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JohnQPublic
30th June 2010, 09:53 PM
Was AIG, In Addition To Being The Riskiest Company In The World, Also A Precious Metals Manipulator? (http://www.zerohedge.com/article/was-aig-addition-being-riskiest-company-world-also-precious-metals-manipulator#comment-445853)
Submitted by Tyler Durden on 06/30/2010 20:46 -0700

A little under two years ago, there was a big debate in the precious metals community, in which two groups of individuals were arguing for and against possible silver market manipulation, via arbing the COMEX and the OTC. On one hand you had such distinguished economists/bloggers as Mish (here and here) and Jon Nadler of Kitco (here) claiming there is no such thing as a COMEX-OTC arb because markets are ultimately efficient, and the second a trade is effected in one market, it implicitly affects all other markets, making spread arbing, and thus "manipulation" impossible. On the other hand, you had C.Loeb making precisely the opposite argument (here). After a brief flare up, the debate died down, with a partial win acceded to Nadler, who ended the debate with the following rhetorical statement: "Also, by the way, why not NAME the sinister manipulative banks in question? Why not ask them outright as to the motives behind their positions (or better yet, who their clients were) and whether or not they acted in a "willfully nefarious" manner? Conclusion: One can take any database and make it suit their conspiracy argument. That, however, does not make for proof of any kind." In other words, Mr. Nadler was asking for a bank to confirm it was arbing the COMEX-OTC spread, which in turn would unwind his defense argument, and lend credence to the claim that some players, due to their massive scale or otherwise, succeed in manipulating the silver (or gold) market by profitably spreading the legs of the trade in two completely different markets and arbing this spread. For the longest time people looked exclusively at JPMorgan for clues. Boy, were they wrong... and are they about to be surprised that in addition to almost blowing up the world, AIG FP has admitted that it itself, as the defacto risk mastodon and suicide bomber under Joe Cassano, with "$426 billion in total on and off balance sheet risk equivalent delta," was precisely just this spread manipulator. But don't take our word for it. Take AIG's.

Presenting exhibit A: AIG production document FRBNY-TOWNS-R1-210712 (pp 34-35) - highlight ours.

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/trichet/AIG%20Silver.jpg

Oh, so the arb does exist...

There are about 249,999 other pages we need to go through to find additional supporting and incriminating evidence to this formerly Strictly Confidential Internal Risk Analysis, but a very relevant question at this point for Mr Nadler is: now that you have your confirmatory smoking gun, does that change your thesis? And a much more critical question for the gentlemen at the COMEX: just how was the world's arguably biggest trader at the time, AIG-FP, arbing your market and the OTC, and just how much of this falls under the confines of "legal"? And, lastly, maybe the most critical question - who inherited these positions, who unwound them, and, if no unwind occurred, who is currently in possession of AIG-FP's "large exposure in the Comex vs OTC arbitrage trades"?

MAGNES
30th June 2010, 10:03 PM
AIG was run by the CIA, same with Bear Stearns, JPMChase
got BS cause JPM is a company bank too, Rockefeller runs
the show, running the CIA and his bank. In addition to outright control
and secrecy, there is a revolving door of high executives between
the US Intell community and the key big banks and oil companies.
All of this above ain't really news, all the info is out there.

BS was involved too, that is how JP got it.

gunDriller
1st July 2010, 06:30 AM
AIG was run by the CIA, same with Bear Stearns, JPMChase
got BS cause JPM is a company bank too, Rockefeller runs
the show, running the CIA and his bank. In addition to outright control
and secrecy, there is a revolving door of high executives between
the US Intell community and the key big banks and oil companies.
All of this above ain't really news, all the info is out there.

BS was involved too, that is how JP got it.


good points.

Ruppert did some good investigation on CIA drug dealing - involving AIG - before 9-11 came along.

http://www.fromthewilderness.com/free/ciadrugs/part_2.html

DMac
1st July 2010, 06:44 AM
The PM manipulation game goes back much further than just Bear Stearns.

Gold manipulation is how the dollar is kept as the reserve currency, or was for most of the 20th century.

The gold manipulation scheme has always been backed by the PTB in the US gov, working hand in hand with their master, Mr Rothschild & Co (he who owns all the gold).

Long Term Capital Management was the front prior to BS (JPM is the current front). Bear Stearns inherited the great silver short from LTCM when it went poof.

At the time, LCTM was working with banks in Italy (and I think connected to the Vatican) in a fraudulent gold leasing program.

Here is an interesting read on LTCM and Gold price manipulation: Link to article (http://www.24hgold.com/english/news-gold-silver-ltcm-revisited--a-forensic-account.aspx?contributor=Gold+Price+Management&article=1994197332G10020&redirect=False)

The article mentions how the US Fed and US Treasury were not on board with this LTCM scam, I disagree - it was through scams like this the dollar was kept artificially higher. Just like today and the silver shorts owned by JPM.

AIG is the underwriter of the insurance used as a part of this derivative scam, so of course they are involved in the manipulation game. As MAGNES rightfully said, the controllers of AIG are in bed with the CIA (if not CIA themselves), and a strong dollar is one of the CIA's primary objectives.