Please friends, I just came across this and my jaw is still open and my brain on over drive as to what this could mean for us in the next couple of days or weeks or months. (I also listened to the Whisteblower inteview at KingWorld which I also encourage you to do). Below is an excerpt and I love the comments by the GATA guy about the testimony - helps to put it in contact.

This could be the biggest thing in a long time as to possible impact on PM. So do a frog a favor and take the time to read it and then post any thoughts you have. This is real big picture stuff and I respect and appreciate all of your thoughts. I am posting an excerpt to "tickle" your imagination and then the full link to follow.

From, the frog princess herself

"This is a stunning revelation. Christian confirms that the "physical market" is not in fact a physical market at all. It is a loose description of all the paper trading and ledger entries and some physical metal movements that occur each day on behalf of people who believe they own bullion in LBMA vaults but in fact don't. They are told they have "unallocated gold" or "unallocated silver," but that does not mean the LBMA has physical metal set aside for those customers and has just not given specific bar numbers to the customers.

No, it is the most cynical and corrupt definition of "unallocated" -- the customer has NO bullion allocated to him. NONE!

The LBMA defines the owners of "unallocated accounts" quite clearly as "unsecured creditors." That means they have NO collateral. NONE.

Can it be any clearer? It is a giant Ponzi scheme.

Christian confirms what many analysts and GATA have been alleging -- that there is not much REAL physical metal -- but testifies that there is actually 100 times the REAL physical metal being sold based on the much more "loose" definition of what "physical" means to the bullion banks.

The last sentence of his statement is mind-blowing. He says the "physical" positions of the bullion banks are so huge that they are much bigger than the Comex short position. He says the "physicals" are hedged on the OTC market in London! Did you get that? Let me walk you through it."

http://www.gata.org/node/8478