31 July 2008

Casey on Gold and Silver

The ability of a borrower or lessor of property to sell that property for full value as if the sale were free and clear of all other interests has absolutely no basis in United States jurisprudence, or in any other manner of jurisprudence for that matter. A full and complete title to any asset, under all systems of jurisprudence, can only be conveyed with the consent of the title owner, usually by the title owner's signature on the documents evidencing the conveyance. The names and identities of title owners of substantial assets such as real estate and cars can usually be identified through public records which are generally kept for the express purpose of protecting the true owners from having their property sold out from under them. Any conveyance of property by a title owner is made subject to any rights which the title owner has previously conveyed to anyone else in the subject property, such as a leasehold interest given to a lessee or a mortgage or UCC lien given to a bank. In order to convey a full and valid title to any purchaser, the title owner must not only convey such title owner's interest in the property, but must also extinguish, or arrange for the conveyance of, all prior interests granted by such title owner to others, unless the new owner is protected against such prior interests by a recording statute or other notice requirement. In most cases, the new owner is protected by recording and notice requirements only if the new owner has no actual notice of the prior interests. Take for instance a house or a car. If you have leased a house or car, can you then convey title to that house or car for its full, appraised value without the consent of the title owner? Of course not, you can only convey your leased interest, and then only if your lease allows you to do that. You cannot, by yourself, convey a full, legal, perfected title. And your leased interest would be worth far less than the full, appraised value of the property that would be paid for a perfected title to that property free and clear of all prior interests. The title owner would have to join in the sale with you to give the new owner a full title free of all prior interests. Only then would the new owner agree to pay the full value of the property. This is how assets have been handled, from a legal point of view, since the beginning of time.

Until, of course, the criminals who run our country came up with the legal fiction of allowing the short sale of leased or borrowed property for full value.

Short-selling of stocks, which is currently legal, or worse, naked short-selling of stocks, which is currently illegal, are fictions created by elitist criminal minds that have been foisted on the markets so the elitists can make profits at will by killing any stock, at any time, for any reason (usually for profit, but sometimes for simple revenge). The reason given for the short-selling of stocks is to provide a means whereby overpriced stocks can be ratted out and fairer stock valuations for the benefit of the investing public can be produced. But this is just a ruse. It is a scam to justify rampant and otherwise illegal manipulations of stock prices for the personal gain of the scamsters. By allowing stock to be borrowed, and then sold for full market value by someone other than the title owner, you are allowing the creation of stock out of thin air, which can then be used to run down the price of the stock ad infinitum. Normally, you can only sell as much stock as you own. After that, you would have to buy more stock, thus driving the price back up, before you could start selling again. Thus, short-selling, and especially naked short-selling, are both morally wrong and legally unfounded. These short-sale scams are made possible by the anonymous ownership of stock, and often this anonymity allows the perpetration of many illegal manipulations, such as where the same stock is borrowed from the same person over and over again by different borrowers in a manner that is difficult to trace. The anonymous ownership of stock in publicly traded companies is another Illuminist scam which allows them to manipulate stock transactions while making it difficult, if not impossible, to pin the blame for any illegal manipulation on a specific trader. Stock ownership in publicly traded companies should be made public like real estate and cars, and only shareholders of record should be able to sell their shares. This is the only way stock markets can be made fair. Otherwise, to allow the sale of an infinite number of shares in any company paves the way for insider trading, for the floating of vicious and patently false rumors and for all kinds of other malicious mischief, including the corrupt elimination of competition by enabling scamsters to ambush companies that compete with their own.

Adding to the criminality of short-selling is the SEC. For some time now they have not investigated or taken action against naked short-sellers, even though naked short-selling is blatantly illegal. With naked short-selling, stock is created out of thin air without even the fiction of being borrowed from a true owner before being sold, as in regular short-selling. As an aside, even regular short-selling should be illegal. This is because regular short-selling, even where the same stock is not borrowed from the same person multiple times by different borrowers, allows the literal doubling of outstanding, authorized shares in public companies without SEC approval. Normally, you would go to jail for selling unauthorized, unapproved stock in a public company. But not short-sellers, who get to stand in the shoes of both regulators and investment banks simultaneously. Regular short-selling should be illegal because as we said, selling borrowed property for full value has no basis in law. Getting back to the SEC and naked short-selling, they keep a list of stocks where naked short-selling is suspected just to tick off the shareholders of these companies who are being ripped off. This is like saying, ha-ha, we know you're being ripped off, but we're not going to do anything about it, so go scratch. We work for the Illuminati, who can do as they please. As if this was not enough moral hazard, the SEC is now selectively enforcing laws against naked-shorting of shares in Fannie, Freddie and 17 other commercial and investment banks, all of them Illuminist to the core. This temporary ban against what is already illegal has just been extended to mid-August so that earnings season can pass without too much damage being done to the fraudsters. Remember, these are the same scum-bag Illuminist institutions that got us into the current mess we are in and are the same bankster fraudsters who are all presenting fraudulent financial statements to temporarily save the stock market from destruction for the benefit of the incumbent traitors in Congress. As always, there are two sets of rules, one set for the would-be lords of the universe, and the other set for the serfs and peons (i.e. the rest of us).

Also, the legal fiction which allows for the sale of borrowed property for full value is not limited to stocks. The same criminal scam has long since been extended into gold and silver leasing. The ruse given for this scam is that gold and silver are non-producing assets (i.e. they produce no financial return), and that leasing of these gold and silver reserves gives the fraudsters a chance to earn a return on their bullion holdings, which are supposed to secure their depositors accounts. Gee, that must be why lease rates are now near zero or even negative, especially for the shorter terms, so that a whopping financial return can be earned on bullion holdings. That must be why the cartel fraudsters are paying the bullion banks to lease their bullion, instead of the other way around. Obviously, the real reason for gold and silver leasing is gold and silver suppression. In fact, that is the sole reason in this market. And now we have a situation where borrowed bullion has been sold for full value by bullion banks, often to another bankster fraudster, which then leases it again to yet another bullion bank, which in turn sells it to another bankster fraudster, ad infinitum. As a result, multiple banks now carry the very same physical gold and silver bars as part of their bullion reserves even though only one of them actually has physical possession of that bullion! The entire alleged bullion holdings of the US treasury, the Fed and the ECB is one big, scum-sucking scam!!! And often, these same bars have been sold by one of the bullion banks in the fraudster daisy chain to jewelers who have converted the gold and silver into rings, chains and bangles. The gold and silver is all freaking gone, and, to use the words of the Beaver: "it ain't never comin' back!" Yet multiple banks list this -- jewelry -- which is hanging from the necks and wrists of new Indian brides -- as phony paper "gold reserves" in their financial statements! Central banks around the world have become the ultimate alchemists, for they have somehow managed to create their "gold reserves" out of -- well -- NOTHING!!! We can just picture the bullion banks scurrying the new brides off to a detention center to reclaim their "gold reserves" when they implode from all their deceits and scams as the gold and silver leases come due. Will they pay back their lease debts with worthless paper dollars instead? No, because the bullion banks will be totally bankrupt. How do pay back in dollars the amount due for all that leased gold and silver which have just had a zero added to their value per ounce? Perhaps they can create some dollars out of thin air like the banks created their paper gold reserves? Of course, barring this magical creation of dollars from nothing, perhaps in yet another bailout, the banks that leased the gold to the bullion banks will then promptly go under!!! And their depositors will say: "You mean the gold reserves that were securing our deposits have been made into jewelry that was sold to women in a foreign country?" And the fraudsters will say: "Yep, sorry about that." There won't be a run on banks then. There will be a run after bankers, to tear them limb from limb.

Of course, the IMF thinks that this state of affairs with paper gold reserves is perfectly acceptable. That is why the IMF's new rules, which it promulgated to prevent this multiple-counting of reserves, were made only voluntary, and only a few banks thus far have adopted them. The reason for the paucity of banks adopting the new rules should be patently obvious giving what we have just revealed to you. The whole scam would be exposed if all banks honestly complied with the new rules, and especially if those rules were made retroactive.

Oh, and may we add that much of the gold used to start many of the daisy chains of gold paper reserve frauds through multiple-counting of gold reserves was from gold swaps with the US Treasury, which pledged a portion of our national gold to the initial central bank that leased its gold to a bullion bank to start the daisy chain of fraud. Thus, the initial central bank agreed to sell its bullion based on the promise by the Fed and the US Treasury to replace that gold with some of our own at a later date. Hence, the term "deep storage gold" that is used to describe the US Treasury's and Mint's gold reserves, which have all been stolen, leased, swapped or otherwise compromised. These swaps were used to prevent people from learning the true source of gold suppression, which was the Fed in cahoots with the US Treasury. The blame for gold suppression would be directed to the central bank that publicly sold the gold, and not to the Fed and the US Treasury, whose gold swaps were kept secret from the public.

The elitists may try to use the next Congress to shut down the internet, take away grass roots lobbying, implement the Fairness Doctrine to cut off conservative talk show radio and get greater control over guns. Then would come the false-flag attack to implement martial law at a time when communication among a concerned populace and gun ownership have been vastly curtailed. They will also use this time to continue to heap up information on citizens illegally, while attempting to implement a national ID card so that Big Brother can become reality. They must be stopped from doing this. Throw out all incumbents in November.

Gold continues to consolidate, as pressure comes from continued rollover of COMEX gold futures from August to December, 2008. Other pressure is being applied through dead-cat dollar rallies, which are also causing oil to come down, moderating inflation a tad. These dollar rallies can only be the result of multiple Fed and central bank collusion involving several nations. Nothing else can possibly support the dollar other than manipulation and intervention. The dollar has no intrinsically good fundamentals to support it. Buck-Busting Ben saw to that, and now the Fed has become irrelevant. Real interest rates are about to become whatever investors say they should be based on ever-increasing risk from massive consumer defaults and ever-decreasing rates of return caused by ever-worsening hyperinflation. As of last Thursday, December became the most active contract, and soon August will become the leading contract. As of Monday, there were 74,603 August contracts and 224,080 December contracts. Most COMEX gold options are now centered on December, so there will not any opportunities to steal from traders of call options until yearend. Bank failures, poor earnings, war threats, increasing consumer defaults, option ARM implosion, further real estate market deterioration, as well as gigantic bailouts and bond monetizations to save fraudsters will keep gold well bid. Then when the elitists bail from paper assets and let the dollar fail, gold and silver will go intergalactic. The run up for the next big gold phase is right around the corner, so don't miss it. You do not want to be left out of the next big rally. Keep a little powder dry if you want to take advantage of the oil takedown potential, but make sure you are in big before this fall rally gets underway. The rollover from August to December will be completed near the end of this week, and then the fun begins.

The stock markets are being supported by lower oil and a weaker yen. The yen has not been this weak against the dollar in over a month, so some carry trader support for the PPT has come in as bank losses continue to be hidden and oil subsides. Even so, we are still way below 12,000 as de-leveraging continues to be a priority. The only alternatives are to either float new bonds, which is difficult during this credit-crunch as no one trusts anyone else's debt anymore and rates have been climbing, or to float new shares, which dilutes the holdings of current shareholders. Time is running out as the losses on toxic waste can only be fraudulently delayed for so long, and the ability to dump toxic waste may become more and more difficult with the passage of time. Banks are afraid to start a sell-off of toxic waste because they will then be forced to mark to market, but they had better start soon while they can still get something for their poisonous assets. Merrill Lynch is now starting to do this, but contrary to what the fane-stream media might tell you, what they have just attempted to dump is a pittance compared to their overall holdings of toxic waste.

Trillions will be dumped on US taxpayers by the Fannie and Freddie bailout. Not only will losses mount based on the current levels of toxic waste, but now more toxic waste will be heaped up on top of what is already there as loans that are not backed by the twin titans of profligate lending are almost impossible to unload on investors. Either hundreds of billions more in losses will be heaped on top of what they are already carrying, or markets will implode and freeze up due to tighter credit standards which would tend to keep the amount of toxic waste to a minimum. Either way is bad news for taxpayers and homeowners. Obviously the fraudsters, desperate for profits to shore up balance sheets, are likely to cook up more bad loans to boost profits knowing that they are backstopped by Paulson's bazooka, and we predict more rampant fraud to come. Paulson's bazooka is in reality a license for the fraudsters to steal once again, as the Fed blinks and looks the other way despite its tighter regulations for mortgage lending, which are five years too late. Anyone who is stupid enough to buy the paper offered by Scylla and Charibdis deserves to be eaten alive. For allowing all of this to happen, and in fact for actively encouraging it to happen, the Fed should be terminated, not given more power. Paulson can aim his bazooka at the Fed if he wants, and blow them away. He won't get any complaints from us if he does.

Almost 4 years ago we said Fannie Mae and Freddie Mac could be catalyst for the collapse in the financial system. At that time we said they were bankrupt. In the past 8 years, in spite of their questionable financial conditions they increased their growth $1.6 trillion to $5.8 trillion. Just over the past year Fannie Mae and Freddie Mac’s combined commitments have expanded $627 billion, or 13.7%.

This expansion is part of the manifestation of the massive scope of additional credit creation over the past 8 years to sustain a collapsing financial system, not unlike hundreds of other collapses over the past 1,000 years. Those who have studied financial history, and the Illuminists have not only lived it, but also created it, know that it is impossible to sustain such an expansion. Sinking asset prices finally overwhelm the system and it collapses.

Fannie and Freddie are a Ponzi scheme. Our Treasury and the Fed talk in terms of additional capital of $25 billion or perhaps $50 billion that taxpayers will have to pay to bail out banks, Wall Street and lying borrowers. In reality their needs will exceed $600 billion for just this year. Next year the cost will be greater and who knows where it will end.

The powers in and behind government used Fannie and Freddie to manipulate the American economic system. They were used to delay a major recession and now as a result we are facing hyperinflation, stagflation and a major depression worse than that of the 1930s. This is going to rip apart the social fabric of America and the world as well. This has created an economic, financial and political nightmare. It has also created a speculator class, which has grown to unfathomable size. That is bad, but what is worse is that these speculators will eventually lose everything adding dynamics to the collapse.

The government guarantee of the debt of these GSE’s is no longer implied. It is a reality. The elitists knew from the beginning that the American taxpayer would foot the bill as the insiders enriched themselves. Fannie and Freddie are the ultimate scam to cover the tracks of the worst bunch of crooks in economic history. Never in history has an inflation generator enjoyed such capacity to issue endless quantities of money like instruments with not a word of complaint professional or public that this is a Ponzi scheme. Even as it becomes obvious they are broke, and controversy rages, as Congress sets on their hands, in June they made $21 billion in new commitments, an annualized 33% increase. What unbelievable brass.

Over and over the increase in money and credit, the pumping up of stock and real estate markets has staved off recession and depression. Since 1980 it’s happened every 4 or 5 years like clockwork. The powers behind the scenes have abused the system once too often. This time it is going to be different. The GSE’s played a major role in rescuing the economy in 1982-85, in 1990-92, in 1996-97, in 2001 an onward. They perpetually brought greater amounts of credit to the system. The GSE’s were the backstop – the ultimate bailout instrument of the financial and moral degeneracy. Now we have the ultimate in corruption, Congress will provide the Treasury with blank check discretion to keep the bogus money machine going. You might call this the ultimate in hypocrisy. This probably is the beginning of the end of securitization of mortgages. This in time will further restrain mortgage credit growth and place downward pressure on home prices for many years to come and in turn exert major pressure on the entire economy. The GSE’s are in a box and cannot get out just as the rest of the system is. They can probably keep the charade up for a few years, but it will end when depression begins.

It continues to come to light that financial entities have a treasury trove of off balance sheet assets that are horrible to behold. As professionals and investors come to terms with these facts they will finally realize just how serious the situation really is.

As these assets, or what is left of them, are carried over to the balance sheet there will be some staggering revelations. This exposure should put pressure on bond and stock markets and lead to more than $2 trillion in write-offs. This will be accompanied by failures at many financial institutions. That will produce higher gold and silver prices. Get all of your free assets out of banks, commodity funds and Forex funds and into gold and silver related assets and Swiss franc government bonds.

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