Another Warning,This Time From Jesse

If you weren’t convinced by Anne Barnhardt’s warning, how about Jesse from Jesse’s Café Américain? The dire warnings are coming from all quadrants now. We are living through the blow off phase of the grandest illusion of all time. This is the big one where nothing is sacred and every conceivable injustice is perpetrated in the open, where you are literally dared to raise a voice in opposition. Sadly it will not end when all of your property is taken from you, for property is of little consequence. It is your freedom they want, and it is your freedom they will have if you will only hand it to them.

Get your wealth and remove it from their trap. Front run this nonsense and put your wealth in the emerging focal point for storing wealth, physical gold. Possess it, do not entrust someone to warehouse it for you. For if you make that mistake you will perhaps achieve the same fate as those who entrusted their gold to MF Global.

17 December 2011

Trustee to Seize and Liquidate Even the Stored Customer Gold and Silver Bullion From MF Global

The bottom line is that apparently some warehouses and bullion dealers are not a safe place to store your gold and silver, even if you hold a specific warehouse receipt.  In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation.

Although the details and the individual perpetrators are yet to be disclosed, what is now painfully clear is that the CFTC and CME regulated futures system is defaulting on its obligations.  This did not even happen in the big failures like Lehman and Bear Sterns in which the customer accounts were kept whole and transferred before the liquidation process.

Obviously holding unallocated gold and silver in a fractional reserve scheme is subject to much more counterparty risk than many might have previously admitted.  If a major bullion bank were to declare bankruptcy or a major exchange a default, how would it affect you? Do you think your property claims would be protected based on what you have seen this year?

You always have counter-party risk if you hold gold and silver through another party, even if they are a Primary Dealer of the Federal Reserve. As Ben said, the Fed offers no seal of approval.  

If a Bankruptcy Trustee can pool your bullion into the rest of the paper assets and then liquidate it at prices that are being front run by the Street, you will have to accept whatever paper settlement that they give you.

The customer money and bullion assets are not lost, or rehypothecated or anything else.  This is a pseudo-legal fig leaf, a convenient rationalization.

The customer assets were stolen, and given to at least one major financial institution by MF Global to satisfy an 11th hour margin call in the week of their bankruptcy, even as MF Global was paying bonuses to its London employees.

And in an absolutely classic Wall Street move, they are still charging the customers storage fees on the bullion which they have misappropriated from them. lol.

More…

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