| By: Chris Powell, Secretary/Treasurer, GATA |
-- Posted Friday, 6 April 2012 | | Source: GoldSeek.com
Dear Friend of GATA and Gold (and Silver):
Though the monetary metals have been under the most severe attack for the last few weeks, today may be considered a great victory for our side, insofar as a softball interviewer on CNBC managed to question JPMorganChase commodity executive Blythe Masters about whether the bank is manipulating the metals markets:
http://video.cnbc.com/gallery/?video=3000082631
Masters acknowledged that this has become an issue. "There's been a tremendous amount of speculation, particularly in the blogosphere, on this topic," she told CNBC. "I think the challenge is it represents a misunderstanding of the nature of our business. ... Our business is a client-driven business where we execute on behalf of clients to achieve their financial and risk-management objectives. ... We have offsetting positions. We have no stake in whether prices rise or decline."
The latter remark caused a bit of a sensation and mockery on our side but it was, in fact, only what JPMorganChase CEO Jamie Dimon said several times a few years ago when similar questions about monetary metals market manipulation were put to him -- that the bank has little exposure of its own in those markets and that the metals positions on the bank's books are client positions.
As Morgan's positions in not only the monetary metals markets but also the interest-rate derivatives markets are beyond comprehension and what any private company could possibly carry on its own, GATA has always believed Dimon (and today believes Masters too) and has long maintained that the positions on Morgan's books are actually U.S. government positions and that the bank is essentially a government agency. For example:
http://www.gata.org/node/11159
GATA consultant Rob Kirby of Kirby Analytics in Toronto has often written in detail about the government-MorganChase connection:
http://news.goldseek.com/GoldSeek/1326469500.php
http://news.silverseek.com/SilverSeek/1301340431.php
http://news.goldseek.com/GoldSeek/1322414866.php
After all, MorganChase has 150 years of experience in market rigging and fronting for the U.S. government at critical moments. This is a matter of public record and established history extending from the bank's Federal Reserve-engineered acquisition of Bear Stearns & Co. in 2008 back to the panics of 1893 and 1907, when the bank was run by its founder, the financier and industrial monopolist J.P. Morgan himself, who arranged bailouts not for the government but of the government and considered it his civic duty to do so:
http://en.wikipedia.org/wiki/J._P._Morgan
In Chapter 7 of her prize-winning 1999 biography, "Morgan: American Financier" --
http://www.amazon.com/Morgan-American-Financier-Jean-Strouse/dp/00609558...
-- Jean Strouse describes how Morgan's first big score came in the fall of 1863, when, perhaps foreshadowing his firm's current endeavors, he cornered the gold market in New York.
Watching today's CNBC interview with Masters, Zero Hedge's Tyler Durden figured things out quickly:
http://www.zerohedge.com/news/blythe-masters-blogosphere-silver-manipula...
"JPMorgan has intimate access to U.S. government officials, and particularly the Federal Reserve, which will in turn take advantage of all JPM facilities, including its trading desk, to preserve the sanctity and foundations of the +$30 trillion in custodial assets and the rehypothecation system, which further means that any potential implication that fiat money is impaired has to be wiped out. ... Soaring prices of gold and silver are the primary if not only means left to express rising doubts not just of the future viability of the dollar but of the viability of the fiat system in the first place. Which means that the Fed is, without a doubt, one of the biggest 'clients' of JPM in a symbiotic crosshold, where what the Fed wants JPM has to execute and vice versa. ...
read full article here
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