-- Posted Monday, 9 July 2012 | Share this article| Source: GoldSeek.com

Times are finally changing. It will never be at the speed the GATA camp expects, yet slowly but surely our time is coming. The GATA camp will be proven correct and it will evolve into one of the most grotesque scandals in history … dwarfing the Enron, Madoff, MF Global and Barclays scandals combined, in terms of its effects on financial markets around the world.

First of all, it has come to my attention that in January 2011 JP Morgan, for some yet unknown reason, was compelled to stop manipulating the silver market. That is when the price of silver went vertical to the upside…

Silver practically went straight up to $49 an ounce. THEN, it collapsed for no apparent reason. That reason, from my most well informed source, was that JPM came back into the market in June. Now, if that is the case, JPM worked through some sort of auxiliary account to overnight raid silver in the earliest of May in 2011, because that is when The Gold Cartel/JP Morgan went into combative action in earnest to crash the price down…

Monthly silver price
http://futures.tradingcharts.com/chart/SV_/M?anticache=1341620769

I hope to be able to explain more of this in the near future, but that is what I can put in the public domain for the moment.

But, there must be more for me to be jumping up and down like I am doing here, and there is.

To begin with, there is the Barclays LIBOR market manipulation scandal. Many of the participants are the same banks GATA has cited over the years for manipulating the gold and silver markets. Speaking of some of those banks…

Libor rate-fixing scandal spotlight now on Citi, JPMorgan

By Agence France-Presse
Saturday, July 7, 2012 9:03 EDT

***

Yes, you know much about this, but the fact that this market rigging scandal is now evolving into the criminal stage is no minor event.

And, let me say this; JP Morgan’s public declaration about being offside on a $2 billion dollar "hedge transaction" was not fully transparent. My sources tell me that was the case, but in addition, that what JPM CEO Jamie Dimon said at the time was camouflaging another serious financial problem. At the time it made little sense that a CEO would talk about a trade loss of that kind when his firm was making $18 billion dollars a year. The smell meter that the situation was much more serious than $2 billion lit up the light bulbs on the GATA camp scoreboard. Since then New York Times has reported the amount of the loss could be as high as $9 billion.

The bottom line here: my well informed source tells me that the Jamie Dimon lament is about a derivatives problem that also involves the silver position JPM took over for the Fed when Bear Stearns went belly up. I hope to have more particulars on this declaration in the near future. The main point is that JPM has some serious issues with their present short silver position and is having difficulty extricating itself from that position. Whether it has to do with coming up with a large amount of borrowed physical silver, I am not sure. We will stay on the case and report on any new developments.

OK, let us move on to why the gold/silver market manipulation scheme is