Monday, March 12, 2012

Martin Armstrong: NY Banks' Commodity Empire

In his latest missive, Martin Armstrong discusses the commodity empire run by Goldman Sachs, JP Morgan, and Morgan Stanley and their fight to greatly expand their commodities operations with even less regulation.

Ever since the 2008 financial crisis, the fight by Goldman Sachs, JPMorgan Chase, and Morgan Stanley to retain or expand their valued physical commodity operations has been roaring silently behind the headlines of mainstream media.
This is coming to a head and the Fed will most likely yield allowing banks more freedom to invest in the physical commodity world even far more than they did prior to 2008.


Most people do not realize but there is a Commodity Empire that is run by New York’s biggest banks/Investment Banks that are in a continued struggle with the Federal Reserve over the right to retain the power of their commodity trading empires. They control the storage warehouses, storage tanks, and silos constituting hard assets worth multi-billions of dollars. But it also gives them inside information regarding inventories and the ability to manipulate the prices by moving inventory back and forth to unreported warehouses or to London.
At the center of this power struggle has been the issue of their proprietary trading under the new
derivatives regulations. Ever since the 2008 financial crisis, the fight by Goldman Sachs, JPMorgan Chase, and Morgan Stanley to retain or expand their valued physical commodity operations has been roaring silently behind the headlines of mainstream media.
This is coming to a head and the Fed will most likely yield allowing banks more freedom to invest in the physical commodity world even far more than they did prior to 2008.
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Commodity Empire