After the hearing, several attendees were contacted by major media outlets for more interviews. Within 24 hours, all the interviews were canceled. All of them. This is typical strategy of the crooks – ignore something and it really doesn’t exist. If it’s not in the media, it’s not true.
The appearance of London metals trader and now whistleblower Andrew Maguire was a huge surprise for all in attendance. He understands JP Morgan’s manipulation scheme inside and out. He understands the process so well that he was able to describe it to the CFTC’s Bart Chilton on the phone in real time. As in: “in a few minutes, they are going to do this, and then they will do that.”
Listen to an extended interview with Maguire and GATA’s Adrian Douglas on King World News video below.
Maguire has taken some personal risks to tell all this in public. In fact, almost immediately after his initial statements, he was run over by a car while walking down the street. The driver sped away, nearly running over some other pedestrians in his haste to escape. Fortunately, Maguire survived the hit-and-run “accident” with minor injuries. What a coincidence.
For many years, people assumed that the London Bullion Market Association (LBMA), the world’s largest gold market, was a simple bullion market. Cash for gold. However, just in the past few months, more people are realizing that there is actually very little gold within the LBMA system. Even long-time gold specialists like Maguire have been amazed to learn that there is no gold corresponding to the vast “gold deposits” at the major LBMA banks.
During the CFTC hearings, Jeffrey Christian of CPM Group apparently informed us that the LBMA banks actually have about a hundred times more gold deposits than actual gold bullion.
This means that there are thousands of clients — Asian and Middle Eastern governments and sovereign wealth funds among them — who think they own hundreds of billions and perhaps trillions of dollars of gold bullion, and are being charged storage fees on that fantasy bullion, but they really own unsecured gold loans to the banks at a negative interest rate.
There is nothing new about this. Morgan Stanley paid several million dollars in 2007 to settle claims that it had charged 22,000 clients for storage fees on silver bullion that didn’t exist.
Imagine now that you are one of these people who think they own billions of dollars of gold in an LBMA bank depository. Now you find out that this gold doesn’t really exist.
You would ask for delivery of your gold immediately. It would be a “run on the bank.”
What about things like ETFs linked to gold? Most of them also claim, as assets, these “deposits” at the LBMA banks.
The entire gold market is complete “ponzimonium,” a word popularized by the CFTC’s Bart Chilton.