Comex Claims Per Deliverable Ounce at 79 to 1

Not to worry, JP Morgan has the situation well in hand.

They are just recycling the deliverable for the next go round in the next active month, February. 

What could go wrong?

Bubble-nomics: The Federal Reserve Balance Sheet and the SP 500

"How could I have done this? I was making a lot of money. I didn’t need the money. Am I a flawed character?

I realized from a very early stage that the financial market is a wholly rigged job. There’s no chance that investors have in this market....It’s unbelievable. Goldman-- no one has any criminal convictions. The whole new regulatory reform is a joke."

Bernie Madoff


"Unfettered capitalism is a revolutionary force that consumes greater and greater numbers of human lives, until it finally consumes itself."

Chris Hedges


"I preyed upon the weak, the harmless and the unsuspecting. This lesson I was taught by others: might makes right."

Carl Panzram, psychopath, serial killer

Not much is going to the real economy and the 99 percent, so it has to be going somewhere.

The creation of financial asset bubbles using the power of selective monetary inflation is 'trickle down' at its finest.

But certain assets may blurt out unpleasant truths, if they are allowed to speak.

This is not sustainable. What are they thinking?

Entitlement, indeed.

Gold Daily and Silver Weekly Charts - Imbalances Abounding

"Evil is like a shadow, it has no real substance of its own, it is simply a lack of light. You cannot cause a shadow to disappear by trying to fight it, stamp on it, by railing against it, or any other form of emotional or physical resistance.

In order to cause a shadow to disappear, you must shine light on it."

Shakti Gawain

There was intraday commentary on the metals here and here.

Commentary on Bloomberg TV included the rather shocking observation that the gold vaults in London that were so full not long ago now stand 'virtually empty.'

And JP Morgan finally took delivery of some of the bulk of the gold contracts they have been 'stopping' this month, and plunged the level of registered gold on the Comex down to a new multiyear low.

The decline of physical gold in the ETFs of the West continues apace.

What are we to do?

Just like there are too many real people for The Recovery™, compared to just the right amount of virtual corporate people, so there does not seem to be enough physical gold, relative to paper claims on gold.

US Treasury Secretary Jack Lew informed us this afternoon that the 'budget deal' did not address the budget ceiling.  He expects the US to be bumping its political head against it no later than early March, unless another deal is reached, and more hostages are taken.

Damned useless eaters.  Order must be restored.

Not to worry. The Masters of the Universe are working on a fix. 

And having squandered the wealth of the west, and virtually destroyed the real economy of the developed nations in their reckless greed and unrestrained selfishness, the financial class and their scholar-gentry are highly motivated (to do right by themselves.)  

And that is what might well concern us the most.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Gresham's Law of Morality

"Our government... teaches the whole people by its example. If the government becomes the lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy."

Louis D. Brandeis

Stocks paused today as the unemployment claims number came in much higher than expected.

The Recovery™ is doing well for the corporations, the new ubermenchen.

It is all the carbon life forms that are causing the problems for the economy. 

Speaking of setting a bad example, a Microsoft Exec who has been charged with insider trading says he did it, even though he knew it was wrong, because Congress does it.

Have a pleasant evening.

Comex Registered Gold Plummets To New Low of 490,000 As JPM Takes Deliveries

Gold? We don't need no stinkin' gold! Just keep selling!

JPM has managed to control a lot of the December delivery by taking it into their own vaults for their house account.

I don't suppose that anyone from the CFTC has bother to stop by and ask, 'And what are you all up to if we may ask?'

Still, 490,000 of gold remaining deliverable at these prices is a bit thin.

I will print the claims per ounce late tonight or early tomorrow, when we can get the data wrangler away from the barbie. Or is that Sheila? I forget.

Bloomberg: London Gold Vaults 'Virtually Empty' - Shipped to China Not to Return

"Gold? We don't need no stinkin' gold!"

And the natural reaction at this point in what has proven to be a year of a brutal, almost relentless market correction is to say, 'if this is so, how can they keep selling gold down in price?'

How can they indeed. By being audacious. Like this: Secret Traders' Club Rigged Biggest Market's Rates

And they remain arrogantly defiant.

"But there is a sort of 'Ok guys, you're mad, but how are you going to stop me' mentality at the top."

Robert Johnson

This is going to be interesting.