Rob Kirby reports on J.P. Morgan (MIDAS).

“Morgan is the quintessential leviathan in the Interest Rate arena through their obscenely sized Medium-Term Interest Rate Swap book which stood at 59 Trillion at June 30, 2008.

The interest rate swap book, due to its sheer size, overwhelms the bond complex by creating artificial demand for government securities. This interest rate suppressive activity began in earnest back in the 1990’s and has kept market rates of interest at artificially low levels. The FUNDAMENTAL [and ongoing] MISPRICING of CAPITAL – for many years – has led to a myriad of economic excesses like the Dot Com boom, subsequent housing boom and the financial asset boom itself.

Morgan’s overbearing effect in the interest rate complex required the simultaneous suppression of the gold price. This was done to make falsified inflation data seem credible. It has often been said that, “if real inflation heats up – BOND VIGILANTES would raise market rates of interest reflective of real inflation”. The reality folks, the BOND VIGILANTES are extinct – they lost their jobs long ago – being swallowed by the black hole that is J.P. Morgan’s derivatives book. This is documented in a laundry list of articles archived at Kirbyanalytics.com”

Kirby goes on to report that JPM was and is a major trader in the Energy Futures Market from 2004 being Risk Magazine’s “Energy derivatives house of the year” in 2006 (crude oil futures market)…being a major commodity swap dealer. “According to Risk, "J.P. Morgan has emerged as a key player in energy derivatives over the past year." Since 2004, under the guidance of Beau Taylor, global co-head of Energy, the firm has built a leading energy trading practice. Focus has extended from natural gas and crude exotic derivatives to include electricity, coal and emissions trading. [RK bold emphasis].”

In the natural gas fixed poker game, JPM destroyed Amaranth and inflicted serious hurt on BMO. (one wonders how many similar victims out there are silent enemies of JPM ).

To sweeten the pie for JPM, the Bush admin. in 2006, created a non disclosure perk allowing publicly traded companies to be exempt from their usual accounting and disclosure obligations. Kirby reminds us that JPM is the Fed.

So, here we see another example of western governments prostituting their citizens in order that their Treasuries can manipulate markets. The Eastern entities are on t this and this will become apparent in the upcoming G20 attempts to create a new global banking system. Should be an interesting month.