Commodities and Resource

A Major Scam Revealed: How Non-Existent Metals Are Used to Borrow Money10 min read

Comments (14)
  1. Ian Thomas says:

    The big story here is the shadow banking system that operates on a grand scale not only in China but other Asian countries. Given the high interest rates it makes no sense to borrow in the majority of cases from the shadow bankers. It makes absolutely no sense to borrow against copper and aluminum that are not rapidly going up in price. Regardless of whether the underlying commodity is in the warehouse these loans will fail and the bankers will at the very least take a partial loss on their loans. The negative for commodities will be when these loans inevitably fail and the repossession of the collateral. It is the ramp up of this repossession cycle that has triggered an audit of the port. The shadow banking system is funded by the middle class who have suffered large losses on real estate and now will suffer large losses on their lending portfolios. A double whammy for commodities. Once real estate and debt instruments are deemed not viable the only investment vehicle for middle class Asians left standing is gold. This story is much bigger than China.

  2. dave says:

    The gigs just about up for the scam artists at jp morgan and goldman sachs ! The gold and silver manipulation scheme that has been going on for decades is very close to finally unraveling on them big time and when the wheels do finally come off jp morgans apple cart it should be a bankrupting event for more than one of the bullion banks involved in the scam ! It will send shock waves thru the markets and will make Madoff look like a straight shooter and a stand up guy ! Gold and silver prices will jump by 60 to 150 % in a matter of hours and anyone who bought and held gold and silver in reasonably significant quantities will become millionares practically overnight ! This event cant happen soon enough in my humble opinion ! Gold 5000.00 Silver 300.00 per ounce !

    1. Kelly Stance says:

      The banks have been doing this so long…what makes u think anything is going to change?

      1. a.i says:

        Kelly, if nothing changes, we the little guys will be badly hurt.

    2. ray says:

      dont be fooled…JPM has been loading up on the physical . they will make money again! when gold and silver explode, i agree, JPM and GS will be long!

  3. a.i says:

    Ivan, this story sounds familiar to the not too long ago financial crisis due to Real Estate based Bonds where the real estate became hard to trace. This created world financial crises tat resulted in bank failures everywhere except Canada and some others. So who is to blame? IMHO, the governments that allow a commodity or a collateral such as real estate and loaning stocks by banks /brokerage houses to make money by allowing people to short stocks. And who gave them the authority to do so? Perhaps fine prints. My solution to such scandals is: DO NOT ALLOW RE-HYPOTHECATION of ANY Collateral. Breaking these rules should be subject to the strictest punishment. Not introducing this solution means Bailouts Round 2.
    IS ANYONE LISTENING? Don’t lend something you don’t OWN.

  4. bill says:

    if all this copper and gold is not where it is supposed to be and if and when the full tallies are made and the shortages are known would not both metals be worth a lot more? the losers are the speculators that lied about the collateral and had their properties fore closed on. thank you r.w. taylor

  5. ray says:

    yes, in fact the Chinese are responsible..why? b/c they know the game that JPM has played for years and why fight it? when u can join in and capitalize! in fact …they probably have cut in on JPM’s turf but since china holds out treasury bonds, they can not be stopped from pushing gold and silver down..or else they will crush the dollar by selling treasuries!

  6. paul says:

    Re-hypothecation CREATES 2X -10X the ACTUAL physical supply ! ! ! !That is what they are doing with gold/silver to keep the price DOWN ! ! !

  7. Lee says:

    Wall Street is based on fictious hope that everyone-else is functioning with proper-intent.
    This is based on British political believes on the harmony of the banking systems (FED)
    Human nature : (Ego program)
    By now one would think that we would know much about the Self-Ego. Since we have not the continuation of Over-Leverage of assets will continue, thus leading to another TOO BIG TO FAIL as hyphotication of assets corporations do not own are for ever in circulation. (e.g. 1930…)

    There is only one solution for this…..
    Current systems of goverment lack the vision and the wisdom to fore-see a society that is unified in true Democracy and Freedom.. Whole governing systems need to be revamped more towards its own purpose being the well being of society in general versus the well being of just a few.
    The believe that 3% of the population can govern the rest is mystified.
    A new Education system to overpower the Self-Ego program is required to initialize the population in the believe that we all have a responsibility towards one another.
    For the believe of being an Earth Citizen will prevent the current enslavement and allow Evolution to progress.
    If there was an institution that collects ideias from citizens , the overseeing powers manageing the population would soon find out , that todays Intellectualities are far ahead of what the current 3% control thinks it to be..
    Wall Street is very much manipulated by a few. Metals; diamonds: banking ; even agriculture are well controlled and manipulated.
    Metals have done poorly in past year thus the metals turn to move now seems logical if the heavy money moves in.
    So, keep an eye on volume on your portfolio.
    If there is a move up then expect correction on Sept., Oct…
    90% of the times most money is made between Nov to May…However the usual swing to Sept, seems to be natural habit as money never stays still….

  8. Jack Mack says:

    It used to be Gold, then came the derivatives: paper money “some call ’em “currencies, fiat”, and now electronic to rob quicker or shut U off whenever needed. Agree with Ian Rand :”Those pieces of paper, which should have been gold.” Ironically, separation between poor and rich had worked in the Israel Grand Experiment Model and now it already started in the US (Sand Springs-GA).

  9. Jack Mack says:

    Appologize for name typo: Ayn Rand

  10. Bill King says:

    the markets reaction to such a scam would be very punishing,but soon,Central Banks will make soothing statements and promises,and the markets will recover and move ahead just like they have been doing since 2009.The bigger question here is:what about the weapons on mass destruction—the Collateral Default Swaps.So what would happen if somebody, could not swap something, to somebody else, and so on.What would happen if you had not one AIG who couldn’t cover the bad bets,but 25 other Mega Banks/insurance companies that couldn’t cover the bad bets either.Put that in the pipe for a smoke.Now, how could the Central Banks cover-up this potential mega-massive scam??how many trillions are represented by these swaps??who knows??

  11. S.T.ARAVIND says:

    Several gossips such as ” the U.S gold treasury in Fort knox is really empty and the government is just pretending to be having gold there ” exist and the worst part is that the money got from this gold illusion there, is currently walking as arms and ammunition’s around the bloody wars around the world killing thousands of innocent life…how could the presidents of U.S be shameless of such terrible accusations, which were made on them and their people..what are those ordinary citizens of such arrogant countries are going to make up for the guilt,which is going to haunt their children for the centuries to come.

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