Liz Warren Grills Jack Lew on Too Big To Fail

Original source and commentary is at Mother Jones

Warren nails it in the last minute of the tape. The US lack of serious reform is a risk to the world economy.

Obama is a thoroughly modern manager: part Herbert Hoover, and part Richard Nixon.  

Silver Rally Hit By Ruthless Selling

Bernanke's QE remarks sparked a flight to the metals and short covering as the silver shorts temporarily lost control of the trade.  There will be QE of many sorts, as far as the eye can see.

This was quickly met by renewed waves of ruthless selling by the Anglo-American financial cartel.

Silver has since returned to its pre-rally price of 22.75.

The suppression of gold was even more brutal with a plunge on selling, and a gap lower, even on the one minute chart.

The premiums for real metals continue to be high compared to the paper prices set in London and New York.

Gold and silver are flowing from West to East.  With each purchase, the Banks are being stripped of their bullion.

They can keep this up, until the people, in their increasing confusion and misery, finally realize that the emperor has no clothes.   And then comes change, and one would hope, reform. A generation forgets, and the next remembers and relearns the lessons from the past.

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

This is what happens when an artificial tyranny finally falls. First it is the actions of individuals, then a movement, and finally a swiftly moving avalanche.

Freedom is not an objective or a prize to be won and kept at last; freedom is a way of life, a continuing commitment to truth, and to equal justice for all.

Revolutions decay into tyrannies, and over slow time are renewed again. The human spirit is resilient, as long as at least one person can stand for the truth and with peaceful but determined resolve say, 'You may own the world, but you don't own me.'

“Stand up for what you believe, even if you are standing alone.”

Sophie Scholl

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

Bernanke's words have inflamed the equity market, and driven a flight to the much suppressed metals as the shorts lost control of the market.

I still believe that stagflation is the most likely forecast, but the world is getting a stronger whiff of pure monetary inflation from the central banks, despite the best efforts of the financiers and their apparatchiks to suppress it.

Stagflation is a weird kind of beast. I remember when economists said that it was not possible, until reality showed them differently. And then it was possible because of an exogenous shock, caused by the oil boycott and cartel. And now they may recognize it as the result of policy errors in support of the one percent and their financial cartel.

The illusion is powerful, but the world sees.

Gold Bar Premiums In China Hit Record Highs On Lower Paper Gold Prices

These are frightened, desperate men who are trapped in a web of their own lies. They see no way out, and so will continue on doing the same things, over and over, until something breaks. And then will come the deluge.

Gold Daily and Silver Weekly Charts - Capping the Gains - Racketeering

Bernanke gives his Congressional testimony tomorrow morning.

FOMC minutes will be released in the afternoon.

The stock market is at bubble levels.  And the real economy is languishing.  I find it almost incredible how the economists can blithely ignore another bubble once again. 

Speaking of Blythe, have we heard any more about the FERC charging JPM with manipulating the energy markets in the manner of Enron?   Perhaps the CFTC is still in a snit that other agencies are making them look bad by doing their jobs.

It is interesting to see that prosecutors are considering charging SAC under the RICO statutes.

I can think of a few more candidates who could be investigated for racketeering in the markets.

The buck used to stop at the top.  And so might the subpoenas.  Although CEOs and Presidents seem to be remarkably uninformed about the things that their organizations do when push comes to shove.

And so it is unlikely that they will get any closer to the heart of the money frauds. That is the credibility trap.

Here is an update on the $1.1 Billion gold shipment from the US to South Africa. 

SP 500 and NDX Futures Daily Charts - Weak Rally Tuesday

Excelsior.

Bubble valuations and little regard for economic fundamentals.

Gold Daily and Silver Weekly Charts - Twentieth Century Fox - RIP Ray Manzarek

Silver and Gold plunged on the Globex Sunday open yesterday as a large number of silver contracts were dumped at market.

Commentary on this was given here and here.

The metals were slow to recover until this morning, and then took off, going out near the highs in a classic short squeeze.

The physical offtake of bullion from the world markets into strong hands is getting intense.

It is far too early to say if this is any kind of a bottom. We have not even broken the down trend yet.

Bernanke gives his testimony to Congress on Wednesday, and tomorrow is the newly traditional 'rally Tuesday' for stocks if the bulls can shove the overbought SP 500 any higher.

The US commodity futures markets are a bucket shop. It is a shame that they have any influence at all on real world prices.

RIP Ray Manzarek, Keyboards, The Doors

'The Architect'

SP 500 and NDX Futures Daily Charts - Pause Ahead of Bernanke's Wednesday Testimony

There is no major economic news scheduled for tomorrow. Let's see if the wiseguys can keep the 'Rally Tuesday' trend going.

Zimbabwe Ben will be testifying to the Congress on Wednesday morning, and the FOMC minutes from the May 1 meeting will be released.

VIX is subdued, and the SP 500 cash is overbought.