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KeithGram: The 'Crash JP Morgan'Campaign”

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Published : November 24th, 2012
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( 17 votes, 1.7/5 ) , 9 commentaries
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Category : Market Analysis





It is now the second anniversary of a campaign to "crash" JP Morgan by encouraging people to buy silver (see max Keiser The idea is that JP Morgan has a large naked short position in silver. If people buy physical silver it will drive the price up and deprive JP Morgan of the metal it would need to cover its short position, thus causing prices to rise further until JP Morgan collapses.

I don't want to waste any more electrons debunking this conspiracy theory. I have written many times on this topic, most recently in my (Open Letter to Ted Butler).

I want to call attention to something else. There is an old cliche in America, "cutting off your nose to spite your face." It is usually said in admonition when someone is doing something out of spite, and he will be the primary victim.

If it were true that JP Morgan had a huge short position in silver, and a rising price could cause them to "crash" then is this something that people should want to occur? To answer that, everyone should be clear on two things. First, what happens when a company collapses? And second, who are JP Morgan's creditors?

When a company collapses, it defaults on its debts. The creditors of JP Morgan are "we the people" including our bank accounts, our employers' payroll accounts, our pension funds, our insurance funds, our annuities, our brokerage accounts. Creditors also include farms, grain elevators, food processing plants, the electric power companies, etc. Other banks are creditors of JP Morgan as well; it is implausible that any would survive the collapse of JP Morgan.

Without any money in the bank, and without a job to earn more, how will you buy food? What happens when everyone else faces the same desperate circumstances?

If you want to buy silver, go buy silver. It is one of the two monetary metals. It won't cause any banks to collapse. The silver price may rise or fall in the short term, though it is in a long-term rising trend.

We face a serious crisis. While the banks have played their role and it may be tempting to wish ill upon them, causing a banking collapse is not a serious solution. Many of us are working to avoid collapse. Accelerating collapse does no good for anyone.



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Keith Weiner is a technology entrepreneur and president of the Gold Standard Institute USA. He was the founder of DiamondWare, a Voice Over Internet Protocol software company, which he sold to Nortel in 2008. He is an Objectivist who has his PhD from the New Austrian School of Economics, with a focus on monetary science. Keith, who currently trades and analyzes precious metals and commodities, advocates a return to a proper gold standard and laissez-faire capitalism. He lives with his wife near Phoenix, Arizona.
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Going to change my username to "meinunddein"
“If two friends ask you to judge a dispute, don't accept, because you will lose one friend; on the other hand, if two strangers come with the same request, accept because you will gain one friend.”
Saint Augustine
Rate :   0  1Rating :   -1
"Many of us are working to avoid collapse."
Who are us ? Collapse imminent ?
"Accelerating collapse does no good for anyone."
Slowing it down would be better ? For the grandchildren !
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Further to my last post.
The Australian government also has approximately 7 billion in secured asset for government pensions, and approximately 800billion in unsecured assets. It amuses me that the last lot of figures shows a deficit of only 45 billion, so you can add that 800billion to it. And of course, this does not include our private pension funds. So I am sure with a little imagination one can draw just how strong this country really is. We are no different to the rest of the western world, that is we have prospered off the past 40yrs off our fascist ponzi banking system and are about to pay the price, just like you are. Unemployment is not 5% as portrayed by government. It is much closer to 10-12% at the present, next year you can add a couple more to that. Not a nice picture. So tell you friends to do their homework if they wish to invest here. Don't follow the herd, or there is a very real chance of taking a very exciting ride to the bottom!
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You can buy as much silver as you like as individuals or collectively and you will not collapse J P Morgan.
Do people really think that those guys are stupid and that they are somehow going to get caught short in some sort of supply issue.
At this time they are taking risk free profits arbitraging whilst all the manipulator theorists are losing money on short term trading looking for someone to blame for their speculative gambling ( losses).

You just can't fight these guys. Your'e a light- flyweight in with a super-heavyweight ,with practically no chance of winning unless you get out of the ring and go with the flow of the those in command. Too easy. BUY SILVER because thats what they control, and they are in it for the money/reward/victory.

One day JPM will close that big short position ( spread), (NOT MANIPULATION) and silver will be off to the races, or to the moon so to speak.
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Keith, I sort of understand where you are coming from, though I wish to make a point here. I am an Australian that has reasonable knowledge of our banking health, thanks largely to independent financial media, and certainly not to the main stream media. I understand that the IMF has requested other countries to now carry more of our currency, and that the main stream media has portrayed how strong and impregnable of banking system is. Well, I am sorry to inform your readers this is far from the truth. Like elsewhere in the western world, our banks have falsified many of the mortgages that they hold, and according to an insider involved with our banking industry for some 30yrs, the trend has been upbeat for for donkey's years, and become the "norm". Two of our big4 here, namely NAB & Westpac, borrowed huge amounts from our federal reserve during the GFC, much of which has still not been repaid. Our resources boom has finished, quite abruptly, not as portrayed by main stream media, there is a huge shift moving away from mining here, mostly to Africa, due largely to two factors. They are cost of goods and services, and regulation. We have literally strangled the industry to death! Got my drift? 10yrs ago our Reserve decided to sell ALL of our gold reserves, stating it was a useless asset that now offered no benefit due to the strength of our economy. If they had sold just 3yrs later, we would have profited some extra several billion dollars. Does not sound much, but for our economy it is a substantial amount. From my own investigations, it appears we still hold approximately 80 ton. A fart in the wind! You also need to be aware that our banks are allowed to carry those so called valuable mortgages, as a "hard asset", when in fact they are not! It will take approximately until mid 2013 before the fallout from the huge drop of income from our resources, filters right through out the economy, and finally, into the banks. Getting the picture? Japan, whom is our next major trading partner, it also going to have a tremendous effect upon our economy. The NAB has huge exposure to the UK, so if you add all this together, it should be a warning for all. Back to the Banks, when our Reserve drops rates, the banks now, more often than not, don't drop the same amount. The situation we have is this. When interest rates go up, mortgage cost goes up, but they drop the deposit rate. So it is a win-win for the banks. Therefore, I conclude that they need to be trashed, they are as corrupt to the core as all our governments, media included. On another note, our government is presently making a desperate grab for our retirement funds, and so are our banks, whom are now allowed to access pension funds for those in trouble with their mortgages. Talk about open slather!
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Right, Keith. We, the pathetic sheep of America, will meekly stand by and allow the reckless financial terrorists at JPMorgan's and other institutions gamble away their depositers and shareholders' savings. After all, after they engineer another financial crash, we taxpayers will gladly allow them to conduct another raid on the U.S. Treasury to bail them out once again. We have nothing better to do with that money anyway. Let the schools go bankrupt and bridges fall into the river, but propping up JP Morgan is the most important thing there is. Bailing out Wall Street criminals solves nothing but does set up a bigger and more catastrophic collapse in the future. Calling out the horse manure dished out by shills like you is one way to restore clairity.
Rate :   9  2Rating :   7
Has Keith always been such a banksters lacky? Even people that haven't spent years in the financial sector are starting to decipher what's going on, the veil has been pulled back. Let the banks fail, better to do a hard reset without giving the bastards more money. Problem is that guys like Keith most likely wouldn't survive, no salable skills beyond sitting behind a desk. This is what THEY really fear, losing their ability to earn after a crash when what you can do with your hands will mean more than what you used to do with a keyboard.

You've gotta love it when those who protect the banksters start to squirm, it means we're getting close to reset time.
Rate :   10  3Rating :   7
You want the banks to fail? Not bright. Weiner is right, much to much conspiracy going around spread by opportunists trying to make a buck from gullible readers such as yourself.
Rate :   9  4Rating :   5
Not bright are those who spread propaganda the banks spew and it looks like your now working for the propaganda machine. Let me be very clear, I want the banks to fail, I want the inevitable hard reset to happen in my time so that my kids and grandkids aren't the ones that will have to suffer a greater loss later. Tell me Jim, in Jimmy world how much longer would the banks be bailed out by the US tax payers and how many more times would this happen before Jimmy world residents get a brain and say no more?

You and your ilk want to keep handing over tax payer money to these jackass's who can't keep themselves from making bad bets. How deranged is that? These very banks you wish to keep feeding have caused millions of people to lose all of their savings. They’ve caused business to go broke because the banks won’t invest the money wisely, in small and medium sizes businesses which are the real engine driving America, but they will gamble it away on derivatives and buy new $100 million yachts.

Let the banks fail, then the government should step up with the cash to lend out to these small and medium sized businesses directly, no middle man banks, and the many entrepreneurs that are out there. Once these people get funding watch unemployment numbers drop, watch the economy start to thrive. Watch Jimmy standing there with his jaw at his feet.

You speak of conspiracy. Any one that outright dismisses anything as a conspiracy is either ignorant or unable to take a situation and analyze it objectively. If you were to do this today focused on what the banks have been doing you would soon realize that 90% of what you would call conspiracy is truth so how dare you even contemplate calling anyone gullible when they look at the facts available and come to their own conclusion? You make the assumption that everybody except yourself believes the nut cases out there.

More and more it seems you post comments that are nothing but contrary to someone else’s, you put nothing in your comment that would indicate you've actually spent any time researching the material in an article. You just want to appear as if you are well versed on everything and the rest of us are grade school children. Grow up Jim!

I doubt that if everyone person in north America purchased 100 or more ounces that it would cause JPM to crash. These guys would borrow or steal what they needed to cover any short position. How much depositors silver was MF Global holding???

Jimmy world must be a very sad place where everyone is medicated and chants mantras extolling the virtues of big banks... Ouh how wonderful it must be. Do you serve free GMO popcorn as well?

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Not bright are those who spread propaganda the banks spew and it looks like your now working for the propaganda machine. Let me be very clear, I want the banks to fail, I want the inevitable hard reset to happen in my time so that my kids and grandkids a  Read more
Hart - 11/26/2012 at 5:00 PM GMT
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