"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Saturday, April 9, 2011

JPM Manipulation

   The London Bullion Market Association (LBMA) and the London Platinum and Palladium Market (LPPM) have six primary players.  Those banks are Barclay's Bank (BCS), Deutsche bank (DB), HSBC (HSC.B), J.P. Morgan (JPM), Scotia Mocatta, and UBS (UBS)[1].  These six banks have formed a corporate entity named “London Precious Metals Clearing Limited” (LPMCL)[2].  LPMCL is the primary standards setting entity for the fractional banking system and the group itself states they are not regulated by the UK Financial Services Authority but their individual bullion clearing members are.  GATA has been outspoken about how LPMCL promises to store metals in “unallocated storage” while keeping almost no metal in their units (See below).  People apparently think they own the metal, and are merely allowing the banks the right to use it, occasionally, as they need, after which it will be returned to the vault.  This is not the case.

The customers who have contracts for metals in the vaults are recognized as “unsecured creditors” and should understand they do not have claims on the metal, as may otherwise be advertised.  It’s a Silver Bond with counter-party risk.   Above is an example of one of the daily releases that investors use to gleam a look at the inventory of metals.  This data is not stored for historical reference as stated earlier.  Investors are required to monitor the site daily and record the numbers as they are uploaded.  JPM has roughly 65,000 contracts written to investors.  So with 5,000 ounces of Silver being represented in 1 contract, you see JPM has enough to fill SIX(6) contracts.  I will not insult your intelligence by explaining this any further.

[1] The LBMA updates a list of Market Making Members and offers their telephone numbers along with their address details <http://www.lbma.org.uk/pages/index.cfm?page_id=63>
[2] On the LPMCL website, the bottom banner shows the banks that make up the group <http://www.lpmcl.com/>