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JP Morgan and the silver market

May 22, 2012

Last Friday, May 16, Lindsey Williams said on an interview that he was told by an insider in early May to watch for a soon-coming "crack" in the derivatives market.

That, he says, is what happened to JP Morgan, when it was forced to admit a $2+ billion loss in its derivatives trading in its London office. That is not much in relation to JPM's $2.2 Trillion net worth, but it was a FIRST, nontheless. Furthermore, many believe that the loss is far higher than is being revealed.

JPM holds $70 Trillion worth of derivatives, and this "crack" may be the start of a very large blowup. In fact, America's 4 largest banks hold about $200 Trillion in derivatives, which is far larger than the entire world's GDP.

That ought to be illegal.

One would think that JPM's announcement would have caused the price of gold and silver to skyrocket. Instead, they went down, showing clearly the manipulation going on. Bix Weir believes that gold and silver are going down in order to allow JPM to buy it at lower prices and thus pad its portfolio against its derivatives losses.


If they are right, then it would be a good idea to take advantage of this temporary price manipulation and purchase some physical silver (or gold) on the bargain prices. I suggest silver over gold, simply because I consider either one to be a long-term investment. In the end, it will be understood that there is far more gold than silver in the world, available for purchse. Silver is rare and therefore very underpriced at today's prices.

The day could well come when silver will cost more than gold.

The big banks took all that bailout money and put it into the derivatives market instead of loaning it out to small business. This means the shortage of money on the street has continued even after the banking industry was saved by the taxpayers. It should have been illegal to allow the bailed-out banks to continue engaging in "casino banking" by betting with derivatives.

My suggestion at the time was that the government should have simply used that bail-out money to pay off loans, including those bad loans that were causing bank problems. This would have indirectly bailed out the banks--by putting the money directly into the hands of the people.

But then, the banks ARE the government these days, so one would not expect them to do anything beneficial to the people themselves. The whole idea is increase the power of the bankers and their corporate governments, which are the new world empires.

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Category: News Commentary

Dr. Stephen Jones

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