collapse of Lehman Brothers during the financial crisis.
World leaders have agreed that chunks of the $600 trillion off-exchange derivatives market must be standardised and cleared by the end of 2012 to broaden transparency and curb risk.
Researchers at the BIS, a global forum for central bankers, looked at whether the "Group of 14" dealers (G14) that dominate derivatives trading would have enough capital to handle the anticipated surge in trades that will have to be cleared.
BIS concluded in a paper published on Sunday that "it seems unlikely that G14 dealers would have much difficulty finding sufficient collateral to post as initial margin".
"By contrast, dealers may need to increase the liquidity of their assets as central clearing is extended," BIS said.
Central clearing covers about half of $400 trillion in interest rate swaps, 20-30 percent of the $2.5 trillion commodities derivatives, and about 10 percent of $30 trillion in credit default swaps.
The G14 dealers comprise Bank of America-Merrill Lynch, Barclays Capital, BNP Paribas, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, RBS, Societe Generale, UBS and Wells Fargo Bank.
More…