Today, Jim Willie comments on Bond volatility and interest rate swaps.

Here's a slice on naked shorting (stealing) and how massive a problem it is…you can just imagine now easy it is for them to naked short anything they want to for great effect:

“Nothing about the USTreasury Bond market has been normal in the last several months. For a long spell, even naked shorting of USTreasurys was used by desperate big US banks in order to raise cash for operations, to manage shortfalls, and to basically steal. The financial press gave the practice the name of "Failures to Deliver" in sanitized manner. The USFed did close that door, but with mere 3% penalties when 20-year prison sentences might have been appropriate.”

Next, a bit about gold’s “friend” JP Morgan, the major concentrated gold short, with over $66 million in derivatives:

“JPMorgan alone has $66 trillion in notional value of Interest Rate Swaps. They must constantly balance this load, in what is called dynamic hedging. That task has been rendered very difficult, if not impossible. The entire hedged position in IRSwaps remarkably exceeds the value of the entire USTreasury Bond market, a fact kept quiet by bank officials. With most IRSwap contracts, fixed net payments are made on a quarterly basis. So the hot fires that burn in big bank basements must be dealt with each quarter, as loss damages are assessed and paid for promptly. JPMorgan in all likelihood just is as insolvent and possibly bankrupt as Citigroup.”

I wonder how much longer they can hold on to the PM manipulation? Not long I would think. Armstrong, Sinclair, astrologists, and honest, knowledgeable gold followers have pretty well laid it all out for us.