Former US Treasury Official - Arrest The Gold Manipulators + Paul Craig Roberts on the Myth of GDP and Tyranny of the Elite

Eric King:  “I have to ask you about this Grant Williams piece that I know you’ve had a chance to look at on the King World News site where it actually illustrates the (extraordinary) paper claims on gold.  We’ve seen a parabolic explosion (on paper claims).  There is a massive run on gold as the inventories at the COMEX are collapsing and we have all of these paper claims.”

Dr. Roberts:  “What this shows is the consequence of repealing the position limits on speculation, because you now have a situation where derivatives drive the actual physical market.  This is the exact opposite of what sound economics would have. 

In previous times, the actual markets drove things and derivatives were the tail of the dog.  Now the derivatives are the dog.  Now stocks, bonds, gold and the commodities, they are the tail that gets wagged by the derivatives....

“This is a completely unstable situation, and I don’t understand why it’s permitted or why it’s tolerated.  I suppose it’s simply because the authorities are so corrupt that they’ve allowed the financial system to rig everything in their behalf.

But I don’t think you can have this go on forever.  You can’t, forever, have more claims on assets than there are assets, and a financial system that’s in that condition is in a very serious situation.  And it’s true across the board, it’s not just in the gold market.

If you look in the wider derivatives market, the total sum is huge!  It’s many multiples of all the wealth in the world added up together.  When you get a situation like that it’s got to have some (type of) fantastic explosion.”

Full story at KWZ

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RT: Don't fight the Fed! So the mantra goes. Today, a twenty-two year old Bangladeshi man was sentenced to thirty years for attempting to blow up the New York Federal Reserve building. His fledgling terrorist cell was infiltrated by the FBI, which supplied him with one thousand pounds of fake explosives. According to the Justice Department, the attempted bomber asserted the plan was his own -- and that his goal was to "destroy America" by targeting its economy. Evidence was introduced in court of him scoping out the New York Stock Exchange. He eventually chose, or was helped to choose the New York Fed.

And, is the London Whale simply Jon Corzine slash MF Global redux? Two stories are being floated in the media today. The first by Bloomberg regards JP Morgan, which is negotiating with regulators over the derivatives debacle that cost the firm over $6 billion. According to -- quote -- "people", Mr. Dimon's firm will likely get off with only a fine, a wrist slap. And, according to -- quote -- "sources", the London Whale himself, Bruno Iksil will not face US charges. So why the possible Jon Corzine redux? The media was repeatedly used as a tool to float the idea Corzine would walk free. Now the London Whale doesn't have nearly the grass roots movement that MF Global did. But, hint, hint: members of Congress don't like angry phone calls.

Despite massive debts, the US is able to borrow at record low rates, thanks in part to Quantitative Easing. It is a world of disinformation and misinformation in which facts are fiction, and abstract theories are substituted for empirical reality. Not unlike the movie, the Matrix, in which an entire population lives in an alternate reality. Bob talks fake econ stats with former assistant treasury secretary Paul Craig Roberts, and Perianne profiles Purdue pharma.