Friday, December 30, 2011

SilverDoctors' Top 11 Articles in 2011

As 2011 draws to a close, we thought we would recap the Top 11 SilverDoctors' articles of 2011:


With the World Waiting for QE3, is The Fed Preparing for Gold Revaluation?

Everyone seems to have reached a consensus that QE3 will be officially announced in early (Q1) 2012.
While we believe that QE is still ongoing today, and will INCREASE SUBSTANTIALLY from current levels, we also believe that at some point, The Bernank will pull the final weapon out of his deflation fighting toolbox:
Gold Revaluation.

Is it possible that The Bernank has finally concluded that QE is ineffective, and is now preparing to bypass QE3, and proceed with GOLD REVALUATION?
The Bernank has been kind enough to give us his entire playbook in his famous Helicopter speech.  We recommend you study your enemy's plan of action and be ready for its implementation.  The Bernank has followed his deflation-fighting theory precisely up to this point, and we fully expect him to follow it to completion.


Can NAFTA Explain the Mystery Gold Shipments Across the US/ Mexican Border?

Yesterday, we presented a narrative by LoneRangerSilver detailing the account of a secret gold shipment across the US/Mexican border.  The Doc would like to present his thoughts concerning the matter, and answer the questions posed by LoneRangerSilver at the end of the narrative.

Many countries sold off a large portion of their gold reserves to build up US dollar foreign exchange reserves during the 1980's and 1990's.  Regarding the questions about what happened to these gold stores, and where are they now- that is an excellent question for former US Treasury Secretary, Robert Rubin.  In the mid 1990's, Treas Secy Rubin announced a strong dollar policy. Basically Rubin's strong dollar policy consisted of a gold carry trade- leasing gold out to the primary dealers at 1% interest.  The primary dealers turned around and dumped the gold onto the market, raising cash, and they then turned around and invested the proceeds in high yielding debt and stocks.  This created enormous artificial supply of gold, suppressing its price, and thus, supported a strong dollar, which was basically the inverse of gold.  The policy was also used as a major tool to control interest rates, and keep them at levels much lower than those of a free-trading market.
The bear market in gold induced largely by this gold leasing carry-trade ended in 2001, when the US gov't ran out of gold to lease to the primary dealers. 
These dealers abruptly found themselves short massive amounts of gold, in a suddenly bull market. 
They have been attempting to add paper shorts to the market to prevent from having to realize these massive losses ever since- which are increasing exponentially by the way. 

As far as where the Mexican "Mystery Gold" was headed- if the Mexican president was involved, we are highly suspicious that a deal was made between Mexico and the US to provide Mexico with manufacturing jobs (NAFTA was passed by Bill Clinton shortly after this episode in 1993) in exchange for Mexico's gold stores to be used to support the dollar.  This is purely speculation, but motive by both the Mexican and US governments for such a swap is clearly evident.



In 1976 I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The company wanted to expand our successful business and so we decided to keep the money in Mexican pesos to be used for further expansion.

One morning, as my wife and I were on a trip driving on the highway, we heard a national message from the President of Mexico, Luis Echevarria, one of the most corrupt presidents in Mexican history. “It is a lie that we are going to devalue the peso,” he said. I stopped at the nearest motel to make a collect call to the US headquarters and I asked my boss, the head of the International Division, to allow me to immediately open a new US dollar account in Mexico. I wanted to convert the pesos into dollars for deposit. My boss, laughing, asked me why I wanted to do that and I responded that the peso was going to devalue. He asked me how I knew this and I told him that the President of Mexico had gone on the radio and announced that rumors of a devaluation of the peso were false, which meant they were true. He continued to laugh but allowed me to open the account.

 I then called my CFO and directed him to go to the bank and get everything ready for me to sign leaving only the necessary funds to continue to operate. We immediately returned to Mexico City in time before the bank closed. Everything was ready for my signature, but the bank manager was rather bewildered and probably thought I might be overreacting.

 One week later the peso was devalued from 12.50 pesos to $1 USD, where it had been for decades, to 26.00 pesos to $1 USD.


Implications of HSBC Gold Rehypothecation Lawsuit on Gold and Silver Prices

With less than an hour until gold and silver trading opens on the Globex, we will soon find out what, if any, HSBC's lawsuit against the MF Global trustee and Jason Fine has on gold and silver futures prices.
For those who missed it, Jason Fine, an MF Global client, demanded delivery for 5 gold contracts (500 ounces) and 3 silver contracts (15,000 ounces) from HSBC, the custodian of the metal.  Fine had used the warehouse receipts of his PHYSICAL METAL on deposit at HSBC as collateral for his account at MF Global.


The Doc Goes on an All-Out RANT

Silver's investment demand will still set an all-time record for 2011, and we are not concerned in the least about the temporary slow-down.  The factors that have driven silver from $4 to $50 over the past decade have not changed in the slightest, and are actually intensifying daily. 

*US official public debt has now passed $15 Trillion and is now roughly equal to 100% of GDP.
*Greece has effectively defaulted with Italy, Portugal and Spain close on its heels leaving a euro-breakup imminent.
*The markets are being prepared verbally for QE3 by the Fed governors, even while QE light and The Twist continue.
*Commodities investors are now scared-to-death of leaving their funds in a broker-dealer account due to the theft of $1.5 Billion of client funds by MF Global (and confiscation by JP Morgan).  If client funds can be commingled with institution funds at MF Global, (using client funds for internal repo agreements is standard industry practice as Jon Corzine advised the CFTC's Bart Chilton) they can and will evaporate in the event of a bankruptcy.
*The state and muni default tsunami is rapidly approaching.
*The $1.25 Quadrillion derivative bubble is still growing daily (and may not actually pay out in the event your neighbor's house burns down as the Greek 'non-default' default has demonstrated).
*The official unemployment rate remains over 9% (with the real rate remaining near 20%).
*Venezuela has called in the gold- physically removed their gold from Western Central Banks which had leased it to Wall Street banks which had in turn dumped it on the market
*The Occupy Wall Street movement has gone nationwide- if OWS can survive the Winter look for the first real violence to erupt in the spring.
*The laughable official CPI is in the process of being debauched further in an attempt to disguise rampant price inflation to the ignorant general public
*Libya has been invaded and overthrown over plans to develop a gold backed dinar and sell Libyan oil for gold rather than US dollars.
*Registered COMEX silver supplies remain near all-time lows
*The CFTC has finally approved position limits in commodities...including silver
*The US dollar remains major bear market.
*The general public is still so far from entering gold and silver that labeling either a bubble is BLATANT DISinformation
Are you getting the picture? 


Did JP Morgan Just Convert 614,000 Ounces of MF Global Clients' Silver into JPM Licensed Vaults?

Isn't it interesting that in the wake of the MF Global client silver theft, there is registered silver missing from EVERY SINGLE VAULT EXCEPT JP MORGAN'S!?!

The Doc decided to break the numbers down one step further, by removing the missing MF Global silver in the HSBC vault (HSBS is the other big bullion back allegedly manipulating the price of silver to the downside) from the totals. 

Outside of The Morgue's manipulation buddy HSBC, there are 627,182 ounces of MF Global clients' silver that remain missing. 

Now for the timeline:
MF Global is taken down on Oct 31st/Nov 1st.  About a week later the CME begins reporting that 1.4 million ounces of registered silver is unaccounted for and unavailable for delivery-including 627,182 ounces from non-cartel banks.
Roughly 7-10 days afterwards, JP Morgan suddenly reports a deposit of 613,738 ounces into eligible vaults.
Exactly 7 days later, JP Morgan adjusts this silver into registered vaults.
JP Morgan has not had a significant silver deposit in MONTHS prior to this 613,738 deposit if my recollection serves me.


Silver Viral Project: The Guidebook

Silver Virality: Project Awareness Vol. 1

The Guidebook

Silver has been getting a lot of head-turns in the past few years, and investors are scurrying out of fiat money into hard assets due to the economic decline we have been agonizingly witnessing. We know that people who have this what-should-be common financial sense will prosper in the coming years, but what about the others?

There are masses of Americans still completely ignorant of what is coming. The masses are unaware that their lifestyles will soon be changed forever, and that their dollars will soon lose their value. These masses will lose almost everything when the collapse comes. While we, those who prepared and who spent countless hours acquiring knowledge may win individually, what does it really mean in the midst of it all?
If it is the case that the dollar busts, our standards of living must surely decline also, unless the masses become educated as to what ‘money’ really is. It is our duty to let people in on this ‘secret’, and allow them to fully realize the implications of ignorant confidence in fiat dollars.


Identities of Silver Manipulators Exposed in Class Action Lawsuit Against JP Morgan Over Silver Price Manipulation

As discussed previously, all individual lawsuits against JP Morgan have been compiled into a single CLASS ACTION lawsuit filed in the US District Court of New York against JP Morgan for Silver price manipulation.

We have obtained a copy of the entire suit, which contains groundbreaking information publicly exposing JP Morgan's alleged manipulation of silver prices for all to clearly read for themselves.

The lawsuit completely exposes JPMorgan's silver manipulation from insiders' perspectives for ALL TO SEE.
We're talking your wife streaking on the field during the opening kick-off of the Super Bowl type of exposure.

Factual allegations begin with point 30, with
Substantial allegations
beginning with point 55 on page 27.

Point 68 discusses JP Morgan's acquisition of Bear Sterns' massive short silver position.

Point 93 names Robert Gottlieb as the individual who developed Bear Sterns' massive short silver position, along with assistance from HSBC silver trader Mike Connolly

Point 118
also names Chris Jordan from JP Morgan selling massive amounts of silver puts at enormous profits

Point 95 details how JP Morgan profited by $150 Million dollars with EACH dollar decline in the price of silver.


JP Morgan Allegedly Telegraphed Silver Price Smashes Using Massive FAKE TRADES on Saxo Bank Platform

The class-action lawsuit against JP Morgan alleging silver price manipulation has exposed several shocking revelations regarding JP Morgan's alleged price suppression of silver- including the PURPOSE of major smash-downs occurring in the hours leading up to options expiration.
The suit alleges that JPM orchestrated monthly options-expiry smash downs with the express intent of blowing up the "delta" risk of holders of short, far-out-of-the money options, suddenly forcing them to cover their positions, thus handing JPM silver futures positions at prices far below market prices only minutes prior.

The suit also alleges that JPM made over 25 massive FAKE TRADES using Saxo Bank during sparse Globex evening hours prior to major silver raids for the express purpose of TELEGRAPHING AN IMPENDING SILVER SMASH TO THEIR BUDDIES!


The HKMEx Was Founded by Nathaniel Rothschild!

SilverDoctors has previously reported that the president of the HKMEx was a previous director of the NYMEX, Albert Helmig
We have repeatedly stated that we suspected banking cable ties, but even we did not imagine what the truth would reveal.
We now have conclusive evidence linking the creation (and ownership) of the HKMEx DIRECTLY TO THE HEAD OF THE MONSTER, Nathaniel Rothschild of the House of Rothschild!


Q&A With The Doc: What's the Difference Between Registered & Eligible COMEX Inventory?

The Eligible category means that the silver meets the exchange requirements.  Exchange requirements include purity, size (eligible silver bars must weigh within 10% plus or minus of 1000 ounces), and also must be from (stamped with) an exchange approved refiner.
Eligible silver essentially means that the silver is stored in COMEX warehouses, and conforms to exchange standards.  It is being stored in the COMEX warehouse for a private party, but it is NOT available for delivery to contracts.
For example, Warren Buffet decides to store 30 million ounces of silver owned by Berkshire Hathaway (he has no intention of making the silver available for sale at current prices) in a COMEX vault rather than his Omaha basement, he could do so, and the silver would be eligible inventory.

Registered silver means that the silver is fully available for delivery to longs who stand for bullion delivery.
Registered silver used to have a paper bearer warrant attached for delivery, but these paper warrants are reportedly being phased out.
To simplify, registered silver is deliverable- or available for delivery to a long standing or demanding bullion delivery.

Eligible silver can become registered, and vice-versa. (i.e. the owner can decide to make his silver available for sale at a certain price)
This is seen almost daily in the adjustments section of the COMEX inventory data reports.

And while not an article, perhaps the most popular series of posts in 2011 was the fictional account of the collapse of the US dollar,


They were laughing at her.
Maiden Lane was the Assistant to the Secretary of the Treasury and, in addition to that, a woman of high-percentile physical desirability.  She was not used to that sort of treatment.  These Chinese fellows today, these two in the limo, they just weren’t into her.
“As you can see,” Mae explained in futility, “it is a pretty standard reverse-repo…one the likes of which we’ve executed many times before with the PBC.  The bottom line is we’re asking the PBC to purchase $400 Billion using the exchanges.  It’s the same old drill: work the purchases through your third party dealers so it doesn’t set off any alarms.  This should relieve some of the pressure on the Yuan.  You’ll then use those dollars to purchase equivalent U.S. Treasuries that will be auctioned over the course of the subsequent seven days.  Your purchase will be about half of the seven day issue.  Our Fed will then repurchase those Treasuries from you within the next thirty days…with a guaranteed ten percent yield, of course.”
The Chinese gentlemen burst into rude laughter.
“Guaranteed?” mocked the first.
They continued laughing.
We no longer believe that you can repay us, at least not without printing money in order to do it.  America’s deficits are now growing so fast that she no longer even has the ability to meet her interest obligations.  In other words, your America is bankrupt.  America is insolvent and we cannot continue to…how do you say…‘to throw good money after bad’.  Yes, that’s the term they used to use in school.  The PBC has accepted that axiom and has decided to cut our losses.”
Mae stared at them silently, brow furrowed again.
“Sunk costs are sunk, Ms. Lane,” explained the second.  “The era of China devaluing our Yuan in order to enable you fat Americans to watch the Texas Cowboys on 3D televisions made by the People of China is over.”
“This is outrageous!” Mae barked.  “I demand to speak to…”
“Our negotiations are complete,” interrupted the second.
Click here for the rest of Indivisible Chapter 1